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IMPCO Technologies Reports Record Revenues

18 August 1999

IMPCO Technologies Reports Record Revenues and Operating Income for First Fiscal Quarter

    CERRITOS, Calif.--Aug. 18, 1999--IMPCO Technologies Inc. today announced results for its first fiscal quarter ended July 31, 1999.
    Revenues for the first fiscal quarter climbed 43 percent to a record $28.4 million compared with $19.9 million a year ago. Operating income for the same period was a record $2.7 million compared with $2.6 million a year earlier. Net income for the quarter was $1.6 million, or $0.18 per diluted share, compared with $1.5 million, or $0.18 per diluted share, in the corresponding prior-year period.
    Robert M. Stemmler, president and chief executive officer, stated, "Results for the first fiscal quarter reflect strong performance in all divisions of the company -- particularly within our Gaseous Fuels Products Division, which serves the motor vehicle aftermarket and the material handling, heavy duty and small-engine sectors."
    He noted that aftermarket motor vehicle revenue more than doubled for the first quarter, climbing to $7.6 million from $3.7 million last year. Material handling revenues increased 30 percent to $7.4 million from $5.7 million a year earlier, supported by significant contributions from IMPCO's Industrial Systems Engine division based in Michigan.
    Stemmler added that small engine sales for the same period increased 70 percent to $3.4 million from $2.0 million in the first quarter of fiscal 1998.
    He highlighted the growth of IMPCO's automotive OEM division, with product sales climbing 70 percent to $3.9 million from $2.3 million a year ago.
    "We are particularly delighted with the strong performance of the company's foreign operations, with revenues climbing 16 percent to $6.4 million," Stemmler said.
    He noted that this increase reflects strong contributions from motor vehicle aftermarket sales, particularly in Mexico, and contributions from the acquisition of a Japanese subsidiary.
    He also added that IMPCO is strengthening its program to improve manufacturing efficiencies throughout the entire organization, with a particular focus on reducing fixed and direct costs.
    Stemmler also indicated that IMPCO's global growth within the alternative fuels industry reflects ongoing enforcement of government regulations and economic incentives to shift motor vehicles to cleaner-burning alternative fuels.
    He noted that second quarter OEM vehicle product sales are expected to be lower than the first quarter due to the timing of model year 2000 introductions. The company still anticipates the majority of its new model year sales in the second half of fiscal 2000.
    IMPCO Technologies sells alternative fuel products and services worldwide. With headquarters in Cerritos, the company has additional facilities in Irvine, Calif.; Detroit; Seattle; and Australia, Japan and Mexico. It operates in the Netherlands, France, Germany and the United Kingdom as IMPCO-BERU Technologies.
    IMPCO is a market leader in the original equipment manufacturer (OEM) marketplace and aftermarket for gaseous fuel management systems and components that allow internal combustion engines to operate on clean gaseous fuels such as propane and natural gas. IMPCO provides conversion systems for motor vehicles, forklifts, other material handling equipment and small portable to large stationary engines.

    Certain matters discussed in this news release contain forward-looking information that involves risks and uncertainties which could cause actual results to differ materially from current trends. These include growth of the alternative fuels market, OEM automotive product sales, competition, the company's ability to design and market new fuel management products, the company's ability to meet OEM specifications, and other such risks as cited in the company's 1999 annual report on Form 10-K and other documents filed with the Securities and Exchange Commission.

                        IMPCO Technologies Inc.
                    Consolidated Financial Summary
             (In thousands, except for per-share amounts)
 
                                             Three Months Ended
                                                    July 31,
                                               1999         1998    

Net Revenue                               $   28,420   $   19,873
Operating Income                               2,651        2,587
Net income before dividends                    1,554        1,633
Net income applicable to common stocks         1,554        1,484
Net income per share:
  Basic                                         0.18         0.21
  Diluted                                       0.18         0.18

Number of shares used in
 per share computation:
  Basic                                    8,429,922    7,141,248
  Diluted                                  8,781,530    9,067,626