MascoTech, Inc. Announces Second Quarter Results
9 August 2000
MascoTech, Inc. Announces Second Quarter Results
TAYLOR, Mich. - MascoTech sales for the second quarter 2000 increased
modestly to $442 million as compared with $437 million in 1999. Sales for the
second quarter 2000, excluding the impact of the disposition of the Company's
Specialty Tubing and aftermarket-related businesses and including recent
acquisitions, would have increased approximately four percent to $442 million in
2000 as compared with $425 million in 1999. Second quarter income and earnings
per share were $26 million and $.51, respectively, in both 2000 and 1999.
Second quarter 2000 income benefited from increased equity affiliate
income principally related to a gain recognized by one of the Company's
affiliates from the sale of assets. The Company's share of this gain was
principally offset by costs and expenses related to the previously announced
closure of a plant and costs associated with the launch of a new manufacturing
facility. The second quarter of 1999 benefited from a gain of approximately
$16.5 million pre-tax, related to the sale of the Company's aftermarket-
related businesses. This gain, which has a low effective tax rate, was offset
by charges to reflect the impairment in value of certain assets related to the
Company's hydroforming process, $17.5 million pre-tax, and approximately $3
million pre-tax to reflect an other than temporary decline in the value of an
equity affiliate.
The Board of Directors of the Company declared a quarterly dividend of
$.08 per common share. The dividend is payable August 14, 2000 to
shareholders of record on July 21, 2000.
As previously announced, the Company has entered into a definitive
agreement to merge with an affiliate of Heartland Industrial Partners, L.P. in
a going private transaction. The value of the recapitalization transaction,
including the assumption of debt, is expected to exceed $2 billion. The
agreement provides for a cash payment at the closing of $16.90 per share plus
an additional amount based upon proceeds realized on the disposition of
certain non-operating assets, currently anticipated to result in an aggregate
per share payment of between $17 and $18. To the extent the disposition of
the non-operating assets is not completed prior to closing, proceeds from any
subsequent disposition will be distributed to stockholders after the
disposition is completed. The transaction is subject to certain conditions,
including the completion of financing and a stockholder vote.
MascoTech is a diversified manufacturing company with world-leading metal
forming process capabilities and proprietary product positions serving
transportation, industrial and consumer markets.
MASCOTECH, INC. ANNOUNCES SECOND QUARTER RESULTS
Three Months Ended Six Months Ended
June 30 June 30
2000 1999 2000 1999
Net Sales $442,310 $436,510 $901,710 $885,170
Cost of Sales (328,230) (322,820) (668,230) (655,460)
Gross Profit 114,080 113,690 233,480 229,710
Selling, General and
Administrative Expenses (56,990) (55,250) (113,160) (112,400)
Gains (Charge) on
Disposition of
Businesses, Net --- 16,540 --- 26,550
Charge for
Asset Impairment --- (17,510) --- (17,510)
Operating Profit 57,090 57,470 120,320 126,350
Other Income
(Expense), Net (13,840) (18,790) (34,390) (40,930)
Income Before
Income Taxes 43,250 38,680 85,930 85,420
Income Taxes 17,070 12,570 33,930 35,450
Net Income $26,180 $26,110 $52,000 $49,970
Diluted Earnings Per
Common Share $.51 $.51 $1.02 $.98
Amounts in thousands except per share data.