Simpson Industries Reports Results For the Fourth Quarter and Year Ended December 31, 1997
28 January 1998
Simpson Industries Reports Results For the Fourth Quarter and Year Ended December 31, 1997
PLYMOUTH, Mich., Jan. 28 -- Simpson Industries, Inc.
today reported sales of $451.5 million and earnings of $10.1
million for the year ended December 31, 1997.
Fourth quarter net sales were a record $123,043,000, 25% higher than year
earlier sales of $98,301,000. The $24,742,000 increase was due largely to
revenues from Simpson's recent acquisition of the European based Vibration
Attenuation business of Cummins Engine Company along with internal growth
stemming from new program launches undertaken since the beginning of the year
and favorable market conditions in the North American light vehicle segments.
Fourth quarter operating earnings increased 42% to $7,596,000 versus
$5,363,000 in the fourth quarter 1996. Net earnings were $3,611,000, or 20
cents per share (fully diluted). Comparable fourth quarter 1996 net earnings
of $4,236,000, or 23 cents per share, benefited from one-time tax credits of
$1.1 million, or 6 cents a share. Excluding this tax credit, fourth quarter
net earnings increased 15% over the adjusted 1996 period and earnings per
share improved 3 cents a share.
For the year, net sales were $451,518,000, up 11% from $407,999,000 the
year earlier. Net earnings were $10,079,000 or 55 cents per share (fully
diluted) compared to $17,607,000, or 97 cents per share in 1996. Current year
earnings included a one-time, 32 cents per share charge for plant
consolidations and additional equipment moving expenses not allowed under the
special charge by generally accepted accounting principles. Net earnings in
1996 reflected the aforementioned tax adjustment that increased earnings per
share by 6 cents for the year.
"This has been a pivotal year in the history of Simpson Industries," said
Roy E. Parrott, chairman, president and chief executive officer. "We have
implemented key strategic initiatives in 1997 which will position us to serve
our customers globally and compete profitably in the worldwide automotive
supply industry." Parrott added, "We now are capable of manufacturing our
full product line beyond our traditional North American base and have an
ambitious plan to continue growth of our technology based products both
domestically and in the international marketplace," Parrott concluded.
Simpson Industries supplies powertrain and chassis products to original
equipment manufacturers in the worldwide automotive and medium and heavy duty
diesel engine markets. Simpson's products are focused in four groups: noise,
vibration and harshness; wheel-end and suspension; modular engine assemblies
and high-precision machined components. Simpson's manufacturing units are
located in the United States, Canada, Mexico and Brazil. European and Asian
operations are located in England, France, Spain and Korea.
Certain statements in this press release may be "forward-looking
statements" under the Securities Exchange Act of 1934. Statements regarding
future operating performance, new programs expected to be launched and other
future prospects and developments are based on current expectations and
involve certain risks and uncertainties that could cause the actual results
and developments to differ materially from the forward-looking statements.
Potential risks and uncertainties include such factors as demand for the
Company's products, pricing and other actions taken by the Company.
Consolidated Statements of Operations
(In thousands, except
per share data)
Year Ended Three Months Ended
December 31 December 31
1997 1996 1997 1996
NET SALES $451,518 $407,999 $123,043 $98,301
Cost of products sold 406,513 365,253 111,366 89,123
GROSS PROFIT 45,005 42,746 11,677 9,178
Administrative and selling 13,152 13,173 3,614 3,815
Amortization 934 - 467 -
Plant Closing Costs 8,769 - - -
OPERATING EARNINGS 22,150 29,573 7,596 5,363
Interest and other
income - net 524 1,425 (208) 574
Interest expense (7,451) (5,354) (2,357) (1,309)
EARNINGS BEFORE INCOME TAXES 15,223 25,644 5,031 4,628
Income taxes 5,144 8,037 1,420 392
NET EARNINGS $10,079 $17,607 $3,611 $4,236
NET EARNINGS PER SHARE (Basic) $.56 $.97 $.20 $.23
NET EARNINGS PER SHARE
(Fully Diluted) $.55 $.97 $.20 $.23
Cash dividends per share $.40 $.40 $.10 $.10
Average number of shares
(Basic) 18,123 18,067 18,130 18,076
Average number of shares
(Fully Diluted) 18,202 18,115 18,241 18,138
Depreciation $22,493 $20,497 $5,928 $5,154
SOURCE Simpson Industries, Inc.