Noble International Announces Revised Earnings Estimate
13 January 2000
Noble International Announces Revised Earnings EstimateBLOOMFIELD HILLS, Mich., Jan. 13 -- Noble International, Ltd. ("Noble") today reported that it expects earnings for 1999 from total operations to be approximately $.93 per share. The difference from the analyst-estimated earnings of $1.05 is reflected in the chart below. NOBLE INTERNATIONAL, LTD. CHANGE IN EARNINGS ESTIMATE Previous Estimate Revised Estimate Change Continuing Operations $0.85 $0.89 $0.05 Sold Operations $0.20 $0.04 $(0.16) $1.05 $0.93 $(0.12) Noble expects that its earnings for 1999 from its continuing Metals and Distribution Divisions will exceed the Company's estimate of approximately $.85. The higher than expected earnings are based upon the industry's increasing use of laser-welded blanks at Noble Metal Processing, Inc., and steel blanks created by Noble Metal Processing -- Midwest, Inc. However, the recently sold Plastics and Coatings Division provided lower than expected earnings for the Company. The Plastics and Coatings Division's estimated earnings for 1999 of $.04 did not meet the Company's estimated earnings of $.20. The recent sale of the Plastics and Coatings Division for approximately $90.5 million represents a pretax gain on the sale of the Division of approximately $19 million or approximately $1.35 per share after tax for the first quarter of 2000. Noble expects that income from its Metals and Distributions Divisions will produce approximately $1.10 to $1.15 per fully diluted share in 2000. Noble estimates that earnings from its continuing operations, when coupled with the gain on the sale of the Plastics and Coatings Division, will result in an anticipated 2000 earnings of $2.45 to $2.50 per fully diluted share. Actual results may vary as final costs of the sale are determined. Dan Sampson, Noble's Chief Financial Officer, stated that, "the lower than expected results for the year reflect the poor performance of our recently sold Plastics and Coatings Division. We are very pleased with the growth of our Metals Division and have high expectations for the upcoming year. With the completion of the sale the Company has virtually no bank debt which will enable us to explore several alternative strategies to create shareholder value." Noble International, Ltd. is a leading Tier II full-service supplier of automotive parts, component assemblies and value-added services to the automotive industry. As a supplier, Noble provides design, engineering, manufacturing, complete program management and other services to the automotive market. Noble delivers integrated component solutions, technological leadership and product innovation to original equipment manufacturers (OEMs) and Tier I automotive parts suppliers thereby helping its customers increase their productivity while controlling costs. Certain statements in this news release may be "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Statements regarding future prospects and developments are based upon current expectations and involve certain risks and uncertainties that could cause actual results and developments to differ materially from the forward-looking statements, including those detailed in the company's filings with the Securities and Exchange Commission.