National-Standard Company Reports Second Quarter Results
26 April 2000
National-Standard Company Reports Second Quarter Results
NILES, Mich., April 25 National-Standard Company
(Amex: NSD) announced net income for the second quarter of fiscal year 2000 of
$1.0 million or 17 cents per diluted share versus a net income of $2.1 million
or 35 cents per diluted share for the same period last year. The $1.1 million
decrease in income from last year's second quarter is largely attributable to
lower than planned sales volumes.
"We are very encouraged by our second quarter operating results," said R.
B. Kalich, President and Chief Executive Officer. "Net income increased $2.5
million over the first quarter excluding the $2.8 million charge taken in the
first quarter to realign organizational responsibilities and to reserve for
the uncollectibility of the notes receivables from the Company's former
facility in Kidderminster, United Kingdom. As a result of the realignments in
the first quarter, we believe that we should continue to see improvement from
operations over the remainder of the year."
For the first six months of fiscal year 2000, the Company had a net loss
of $3.3 million or 58 cents per diluted share versus a net income of $2.6
million or 45 cents per diluted share in the same period last year. As
previously mentioned, this year's results include a $1.3 million charge to
realign organizational responsibilities and a $1.5 million charge to reserve
for the uncollectibility of a note receivable from the Company's former
facility in Kidderminster, United Kingdom. Both charges were taken in the
first quarter. Included in last year's net income was a $0.6 million net loss
on the March 12, 1999 sale of the Kidderminster operation.
Sales for the second quarter of fiscal year 2000 were $42.8 million,
compared to $50.0 million for the same period last year, while sales for the
six-month period ended April 2, 2000 were $80.9 million, compared to $102.6
million in the first half of fiscal year 1999. Included in last year's sales
for the three- and six-month periods are $4.4 million and $10.5 million from
the Company's former Kidderminster facility and $0.4 million and $1.7 million
from the divested non-air bag wire cloth product line sold in 1999. Sales in
the second quarter increased $4.6 million over the first quarter. Sales of
engineered products and weld wire account for 91% of the sales increase in the
second quarter.
According to Kalich, "Several major initiatives were put in place to not
only recover lost sales in weld wire but also generate new business. During
the first half of this year, we began adding new marketing staff to better
serve our customers. Additionally, in this past quarter, we have begun to
build weld wire inventory to further improve our delivery performance and
transition to shipments from our newly created warehouse stock in existing
National-Standard facilities. These changes will be presented at the 2000 AWS
International Welding and Fabricating Exposition April 26 through April 28 in
Chicago.
During the second quarter of fiscal 2000, the Company contributed 54,000
shares of National-Standard common stock to the National-Standard Pension
Master Trust. The action brings the total shares outstanding to 5,788,549.
The Pension Master Trust holds 2,017,175 shares of National-Standard common
stock, 35% of the shares outstanding.
Founded in 1907, National-Standard is a Niles, Michigan based firm with
annual sales of approximately $180 million. In nine operating facilities in
the United States and England, the Company manufactures and distributes a
broad range of wire and wire-related products, including tire bead wire and
welding wire, in addition to wire cloth, fabricated filters and inflator
housings for the automotive air bag industry.
This press release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995, relating to future
improvements in the Company's results based upon actions taken with respect to
its first quarter organizational realignment, increase in weld wire marketing
staff, and its warehouse inventory. The ability of the Company to achieve
such future improvements, however, is subject to risks and uncertainties,
including, but not limited to, the impact of competitive products and pricing,
changes in product demand by customers, industry overcapacity, availability
and cost of raw materials and changes in economic conditions. Should any one
or more of these risks or uncertainties materialize, actual performance
results may vary materially. The Company does not intend to update these
forward-looking statements.
Financial Highlights
National-Standard Company and Subsidiaries
(Dollars in thousands except per share amounts)
For three months ended:
April 2 April 4
2000 1999
Net Sales $42,754 $50,049
Operating Income 1,530 3,050
Net Income 1,005 2,052
Basic Earnings Per Share .17 .36
Diluted Earnings Per Share .17 .35
Basic Average Shares Outstanding 5,769,549 5,727,537
Diluted Average Shares Outstanding 5,769,549 5,791,447
For six months ended:
April 2 April 4
2000 1999
Net Sales $80,940 $ 102,623
Operating Income 860 4,554
Net Income (3,319) 2,564
Basic Earnings Per Share (.58) .46
Diluted Earnings Per Share (.58) .45
Basic Average Shares Outstanding 5,749,755 5,604,986
Diluted Average Shares Outstanding 5,749,755 5,646,267