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INTERMET Announces Changes to Sales and Earnings Estimates

20 December 2000

INTERMET Announces Changes to Sales and Earnings Estimates

    TROY, Mich., Dec. 19 INTERMET Corporation
today announced that sales for December 2000 will be down 32 percent from the
company's business plan and that fourth-quarter sales will be down 23 percent
from plan.
    Chairman and CEO John Doddridge said, "We expect our earnings to be
slightly ahead of consensus estimates due to a number of adjustments.  These
include a gain involving the write-up of New River Foundry assets related to
an insurance settlement.  Further adjustments result from a gain after the
sale of a business unit (Iowa Mold Tooling), restructuring charges, including
certain write-downs, OSHA fines resulting from the New River explosion, and
separation pay resulting from a recent personnel reduction.  While the quarter
will be profitable with the adjustments, we expect to have a loss from
operations."
    INTERMET's Alexander City Foundry is achieving deliveries of new, complex
components to its customers, but the plant continues to post substantial
losses.  "One of the components at the plant is very complex and difficult to
make," said Doddridge.  "It is clearly under-priced and we have no alternative
but to obtain a substantial price increase from the customer.  Otherwise we
may have to cease production of the product."
    Doddridge continued: "We are reacting swiftly to falling automotive sales
and see this general industry softness carrying into 2001.  Therefore, we are
moving quickly with cost-containment directives as well as substantial worker
layoffs at numerous INTERMET facilities.  We have separated over 150
management and technical employees, including one-third of our corporate
staff."