Penn Engineering Announces Sales and Earnings for Q2
29 July 1998
Penn Engineering Announces Sales and Earnings for Second Quarter 1998 and Declares Quarterly Cash Dividend of Eleven Cents Per Share
DANBORO, Pa.--July 29, 1998--Penn Engineering & Manufacturing Corp. Wednesday announced net income of $3,881,821, or $0.45 per share, on quarterly net sales of $44,944,628 for the second quarter ended June 30, 1998.For the comparable 1997 quarterly period, net income was $3,560,219 or $0.41 per share, on net sales of $41,973,879.
For the six months ended June 30, 1998, net income was $8,147,562, or $0.94 per share on net sales of $91,719,535 as compared to net income of $6,534,823, or $0.75 per share, on net sales of $80,989,652 for the six months ended June 30, 1997.
For the Fastener Operation, sales and operating income for the quarter ended June 30, 1998 were $36,633,122 and $5,228,991 respectively, versus $34,140,250 and $4,851,172, respectively, for the quarter ended June 30, 1997.
For the six months ended June 30, 1998, sales and operating income were $74,459,909 and $10,958,136 respectively, versus $66,181,410 and $9,006,070, respectively, for the six months ended June 30, 1997.
For the Motor Operation, sales and operating income for the quarter ended June 30, 1998 were $8,361,506 and $636,670 respectively, versus $7,833,629 and $585,643, respectively, for the quarter ended June 30, 1997.
For the six months ended June 30, 1998, sales and operating income were $17,259,626 and $1,308,552 respectively, versus $14,808,242 and $908,292, respectively, for the six months ended June 30, 1997.
Today the board of directors declared a quarterly cash dividend of 11 cents per share on both classes of common stock, payable Oct. 8, 1998 to stockholders of record, Sept. 15, 1998
Management Comments:
Kenneth A. Swanstrom, chairman, president, and chief executive officer of the company, commented, "I am pleased to report another successful quarter for Penn Engineering & Manufacturing Corp., as we exceeded the 1997 pace for sales and earnings. Sales for the six month period are 13% higher than the 1997 levels; net income is 25% higher than the 1997 levels."
Business Summary:
Penn Engineering & Manufacturing Corp. is the leading manufacturer of self-clinching fasteners used by the computer, datacommunications, telecommunications, general electronics, automotive, and avionics industries. The company's Pittman division manufactures high performance permanent magnet dc motors used in electronics, medical, and manufacturing applications.
PENN ENGINEERING & MANUFACTURING CORP.
Income Statement Data
Amounts in Thousands, Except Per Share Data
3 Months Ended 6 Months Ended
June 30, June 30, June 30, June 30,
1998 1997 1998 1997
---- ---- ---- ----
Net Sales $44,995 $41,974 $91,720 $80,990
Cost of Goods Sold $31,056 $29,007 $63,188 $56,244
Gross Profit $13,939 $12,967 $28,532 $24,746
Selling, General, and
Administrative Expense $ 8,073 $ 7,530 $16,265 $14,831
Operating Earnings $ 5,866 $ 5,437 $12,267 $ 9,915
Other Income $ 231 $ 297 $ 511 $ 470
Earnings before Income
Taxes $ 6,097 $ 5,734 $12,778 $10,385
Income Taxes $ 2,215 $ 2,174 $ 4,630 $ 3,580
Net Income $ 3,882 $ 3,560 $ 8,148 $ 6,535
Weighted Average Shares
Outstanding 8,643 8,689 8,638 8,684
Share Earnings
Basic: $ 0.45 $ 0.41 $ 0.94 $ 0.75
Fully Diluted: $ 0.45 $ 0.41 $ 0.94 $ 0.75
PENN ENGINEERING & MANUFACTURING CORP.
Selected Balance Sheet Data (Unaudited)
Amounts in Thousands
June 30, Dec. 31,
1998 1997
---- ----
Cash & Equivalents $ 8,826 $ 6,826
Short-Term Investments, Net $ 15,428 $ 10,844
Accounts Receivable, Net $ 29,526 $ 27,444
Inventory $ 29,872 $ 26,679
Net Fixed Assets $ 73,708 $ 73,897
Total Assets $162,739 $150,992
Debt $ 0 $ 0
Current Liabilities $ 17,660 $ 13,512
Total Stockholders Equity $135,868 $128,919