Simpson Industries Reports Record Third Quarter Sales and Operating Earnings
15 October 1999
Simpson Industries Reports Record Third Quarter Sales and Operating Earnings
PLYMOUTH, Mich., Oct. 14 -- Simpson Industries, Inc.
today announced record third quarter sales of $124.2 million
and operating earnings of $6.1 million for the quarter ended September 30,
1999.
Net sales for the quarter were up 12.9% to $124,220,000 versus
$110,016,000 in the third quarter of 1998. Operating earnings of $6,129,000
and net earnings at $2,850,000 increased 116.1% and 206.8%, respectively from
1998 levels. 1998 third quarter earnings were impacted by a work stoppage at
General Motors. Diluted net earnings per share improved to $0.16 in the third
quarter of 1999 compared to $0.05 last year.
Sales for the nine months ended September 30, 1999, were a record at
$396,721,000, up 8.9% over 1998. Operating margins improved to 7.6% for the
nine months versus 6.6% for the corresponding period of 1998. Net earnings
were a record $15,542,000 or 86 cents a share diluted, up 34.9% and 36.5%,
respectively, compared to $11,520,000 or 63 cents a share diluted in the first
nine months of 1998.
"We are very pleased with our financial and operating results this quarter
despite production disruptions caused by Hurricane Floyd at our Greenville,
N.C. facility," said Roy E. Parrott, Chairman and C.E.O. of Simpson
Industries. "Outstanding support from all our employees and customers allowed
us to come back up in record time," 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. Information
about Simpson is available on the Internet at http://www.simpsonind.com .
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 Nine Months Ended
September 30 September 30
1999 1998 1999 1998
Net Sales $124,220 $110,016 $396,721 $364,276
Cost of products sold 114,382 103,732 356,382 329,513
GROSS PROFIT 9,838 6,284 40,339 34,763
Administrative and selling 3,201 2,924 8,725 9,386
Amortization of intangible
assets 508 524 1,533 1,464
OPERATING EARNINGS 6,129 2,836 30,081 23,913
Interest and other
income - net 177 904 68 579
Interest expense (2,178) (2,353) (6,494) (7,298)
EARNINGS BEFORE
INCOME TAXES 4,128 1,387 23,655 17,194
Income taxes 1,278 458 8,113 5,674
NET EARNINGS $2,850 $929 $15,542 $11,520
BASIC EARNINGS PER SHARE $0.16 $0.05 $0.86 $0.63
DILUTED EARNINGS PER SHARE $0.16 $0.05 $0.86 $0.63
Cash dividends per share $0.10 $0.10 $0.30 $0.30
Basic weighted average
shares outstanding 18,034 18,319 18,081 18,304
Diluted weighted average
shares outstanding 18,099 18,395 18,119 18,411
Depreciation expense $6,502 $5,641 $19,267 $17,773
Capital expenditure $9,829 $5,603 $29,604 $14,894
Simpson Industries, Inc.
Condensed Consolidated Balance Sheets
(Dollar amounts in thousands)
September 30, December 31,
1999 1998
(Unaudited)
ASSETS
Cash & Cash Equivalents $5,717 $6,145
Other Current Assets 117,224 108,394
Total Current Assets 122,941 114,539
Property, Plant &
Equipment - net 177,680 169,885
Other Assets & Intangible 51,439 56,130
Total Assets $352,060 $340,554
LIABILITIES & SHAREHOLDER'S EQUITY
Current Liabilities $87,101 $82,343
Long-Term Debt 106,100 105,534
Other Liabilities 28,451 28,109
Shareholder's Equity 130,408 124,568
Total Liabilities & Equity $352,060 $340,554