Intermet Reports Record Fourth Quarter Sales
2 February 1998
Intermet Reports Record Fourth Quarter Sales
TROY, Mich., Feb. 2 -- Intermet Corporation
today reported record fourth quarter sales of $204 million and a net income of
$10.6 million for the fourth quarter of 1997. Revenue was up $78 million, or
62 %, compared with fourth quarter 1996. Diluted earnings per share for the
quarter were $0.41 compared with fourth quarter 1996 diluted earnings per
share of $0.65. On an operational basis, earnings per share for 1997
increased $0.18 over 1996. (1996 fourth quarter earnings reflected a one-time
tax gain of $0.42 per share.) In February 1997, the Financial Accounting
Standards Board ("FASB") issued Statement No.128, "Earnings per Share" which
was adopted December 31, 1997. Under the new requirements, FAS 128 replaces
the presentation of primary and fully diluted EPS with a presentation of basic
and diluted EPS. Intermet's 1997 fourth quarter basic earnings per share on
net income were $0.43 and $0.67 in 1997 and 1996, respectively.
Total 1997 sales were a record at $814 million compared with $534 million
for 1996. Sales for Intermet, exclusive of the sales from the Sudbury
acquisition, would have decreased approximately 1% from 1996 to 1997 due to an
unfavorable exchange impact on the European operations. Net income for the
year was $40 million with diluted earnings per share at $1.55. On an
operational basis, this is a 22% increase over 1996 excluding the one-time tax
gain in 1996.
John Doddridge, Intermet's chairman and chief executive officer, said, "We
are pleased with the successful integration of the Sudbury operations into
Intermet, and as we move into 1998, feel we have emerged from the 'selling
gap' that we have been struggling with over the past several years. The
impact of our renewed sales and marketing effort, coupled with our emphasis on
quality and customer service, has been effective, as evidenced by the recent
award of several new programs slated for launch in the second half of 1998
which continue to phase in through 2002." Doddridge continued, "These new
programs include Intermet's largest single award of a program to supply
ductile iron steering knuckles to one of our automotive customers."
"As a leader in the ferrous casting industry, Intermet is continually
striving to improve our technology," Doddridge said. "Our newly opened
technical center enhances our full service capabilities and reinforces the
company's standing as a leader in design and engineering for the manufacture
of metal cast components."
The board of directors approved a quarterly dividend of $0.04 per share,
payable on March 31, 1998 to shareholders of record on March 2, 1998.
Detroit-based Intermet Corporation and its subsidiaries design and
manufacture precision iron and aluminum castings for automotive and industrial
equipment manufacturers worldwide, produce precision machined components,
cranes and specialty service vehicles, and provide custom coating
applications. Intermet has more than 6,400 employees at twenty-three operating
locations in North America and Europe.
Intermet Corporation Condensed Consolidated Income Statements
(in thousands, except per share data)
Three Months Ended (unaudited) Twelve Months Ended
December 31, December 31, December 31, December 31,
1997 1996 1997 1996
Net sales $203,805 $126,259 $813,729 $534,478
Cost of sales 174,761 110,283 706,771 456,618
Gross profit 29,044 15,976 106,958 77,860
Operating expenses 7,748 6,551 29,621 21,757
Operating profit 21,296 9,425 77,337 56,103
Other expense net (5,098) (463) (15,948) (1,781)
Income tax provision(5,628) 7,781 (21,376) (11,169)
Net income $10,570 $16,743 $40,013 $43,153
Earnings per share
(basic) $0.43 $0.67 $1.59 $1.72
(diluted) $0.41 $0.65 $1.55 $1.69
Weighted average
shares outstanding
(basic) 25,239 25,110 25,211 25,067
(diluted) 25,822 25,615 25,783 25,594
Intermet Corporation Condensed Consolidated Balance Sheets (in thousands)
December 31, December 31,
1997 1996
Assets:
Cash and cash equivalents $6,274 $23,485
Other current assets 197,160 165,809
Property, plant and equipment (net) 218,966 222,782
Other non-current assets 105,540 114,236
Total assets $527,940 $526,312
Liabilities and shareholders' equity:
Current liabilities $125,134 $171,368
Long-term debt 167,250 149,477
Other long-term liabilities 57,791 61,528
Total liabilities 350,175 382,373
Minority interest 2,337 2,837
Shareholders' equity 175,428 141,102
Total liabilities and shareholders'
equity $527,940 $526,312
SOURCE Intermet Corporation