Standard Products Reports Fiscal 1999 Third Quarter Results
19 April 1999
Standard Products Reports Fiscal 1999 Third Quarter Results
DEARBORN, Mich., April 19 -- The Standard Products Co.
today announced results for its fiscal 1999 third quarter, ended
March 31, 1999. Net income for the quarter was $6.3 million, or $0.39 diluted
earnings per share of common stock, on sales of $270.0 million. This compares
with net income of $13.6 million, or $0.80 diluted earnings per share, on
sales of $277.9 million in the third quarter a year ago.
The results include the one-time financial impact of the previously
announced voluntary early retirement program and actions taken to resolve
excise tax obligations in Brazil. The combined effect of these items reduced
reported earnings by $5.0 million, or $0.31 diluted earnings per share.
Third quarter sales for the Company's Transportation Equipment segment
were $236.8 million, a 4.1 percent decrease from 1998 third quarter sales of
$247.0 million. North American automotive sales declined by 4.4 percent from
$146.6 million to $140.3 million, due to exchange rate changes on the Canadian
dollar and lower volume as a result of the phase-out of production on certain
models.
Sales in the Company's European automotive group decreased slightly, going
from $59.6 million in fiscal 1998 to $58.1 million in fiscal 1999. This
decline resulted from lower volumes on several models, including the Ford
Fiesta and Renault Megane. Third quarter sales in Brazil declined by
$10.7 million, or more than 60 percent, reflecting that country's overall
economic problems. However, as a result of our earlier aggressive cost-
cutting moves, we are now operating at breakeven and are well positioned to
benefit when sales rebound.
Sales of the Company's Holm Industries subsidiary were up significantly
from last year's third quarter. The increase of $7.6 million, or 28.8
percent, includes the sales of OEM/Miller, which was acquired on August 14,
1998. The Company's Tread Rubber segment reported sales of $38.3 million, a
6.5 percent increase from 1998 third quarter sales of $36.0 million.
Ronald L. Roudebush, vice chairman and chief executive officer, said, "We
have addressed the major issues that have impacted us in the past year, and
believe we are turning the corner on them. While there is still progress to
be made, we expect fourth quarter operating results to exceed this quarter,
although they will not meet comparable year-earlier levels."
Roudebush said that Standard Products was proceeding with its worldwide
plant capacity study and expected to announce consolidations of certain
operations in conjunction with its fiscal year results.
Certain statements in this press release, especially those concerning the
Company's future earnings, constitute "forward-looking statements" as that
term is defined under the Private Securities Litigation Reform Act of 1995.
The achievement of the projections and estimates set forth is subject to
certain general risks and uncertainties, including economic and industry
conditions that affect all international businesses, as well as specific
risks, including but not limited to a prolonged recession in Brazil, and the
various factors contained in the reports filed by the Company with the
Securities and Exchange Commission.
Standard Products produces highly engineered polymer-based products and
systems on a global basis for the automotive, appliance and construction
industries. More information may be found on the Internet at
http://www.standardproducts.com.
THE STANDARD PRODUCTS COMPANY
Consolidated Earnings Summary (Unaudited) (000 omitted)
Three Months Nine Months
Periods ended March 31, 1999 1998 1999 1998
Net sales $269,958 $277,942 $778,010 $806,660
Costs and expenses:
Cost of goods sold 231,201 231,854 686,443 694,030
Selling, general and
administrative
expenses 19,340 19,723 57,422 56,879
Interest expense 3,858 3,169 10,419 9,327
Other (income) expense 4,348 1,851 4,379 5,658
Income before taxes
on income $11,211 $21,345 $19,347 $40,766
Provision for taxes
on income 4,891 7,786 7,739 15,635
Net income $6,320 $13,559 $11,608 $25,131
Per share of common share:
Basic $0.39 $0.80 $0.71 $1.49
Diluted $0.39 $0.80 $0.71 $1.48
Dividends $0.18 $0.17 $0.53 $0.51
Average shares outstanding:
Basic 16,076 16,854 16,283 16,843
Diluted 16,081 16,987 16,293 16,943