MascoTech, Inc. Announces Third Quarter Results
3 November 1998
MascoTech, Inc. Announces Third Quarter Results
TAYLOR, Mich., Nov. 2, -- MascoTech sales for the third
quarter 1998, which include the acquisition of TriMas Corporation which was
completed on January 22, 1998, increased 80 percent to $400 million from $222
million in 1997. Income in the third quarter 1998 was $16.8 million or $.33
per common share compared with $38.7 million, including a pre-tax gain of
approximately $46 million related to the disposition of one of the Company's
equity affiliate investments, or $.70 per common share in 1997.
Third quarter results for 1998 were negatively impacted by a protracted
work stoppage at a major customer and by soft market conditions impacting
certain of the Company's businesses, including aftermarket related businesses
(that are currently held for sale) and businesses participating in certain
international markets.
Assuming that MascoTech and TriMas results were consolidated for the third
quarter of 1997 and excluding unusual pre-tax gains/(charges): pro forma sales
would have increased approximately two percent to $400 million in 1998 from
$391 million in 1997; pro forma operating profit would have been $49 million
as compared with $44 million, and pro forma earnings per share for the third
quarter would have been $.34 for both 1998 and 1997.
MascoTech's CEO Frank M. Hennessey commented, "We are very pleased with
our recent strategic acquisitions and our other growth initiatives which
should have a positive impact on the long-term prospects for our business and
should result in value creation opportunities for our shareholders. Although
it is possible that anticipated softness in certain of our markets related to
global economic conditions could moderate our near-term operating performance,
we continue to believe that 1999 operating results will exceed 1998."
MascoTech is a diversified manufacturing company with world-leading metal
forming process capabilities and proprietary product positions serving
transportation, industrial and consumer markets.
Visit MascoTech's website at http://www.mascotech.com. MascoTech's press
releases are also available through Company News On-Call by fax, 800-758-5804,
extension 535375, or http://www.prnewswire.com.
Statements in this press release, which are not historical facts are
forward looking statements that involve certain risks and uncertainty
including but not limited to, risks associated with the uncertainty of future
financial results, conditions within the markets in which the Company
competes, labor relations of the Company and certain of its customers and
other uncertainties detailed in the Company's filings with the Securities and
Exchange Commission.
MASCOTECH, INC. ANNOUNCES THIRD QUARTER RESULTS
Three Months Ended Nine Months Ended
September 30 September 30
1998 1997 1998 1997
Net Sales $399,500 $222,030 $1,233,740 $688,510
Cost of Sales (299,350) (187,680) (912,130) (543,870)
Selling, General and
Administrative Expenses (51,160) (22,730) (151,090) (68,280)
Charge for Disposition of
Businesses, Net -- -- (15,580) --
Operating Profit 48,990 11,620 154,940 76,360
Gain on Disposition of Equity
Affiliate -- 46,160 -- 46,160
Other Income (Expense), Net (20,690) 6,000 (41,020) 36,140
Income Before Income Taxes 28,300 63,780 113,920 158,660
Income Taxes 11,510 25,120 34,570 62,690
Net Income $16,790 $38,660 $79,350 $95,970
Preferred Stock Dividends -- -- -- $ 6,240
Earnings Attributable to
Common Stock $16,790 $38,660 $79,350 $89,730
Diluted Earnings Per Share $.33 $.70(a) $1.47 $1.74
(a) Excluding unusual pre-tax gains/charges
in 1997, diluted earnings per share would
have been $.34 for the three month period
ending September 30, 1997.
Amounts in thousands except per share data.