Burnham Declares Dividend and Reports Six Months Earnings
5 August 1998
Burnham Declares Dividend and Reports Six Months Earnings
LANCASTER, Pa., Aug. 4 -- Burnham Corporation
(OTC Bulletin Board: BURCA), a major manufacturer of boilers, furnaces,
radiators and related equipment for domestic and international residential,
commercial and industrial markets, today reported earnings for the six months
and quarter ended June 30, 1998, and declared a regular quarterly dividend.
The company reported six months sales of $72.6 million versus
$66.8 million in the same period of 1997, an increase of $5.8 million. Thermo
Products, Inc., acquired by the company in August 1997, accounted for
$8.7 million of sales in the period. In the second quarter, net sales were
$37.2 million, an increase of $1.7 million from the prior year, with Thermo
Products accounting for $4.0 million in the current reporting period.
Burnham's six months earnings were $600 thousand, or $.26 per share,
compared to $1.8 million, or $.80 per share, for the same period of 1997.
Second quarter income was $550 thousand ($.24 per share) against $1.0 million
($.46 per share) last year. The decrease in earnings is attributable to a
decline in residential unit volume from 1997. Cost reductions initiated in
the first quarter due to lower market demand resulted in improved margins in
the second quarter (per-tax profit margin increased from 0.2% to 2.5%).
Orders for residential heating products, which were adversely affected by
the unusually warm weather in the first quarter, remained soft in the second
quarter because customers' inventories were higher than normal. The industry
reported an 11% decline in unit volume for residential heating products during
the first six months, while Burnham's volume declined by 6.5%.
With El Nino at an end, forecasters are calling for a normal to severe
winter. As a result, residential orders are now expected to increase to
normal seasonal levels for autumn and winter.
Order input for industrial boilers, burners and boiler room accessory
equipment remained strong during the quarter. As a result, shipments and
backlogs remain at high levels for the company's Commercial Products Group.
With continuing strength in the commercial-industrial market and
resurgence in the residential market, Burnham expects its performance in the
second half of 1998 to be similar to its record pace of 1997.
At its meeting on July 28, 1998, the Burnham Board of Directors declared a
quarterly dividend of $.43 per share on the common stock of the company. The
dividend is payable September 1, 1998, to stockholders of record on August 14,
1998.
FINANCIAL HIGHLIGHTS
--- (In thousands of dollars, except per share amounts) ---
1998 1997 1998 1997
3 Months 3 Months 12 Months 12 Months
Ended Ended Ended Ended
June 30 June 30 June 30 June 30
Net sales $37,184 $35,475 $72,564 $66,769
Cost of goods sold 27,622 26,266 54,414 49,229
9,562 9,209 18,150 17,540
Selling, general and
administrative 8,639 7,516 17,147 14,599
Income before taxes 923 1,693 1,003 2,941
Provision for
income taxes 369 660 401 1,147
Net income for period $554 $1,033 $602 $1,794
Per common share:
Earnings per share $.24 $.46 $.26 $.80
Dividends $.43 $.39 $.86 $.78