MascoTech, Inc. Announces 1999 Results
28 February 2000
MascoTech, Inc. Announces 1999 Results
TAYLOR, Mich., Feb. 28, -- MascoTech sales
increased approximately three percent to $1.68 billion from $1.64 billion in
1998. Excluding the 1999 and 1998 sales contribution from the Company's
aftermarket-related businesses which were sold in early 1999, sales for 1999,
aided by acquisitions, increased approximately eight percent.
Net income in 1999 was $92.4 million or $1.84 per diluted common share.
Results in 1999 include a net pre-tax gain of $14.4 million related to the
sale of the Company's aftermarket-related businesses, partially offset by
charges related to the disposition of certain other operations and a plant
closure. In addition, 1999 results include charges of $17.5 million pre-tax
related to the impairment of certain long-lived assets, which include the
Company's hydroforming equipment and related intellectual property. Other
income and expense was negatively impacted by pre-tax charges principally
related to equity affiliate investments aggregating approximately $5.2
million, net of $1 million of non-recurring income.
Net income in 1998 was $97.5 million or $1.83 per diluted common share.
Results in 1998 include a charge related to the disposition of certain
businesses aggregating approximately $41 million pre-tax. In addition, the
Company recorded a pre-tax gain of approximately $25 million related to a
business sold in 1996. Results in 1998 also benefited from a gain of $7
million pre-tax related to the disposition of the Company's Technical Services
Group in 1997 and gains from the Company's marketable securities portfolio.
Excluding the unusual and non-recurring gains and charges mentioned above
for both 1999 and 1998, earnings per diluted common share were $1.78 in 1999
and $1.68 in 1998.
MascoTech sales for the fourth quarter of 1999, excluding the 1998 sales
contributions from the Company's aftermarket-related businesses which were
sold in 1999, increased approximately six percent, principally as the result
of acquisitions. Net income in the fourth quarter of 1999 was approximately
$22 million or $.45 per diluted common share. Results for the fourth quarter
1999 were negatively impacted by pre-tax charges of approximately $12.1
million, principally related to a sale of a business and a plant closure.
Excluding these charges, net income was approximately $20 million or $.41 per
diluted common share, compared to $18 million or $.36 per diluted common share
for the fourth quarter 1998.
The unusual relationship between income before income taxes and income
taxes (credit) relates to the unusual gains and charges discussed above.
Excluding the impact of the unusual gains and charges for the fourth quarter
1999 and for the full years 1999 and 1998 would result in an effective tax
rate for those periods of approximately 40 percent.
MascoTech's CEO Frank M. Hennessey commented, "Although we continue to be
impacted by softness in certain of our markets, we are particularly pleased
with the growth in 1999 experienced by our North American Metal Forming
operations and our Towing Systems Group. We are seeing signs of improvement
in our other business segments and are optimistic that the growth initiatives
that we are pursuing will result in long-term value creation."
MascoTech is a diversified manufacturing company with world-leading metal
forming process capabilities and proprietary product positions serving
transportation, industrial and consumer markets.
Press releases are available through Company News On-Call by fax,
800-758-5804, extension 535375, or http://www.prnewswire.com . MascoTech's
press releases and other information are also available through our toll-free
number, 800-474-8324. Visit MascoTech's website at http://www.mascotech.com .
Statements in this press release which are not historical facts are
forward looking statements that involve certain risks and uncertainty,
including but not limited to, risks associated with the uncertainty of future
financial results, conditions within the markets in which the Company
competes, labor relations of the Company and certain of its customers and
other uncertainties detailed in the Company's filings with the Securities and
Exchange Commission.
MascoTech, Inc. Announces 1999 Results
Three Months Ended Twelve Months Ended
December 31 December 31
1999 1998 1999 1998
Net Sales $ 395,220 $ 401,760 $ 1,679,690 $ 1,635,500
Cost of Sales (291,240) (296,800) (1,246,660) (1,208,930)
Gross Profit 103,980 104,960 433,030 426,570
Selling, General and
Administrative
Expenses (51,100) (53,090) (214,530) (204,180)
Gains (Charge) on
Disposition of Businesses,
Net (12,110) --- 14,440 (15,580)
Charge for Asset
Impairment --- --- (17,510) ---
Operating Profit 40,770 51,870 215,430 206,810
Other Income (Expense),
Net (19,740) (21,270) ( 75,960) (62,290)
Income Before Income
Taxes 21,030 30,600 139,470 144,520
Income Taxes (Credit) (1,230) 12,480 47,040 47,050
Net Income $ 22,260 $ 18,120 $ 92,430 $ 97,470
Diluted Earnings Per
Common Share $ .45 $ .36 $ 1.84 $ 1.83
Average Common Shares
Outstanding - Diluted 54,930 57,200 55,200 58,520
Amounts in thousands except per share data.