Standard Products Reports Fiscal 1999 Fourth Quarter and Year-End Results
29 July 1999
Standard Products Reports Fiscal 1999 Fourth Quarter and Year-End Results
DEARBORN, Mich., July 29 -- The Standard Products Co.
today announced results for its fiscal 1999 fourth quarter, ended
June 30, 1999. Net income for the quarter was $17.3 million, or $1.07 diluted
earnings per share of common stock, on sales of $305.8 million. This compares
with net income of $18.3 million, or $1.08 diluted earnings per share, on
sales of $294.6 million in the fourth quarter a year ago.
Fourth quarter sales of $305.8 million represent a record for any quarter
in the Company's history. The record sales level was due to a combination of
factors, including increased car and light truck production in North America,
strong sales of tread rubber products at Oliver and continued strong sales in
the appliance industry.
For fiscal year 1999, Standard Products reported sales of
$1,083.8 million, compared with $1,101.3 million in fiscal 1998. Net income
for the year was $28.9 million, or $1.78 diluted earnings per share, compared
with $43.4 million, or $2.56 diluted earnings per share last year.
Following organizational changes announced in November 1998 and coincident
with this release, the Company is now reporting its results of operations
under four operating segments: Engineered Rubber Products, Engineered Plastic
Products, Tread Rubber and Other. Engineered Rubber Products is comprised of
our worldwide automotive sealing, noise and vibration control business.
Fourth quarter sales for this group totaled $212.0 million, a 0.4 percent
decrease from 1998 fourth quarter sales of $212.8 million.
The Engineered Plastics Products segment consists of plastic resin-based
products for the appliance, automotive and construction industries. Fourth
quarter sales for this segment of $56.1 million increased 13.1 percent from
the same period in 1998. This increase was due to the acquisition of
OEM/Miller in August 1998.
Fourth quarter sales in the Company's Tread Rubber segment were up
17.0 percent over the prior year, from $39.3 million to $45.9 million. The
segment titled Other represents the Company's corporate office, technology
group and other activities that do not qualify for inclusion in any other
segment. Sales for this segment during the fourth quarter were $2.1 million,
down from $3.5 million last year.
"Although the strong results were certainly driven by volume, we're
pleased that our earnings are back on track and that we've demonstrated
progress in addressing performance issues from prior quarters," said
Ronald L. Roudebush, vice chairman and chief executive officer.
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 (000 omitted)
Three Months Twelve Months
Periods ended June 30, 1999 1998 1999 1998
(Unaudited) (Unaudited) (Audited) (Audited)
Net sales $305,775 $294,650 $1,083,785 $1,101,309
Costs and expenses:
Cost of goods sold 252,934 241,310 939,378 935,340
Selling, general and
administrative
expenses 21,810 21,146 79,232 78,025
Interest expense 3,851 3,062 14,271 12,389
Other (income)
expense, net (1,440) 1,376 2,937 7,033
Income before taxes
on income $28,620 $27,756 $47,967 $68,522
Provision for taxes
on income 11,339 9,443 19,077 25,078
Net income $17,281 $18,313 $28,890 $43,444
Per common share:
Basic $1.08 $1.09 $1.78 $2.58
Diluted $1.07 $1.08 $1.78 $2.56
Dividends $0.18 $0.17 $0.71 $0.68
Average shares
outstanding:
Basic 16,064 16,867 16,226 16,849
Diluted 16,080 17,013 16,251 16,975
THE STANDARD PRODUCTS COMPANY
Consolidated Balance Sheet (000 omitted)
June 30
1999 1998
(Audited) (Audited)
ASSETS
Cash and short-term investments $3,467 $1,625
Receivables 173,909 151,535
Inventories 55,151 61,139
Prepaids 27,973 25,319
Total current assets 260,500 239,618
Property, net 349,189 330,352
Goodwill 75,344 63,617
Other 52,789 50,659
Total $737,822 $684,246
LIABILITIES AND SHAREHOLDERS' EQUITY
Short-term notes and current maturities $53,507 $29,025
Accounts payable and accrued expenses 193,539 183,646
Dividends payable 2,892 2,869
Total current liabilities 249,938 215,540
Long-term debt 119,226 92,457
Other postretirement benefits 24,024 24,362
Deferred taxes and other credits 54,341 51,715
Shareholders' equity 290,293 300,172
Total $737,822 $684,246