National-Standard Company Reports First Quarter Results
22 January 1998
National-Standard Company Reports First Quarter Results
NILES, Mich., Jan. 22 -- National-Standard Company
announced sales for the first quarter ended December 31, 1997 of
$56.9 million, compared to $59.9 million reported for the same period last
year, according to M.B. Savitske, President and Chief Executive Officer. The
decrease was due in part to lower sales in the U.K. subsidiary, a direct
result of the restructuring in the UK during Fiscal 1997. In North America,
sales declined in the air bag inflator filtration products and rubber
reinforcement products. The decline in air bag products follows the decision
to discontinue the sale of certain unprofitable wire cloth mesh products. The
decline in rubber reinforcement is due primarily to lower selling prices.
These declines, however, were partially offset by a 13 percent increase in
weld wire sales over the same period last year and an 18 percent increase in
sales of fabricated filters for air bag inflators.
Net income for the quarter was $.2 million or 4 cents per share versus $.7
million or 14 cents per share last year. This year's net income was $.5
million lower than last year as rubber reinforcement product margins declined
due to continued pricing pressure pushing selling prices down as the current
market supply of bead wire exceeds demand in the tire industry.
The restructuring taken in U.K. during Fiscal 1997 has had a positive
impact on 1998 results to date. Operating profit in the U.K. improved $.2
million over last year on $1.9 million lower sales over the comparable period
last year. Continued improvement is expected for the remainder of the year.
"There were four bright spots in our first quarter; improving margins in
the U.K., continued growth in weld wire sales, higher sales of more value
added air bag filtration products, and the successful QS-9000 registration
audits at three locations, Mesa, Arizona, Kidderminster England, and the
corporate office in Niles, Michigan," said M.B. Savitske, President and Chief
Executive Officer. "While bead wire pricing remains extremely difficult, we
believe that cost reduction activities that are scheduled to be implemented
during the remainder of the year will mitigate this negative effect on the
final nine months of 1998.
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.
This Press release may contain forward-looking statements as defined under
the Private Securities Litigation Reform Act of 1995. Cautionary statements
accompanying these forward-looking statements are set forth, along with this
release, in a Form 8-K filed with the Securities and Exchange Commission.
Financial Highlights
National-Standard Company and Subsidiaries
($000 except per share amounts)
For three months ended December 31:
1997 1996
Net Sales $56,941 $59,874
Operating Profit 925 1,645
Net Income 206 737
Basic and Diluted Earnings per Share .04 .14
Average Shares Outstanding 5,228,644 5,313,080
SOURCE National-Standard Company