Amcast Reports 1997 Financial Results.DAYTON Dayton, city (1990 pop. 182,044), seat of Montgomery co., SW Ohio, on the Great Miami River where it is joined by the Stillwater River; inc. 1805. It is the trade center for a fertile farm area, but is best known for its involvement with industry, invention, and , Ohio--(BUSINESS WIRE)--Oct. 17, 1997--Amcast Industrial Corporation (NYSE NYSE See: New York Stock Exchange :AIZ AIZ Lake of the Ozarks, Missouri (Lee C. Fine Memorial Airport) AIZ Air Intercept Zone AIZ Anti Imperialistische Zelle(n) (German: Anti-Imperialistic Cell; now defunct terrorist group) ) today reported financial results for the fourth quarter and 1997 fiscal year ended August 31. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight reached a new high of $387.1 million, up 13 percent from $343.9 million in the prior year. This is the fourth consecutive year of record sales. Net earnings for 1997 were $13.0 million, or $1.50 per share, compared to $15.9 million, or $1.85 per share in fiscal 1996. As previously announced, earnings for the fiscal fourth quarter were lower than analysts' estimates due to several internal and external factors. For the fourth quarter, net income was $2.5 million, or 28 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. of common stock, on sales of $98.7 million. For the fourth quarter of 1996, Amcast reported net income of $5.0 million, or 58 cents per share, on sales of $88.1 million. "These results reflect the underlying strengths in our base businesses and our ability to weather occasional storms which can impact earnings," John H. Shuey, president and chief executive officer, said. "Amcast made excellent strategic progress during the year. We continued to build platforms for growth by successfully launching a number of new products and expanding operations at several plants, including, most importantly Adv. 1. most importantly - above and beyond all other consideration; "above all, you must be independent" above all, most especially , our new ones. Our acquisition of Speedline SpA, a major European-based manufacturer of light-alloy wheels, takes us into the global market. Amcast's European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. presence is now firmly established, and this gives us an entree to the European automotive market for our performance-critical aluminum components. "In addition, we saw our 60-percent-owned joint venture, Casting Technology Company, reach break-even at year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. . This is notable, considering the unit simultaneously launched six new `squeeze-cast' aluminum automotive products during the year and achieved dramatic increases in production as customer demand soared. "Although it was an excellent year from an overall strategic perspective, both segments of our business faced adverse conditions which we believe to be temporary. Flow Control encountered extreme competitive pricing pressures and reduced demand for some of its air conditioning air conditioning, mechanical process for controlling the humidity, temperature, cleanliness, and circulation of air in buildings and rooms. Indoor air is conditioned and regulated to maintain the temperature-humidity ratio that is most comfortable and healthful. and refrigeration refrigeration, process for drawing heat from substances to lower their temperature, often for purposes of preservation. Refrigeration in its modern, portable form also depends on insulating materials that are thin yet effective. products because of the cool spring and mild summer. "In Engineered Components, although we met our customers' needs in every case, we experienced higher costs than anticipated with important new product launches. Work stoppages at customer facilities during the year adversely impacted our sales. A major disappointment for the year was a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. , cumulative, non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. of $3.5 million pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta , or 26 cents per share, in the second quarter as a consequence of overstated o·ver·state tr.v. o·ver·stat·ed, o·ver·stat·ing, o·ver·states To state in exaggerated terms. See Synonyms at exaggerate. o inventory values at our west coast aerospace casting operation," Shuey said. For the fourth quarter, Flow Control had sales of $41.9 million, about equal with last year's $41.5 million. