Simpson Industries Reports Third Quarter Results
15 October 1998
Simpson Industries Reports Third Quarter Results
PLYMOUTH, Mich., Oct. 15 -- Simpson Industries, Inc.
today reported sales and earnings for the third quarter ended
September 30, 1998. Net sales for the quarter were $110,016,000 compared to
$112,327,000 in the third quarter of 1997. General Motors work
stoppages adversely affected Simpson's third quarter sales by approximately
$12 million - $13 million.
Net earnings for the current quarter were $929,000 or $0.05 per share
diluted, compared with a net loss of $3,337,000, or a negative $0.18 per share
diluted in the corresponding quarter of 1997. General Motors, which accounts
for approximately 26% of Simpson Industries annual sales adversely affected
the current quarter by approximately $0.13 per share diluted. 1997 third
quarter earnings included a one-time plant consolidation charge of $0.31 per
share.
For the nine months, net sales were $364,276,000, up 10.9% in 1998 versus
1997. Net earnings were $11,520,000 or $0.63 per share diluted, compared to
$6,468,000 or $0.36 per share in the nine months of 1997.
"This was a difficult quarter for us due to General Motors," said Roy E.
Parrott, Chairman and C.E.O. of Simpson Industries. "However, from the new
business awards point of view, we had an outstanding quarter and we have
reached our 1998 full year target of $50 million already," Parrott added.
Simpson Industries supplies powertrain and chassis products to original
equipment manufacturers in the worldwide automotive and medium and heavy duty
diesel engine markets. Simpson's products are focused in four groups: noise,
vibration and harshness, wheel-end and suspension, and modular engine
assemblies and high-precision machined components. Simpson's manufacturing
units are located in the United States, Canada, Mexico, Brazil, England,
France, Spain and South Korea.
Certain statements in this press release may be "forward-looking
statements" under the Securities Exchange Act of 1934. Statements regarding
future operating performance, new programs expected to be launched and other
future prospects and developments are based on current expectations and
involve certain risks and uncertainties that could cause the actual results
and developments to differ materially from the forward-looking statements.
Potential risks and uncertainties include such factors as demand for the
Company's products, pricing and other actions taken by the Company.
To receive a copy of this and other Simpson press releases by fax, please
call Company News-On-Call at 800-758-5804 -- extension 107165, or you can
access the information via the Internet at http://www.prnewswire.com./
Simpson Industries, Inc.
Consolidated Statements of Operations (Unaudited)
(Dollar and share amounts in thousands, except per share data)
Three Months Ended Nine Months Ended
September 30 September 30
1998 1997 1998 1997
Net Sales $110,016 $112,327 $364,276 $328,475
Cost of products sold 103,732 103,322 329,513 295,614
GROSS PROFIT 6,284 9,005 34,763 32,861
Administrative and selling 2,924 3,315 9,386 9,538
Amortization of intangible
assets 524 --- 1,464 ---
Plant closing costs --- 8,769 --- 8,769
OPERATING EARNINGS 2,836 (3,079) 23,913 14,554
Interest and other income - net 904 206 579 732
Interest expense (2,353) (2,377) (7,298) (5,094)
EARNINGS BEFORE INCOME TAXES 1,387 (5,250) 17,194 10,192
Income taxes 458 (1,913) 5,674 3,724
NET EARNINGS $929 $(3,337) $11,520 $6,468
BASIC EARNINGS PER SHARE $0.05 $(0.18) $0.63 $0.36
DILUTED EARNINGS PER SHARE $0.05 $(0.18) $0.63 $0.36
Cash dividends per share $0.10 $0.10 $0.30 $0.30
Basic weighted average shares
outstanding 18,319 18,130 18,304 18,121
Diluted weighted average shares
outstanding 18,395 18,219 18,411 18,189
Depreciation expense $5,641 $6,476 $17,773 $17,032
Capital expenditure $5,603 $4,674 $14,894 $22,373
Simpson Industries, Inc.
Condensed Consolidated Balance Sheets
(Dollar amounts in thousands)
September 30 December 31,
1998 1997
(Unaudited)
ASSETS
Cash & Cash Equivalents $4,843 $8,235
Other Current Assets 113,183 106,459
Total Current Assets 118,026 114,694
Property, Plant & Equipment - net 170,772 174,146
Other Assets & Intangible 57,390 52,708
Total Assets $346,188 $341,548
LIABILITIES & SHAREHOLDER'S EQUITY
Current Liabilities $74,405 $78,328
Long-Term Debt 117,925 118,564
Other Liabilities 29,286 26,784
Shareholder's Equity 124,572 117,872
Total Liabilities & Equity $346,188 $341,548