Arvin Reports Record Sales and Earnings
14 July 1998
Arvin Reports Record Sales and Earnings
COLUMBUS, Ind.--July 14, 1998--Arvin Industries, Inc. , today reported second quarter net earnings from continuing operations, before one-time items, increased to $26.7 million, or $1.10 per diluted common share, on sales of $643 million. This compares to last year's second quarter earnings of $21.1 million, or $0.91 per diluted common share. Both sales and earnings were records for any fiscal quarter. After one-time items, which resulted in a $0.04 per share net gain, total earnings were $27.7 million or $1.14 per diluted common share.For the first six months of 1998, prior to one-time items, net earnings from continuing operations increased to $40.2 million or $1.67 per diluted common share versus net earnings of $31.3 million or $1.36 per diluted common share in the first half of 1997. Total net earnings from continuing operations for the first six months were $41.2 million or $1.71 per diluted common share. Sales for the first six months of 1998 increased to $1,237 million from $1,197 million last year.
V. William Hunt, Arvin President and Chief Executive Officer, said, "I am pleased to report this record level of performance for the second quarter. In spite of the strike at General Motors, which is our largest North American customer, all of our Original Equipment (O.E.) operations improved performance over a strong second quarter a year ago. I am particularly pleased with the improved margins in O.E. ride control. This is a direct result of our commitment to world class quality and continuous improvement.
"Our O.E. customers continue to reward our accomplishments with additional business," Hunt continued. "Eight of the top 10 selling vehicles in the U.S. and seven of the top 10 selling vehicles in Europe have Arvin products installed as original equipment.
"The replacement business, despite erratic demand for exhaust products, held margins in line with last year's second quarter results and return-on-capital was significantly ahead of last year's performance. The acquisition a year ago of the remaining portion of the former TESH European exhaust joint venture has now been fully integrated into a single global replacement organization providing better coordination of efforts among our replacement business units, substantial operating efficiencies and new business. Our market positions are at the highest levels in recent years," Hunt said.
One-time items included in the results were a gain of $0.22 per share on the sale of Arvin's interest in a previously divested operation and a charge of $0.18 on a realignment of Original Equipment exhaust operations. "As more and more of our customers have requested full systems and full service, we have evaluated where we are geographically located and how we are staffed. We have concluded we can serve the customer more efficiently by moving away from component specialization in certain of our factories to be more responsive to full system requests. The implementation of this realignment is also expected to entail the consolidation of certain of our research and development facilities," Hunt explained.
Arvin Industries, Inc., is a global manufacturer of automotive components with over 50 manufacturing facilities and eight technical centers located in 16 countries. Arvin is a leading manufacturer of automotive exhaust systems and ride control products. Our replacement products are sold under various trademarks including Arvin, Maremont, Timax, ANSA and ROSI for exhaust systems; Gabriel shock absorbers; and StrongArm gas charged lift supports.
For more information on Arvin Industries via the Internet, visit our Corporate Home Page at http://www.arvin.com or our Corporate News on the Net site at http://www.businesswire.com/cnn/arv.htm. For information via fax, please call our News On Demand service at 888-622-1161.