MascoTech, Inc. Announces Third Quarter Results
13 November 2000
MascoTech, Inc. Announces Third Quarter Results
TAYLOR, Mich., Nov. 13 MascoTech sales for the
third quarter 2000 of $394 million declined modestly from 1999 third quarter
sales of $399 million principally as a result of the strength of the U.S.
dollar versus foreign currencies. Income in the third quarter 2000 was $17.9
million or $.37 per share, compared with $20.2 million or $.41 per share in
1999.
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 the
Company's interest in Saturn Electronics & Engineering, Inc. The disposition
of Saturn is not expected to be completed prior to closing. Proceeds from any
subsequent disposition will be distributed to shareholders of record as of the
closing after the disposition is completed. Proxy materials have been mailed
to shareholders to vote on the transaction at or prior to the special
shareholders meeting scheduled for November 28, 2000.
MascoTech is a diversified manufacturing company with world-leading metal
forming process capabilities and proprietary product positions serving
transportation, industrial and consumer markets.
Press releases are available through Company News On-Call by fax,
800-758-5804, extension 535375, or http://www.prnewswire.com. MascoTech's
press releases and other information are also available through our toll-free
number, 800-474-8324. Visit MascoTech's website at http://www.mascotech.com .
Statements in this press release which are not historical facts are
forward looking statements that involve certain risks and uncertainty,
including but not limited to risks associated with the uncertainty of future
financial results, conditions within the markets in which the Company
competes, labor relations of the Company and certain of its customers and
other uncertainties detailed in the Company's filings with the Securities and
Exchange Commission.
MASCOTECH, INC. ANNOUNCES THIRD QUARTER RESULTS
Three Months Ended Nine Months Ended
September 30 September 30
2000 1999 2000 1999
Net Sales $393,770 $399,300 $1,295,480 $1,284,470
Cost of Sales (298,360) (299,960) (966,590) (955,420)
Gross Profit 95,410 99,340 328,890 329,050
Selling, General and Administrative
Expenses (49,970) (51,030) (163,130) (163,430)
Gains (Charge) on Disposition
of Businesses, Net 2,800 --- 2,800 26,550
Charge for Asset
Impairment --- --- --- (17,510)
Operating Profit 48,240 48,310 168,560 174,660
Other Income (Expense),
Net (18,820) (15,290) (53,210) (56,220)
Income Before Income
Taxes 29,420 33,020 115,350 118,440
Income Taxes 11,560 12,820 45,490 48,270
Net Income $17,860 $20,200 $69,860 $70,170
Diluted Earnings Per
Common Share $.37 $.41 $1.39 $1.39
Amounts in thousands except per share data.