Safety Components International, Inc. Announces Additional Awards
2 October 1998
Safety Components International, Inc. Announces Additional Awards from a Major Module SupplierFORT LEE, N.J., Oct. 1 -- Safety Components International, Inc. , one of the world's leading manufacturers of automotive airbag fabric and cushions, today announced that its North American automotive group was awarded an additional 725,000 airbag cushions totaling approximately $7.2 million in revenues from a major module supplier. North American orders from this new customer now aggregate in excess of 4.4 million airbag cushions and $50 million in annual revenues once full production commences. Production for orders with this new customer in North America began in March 1998, and full production on all awards is expected to be reached during the fiscal quarter commencing July 1999. As previously announced Safety Components has received awards from this customer in Europe. Production for these awards is scheduled to begin in January 2000 and should approximate 900,000 airbags and $7 million in annual revenue once full production commences in 2001. The Company continues to bid on additional programs for this customer in Europe. Robert A. Zummo, Chairman, President and Chief Executive of Safety Components stated, "We are excited about this additional business as it fits with our long-term strategy to be the largest outsourced supplier of airbag cushions and fabric on a global basis." This release contains forward-looking statements. There are certain factors that could cause results to materially differ from those anticipated from the statements above. These factors include, but are not limited to: worldwide economic conditions; automotive industry trends; award of follow-on programs; approval of automobile manufacturers of airbag cushions currently in production; pricing pressures and the ability to satisfy customers on timeliness and quality. Additional information on these and other factors that could potentially affect the Company's financial results may be found in the Company's filings with the Securities and Exchange Commission. Safety Components International, Inc. is a leading, low-cost supplier of automotive airbag fabric and cushions with operations in North America, Europe and Asia. The Company is also a leading manufacturer of value-added synthetic fabrics used in a variety of niche industrial and commercial applications. In addition, Safety Components supplies metal airbag components to its airbag customers utilizing its machining and stamping capabilities gained from years of experience as a military ordnance manufacturer and continues as a systems integrator and manufacturer for ordnance programs.