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. of $5.3 million for the period compared to $7.1 million for the fourth quarter of 1996. In the Engineered Components segment, sales for the fourth quarter of 1997 were $56.8 million with operating income of $1.5 million. In the fourth quarter of 1996, sales for this segment were $46.6 million and operating income was $3.6 million. For the year 1997, the Flow Control segment had sales of $162.2 million, compared to $159.3 million in 1996. An increase in sales volume was partially offset by pricing pressures in selected markets. Operating income at $24.4 million in 1997 was slightly below the $25.2 million recorded in 1996. Income gains were made on sales volume and cost savings. However, a combination of pricing and a shift in product mix toward less profitable products and market channels were responsible for the year-over-year decline in operating income. Sales of Engineered Components increased from $184.6 million in 1996 to $224.9 million in 1997, primarily due to increased volumes of aluminum wheels and aluminum brake, chassis Pronounced "chah-see," it is a physical structure that holds everything or that everything is attached to. A computer's cabinet is often called the chassis. , and suspension components. The favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. impact of the increased volume was nearly offset by the effects of new product launch costs and the one-time charge at the aerospace operation. As a result, operating income increased to $9.5 million in 1997 from $9.3 million in fiscal 1996. "We are pleased that our strategy is progressing as planned with strong growth in our Engineered Components business and steady profits in our Flow Control business. Clearly, some of the events that negatively impacted earnings are of a one-time nature, and we do not expect them to recur in 1998," Shuey said. Amcast is a leading manufacturer of technology-intensive metal products. Its two business segments are brand name Flow Control Products marketed through national distribution channels and Engineered Components for original equipment manufacturers. The company serves four major sectors of the economy: automotive, construction, industrial, and aerospace. In addition to historical information, this news release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. and performance trends which are subject to certain risks and uncertainties that could cause actual results to differ materially from these statements and trends. Such factors include, but are not limited to, fluctuating fluc·tu·ate v. fluc·tu·at·ed, fluc·tu·at·ing, fluc·tu·ates v.intr. 1. To vary irregularly. See Synonyms at swing. 2. To rise and fall in or as if in waves; undulate. v. demand and competitive pressure in the automotive industry The automotive industry is the industry involved in the design, development, manufacture, marketing, and sale of motor vehicles. In 2006, more than 69 million motor vehicles, including cars and commercial vehicles were produced worldwide. to improve pricing, possible renewed price pressure and unfavorable product mix in the Flow Control segment, and general economic conditions that can affect demand in the construction and automotive industries Automotive Industries, Ltd. (Hebrew: תעשיות רכב נצרת עלית, תע"ר . -0-
STATEMENTS OF INCOME
($ in thousands except per share amounts)
Three Months Ended Year Ended
________________________ _______________________
August 31 August 31 August 31 August 31
1997 1996 1997 1996
___________ __________ __________ __________
Net sales $ 98,705 $ 88,107 $ 387,051 $ 343,934
Cost of sales 82,408 67,675 318,011 273,238
___________ __________ __________ __________
Gross Profit 16,297 20,432 69,040 70,696
Selling, general
and administrative
expense 11,170 11,528 41,798 43,368
___________ __________ __________ __________
Operating Income 5,127 8,904 27,242 27,328
Equity in (loss)
income of joint
venture and other
income and expense 254 (485) (2,102) (249)
Interest expense 1,574 610 5,135 2,348
___________ __________ __________ __________
Income before
Income Taxes 3,807 7,809 20,005 24,731
Income taxes 1,337 2,787 7,022 8,805
___________ __________ __________ __________
Net Income $ 2,470 $ 5,022 $ 12,983 $ 15,926
___________ __________ __________ __________
___________ __________ __________ __________
Net income per
share $ .28 $ .58 $ 1.50 $ 1.85
___________ __________ __________ __________
___________ __________ __________ __________
Average number of
shares outstanding 8,756 8,617 8,674 8,606
CONDENSED BALANCE SHEETS
($ in thousands)
August 31 August 31
1997 1996
____________ ____________
Current Assets
Cash and cash equivalents $ 9,608 $ 5,413
Accounts receivable 100,589 50,407
Inventories 71,960 45,021
Other current assets 21,068 8,380
____________ ____________
203,225 109,221
Property, Plant and Equipment 235,244 138,606
Goodwill 36,784 2,602
Other Assets 33,665 18,788
____________ ____________
$ 508,918 $ 269,217
____________ ____________
____________ ____________
Current Liabilities
Accounts payable $ 79,732 $ 30,750
Current debt 61,125 1,105
Other current liabilities 36,108 19,592
____________ ____________
176,965 51,447
Long-Term Debt 145,304 58,783
Deferred Liabilities 28,423 22,823
Shareholders' Equity 158,226 136,164
____________ ____________
$ 508,918 $ 269,217
____________ ____________
____________ ____________
CONTACT: Amcast Industrial Corporation, Dayton Media: Phyllis Phyllis is a character in Greek mythology. Daughter of Lycurgus, King of Thrace, she married Demophoon, son of Theseus, while he stopped in Thrace on his journey home from the Trojan war. Naylor, 937/291-7011 Investors: Michael Higgins, 937/291-7015 |
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