Raytech Corporation Announces 1998 Results
6 April 1999
Raytech Corporation Announces 1998 Results
SHELTON, Conn.--April 5, 1999--- Sales of $247.5 million, an increase of 5.5% over 1997
- Net income of $16.4 million, an increase of 5.3% over 1997
- Basic earnings per share $4.81 compared to $4.76 for 1997
- New dry friction manufacturing operation in China
- Advanced Friction Materials Company becomes wholly-owned
subsidiary
- 7 out of 8 manufacturing facilities receive QS9000 or
ISO 9001 certifications
Raytech Corporation today reported record worldwide sales and earnings for the year ended January 3, 1999. The reported worldwide sales of $247.5 million exceeded 1997 sales of $234.5 million by $13 million or 5.5%.
The increased sales were driven by increased penetration of the automobile original equipment market through the wet friction segment which accounted for $10 million of the increased sales. Inclusive in the overall wet friction growth was the acquisition of the outstanding shares of Advanced Friction Materials Company in April 1998 which positively increased revenues in the wet friction segment by $3.6 million. The favorable growth in the automobile OE market was offset by reduced sales in the heavy duty and agricultural markets due to the economic setbacks in South America, Europe and Asia.
The aftermarket segment continued to improve sales performance in 1998 reporting increased sales of $5.2 million over 1997 results. The improved results are due to increased sales of this segment's filtration products.
The dry friction operation, serving primarily the European market reported a sales decline of $2.2 million as compared to 1997. This decline is caused by a variety of factors, including negative foreign currency fluctuation and reduced sales due to weak economic conditions.
Net income for the period increased 5.3% over 1997 with recorded net income of $16.4 million as compared to $15.5 million in the prior year.
"Our record sales and record profits combined with continued commitment to world-class manufacturing quality and productivity, as demonstrated by our QS9000 and ISO 9001 achievements, made 1998 an excellent year," said Albert A. Canosa, President and Chief Executive Officer of Raytech Corporation. "Our results for the year demonstrate the Company's commitment to excellence in operating performance and commitment to our customers," Canosa added.
The dry friction segment opened a new manufacturing facility in Suzhou, China, Raybestos Friction Products (Suzhou) Co., Ltd. The facility was officially opened in September 1998 and will be fully operational in 1999. The plant will primarily supply Volkswagen's China operations.
Raytech Corporation is a global manufacturer of energy absorption and power transmission products, as well as custom engineered components.
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
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(000's omitted, except share data)
Comparative results for the full year are as follows:
For the Quarter Ended
Jan. 3, 1999 Dec. 28, 1997
Net sales $ 59,438 $ 58,343
Net income $ 3,133 $ 2,403
Basic earnings per share:
Earnings per share $ .92 $ .73
Weighted average shares 3,421,395 3,283,024
Diluted earnings per share:
Earnings per share $ .89 $ .68
Weighted average shares 3,486,779 3,550,213
For the Year Ended
Jan. 3, 1999 Dec. 28, 1997
Net sales $ 247,464 $ 234,475
Net income $ 16,357 $ 15,538
Basic earnings per share:
Earnings per share $ 4.81 $ 4.76
Weighted average shares 3,402,019 3,263,137
Diluted earnings per share:
Earnings per share $ 4.61 $ 4.41
Weighted average shares 3,548,893 3,524,391