MascoTech, Inc. Announces 1998 Results
23 February 1999
MascoTech, Inc. Announces 1998 Results
TAYLOR, Mich., Feb. 22 -- MascoTech sales
increased to $1.6 billion in 1998 from $922 million in 1997 principally as a
result of the acquisition of TriMas Corporation which was completed on
January 22, 1998. Assuming that MascoTech and TriMas results were
consolidated for 1997 pro forma sales would have increased approximately five
percent in 1998.
Net income in 1998 was $97.5 million or $1.83 per diluted common share.
Results in 1998 include a charge related to the disposition of certain
businesses aggregating approximately $41 million pre-tax. In addition, the
Company recorded a pre-tax gain of approximately $25 million related to a
business sold in 1996. Results in 1998 also benefited from a gain of $7
million pre-tax related to the disposition of the Company's Technical Services
Group in 1997 and gains from the Company's marketable securities portfolio.
Excluding the gains and charge, net income in 1998 would have been
approximately $89 million or $1.68 per common share.
Income after preferred stock dividends in 1997 was $109 million or $2.12
per common share. Results in 1997 include pre-tax gains approximating $83
million principally related to the disposition of the Company's equity
ownership interest in an affiliate, gains from the Company's marketable
securities portfolio and income resulting from equity transactions by
affiliates. These gains were partially offset by costs and expenses of
approximately $24 million pre-tax related to plant closure costs, the
Company's share of special charges recorded by equity affiliates, and employee
termination and other expenses. Excluding the gains and unusual costs, income
after preferred stock dividends in 1997 would have been approximately $73
million or $1.50 per common share.
MascoTech's CEO Frank Hennessey commented, "We are pleased with our 1998
performance especially considering that 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 our
aftermarket related businesses that are currently held for sale. In addition
we are extremely pleased with the integration of the TriMas and MascoTech
companies, optimistic about the future and pleased with the progress being
made on previously announced divestitures."
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 1998 RESULTS
Three Months Ended Twelve Months Ended
December 31 December 31
1998 1997 1998 1997
Net Sales $401,760 $233,620 $1,635,500 $922,130
Cost of Sales (296,800) (191,600) (1,208,930) (735,470)
Selling, General and
Administrative Expenses (53,090) (21,650) (204,180) (89,930)
Gains (Charge) on Disposition
of Businesses, Net --- 4,980 (15,580) 4,980
Operating Profit 51,870 25,350 206,810 101,710
Other Income (Expense), Net (21,270) 6,280 (62,290) 88,580
Income Before Income Taxes 30,600 31,630 144,520 190,290
Income Taxes 12,480 12,360 47,050 75,050
Net Income $18,120 $19,270 $97,470 $115,240
Preferred Stock Dividends --- --- --- $6,240
Earnings Attributable to
Common Stock $18,120 $19,270 $97,470 $109,000
Diluted Earnings Per Common Share $.36 $.37 $1.83 $2.12
Average Common Shares Outstanding
- Diluted 57,200 58,330 58,520 58,920
Amounts in thousands except per share data.