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Raytech Corporation Announces Third Quarter Results for 1998

11 November 1998

Raytech Corporation Announces Third Quarter Results for 1998

    SHELTON, Conn.--Nov. 11, 1998--Raytech Corporation today announced continued strong performance in the third quarter with net income of $3.1 million or $.90 per basic share, compared with $3.7 million or $1.14 per basic share, for the same quarter last year.
    Nine-month net income was $13.2 million, or $3.90 per basic share, compared with $13.1 million, or $4.03 per basic share for the same nine-month period in the prior year. Revenue growth, driven by strong demand for Company products led to the strong performance. Third quarter profits reflected positive contributions from the original equipment market, the aftermarket and the European dry clutch market.

    Worldwide Sales Up 9.3%

    Worldwide net sales and revenues rose 9.3% for the quarter, to $61.5 million, and 6.8% for nine months, to $188.0 million, compared with $56.3 million and $176.1 million, respectively, last year.
    Domestic automotive original equipment sales account for substantially all of the increased sales reflecting an increase of $10.0 million for the nine-month period over the prior year. Domestic aftermarket sales reflect a $1.0 million increase for the nine-month period as compared with the same period in the prior year. Due to an adverse foreign exchange translation impact, overseas sales were slightly lower in dollar terms for both the quarter and year-to-date.
    The Company has been under the protection of the U.S. Bankruptcy Court relating to asbestos personal injury and environmental liabilities since March 1989. The ultimate liability of the Company with respect to asbestos-related, environmental or other claims cannot presently be determined.
    Raytech Corporation is headquartered in Shelton, Connecticut, with operations serving world markets for energy absorption and power transmission products, as well as custom-engineered components.

                          RAYTECH CORPORATION
            CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                  (000's omitted, except share data)

Comparative results are as follows:


                            For the 13 Weeks       For the 39 Weeks 
                                 Ended                  Ended   
                           Sept. 27,  Sept. 28,  Sept. 27,  Sept. 28,
                               1998      1997       1998       1997  
                            ------------------------------------------

Net Sales                   $  61,486  $  56,251  $ 188,026  $ 176,132
                            
Net income (1)              $   3,081  $   3,710  $  13,224  $  13,135
                            
Basic earnings per share:   
                            
  Earnings per share        $     .90  $    1.14  $    3.90  $    4.03
                            
  Weighted average shares   3,421,298  3,265,344  3,395,064  3,256,508
                            
Diluted earnings per share:                      
                            
  Earnings per share        $     .87   $   1.05  $    3.71  $    3.73
                            
  Weighted average shares   3,560,044   3,538,981 3,560,347  3,521,487
                          
(1) The Company has been under the protection of the U.S. Bankruptcy
    Court relating to asbestos personal injury and environmental
    liabilities since March 1989. The ultimate liability of the
    Company with respect to asbestos-related, environmental or other
    claims cannot presently be determined.