National-Standard Reports Quarterly Results
23 July 1998
National-Standard Reports Quarterly Results
NILES, Michigan, July 23 -- National-Standard Company
announced sales of $55.7 million and a net income of $.2 million,
or $0.04 per share, for the third quarter of 1998, compared to sales of $64.7
million and a net income of $.3 million or $0.05 per share for the same period
last year, according to Michael B. Savitske, President and Chief Executive
Officer.
The decrease in sales was due in part to lower sales in the United Kingdom
subsidiary, a direct result of the restructuring in the U.K. during Fiscal
1997. In North America sales declined in the air bag inflator filtration
products and rubber reinforcement products segments. The decline in air bag
products follows the decision to limit the sale of certain lower margin wire
cloth products. The decline in rubber reinforcement is due primarily to lower
selling prices. These declines, however, were partially offset by a three
percent increase in weld wire sales over the third quarter last year.
For the first nine months of 1998, sales were $170.6 million with a net
income of $.5 million, or $0.10 per share, compared with sales of $187.7
million and net loss of $9.7 million, or $1.83 per share for the same period
last year. Last year's loss includes a $9.9 million charge for restructuring
the Company's operations in the United Kingdom.
"While the U.K. restructuring has had a positive impact on the U.K. net
income, results have been adversely affected by lower sales prices as a direct
result of the continued strength of the pound sterling. We do expect full
year operating results for the unit to be better than last year," said Michael
B. Savitske, President and Chief Operating Officer.
"Domestically, the Company continues to be successful in QS-9000
registration activities. During the quarter, three facilities completed the
registration process, bringing to eight the number of sites registered."
"Our third quarter results were negatively impacted by the Asian recession
as customers' exports of certain products have been curtailed. The General
Motors work stoppage had a minor impact in the third quarter. The Company
expects that on an ongoing basis, the strike will negatively impact the
Company's operating income by $300,000 to $400,000 per month. We have taken
steps to limit the potential negative effect, including controls on
discretionary spending, work force reductions and changes in operating
schedules."
Founded in 1907, National-Standard is a Niles, Michigan based firm with
annual sales of approximately $250 million. In ten operating facilities
throughout the world, the Company manufactures and distributes a broad range
of wire and wire-related products, including tire bead wire and welding wire,
in addition to wire cloth and fabricated filters for the automotive air bag
industry.
This press release may contain forward-looking statements as defined under
the Private Securities Litigation Reform Act of 1995. Cautionary statements
accompanying these forward-looking statements are set forth, along with this
release, in a Form 8-K filed with the Securities and Exchange Commission.
Financial Highlights
National-Standard Company and Subsidiaries
($000 except per share amounts)
For three months ended: June 28 June 29
1998 1997
Net Sales $55,695 $64,701
Operating Income 1,097 1,334
Net Income 199 264
Earnings Per Share .04 .05
Average Shares 5,235,395 5,255,211
For nine months ended: June 28 June 29
1998 1997
Net Sales $170,595 $187,702
Operating Income 2,976 (6,418)
Net Income 532 (9,686)
Earnings per Share .10 (1.83)*
Average Shares 5,232,509 5,279,640
* The nine-month period ended June 1997 per share data of $(1.83)
includes $(1.86) per share related to the restructuring charge.