Simpson Industries Reports Record Sales and Earnings for the Q1
15 April 1999
Simpson Industries Reports Record Sales and Earnings for the First Quarter
PLYMOUTH, Mich., April 15 -- Simpson Industries, Inc.
today announced record sales of $133.1 million and net earnings
of $5.7 million for the quarter ended March 31, 1999.
Net sales for the quarter were up 6% to $133,102,000 compared to
$125,556,000 in the first quarter of 1998. Operating earnings increased 9.1%
to a record $11,042,000. Net earnings rose to $5,729,000 or $0.32 per share
diluted, a 16.8% increase from the first quarter 1998 net earnings of
$4,905,000 or $0.27 per share diluted.
Strong sales due to robust North American automotive and heavy-duty
markets combined with improving operating and net margins allowed the company
to post record results in the first quarter.
"Strategic initiatives, which we launched in 1997-98, are now helping us
improve our profitability," said Roy E. Parrott, Chairman and Chief Executive
Officer of Simpson Industries. "We are also very encouraged by the recent new
business awards which reflect the confidence our customers are showing in our
engineered products," added Mr. Parrott.
Simpson Industries supplies powertrain and chassis products to original
equipment and Tier One manufacturers in the worldwide automotive and medium
and heavy-duty diesel engine markets. Simpson's engineered products are
focused in three product groups: noise, vibration and harshness; wheel-end
and suspension; and modular engine assemblies. Simpson's manufacturing units
are located in the United States, Canada, Mexico and Brazil. European and
Asian operations are located in England, France, Spain and South Korea.
Certain statements in this press release may be "forward-looking
statements" under the Securities Exchange Act of 1934. Statements regarding
future operating performance, new programs expected to be launched and other
future prospects and developments are based on current expectations and
involve certain risks and uncertainties that could cause the actual results
and developments to differ materially from the forward-looking statements.
Potential risks and uncertainties include such factors as demand for the
Company's products, pricing and other actions taken by the Company.
To receive a copy of this and other Simpson press releases by fax, please
call Company News-On-Call at 800-758-5804 - extension 107165, or you can
access the information via the Internet at http://www.prnewswire.com
Simpson Industries, Inc.
Consolidated Statements of Operations (Unaudited)
(Dollar and share amounts in thousands, except per share data)
Three Months Ended
March 31
1999 1998
NET SALES $133,102 $125,556
Cost of products sold 118,763 111,933
GROSS PROFIT 14,339 13,623
Administrative and selling 2,776 3,045
Amortization of intangible assets 521 458
OPERATING EARNINGS 11,042 10,120
Interest and other income - net (96) (73)
Interest expense (2,132) (2,443)
EARNINGS BEFORE INCOME TAXES 8,814 7,604
Income taxes 3,085 2,699
NET EARNINGS $5,729 $4,905
BASIC EARNINGS PER SHARE $0.32 $0.27
DILUTED EARNINGS PER SHARE $0.32 $0.27
Cash dividends per share $0.10 $0.10
Basic weighted average shares
outstanding 18,145 18,179
Diluted weighted average shares
outstanding 18,161 18,288
Depreciation expense $6,358 $5,702
Capital expenditure $5,035 $4,275
Simpson Industries, Inc.
Condensed Consolidated Balance Sheets
(Dollar amounts in thousands)
March 31, December 31,
1999 1998
(Unaudited)
ASSETS
Cash & Cash Equivalents $5,439 $6,145
Other Current Assets 119,544 108,394
Total Current Assets 124,983 114,539
Property, Plant & Equipment - net 167,750 169,885
Other Assets & Intangible 53,050 56,130
Total Assets $345,783 $340,554
LIABILITIES & SHAREHOLDER'S EQUITY
Current Liabilities $85,760 $82,343
Long-Term Debt 106,889 105,534
Other Liabilities 28,320 28,109
Shareholder's Equity 124,814 124,568
Total Liabilities & Equity $345,783 $340,554