Raytech Corporation Announces First Quarter Results for 2000
17 May 2000
Raytech Corporation Announces First Quarter Results for 2000
SHELTON, Conn.--May 16, 2000--Raytech Corporation today announced net income for the thirteen-week period ended April 2, 2000 amounting to $4.820 million or $1.38 per basic share as compared with $4.488 million or $1.31 per basic share for the corresponding period in 1999, an increase of 7.4 percent in net income period over period.Albert A. Canosa, President and Chief Executive Officer of Raytech Corporation, stated, "We enter the new millennium in a position of strength and with an attitude of confidence. The U.S. economy continues to grow at a sustainable pace. Our niche-market shares are strong and our ability to perform is solid. Our management team and employees have completed an enviable record based on the fact that our mission is understood, our vision is embraced by our entire team, and we have the desire and capability to develop and deliver quality products and excellent service on a par with, or better than the competition."
Net Income up 7.4%
Raytech Corporation recorded net income for the thirteen-week period ended April 2, 2000 of $4.820 million or $1.38 per basic share as compared to $4.488 million or $1.31 per basic share for the same period in the prior year. The earnings were driven by strong performance in the Wet Friction segment, which recorded increased sales of $2.8 million or 6.2% and increased operating profit of $1.7 million or 36.2% over the same period in 1999. The Dry Friction segment posted reduced sales of $.6 million and improved operating profit of $.4 million while the Aftermarket segment recorded lower sales of $2.3 million and lower operating profit of $.5 million compared to the same period in 1999. Operating profits for the quarter of $9.375 million exceeded the comparative prior period amount of $8.065 million, an excess of $1.310 million or 16.2 percent. Increases in operating profit were offset by a higher tax rate in the first quarter 2000 compared to the first quarter of 1999.
Net Sales
Worldwide net sales of $67.5 million for the thirteen-week period ended April 2, 2000 was comparable to the recorded sales amount of $67.3 million for the same period in the prior year.
The Wet Friction segment reported increased sales of $2.8 million over 1999 sales for the same period. Total sales of $47.2 million for the first quarter of 2000 reflected an increase in the demand for agricultural products and certain heavy duty products. Domestic car and light truck sales continue at the record 1999 levels through the first quarter of 2000 and are anticipated to remain at these levels throughout the remainder of the year.
The Aftermarket and Dry Friction segments were off from prior year sales levels due to slower demand in the quarter for products and negative currency translation impact, respectively.
The Company has been under the protection of the U.S. Bankruptcy Court relating to asbestos personal injury and environmental liabilities since March 1989. The ultimate liability of the Company with respect to asbestos-related, environmental or other claims cannot presently be determined.
RAYTECH CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(000's omitted, except share data)
Comparative results are as follows:
For the 13 Weeks Ended
April 2, April 4,
2000 1999
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Net Sales $ 67,475 $ 67,343
Net income(a) $ 4,820 $ 4,488
Basic earnings per share:
Earnings per share $ 1.38 $ 1.31
Weighted average shares 3,480,904 3,421,395
Diluted earnings per share:
Earnings per share $ 1.36 $ 1.29
Weighted average shares 3,546,239 3,471,122
(a) The Company has been under the protection of the U.S.
Bankruptcy Court relating to asbestos personal injury and
environmental liabilities since March 1989. The ultimate liability of
the Company with respect to asbestos-related, environmental or other
claims cannot presently be determined.