Standard Products Reports Fiscal 2000 First Quarter Results
19 October 1999
Standard Products Reports Fiscal 2000 First Quarter Results
DEARBORN, Mich., Oct. 19 -- The Standard Products Co.
today announced results for its fiscal 2000 first quarter, ended
September 30, 1999. The Company generated net income of $5.8 million, or
$0.35 diluted earnings per share of common stock, prior to recording a charge
related to the previously announced reorganization of its European network of
manufacturing facilities. After including a pre-tax charge of $23.5 million,
or $0.95 diluted earnings per share, the Company incurred a net loss for the
quarter of $9.6 million, or $0.60 diluted earnings per share, on sales of
$264.4 million. This compares with net income of $0.4 million or $0.03
diluted earnings per share, on sales of $231.8 million in the first quarter a
year ago.
First quarter sales for the Company's Engineered Rubber Products segment
totaled $180.1 million, a 17.9 percent increase from fiscal 1999 first quarter
sales of $152.7 million. In North America, volumes were particularly strong
on General Motors' truck platforms and Ford's Windstar and Crown Victoria,
while in Europe both Jaguar and Rover volumes were up over last year. The
Engineered Plastics Products segment had first quarter sales of $48.1 million,
a 4.8 percent increase from the same period in fiscal 1999. This increase was
due to the acquisition of OEM/Miller in August 1998, as well as increased
volumes in the automotive industry.
First quarter sales in the Company's Tread Rubber segment were up
15.1 percent over the prior year, from $38.1 million to $43.9 million. This
increase was driven primarily by increased precure product sales across all
customer groups.
"Sales volumes were at near-record levels for any first quarter in the
Company's history. Excluding the nonrecurring charge, these volumes, coupled
with our ongoing Low Cost Producer initiatives, also enabled us to realize
near-record first quarter results," said Ronald L. Roudebush, vice chairman
and chief executive officer. "Each of our business segments participated in
the strong volumes and improved results," he added. Mr. Roudebush also stated
that the proposed merger with Cooper Tire & Rubber Company is proceeding
toward a scheduled closing on October 27, 1999.
Certain statements in this press release, especially those concerning the
Company's future earnings, constitute "forward-looking statements" as that
term is defined under the Private Securities Litigation Reform Act of 1995.
The achievement of the projections and estimates set forth is subject to
certain general risks and uncertainties, including economic and industry
conditions that affect all international businesses and the various factors
contained in the reports filed by the Company with the Securities and Exchange
Commission.
Standard Products produces highly engineered polymer-based products and
systems on a global basis for the automotive, appliance and construction
industries. More information may be found on the Internet at
http://www.standardproducts.com .
THE STANDARD PRODUCTS COMPANY
Consolidated Earnings Summary (Unaudited) (000 omitted)
Three Months
Periods ended September 30, 1999 1998
Net sales $ 264,399 $ 231,815
Costs and expenses:
Cost of goods sold 230,167 209,428
Selling, general and
administrative expenses 22,749 18,173
Nonrecurring charge 23,512 --
Interest expense 3,562 2,973
Other (income) expense, net 194 563
Income before taxes on income $ (15,785) $ 678
Provision for taxes on income (6,138) 244
Net income $ (9,647) $ 434
Per common share:
Basic $ (0.60) $ 0.03
Diluted $ (0.60) $ 0.03
Dividends $ 0.18 $ 0.17
Average shares outstanding:
Basic 16,065 16,698
Diluted 16,240 16,747