INTERMET Reports Third-Quarter Results
12 October 2000
INTERMET Reports Third-Quarter Results
TROY, Mich., Oct. 12 INTERMET Corporation
today reported third-quarter sales of $240 million, an increase of $15 million
compared with the same period last year. The increase is due primarily to
continuing strong domestic and European light-vehicle sales and to the light-
metals acquisitions made at the end of 1999.
Third-quarter earnings were 32 cents per diluted share on net income of
$8.0 million compared with 29 cents per diluted share on net income of
$7.4 million in the third quarter of 1999. Third-quarter earnings reflect a
one-time gain of 11 cents from insurance related to the replacement of fixed
assets from damaged plants, while the continuing weakness of the Euro has
caused some bottom-line deterioration for the company. Operational earnings
for the third quarter were 21 cents per diluted share.
INTERMET posted record sales for the first nine months of 2000 with year-
to-date sales of $829 million, up $113 million from strong 1999 nine-month
sales of $716 million. Year-to-date net income was $29.4 ($1.16 per diluted
share), down $6.8 million from $36.2 million ($1.41 per diluted share) in
1999. 2000 revenues year-to-date reflected strong domestic and European
automotive sales and positive contributions from INTERMET's light-metals
acquisitions.
The INTERMET board of directors voted to approve a quarterly dividend of
4 cents per share, payable December 29, 2000, to shareholders of record as of
December 1, 2000.
"Our earnings from operations declined compared with the third quarter of
1999 due to several continuing production issues," said John Doddridge,
Chairman and Chief Executive Officer. "Our Columbus, Georgia, foundry
continues to struggle with the ramp-up of new equipment. And, as previously
reported, our Alexander City, Alabama, operation has been in the process of
launching several complex parts. The plant has resolved most of its
production issues; however, as a Tier-1 supplier, it continues to be impacted
by difficulties with two machining suppliers.
"We expect that both the Columbus and Alexander City foundries will make
substantial progress in the fourth quarter," Doddridge continued. "However,
there appears to be a risk of slowing vehicle production in the fourth
quarter, which could affect us."
"We are pleased that our New River Foundry has successfully restarted one
of its two lines and is running smoothly," said Mike Ryan, INTERMET's
Executive Vice President of Operations. "The second line is expected to start
in early December. This added capacity is providing immediate relief from the
over-capacity demand we have been experiencing at our other ferrous-metals
plants."
On Wednesday, October 11, 2000, INTERMET entered into a definitive
agreement to sell Iowa Mold Tooling, Inc. (IMT), a maker of cranes and
specialty truck bodies. Further details on this transaction will be covered
in a separate press release.
INTERMET Corporation Condensed Consolidated Statements of Operations
(In thousands, except per share data)
Three months ended Nine months ended
Sept 30, 2000 Sept 30, 1999 Sept 30, 2000 Sept 30, 1999
(Unaudited)
Net sales $239,585 $225,350 $828,873 $716,275
Cost of sales 211,416 201,361 721,369 625,003
Gross profit 28,169 23,989 107,504 91,272
Selling, general and
administrative 9,009 8,749 28,958 26,297
Goodwill
amortization 1,650 789 4,950 2,367
Operating profit 17,510 14,451 73,596 62,608
Other expense, net 3,326 3,264 21,964 9,645
Income before income
taxes 14,184 11,187 51,632 52,963
Provision for
income taxes 6,162 3,745 22,244 16,762
Net income $8,022 $7,442 $29,388 $36,201
Income per common share
Basic $0.32 $0.29 $1.16 $1.42
Diluted $0.32 $0.29 $1.16 $1.41
Weighted average shares outstanding:
Basic 25,364 25,360 25,361 25,529
Diluted 25,431 25,430 25,427 25,634
INTERMET Corporation Condensed Consolidated Balance Sheets
(In thousands)
September 30, December 31,
2000 1999
(Unaudited)
Assets:
Cash and cash equivalents $7,538 $3,416
Other current assets 298,282 301,104
Property, plant and equipment, net 375,547 369,731
Other noncurrent assets 272,543 283,041
Total assets $953,910 $957,292
Liabilities and shareholders' equity:
Debt $460,300 $455,040
Other liabilities 226,237 259,875
Total liabilities 686,537 714,915
Total shareholders' equity 267,373 242,377
Total liabilities and
shareholders' equity $953,910 $957,292