R&B Expects to Report Financial Results Below Analyst Estimates
1 September 1999
R&B Expects to Report Financial Results Below Analyst Estimates for the 1999 Third QuarterCOLMAR, Pa., Sept. 1 -- R&B, Inc., today announced that it expects earnings for the third quarter ending September 25th will be well short of the consensus estimate of $0.35 per share. The reduced earnings are a result of lower than expected revenues due to a general softening in the automotive aftermarket across all customer segments, inventory reduction programs implemented by several major customers, mergers within the customer base and fluctuations in customer ordering patterns, specifically several new program roll outs that have been rescheduled from the 3rd to the 4th quarter. These revenue shortfalls could hold earnings to as little as half the $0.30 earned in the third quarter of last year. Mr. Richard Berman, Chairman, President and CEO said, "We are already moving to reduce costs and expect revenue disappointment to be a temporary phenomenon. While it is too late to affect the highly disappointing third quarter, we are confident of achieving positive results for the final three months of the year." Mr. Berman continued, "We are extremely disappointed that the third quarter results will interrupt our consecutive string of quarter-to-quarter growth of at least 15% and fully expect the third quarter will prove to be an aberration." R&B, Inc. is a leading supplier of "hard-to-find" parts, fasteners and service line products for the automotive aftermarket. R&B's parts are marketed under more than sixty proprietary brand names, through its Motormite and Dorman divisions, as well as under the private labels of automobile manufacturers, parts manufacturers, and national warehouse distributors. Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. Readers are cautioned not to place undue reliance on these forward-looking statements which speak only as of the date hereof. Factors that cause actual results to differ materially include, but are not limited to, those factors discussed in the Company's Annual Report on Form 10-K under "Business -- Investment Considerations."