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O'Sullivan Corporation Reports 1999 Q1 Sales and Earnings Results

15 April 1999

O'Sullivan Corporation Reports 1999 First Quarter Sales and Earnings Results

    WINCHESTER, Va.--April 15, 1999--O'Sullivan Corporation (ASE:OSL) today reported consolidated sales and earnings for the first quarter ended March 31, 1999.
    Net sales from continuing operations for the first quarter were $42.9 million, an increase of 2.2 percent compared with sales of $42.0 million from continuing operations for the first quarter of 1998. Net income from continuing operations for the first quarter was $3.1 million or $0.20 per share, an increase of 3.1 percent compared with net income from continuing operations of $3.0 million or $0.19 per share for the same period last year.
    Sales of products produced by O'Sullivan for the automotive industry were in line with company expectations, reflecting sales increases in excess of 10 percent when compared to the same period last year. However, increased sales in automotive products were offset by lower than expected sales revenue associated with industrial products. First quarter sales of industrial products were soft in most of the company's industrial product lines, as major customers were cautious not to increase inventories.
    The increase in net income resulted primarily from improvements in gross profit margins due to increased sales volume of automotive products and continued favorable raw material costs. The improved gross profit was partially offset by increased selling and administrative expenses; lower amounts of other income, primarily due to the loss of income previously generated by our 49 percent ownership in Kiefel Technologies Inc.; and a slightly higher tax rate.
    O'Sullivan Corporation produces flexible vinyl and olefin sheeting which can be embossed, laminated, printed, painted, polished, vacuum-formed, die-cut and further processed to customer specifications. O'Sullivan's instrument panel formulations comply with major original equipment manufacturer (OEM) standards for color, grain, gloss, durability, moldability, flexibility and performance. In addition to the automotive industry, O'Sullivan uses recyclable thermoplastic polymers for numerous product applications including office supplies, construction materials, medical supplies, marine applications, pool liners and more. For more information about O'Sullivan, visit our web site at http://www.osul.com.

                          O'SULLIVAN CORP. 
                       Financial Highlights 
 
                                                    First Quarter  
                                                    Ended March 31, 
                                                  1999            1998 

Net sales from continuing operations     $  42,888,866     $41,946,284
Net income from continuing operations    $   3,055,458     $ 2,964,361
Net income (loss) from discontinued 
 operations                                     --              --                    
Net Income                               $   3,055,458     $ 2,964,361

Per share information:
   Net income from continuing 
    operations                           $        0.20     $      0.19
   Net income (loss) from 
    discontinued operations                     --              --      
   Net income                            $        0.20     $      0.19
Average shares outstanding                  15,594,951      15,742,975