UNOVA Updates Its Financial Outlook For Second Quarter and Remainder of 1999
8 June 1999
UNOVA Updates Its Financial Outlook For Second Quarter and Remainder of 1999
WOODLAND HILLS, Calif.--June 7, 1999--UNOVA Inc. , the $2 billion industrial technologies company, Monday announced that it expects second-quarter results close to the first-quarter results of $0.06 per share.This is due to continuation of problems identified in the first quarter -- the transition to a new enterprise resource planning (ERP) system at the company's Intermec Technologies subsidiary, right-sizing activities at the Cincinnati Machine division, and new product introduction issues at the German Honsberg Lamb division.
"Although significant progress has been made in resolving these issues, the associated costs will prevent us from making our second-quarter plan as well as the full-year plan," said Alton J. Brann, UNOVA's chairman and CEO.
"Our main Intermec manufacturing facility in Everett, Wash., is moving toward operating at industry-standard benchmarks for order fulfillment. Some of our current progress is still due to the use of additional temporary employees and interim processes. All remaining issues have been identified and corrective actions are scheduled and in process. Part of these efforts will stretch into the third and fourth quarters. We fully expect to enter the year 2000 with the problems at Intermec behind us," said Brann.
"Within the IAS segment, Cincinnati Machine has accelerated its right-sizing efforts as the new division is implementing our acquisition and integration strategy and responding to the weak market environment. Overhead and direct costs at this machine tool operation are already down by approximately 25 percent this year, which is improving the earnings outlook going forward. At Honsberg in Europe we are resolving product introduction and operational issues which should lead to cost improvements across its manufacturing lines.
"While our profit outlook for the year is further clouded by these interim difficulties, visibility for our systems-oriented division in the IAS segment continues to improve. By the end of May, our backlog was running at a record level, helped by large systems contracts won at the beginning of the second quarter," concluded Brann.
With headquarters in Southern California, UNOVA is a $2 billion industrial technologies company. It has global leadership positions in manufacturing systems and machine tools for the automotive, aerospace and general metalworking markets and for automated data collection, mobile computing, wireless network and radio frequency identification systems for industrial, distribution, transportation, logistics and government applications.
Certain forward-looking statements in this release (as defined by Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934) relate to matters that are not historical facts. They include, but are not limited to, statements about the demand for the company's products and services, the company's ability to profitably exploit new technologies acquired or developed, and the company's ability to realize its intentions with respect to the future performance of operations being acquired. Such forward-looking statements involve and are dependent upon certain risks and uncertainties. These include, but are not limited to, the following which are beyond the company's control: the presence of competitors with greater financial and other resources; technological changes and developments; regulatory uncertainties; worldwide political stability and economic conditions; operating risks associated with international activities; the risk that the company's due diligence procedures may have failed to reveal undisclosed material information concerning acquired operations; and other risks and uncertainties described more fully in the company's filings with the Securities and Exchange Commission.
Conference Call -- June 8, 1999
The company will host a conference call to discuss its business developments for the second quarter and remainder of 1999 in more detail on June 8, 1999, at 11:15 a.m. EST. If you are interested in participating, call 818/992-2871 for the call-in phone number.