Intermet Reports Record Third Quarter Sales
15 October 1999
Intermet Reports Record Third Quarter Sales
TROY, Mich., Oct. 14 -- Intermet Corporation
today reported net third-quarter sales of $225 million, setting a record for
sales in any third quarter in Intermet's history. Third-quarter sales in 1999
increased $36.5 million compared with the same period last year. This
increase is partially the result of strong domestic and European light truck
markets and $20 million of the increase is due to two acquisitions made at the
end of 1998.
Third-quarter income was $0.29 per diluted share on net income of
$7.4 million compared with $0.36 per diluted share on net income of
$9.3 million in the third quarter of 1998. Earnings were in line with
analysts' expectations.
John Doddridge, chairman and chief executive officer, said, "The
exceptionally robust economy has us operating at maximum capacity as we strive
to meet customer demand. This has caused a substantial increase in our
operating costs. The outlook is positive, however, as we continue to add
capacity to provide relief to our plant operations." Doddridge noted that
25,000 tons of capacity has been added at one foundry with an additional
50,000 to 60,000 tons to come online at another plant by the end of the year.
"Intermet has very strong product content in the light truck market, the
one area that has seen tremendous growth in the past few years," said
Doddridge. "The auto manufacturers are converting many of their car plants to
truck facilities and we are working extremely hard to meet those changing
needs."
Record sales and earnings continued for the first nine months of 1999 as
Intermet posted year-to-date sales of $716 million and earnings of
$36.2 million ($1.41 per diluted share). Sales for the first nine months of
1999 were up $83.6 million from 1998 nine-month sales of $633 million, and net
earnings were up $3.3 million from $32.9 million in 1998 ($1.27 per diluted
share). 1999 sales year-to-date reflect exceptionally strong domestic and
European light truck markets with earnings reflecting a one-time tax benefit
of $0.18 per diluted share in the second quarter.
The Intermet board of directors voted to approve a quarterly dividend of
4 cents per share, payable December 30, 1999, to shareholders of record as of
December 1, 1999.
With headquarters in Troy, Michigan, Intermet Corporation and its
subsidiaries design and manufacture precision iron and aluminum cast
components for automotive and industrial equipment manufacturers worldwide.
Intermet also produces precision-machined components and manufactures cranes
and specialty service vehicles. The company has more than 7,000 employees at
19 locations in North America and Europe. The company's Internet address is
http://www.intermet.com .
This news release may include forecasts and forward-looking statements
about Intermet, its industry and the markets in which it operates. Forward-
looking statements and the achievement of any forecasts or projections are
subject to risks, uncertainties and other factors that could cause actual
results to differ materially from those expressed or denied. Such risks and
uncertainties are fully detailed as a preface to the Management's Discussion
and Analysis of Financial Condition in the Company's 1998 Annual Report for
the year ended December 31, 1998.
Intermet Corporation Condensed Consolidated Income Statements
(In thousands, except per share data)
Three months ended Nine months ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
1999 1998 1999 1998
(Unaudited)
Net sales $225,350 $188,808 $716,275 $632,698
Cost of sales 201,361 166,314 625,003 548,729
Gross profit 23,989 22,494 91,272 83,969
Operating expenses 9,538 7,765 28,664 25,296
Operating profit 14,451 14,729 62,608 58,673
Other expense, net 3,264 2,182 9,645 8,015
Income before income
taxes 11,187 12,547 52,963 50,658
Provision for income
taxes 3,745 3,233 16,762 17,736
Net income $7,442 $9,314 $36,201 $32,922
Income per common
share - Basic $0.29 $0.36 $1.42 $1.29
Income per common
share - Diluted $0.29 $0.36 $1.41 $1.27
Weighted average shares outstanding:
Basic 25,360 25,679 25,529 25,565
Diluted 25,430 25,976 25,634 25,939
Intermet Corporation Condensed Consolidated Balance Sheets
(In thousands)
September 30, December 31,
1999 1998
(Unaudited)
Assets:
Cash and cash equivalents $4,443 $5,848
Other current assets 237,667 191,582
Property, plant and equipment, net 263,165 240,702
Other noncurrent assets 147,994 145,883
Total assets $653,269 $584,015
Liabilities and shareholders' equity:
Debt $228,731 $164,101
Other liabilities 179,061 200,572
Total liabilities 407,792 364,673
Minority interest 2,337 2,337
Total shareholders' equity 243,140 217,005
Total liabilities and
shareholders' equity $653,269 $584,015