National-Standard Company Reports Fourth Quarter Income
19 November 1997
National-Standard Company Reports Fourth Quarter Income
NILES, Mich., Nov. 19 -- National-Standard Company
announced fourth quarter sales for fiscal 1997 were $60.1 million,
compared to $61.2 million reported for fiscal 1996. Net income for the
quarter was $.7 million or $.13 per share, compared to $1.6 million or $.30
per share in 1996. Fourth quarter results were adversely affected by
continued price pressure in tire bead wire and air bag filter materials. Weld
wire sales increased 20 percent in the quarter compared to last year's fourth
quarter.
The effect of the restructuring charge taken in the second quarter has had
a positive impact on the United Kingdom results. In the fourth quarter, the
UK posted $.3 million of income compared to a loss of $.7 million for the
fourth quarter last year. For the year, the UK lost $1.3 million without the
second quarter restructuring charge, compared to a loss of $1.2 million in
1996.
"We are encouraged by the improvement in the UK. The continued strength
of the English pound sterling relative to most other currencies makes the task
more difficult, but also more necessary," said M.B. Savitske, President and
Chief Executive Officer.
For fiscal year ended September 30, 1997, the Company reported on a
consolidated basis a net loss of $9.0 million or $1.71 per share, compared to
a net income of $8.9 million, or $1.65 per share in 1996. Sales for the year
were $247.8 million, a .3 percent decrease from sales of $248.6 million
reported in fiscal 1996.
This year's net loss includes a $9.9 million, or $1.87 per share, charge
taken in the second quarter for restructuring the Company's operations in the
United Kingdom, while last year's net income included approximately $3.5
million or $0.66 per share from the sale of shares of Allmerica Financial
Corporation, which the Company received as a result of the demutualization of
the State Mutual Life Assurance Company of America.
"The Company's operating loss includes the special charge in the UK.
Without the special charge, we did generate a small net income in 1997," said
Savitske.
"The year was characterized by a 13 percent sales increase in welding wire
and a 16 percent increase in air bag inflator filters. Despite these
increases, income was adversely affected by significantly lower prices for
bead wire and air bag materials. Considerable progress was made in
implementing the operational changes that are intended to improve the
Company's long-term performance. Our initiatives included installation of the
QS-9000 quality system to provide the basis for continuous improvement,
implementation of constraint management to increase operating efficiency and
improve asset utilization and Economic Value Management to insure that all of
our actions increase shareholder value," added Savitske.
Founded in 1907, National-Standard is a Niles, Michigan based firm with
annual sales of approximately $250 million. In nine operating facilities
throughout the world, the Company manufactures and distributes a broad range
of wire and wire-related products, including tire bead wire and welding wire,
in addition to wire cloth and fabricated filters for the automotive air bag
industry.
Financial Highlights
National-Standard Company and Subsidiaries
($000 except per share amounts)
For three months ended September 30: 1997 1996
Net Sales $60,061 $ 61,154
Operating Income 1,721 1,345
Net Income 696 1,629
Income Per Share .13 .30
Average Shares Outstanding 5,224,613 5,333,283
For year ended September 30: 1997 1996
Net Sales $247,763 $248,554
Operating Income/(Loss) (4,697) (a) 8,871
Net Income/(Loss) (8,990) (a) 8,852 (b)
Income/(Loss) Per Share (1.71) 1.65
Average Shares outstanding 5,265,770 5,372,694
a. Includes a one-time charge of $9.850 related to the restructuring of
operations in the United Kingdom.
b. Includes $3,538 of net gain on sale of Allmerica Financial Corporation
Stock.
SOURCE National-Standard Company