Simpson Industries Reports Record First Quarter Sales and Earnings
13 April 2000
Simpson Industries Reports Record First Quarter Sales and Earnings
PLYMOUTH, Mich., April 13 Simpson Industries, Inc.
(Nasdaq: SMPS) today announced record first quarter sales of $144.6 million
and net earnings of $6.1 million for the quarter ended March 31, 2000.
Net sales for the quarter were up 8.6% to $144,565,000 compared to
$133,102,000 in the first quarter of 1999. Operating earnings increased 10.0%
to a record first quarter earnings of $12,151,000. Net earnings rose to
$6,147,000 or $0.34 per share diluted versus $5,729,000 or $0.32 per share
diluted last year.
Continued strength in North American and European markets combined with
further improvements in its gross margins and operating margins allowed the
company to post stronger than expected results in the first quarter.
"We are on track to achieve yet another year of record sales and earnings
in the year 2000," said Roy E. Parrott, Chairman and Chief Executive Officer
of Simpson Industries. "We continue to enhance our product range with more
engineered products and modules which are providing growth and increased
profitability," added Parrott.
Simpson Industries also announced a new joint venture in India, Simpson
Sabind Industries, with a 51% ownership. The new joint venture currently
supplies machined components to Tata Cummins in India and will soon begin to
export automotive components.
Simpson Industries supplies powertrain and chassis products to original
equipment manufacturers in the worldwide automotive and medium and heavy duty
diesel engine markets. Simpson's products are focused in three groups:
noise, vibration and harshness, wheel-end and suspension, and modular engine
assemblies. Simpson's manufacturing units are located in the United States,
Canada, Mexico, Brazil, England, India, France, Spain and South Korea.
Information about Simpson is available on the Internet at
http://www.simpsonind.com .
Certain statements in this press release may be "forward-looking
statements" under the Securities Exchange Act of 1934. Statements regarding
future operating performance, new programs expected to be launched and other
future prospects and developments are based on current expectations and
involve certain risks and uncertainties that could cause the actual results
and developments to differ materially from the forward-looking statements.
Potential risks and uncertainties include such factors as demand for the
Company's products, pricing and other actions taken by the Company.
To receive a copy of this and other Simpson press releases by fax, please
call Company News-On-Call at 800-758-5804 - extension 107165, or you can
access the information via the Internet at http://www.prnewswire.com .
Simpson Industries, Inc.
Consolidated Statements of Operations (Unaudited)
(Dollar and share amounts in thousands, except per share data)
Three Months Ended
March 31
2000 1999
NET SALES $144,565 $133,102
Cost of products sold 128,576 118,763
GROSS PROFIT 15,989 14,339
Administrative and selling 3,272 2,776
Amortization of intangible assets 566 521
OPERATING EARNINGS 12,151 11,042
Interest and other income - net (437) (96)
Interest expense (2,257) (2,132)
EARNINGS BEFORE INCOME TAXES 9,457 8,814
Income taxes 3,310 3,085
NET EARNINGS $6,147 $5,729
BASIC EARNINGS PER SHARE $0.34 $0.32
DILUTED EARNINGS PER SHARE $0.34 $0.32
Cash dividends per share $0.10 $0.10
Basic weighted average
shares outstanding 17,906 18,145
Diluted weighted average
shares outstanding 17,941 18,161
Depreciation expense $6,410 $6,358
Capital expenditure $8,665 $5,035
Simpson Industries, Inc.
Condensed Consolidated Balance Sheets
(Dollar amounts in thousands)
March 31, December 31,
2000 1999
(Unaudited)
ASSETS
Cash & Cash Equivalents $7,358 $7,362
Other Current Assets 136,289 121,936
Total Current Assets 143,647 129,298
Property, Plant & Equipment - net 184,535 182,913
Other Assets & Intangible 48,778 49,245
Total Assets $376,960 $361,456
LIABILITIES & SHAREHOLDER'S
EQUITY
Notes Payable 19,549 10,908
Current Liabilities 91,728 95,405
Total Current Liabilities $111,277 $106,313
Long-Term Debt 103,811 98,955
Other Liabilities 26,404 23,156
Shareholders' Equity 135,468 133,032
Total Liabilities & Equity $376,960 $361,456