Safety Components International Announces Airbag Orders
8 April 1998
Safety Components International, Inc. Receives Additional Significant Airbag Orders From Major Module SupplierFORT LEE, N.J., April 7 -- Safety Components International, Inc. , one of the world's leading manufacturers of automotive airbag fabric and cushions, announced today that its North American Automotive Division was awarded significant new automotive airbag orders from a major module supplier. Total new annual volume should approximate 2 million airbag cushions and $24.3 million in revenues from the additional programs. Total orders from this new customer now aggregate 3.1 million airbag cushions and $39 million in annual revenues once full production commences. Production on these new awards should begin on all programs between Safety Components' third quarter of the current fiscal year (1999) and the end of the first quarter of fiscal 2000. Safety Components' fiscal year begins in April. One of the awarded airbag cushion platforms is currently in production and will require approval of the automobile manufacturers prior to commencement of production by Safety Components. "With these awards, we now have significant programs with each of the two largest worldwide airbag module integrators," said Robert A. Zummo, president and chief executive officer of Safety Components International, Inc. "Safety Components continues to believe we are well positioned to expand the awards from this new supplier to an annual volume of in excess of 3.5 million airbag cushions by the end of our fiscal year 1999. The new awards we have received should benefit our fiscal year 2000 performance. We also believe we can broaden our relationship with this customer to include European business." This release contains forward-looking statements. There are certain important factors that could cause results to materially differ from those anticipated from the statements made above. These factors include, but are not limited to: worldwide economic conditions; automotive industry trends; approval by automobile manufacturers of airbag cushions currently in production; pricing pressures and the ability to satisfy the customer on timeliness and quality. Additional information on these and other factors that could potentially affect the company's financial results may be found in the company's filings with the Securities and Exchange Commission. Safety Components International, Inc. is a leading, low-cost supplier of automotive airbag fabric and cushions with operations in North America, Europe and Asia. The company is also a leading manufacturer of value-added synthetic fabrics used in a variety of niche industrial and commercial applications. In addition, Safety Components supplies metal airbag components to its airbag customers utilizing its machining and stamping capabilities gained from years as a military ordnance manufacturer and continues as a systems integrator and manufacturer for ordnance programs. SOURCE Safety Components International, Inc.