Simpson Industries Reports Record Sales and Earnings for the Second Quarter
15 July 1999
Simpson Industries Reports Record Sales and Earnings for the Second Quarter
PLYMOUTH, Mich., July 15 -- Simpson Industries, Inc.
today announced record sales of $139.4 million and record net
earnings of $7.0 million for the quarter ended June 30, 1999.
Net sales for the quarter were up 8.3% to $139,399,000 versus $128,704,000
in the second quarter of 1998. Operating earnings of $12,910,000 and net
earnings at $6,963,000 both hit records, increasing 17.8% and 22.5%,
respectively from 1998 levels. Operating margins improved to 9.3% in the
current quarter versus 8.5% in the corresponding quarter of 1998. Diluted net
earnings per share also reached an all time high of $0.38 in the second
quarter of 1999 compared to $0.31 last year.
For the six months ended June 30, 1999, net sales were $272,501,000, up
7.2% over 1998 first half. Net earnings were $12,692,000 or 70 cents a share
diluted, up 19.8% and 20.7%, respectively, compared to $10,591,000 or 58 cents
a share diluted in the first six months of 1998.
"We are very pleased to report the results of an outstanding quarter",
said Roy E. Parrott, Chairman and C.E.O. of Simpson Industries. "Strong
volume growth combined with our improved cost structure are allowing us to
enhance our profit margins," added Mr. Parrott.
Simpson Industries supplies powertrain and chassis products to original
equipment manufacturers in the worldwide automotive and medium and heavy duty
diesel engine markets. Simpson's products are focused in three 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, Brazil, 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 Six Months Ended
June 30 June 30
1999 1998 1999 1998
Net Sales $139,399 $128,704 $272,501 $254,260
Cost of products sold 123,237 113,848 242,000 225,781
GROSS PROFIT 16,162 14,856 30,501 28,479
Administrative and selling 2,748 3,417 5,524 6,462
Amortization of intangible
assets 504 482 1,025 940
OPERATING EARNINGS 12,910 10,957 23,952 21,077
Interest and other income -
net (13) (252) (109) (325)
Interest expense (2,184) (2,502) (4,316) (4,945)
EARNINGS BEFORE INCOME
TAXES 10,713 8,203 19,527 15,807
Income taxes 3,750 2,517 6,835 5,216
NET EARNINGS $6,963 $5,686 $12,692 $10,591
BASIC EARNINGS PER SHARE $0.39 $0.31 $0.70 $0.58
DILUTED EARNINGS PER SHARE $0.38 $0.31 $0.70 $0.58
Cash dividends per share $0.10 $0.10 $0.20 $0.20
Basic weighted average shares
outstanding 18,066 18,416 18,105 18,297
Diluted weighted average shares
outstanding 18,098 18,550 18,130 18,419
Depreciation expense $6,407 $6,430 $12,765 $12,132
Capital expenditure $14,740 $5,016 $19,775 $9,291
Simpson Industries, Inc.
Condensed Consolidated Balance Sheets
(Dollar amounts in thousands)
June 30 December 31,
1999 1998
(Unaudited)
ASSETS
Cash & Cash Equivalents $3,724 $6,145
Other Current Assets 115,321 108,394
Total Current Assets 119,045 114,539
Property, Plant & Equipment - net 174,359 169,885
Other Assets & Intangible 51,671 56,130
Total Assets $345,075 $340,554
LIABILITIES & SHAREHOLDER'S EQUITY
Current Liabilities $90,670 $82,343
Long-Term Debt 97,745 105,534
Other Liabilities 28,075 28,109
Shareholder's Equity 128,585 124,568
Total Liabilities & Equity $345,075 $340,554