OEA Reports Second Quarter Operating Results
2 March 1998
OEA Reports Second Quarter Operating Results
DENVER, March 2 -- OEA, Inc. a Denver, Colorado,
high-technology manufacturer of automotive safety and aerospace products,
reported results for the second quarter ended January 30, 1998.
Charles B. Kafadar, President and Chief Executive Officer, announced that
net sales and operating profit were $59,414,200 and $8,178,600 respectively,
as compared to second quarter, prior-year sales and operating profit of
$51,486,200 and $12,423,800. Net earnings and earnings per share for the
current quarter were $4,086,800 and $.20, respectively, as compared to
$7,804,400 and $.38 in the prior year. The company previously announced that
earnings would fall below analysts' expectations.
Net earnings for the first half of fiscal year 1998 were $10,199,400 on
sales of $116,749,000, compared with net earnings of $14,909,600 on sales of
$96,825,900 for the prior-year first half. Net earnings per share for the
first half were $.50 compared to $.73 for the same period last year.
Automotive sales for the quarter were $47,819,400, an increase of 15% over
the prior year reflecting continued growth of OEA's air bag inflator business.
The strong growth in inflator sales was partially offset by lower initiator
sales. Automotive operating profit for the quarter was $6,775,200, 38% below
last year. The decline in operating profit was due to lower initiator sales
and the impact of a previously announced parts shortage and start-up costs of
OEA's four new inflator production lines. The Company believes that
productivity improvements and other cost reductions will result in improved
profitability in the fourth quarter.
Aerospace sales were $11,594,800, an increase of 15% over the prior year
on continued strong increases in the Delta satellite launcher and engineering
development programs. Operating income for the quarter was $1,403,400,
slightly below last year reflecting the increase in lower margin development
programs.
OEA is a major manufacturer of air bag inflators and initiators, and a
leader in the design and manufacture of personnel escape systems for military
aircraft and high-reliability devices for missile and space applications.
The information set forth above includes "forward-looking" statements for
purposes of the federal securities laws. Reference is made to the cautionary
statements under the caption "Forward-Looking Statements" in OEA's Annual
Report on Form 1O-K for the year ended July 31, 1997 for a description of
various factors that might cause OEA's actual results to differ materially
from those contemplated by such forward-looking statements.
OEA, INC.
FINANCIAL SUMMARY
$(THOUSANDS, EXCEPT SHARE DATA)
3 MONTHS ENDED 1/30 6 MONTHS ENDED 1/30
1998 1997 1998 1997
NET SALES 59,414 51,486 116,749 96,826
OPERATING PROFIT 8,179 12,424 18,433 24,182
OTHER INCOME (EXPENSE) (1,623) 234 (2,313) 152
EARNINGS BEFORE TAXES 6,556 12,658 16,120 24,334
INCOME TAXES 2,469 4,854 5,921 9,424
NET EARNINGS 4,087 7,804 10,199 14,910
NET EARNINGS PER SHARE 0.20 0.38 0.50 0.73
AVERAGE NUMBER OF
SHARES OUTSTANDING 20,576,208 20,541,348 20,566,693 20,531,781
SOURCE OEA, Inc.