Amcast Announces First Quarter Fiscal 2000 Results
15 December 1999
Amcast Announces First Quarter Fiscal 2000 Results
DAYTON, Ohio--Dec. 15, 1999--Amcast Industrial Corporation today announced its first quarter fiscal year 2000 results.Sales for the first quarter of fiscal 2000 were $146.1 million compared to $146.0 million in the 1999 first quarter. Net income was $1.5 million or 17 cents per diluted share compared to $10.0 million or $1.09 per diluted share in the 1999 first quarter. The 1999 first quarter included a $9.0 million pretax gain on the sale of a business.
Demand for the company's products was strong in the first quarter of 2000; however, earnings reflected the continuation of operating issues encountered in several manufacturing locations in the third and fourth quarters of fiscal 1999.
In the Flow Control Products segment, sales were $35.4 million in the fiscal 2000 first quarter compared to $39.2 million in the same period last year. Operating income was $6.0 million in the quarter compared to $5.7 million a year ago.
The first quarter 2000 sales and operating income reflect better pricing for the company's copper and brass plumbing fittings, partly offset by modestly higher operating costs. The prior year results also include sales and operating income from the business sold during the quarter.
Engineered Components sales were $110.7 million in the 2000 first quarter compared to $106.8 million in the 1999 first quarter. Operating income was $0.9 million compared to $8.1 million for the comparable periods in 1999 as operating challenges continued.
Sales volumes of Engineered Components were higher than last year. Sales of aluminum components were up sharply, however aluminum wheel sales in the quarter were not as strong as the comparable period last year due to the heavy demand in the prior year quarter stemming from the ending of the extended General Motors work stoppage. Operating income was lower than the prior year due to high operating costs at the company's Gas City, Indiana, wheel plant and the Wapakoneta, Ohio, suspension components plant and the lower wheel demand. Low yields and labor inefficiencies continue to drive the higher production costs, albeit at a significantly lower rate than encountered in the 1999 fourth quarter.
Commenting on the quarter, John H. Shuey, chairman and chief executive officer, said, "These results were generally in line with our expectations for the quarter. The cost issues encountered in our Gas City and Wapakoneta plants continued, but were significantly less than the previous quarter. Good progress was made in the quarter in resolving these issues. We also expect new programs to help boost North American wheel plant production and sales to capacity levels during the fiscal 2000 second quarter."
"Given strong demand from markets we serve and improvements in operations over the last quarter, our expectations for the full year remain very positive," Shuey said.
Amcast Industrial Corporation is a leading manufacturer of technology-intensive metal products. Its two business segments are brand name Flow Control Products marketed through national distribution channels, and Engineered Components for original equipment manufacturers. The company serves the automotive, construction, and industrial sectors of the economy.
This release includes "forward-looking statements" which are subject to change based on various factors and uncertainties that may cause actual results to differ significantly from expectations. These factors include, among others: general economic conditions less favorable than expected, fluctuating demand in the automotive and housing industries, price pressures in the company's automotive and flow control businesses, effectiveness of production improvement plans, inherent uncertainties in connection with international operations and foreign currency fluctuations, and labor relations at the company and its customers.
STATEMENTS OF INCOME
($ in thousands except per share amounts)
Three Months Ended
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November 28 November 29
1999 1998
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Net sales $ 146,079 $ 146,024
Cost of sales 127,453 121,177
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Gross Profit 18,626 24,847
Selling, general and administrative expenses 13,603 13,677
Gain on sale of business - (9,023)
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Operating Income 5,023 20,193
Equity in (income) loss of joint venture
and other (income) and expense (248) 51
Interest expense 2,823 3,585
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Income before Income Taxes 2,448 16,557
Income taxes 962 6,528
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Net Income $ 1,486 $ 10,029
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Basic earnings per share $ 0.17 $ 1.09
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Diluted earnings per share $ 0.17 $ 1.09
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Average number of shares outstanding- Basic 8,956 9,207
Average number of shares outstanding- Diluted 8,962 9,217
CONDENSED BALANCE SHEETS
($ in thousands)
November 28 August 31
1999 1999
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Current Assets
Cash and cash equivalents $ 12,981 $ 6,928
Accounts receivable 101,987 97,819
Inventories 83,194 77,166
Other current assets 20,731 21,144
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218,893 203,057
Property, Plant and Equipment 253,623 256,758
Goodwill 60,857 61,261
Other Assets 19,644 12,410
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$ 553,017 $ 533,486
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Current Liabilities
Accounts payable $ 80,923 $ 82,396
Current debt 10,154 10,855
Other current liabilities 39,746 40,851
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130,823 134,102
Long-Term Debt 194,063 174,061
Deferred Liabilities 54,810 54,557
Shareholders' Equity 173,321 170,766
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$ 553,017 $ 533,486
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