Kuhlman Corporation Announces Record Q3 Results
14 October 1998
Kuhlman Corporation Announces Record Third Quarter Results
SAVANNAH, Ga., Oct. 14 -- Kuhlman Corporation
today announced record results for the three months ended September 30, 1998.
The Company reported record net income of $9,769,000 in the third quarter of
1998 compared to $7,673,000 in the third quarter of 1997, an increase of 27%.
Earnings per share were $0.56 in this year's third quarter compared to $0.45
in the year-ago period, an increase of 24%. Operating profit in the third
quarter of 1998 was $18,261,000, or 9.5% of net sales, compared to
$15,241,000, or 9.3% of net sales, posted in the year-ago period. Net sales
for the third quarter of 1998 were $192,856,000 compared to $164,364,000 for
the corresponding period in 1997, an increase of 17%. The Company's record-
setting results in the third quarter were due primarily to positive gains made
by the Company in its major markets, margin improvement in key product lines,
and the addition of Snyder Tank Corporation, which was acquired by the Company
in November 1997.
Similarly, the Company posted record results for the first nine months of
1998. Net income for the first nine months of 1998 was $28,576,000 compared
to $19,364,000 for the same period in 1997. This represents an increase of
48%. Earnings per share were $1.64 for the first nine months of 1998 compared
to $1.25 in the year-ago period, an increase of 31%. Net sales for the first
three quarters of 1998 were $571,100,000 compared to $468,733,000 for the
corresponding period in 1997, an increase of 22%.
Robert S. Jepson, Jr., Chairman and Chief Executive Officer, stated that,
"We are pleased to report to our shareholders that the Company again achieved
record operating results in the quarter and nine months just ended. The
performance for the third quarter represents the tenth consecutive quarter in
which Kuhlman has posted record results compared to the same quarter one year
earlier. The Company's success in the third quarter was due to the focus and
discipline of our many employees who responded to the challenges of rapidly
changing markets worldwide. While the economic outlook in some markets may be
uncertain, we believe that our dedication to operational excellence, coupled
with our support for our customers, will provide us with continued future
success."
Following are the comparative results for the three months and nine months
ended September 30, 1998 and September 30, 1997:
(In thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
1998 1997 1998 1997
(Unaudited)
Net sales $192,856 $164,364 $571,100 $468,733
Cost of goods sold 148,927 125,230 439,631 361,343
Gross profit 43,929 39,134 131,469 107,390
Selling, engineering,
general and
administrative
expenses 25,668 23,893 78,096 66,670
Operating profit 18,261 15,241 53,373 40,720
Other income (expense):
Interest
expense, net (1,677) (1,882) (5,364) (6,848)
Other, net (617) (637) (1,306) (1,340)
Total other income
(expense), net (2,294) (2,519) (6,670) (8,188)
Income before taxes 15,967 12,722 46,703 32,532
Taxes on income 6,198 5,049 18,127 13,168
Net income $9,769 $7,673 $28,576 $19,364
Per share amounts:
Net income - basic $0.58 $0.47 $1.71 $1.32
Net income - diluted $0.56 $0.45 $1.64 $1.25
Average shares
outstanding:
Basic 16,807 16,425 16,704 14,698
Diluted 17,393 17,133 17,430 15,464
Kuhlman Corporation is a diversified industrial manufacturing company
operating in two business segments: 1) Electrical Products - which
manufactures power, distribution and instrument transformers for electrical
utilities and industrial users, and electrical and electronic wire and cable
products for use in consumer, commercial and industrial applications; and 2)
Industrial Products - which manufactures proprietary engine components, fuel
tanks and other products used on light, medium and heavy-duty trucks, and on
construction, agricultural, mining, power generation and marine equipment.
This press release contains forward looking statements that involve risks
and uncertainties that could cause actual results to differ materially from
those projected. These uncertainties include, but are not limited to,
economic conditions, market demand and pricing, competitive and cost factors,
raw material prices, global interest rates, foreign exchange rates, and other
risk factors. Forward looking statements are necessarily subject to change
upon the occurrence of events that may affect business.