Secom General Reports Fiscal Third Quarter Loss
13 August 1998
Secom General Reports Fiscal Third Quarter Loss
NOVI, Mich., Aug. 13 -- Secom General Corporation
today reported a net loss of $948,900, or 18 cents per share,
on sales of $7,879,100 for its fiscal third quarter ended June 30, 1998,
compared to net income of $157,100, or three cents per share, on sales of
$9,145,900 in the same quarter last year. For the nine months ended June 30,
1998, the Company has recorded a net loss of $5,781,400, or $1.08 per share,
on sales of $24,778,200, compared to net income of $251,000, or five cents per
share, on sales of $26,380,500 in the same period of the prior year. Prior
year results have been restated to reflect discontinued operations.
"The net loss for the third quarter was higher than expected due to
continuing losses at our Uniflow unit, combined with additional reserves taken
for expected losses on the eventual sale of assets no longer part of Uniflow's
core business," said Paul D. Clemente, Secom's vice president. He said that
the Uniflow unit experienced higher than expected disruption to production
activities from the plant consolidation efforts undertaken during this
quarter.
Clemente added that consolidated sales for both comparative periods were
lower in the current year primarily due to the elimination of various Uniflow
product offerings.
Secom is a leading supplier of various metal parts and tooling primarily
for the automotive and trucking industries. Secom operates in two business
segments: metal parts forming and tooling for cold/hot forming industry.
Sales and manufacturing are completed through four subsidiaries located in the
metropolitan Detroit area.
SECOM GENERAL CORPORATION
(Unaudited)
Third Quarter Ended Third Quarter Ended
June 30, 1998 June 30, 1997 (a)
NET SALES $7,879,100 $9,145,900
COST OF SALES
- PRODUCTION 7,066,300 7,765,200
COST OF SALES
- RESTRUCTURING CHARGES -- --
GROSS PROFIT 812,800 1,380,700
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES 1,335,200 1,124,000
OTHER RESTRUCTURING CHARGES 400,000
OTHER 162,900 252,800
INCOME (LOSS) FROM CONTINUING
OPERATIONS BEFORE INCOME TAXES (1,085,300) 3,900
INCOME TAX BENEFIT (EXPENSE) 136,400 (73,200)
INCOME (LOSS) FROM
CONTINUING OPERATIONS (948,900) (69,300)
INCOME (LOSS) FROM
DISCONTINUED SUBSIDIARY -- 226,400
NET INCOME (LOSS) ($948,900) $157,100
EARNINGS (LOSS) PER COMMON SHARE:
Loss from continuing operations ($0.18) ($0.01)
Income (loss) from operations
of discontinued subsidiary -- 0.04
BASIC AND DILUTED INCOME (LOSS)
PER COMMON SHARE ($0.18) $0.03
BASIC AND DILUTED WEIGHTED
AVERAGE SHARES OUTSTANDING 5,335,400 5,460,000
Nine Months Ended Nine Months Ended
June 30, 1998 June 30, 1997 (a)
NET SALES $24,778,200 $26,380,500
COST OF SALES
- PRODUCTION 22,140,600 22,384,600
COST OF SALES
- RESTRUCTURING CHARGES 900,000 --
GROSS PROFIT 1,737,600 3,995,900
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES 4,113,900 3,436,100
OTHER RESTRUCTURING CHARGES 2,162,000 --
OTHER 712,500 708,800
INCOME (LOSS) FROM CONTINUING
OPERATIONS BEFORE INCOME TAXES (5,250,800) (149,000)
INCOME TAX BENEFIT (EXPENSE) 541,100 (24,900)
INCOME (LOSS) FROM
CONTINUING OPERATIONS (4,709,700) (173,900)
INCOME (LOSS) FROM
DISCONTINUED SUBSIDIARY (1,071,700) 424,900
NET INCOME (LOSS) ($5,781,400) $251,000
EARNINGS (LOSS) PER COMMON SHARE:
Loss from continuing operations ($0.88) ($0.03)
Income (loss) from operations
of discontinued subsidiary (0.20) 0.08
BASIC AND DILUTED INCOME (LOSS)
PER COMMON SHARE ($1.08) $0.05
BASIC AND DILUTED WEIGHTED
AVERAGE SHARES OUTSTANDING 5,335,900 5,474,200
a) Amounts restated to reflect discontinued operations.