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IMPCO Technologies Reports Second Quarter Results

2 December 1998

IMPCO Technologies Reports Second Quarter Results

    CERRITOS, Calif--Dec. 2, 1998--IMPCO Technologies, Inc. today announced results for its second fiscal quarter and six-month period ended Oct. 31, 1998.
    Net revenues for the second quarter increased 12 percent to $20.3 million from $18.2 million last year. Operating income was $1.5 million, compared with $1.7 million a year earlier. Net income was $893,000, or $0.11 per diluted share, compared with $991,000, or $0.15 per diluted share, for the same period last year.
    Net revenues for the six-month period increased 17 percent to $40.2 million, compared with $34.5 million a year ago. Operating income rose 34 percent to $4.1 million, from $3.0 million last year. Net income was $2.4 million, or $0.30 per diluted share, compared with $1.7 million, or $0.26 per diluted share, for the same period a year ago.
    Robert M. Stemmler, IMPCO's president and chief executive officer, stated, "Net income for the quarter was lower than expected primarily due to General Motor's delivery delays of vehicles scheduled for conversion with IMPCO's natural gas and propane fuel systems."
    Stemmler noted that the reduced number of vehicle conversions resulted in higher unit overhead cost and lower gross margins. "Orders from General Motors and its fleet customers for alternative fueled vehicles are meeting projected sales levels at this time. IMPCO expects to recover the second quarter net income shortfall in the second half of its fiscal year," Stemmler said.
    IMPCO Technologies, Inc. sells alternative fuel products and services worldwide. Headquartered in Cerritos, CA, the company has additional facilities in Irvine, CA; Detroit, MI; Sterling Heights, MI; Seattle, WA; Mt. Pleasant, IA; Mexico, Australia, The Netherlands, France, Germany and the United Kingdom. IMPCO is a market leader in the Original Equipment Manufacturer (OEM) marketplace and aftermarket for gaseous fuel management systems and components that allow internal combustion engines to operate on clean gaseous fuels such as propane and natural gas. IMPCO provides conversion systems for motor vehicles, forklifts, other material handling equipment, and small portable to large stationary engines.
    Certain matters discussed in this press release contain forward looking information that involves risks and uncertainties that could cause actual results to differ materially from current trends. These include growth of the alternative fuels market, competition, the company's ability to design and market new fuel management products, the company's ability to meet Original Equipment Manufacturer (OEM) specifications, and other such risks as cited in the company's 1998 annual report on Form 10-K and other documents filed with the Securities and Exchange Commission.

                       IMPCO Technologies, Inc.
                    Consolidated Financial Summary
         (Dollars in thousands, except for per share amounts)

                        Three Months Ended       Six Months Ended
                             October 31,             October 31,
                          1998       1997         1998       1997

Net revenue           $  20,321   $  18,162   $  40,195   $  34,452
Operating income          1,513       1,734       4,100       3,049
Net income 
 before dividends         1,040       1,140       2,673       1,980
Net income
 applicable to
 common stock         $     893   $     991   $   2,377   $   1,682
Net income
 per share:
    Basic             $    0.12   $    0.17   $    0.33   $    0.29
    Diluted           $    0.11   $    0.15   $    0.30   $    0.26

Number of shares 
 used in per 
 share computation:
         Basic        7,176,832  5,823,246   7,166,957   5,818,917
         Diluted      7,870,564  7,768,971   8,970,566   6,511,922