Amcast Announces First Quarter 2001 Results
20 December 2000
Amcast Announces First Quarter 2001 Results
DAYTON, Ohio--Dec. 20, 2000--Amcast Industrial Corporation today announced results of its first quarter fiscal year 2001, ended December 3, 2000.Sales for the first quarter of 2001 were $137.9 million, compared to $146.1 million in the first quarter of fiscal 2000. Operating income for the first quarter of 2001 was $4.1 million, 13% below the $4.7 million earned a year ago. Net income was $82,000 (1 cent per diluted share) in the first quarter of fiscal 2001, compared to income before the cumulative effect of an accounting change of $1,295,000 (14 cents per diluted share) a year earlier.
Demand for the company's copper plumbing fittings and North American automotive products remained near the prior year levels. However, anticipated replacement of commercial brass products business lost in the second quarter of fiscal 2000 was not achieved and demand for aluminum wheels in Europe softened.
During the first quarter of fiscal 2001, sales for the flow control segment were $33.0 million compared to $35.4 million a year earlier. Operating income was $4.5 million in fiscal 2001, compared to $6.0 million a year earlier.
Lower revenues in this segment were primarily due to the lower brass sales combined with lower selling levels compared to the prior year. Operating income was reduced by the impact of pricing, partly offset by lower manufacturing and administrative spending and improved plant efficiencies.
Engineered Components revenues declined from $110.7 million in fiscal 2000 to $105.0 million in fiscal 2001. Revenues were lower in Europe as demand softened and a lower Euro exchange rate prevailed.
Operating income for the segment was $1.3 million in fiscal 2001 versus $0.6 million earned in the first quarter of fiscal 2000. The improvement was the result of a more profitable mix of wheels in Europe and North America, coupled with lower manufacturing costs, primarily at the company's Wapakoneta, Ohio, plant. This more than offset the impact of lower manufacturing efficiencies and higher costs in the company's European operations.
The results of the first quarter are below the Company's expectations. They reflect some early signs of a softening in the economy and a resultant cautiousness on the part of some customers regarding inventory levels. The Company announced price increases in selected fitting lines that should benefit the second quarter.
In Europe and North America, the Company is seeing some easing of demand from automotive manufacturers. In the current uncertain economic climate, the Company is taking a cautious view of the near-term future. In that regard, the Company has begun to take further actions to reduce costs.
With regard to the previously announced strategic alternatives initiative, the Company and its financial advisors are actively evaluating potential alternatives to increase shareholder value.
Amcast Industrial Corporation is a leading manufacturer of technology-intensive metal products. Its two business segments are brand name Flow Control Products marketed through national distribution channels, and Engineered Components for original equipment manufacturers. The company serves the automotive, construction, and industrial sectors of the economy.
This release includes "forward-looking statements" which are subject to change based on various factors and uncertainties that may cause actual results to differ significantly from expectations. These factors include, among others; general economic conditions less favorable than expected, fluctuating demand in the automotive and housing industries, price pressures in the company's automotive and flow control businesses, effectiveness of production improvement plans, inherent uncertainties in connection with international operations and foreign currency fluctuations, and labor availability and relations at the company and its customers.
STATEMENTS OF INCOME
($ in thousands except per share amounts)
Three Months Ended
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December 03 November 28
2000 1999
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Net sales $ 137,944 $ 146,079
Cost of sales 121,656 127,768
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Gross Profit 16,288 18,311
Selling, general and
administrative expenses 12,197 13,603
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Operating Income 4,091 4,708
Equity in (income) loss of joint
venture and other (income) and expense 755 (248)
Interest expense 3,199 2,823
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Income before Income Taxes and
Cumulative Effect of Accounting Change 137 2,133
Income taxes 55 838
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Income before Cumulative Effect
of Accounting Change 82 1,295
Cumulative effect of accounting change,
net of tax 983
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Net Income $ 82 $ 2,278
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Basic earnings per share before cumulative
effect of accounting change $ 0.01 $ 0.14
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Basic earnings per share $ 0.01 $ 0.25
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Diluted earnings per share before
cumulative effect of accounting change $ 0.01 $ 0.14
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Diluted earnings per share $ 0.01 $ 0.25
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Average number of shares outstanding - Basic 8,406 8,956
Average number of shares outstanding - Diluted 8,412 8,962
CONDENSED BALANCE SHEETS
($ in thousands)
December 03 August 31
2000 2000
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Current Assets
Cash and cash equivalents $ 5,399 $ 3,062
Accounts receivable 72,592 85,041
Inventories 84,891 77,512
Other current assets 20,569 16,304
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183,451 181,919
Property, Plant and Equipment 221,700 226,857
Goodwill 49,370 49,707
Other Assets 22,321 21,903
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$476,842 $480,386
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Current Liabilities
Accounts payable $ 76,557 $ 84,285
Current debt 9,483 4,628
Other current liabilities 38,370 38,013
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124,410 126,926
Long-Term Debt 152,062 147,273
Deferred Liabilities 48,686 50,233
Shareholders' Equity 151,684 155,954
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$476,842 $480,386
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