Brown & Sharpe Issues Third Quarter Earnings Caution
29 September 1999
Brown & Sharpe Issues Third Quarter Earnings Caution
NORTH KINGSTOWN, R.I.--Sept. 29, 1999--Brown & Sharpe Manufacturing Company announced today that it expects to report a consolidated net loss of approximately $3 million for the third quarter ending September 30. The loss will result, principally, from lower profitability in the Precision Measuring Instruments Division and higher costs related to investments in new product development programs, as well as additional costs relating to certain restructurings implemented earlier in the year.Management is continuing its focus on a restructuring program begun early in 1999 and is in the process of finalizing the last phase of such program, which will be reflected in the fourth quarter results. Discussions with the Company's principal lenders to amend certain provisions of its loan agreements and waive the existing covenant default are continuing, and the Company is meeting its cash requirements to operate satisfactorily.
This press release contains forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve a number of assumptions, risks, and uncertainties that could cause actual results of the Company to differ materially from those matters expressed in or implied by such forward-looking statements. Reliance should not be placed on forward-looking statements because they involve known and unknown risks, uncertainties, and other factors, which are in some cases beyond the control of the Company and may cause the actual results, performance, or achievements of the Company to differ materially from anticipated future results, performance, or achievements expressed or implied by such forward-looking statements. Additional information regarding this risk factor and uncertainties is detailed from time to time in the Company's SEC filings.