MascoTech, Inc. Announces 1997 Results
19 February 1998
MascoTech, Inc. Announces 1997 Results
TAYLOR, Mich., Feb. 19 -- MascoTech sales from
its metalworking and aftermarket businesses increased six percent to
approximately $922 million in 1997, while overall sales declined from $1.3
billion in 1996 reflecting the previously announced disposition of certain
businesses.
Income after preferred stock dividends in 1997 was $109 million or $2.12
per common share. Results in 1997 include pre-tax gains approximating $83
million principally related to the disposition of the Company's equity
ownership interest in Emco Limited, gains from the Company's marketable
securities portfolio and income resulting from equity transactions by
affiliates. These gains were partially offset by costs and expenses of
approximately $24 million pre-tax related to plant closure costs, the
Company's share of special charges recorded by equity affiliates, and employee
termination and other expenses. Excluding the gains and unusual costs, income
after preferred stock dividends in 1997 would have been approximately $73
million or $1.50 per common share.
Income after preferred stock dividends in 1996 was $38.7 million or $.72
per common share. Results in 1996 include an after-tax loss of approximately
$26 million related to the sale of the Company's heavy-gauge stamping
operations, which more than offset after-tax income of approximately $11.7
million related to the cumulative effect of an accounting change. Excluding
the above items, income in 1996 after preferred stock dividends would have
been approximately $53 million or $.98 per common share.
As previously announced, the Company completed the acquisition of TriMas
Corporation in January 1998 by purchasing all the outstanding shares of TriMas
not already owned by MascoTech for approximately $920 million.
Also as previously announced, based on current economic trends and
excluding certain costs and expenses associated with the acquisition of TriMas
and anticipated restructuring charges related to the combination of the two
businesses, and any other non-recurring charges, MascoTech expects earnings
for 1998 to approximate $1.80 per common share.
MascoTech's transportation-related businesses include metalworked
components primarily for vehicle engine and drivetrain applications and
automotive aftermarket products. TriMas manufactures diversified proprietary
products including specialty fasteners, towing systems, specialty container
products and other industrial products with leadership positions in
commercial, industrial and consumer niche markets.
Visit MascoTech's website at http://www.mascotech.com. MascoTech's press
releases are also available through Company News On-Call by fax, 800-758-5804,
extension 535375, or http://www.prnewswire.com.
MASCOTECH, INC. ANNOUNCES 1997 RESULTS
Three Months Ended Twelve Months Ended
December 31 December 31
1997 1996 1997 1996
Net Sales $233,620 $271,450 $922,130 $1,281,220
Cost of Sales (191,600) (213,290) (735,470) (1,048,110)
Selling, General and
Administrative
Expenses (21,650) (31,800) (89,930) (132,260)
Gains (Charge) on Disposition
of Businesses, Net 4,980 --- 4,980 (31,520)
Operating Profit 25,350 26,360 101,710 69,330
Other Income, Net 6,280 920 88,580 7,890
Income Before Income Taxes and
Cumulative Effect of
Accounting Change 31,630 27,280 190,290 77,220
Income Taxes 12,360 10,830 75,050 37,300
Income Before Cumulative Effect of
Accounting Change 19,270 16,450 115,240 39,920
Cumulative Effect of Accounting
Change --- --- --- 11,700
Net Income $19,270 $16,450 $115,240 $51,620
Preferred Stock
Dividends --- $3,240 $6,240 $12,960
Earnings Attributable to
Common Stock $19,270 $13,210 $109,000 $38,660
Diluted Earnings Per Common Share:
Income Before
Accounting Change $.37 $.28 $2.12 $.50
Accounting Change --- --- --- .22
Earnings Attributable to Common
Stock $.37 $.28 $2.12 $.72
Average Common Shares Outstanding - Diluted 58,920 53,790
Amounts in thousands except per share data.
SOURCE MascoTech, Inc.