Amcast Reports First Quarter 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)--Dec. 18, 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 that sales for the first quarter of fiscal 1998 ended November November: see month. 30, 1997, were $141 million versus $91 million in the comparable period last year. Net income of $4.1 million (44 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. ) equaled the prior year's net income of $4.1 million (48 cents per share). For the first time, results include the company's recent European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. aluminum wheel acquisition, Speedline S.p.A., completed in August. The 55 percent sales increase is primarily due to inclusion of this acquisition, combined with strong North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. aluminum wheel demand in the quarter. The 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 gain also reflects overall improvement in other aluminum automotive components. Commenting on the results, John H. Shuey, president and chief executive officer, said, "The results for the first quarter met management expectations. Both North American and European wheel businesses are off to a strong start in our new fiscal year, and the aluminum underbody components sector of our business continued to grow. Demand for these products is strong and is expected to continue for the foreseeable fore·see tr.v. fore·saw , fore·seen , fore·see·ing, fore·sees To see or know beforehand: foresaw the rapid increase in unemployment. future. The company's flow control markets remain at healthy levels, although down somewhat from a robust first quarter a year ago." Engineered Components segment sales increased to $103.9 million compared to $52 million in the first quarter of fiscal 1997. 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. was $6.5 million compared to $3.8 million a year ago. Demand for aluminum wheels in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. was particularly strong, with significant increases coming from Japanese automakers. Results at Speedline met expectations as market demand, coupled with market share gains, resulted in improved capacity utilization Capacity Utilization measures the rate at which a firm makes use of their capital productive capacities, such as factories and machinery. Capacity Utilization generally rises when the economy is healthy and falls when demand softens. and operating profits Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. . Flow Control Products segment sales were $37.1 million in the quarter compared to $38.8 million last year. Operating income was $5.2 million for the first quarter versus $6.9 million in 1997. Sales and operating income were down from last year in the company's copper and brass fitting product lines due to a very strong first quarter last year that was driven by price increases. Demand for marine fittings also was lower than the year-earlier period, resulting in lower operating income, the company reported. Shuey said that income from the company's 60-percent-owned joint venture, Casting Technology Company, was $1.4 million better than a year earlier, when a near-vertical launch of several automotive steering The process whereby builders, brokers, and rental property managers induce purchasers or lessees of real property to buy land or rent premises in neighborhoods composed of persons of the same race. knuckles in this new facility resulted in significant inefficiencies and expenses associated with meeting required volumes. Interest expense increased $2.3 million over the comparable 1997 period, primarily due to additional debt related to the Speedline acquisition. "We are pleased with early progress in integrating Speedline into Amcast. We are encouraged by the opportunities in combining our wheel businesses. We continue to believe the synergies we identified prior to the acquisition are attainable at·tain v. at·tained, at·tain·ing, at·tains v.tr. 1. To gain as an objective; achieve: attain a diploma by hard work. 2. . Managements of both wheel businesses are working to bring these improvements to the bottom line. "Results reported for the first quarter are consistent with the earnings step-up step-up A scheduled increase in the exercise or conversion price at which a warrant, an option, or a convertible security may be used to acquire shares of common stock. that we expect to achieve in fiscal 1998. Current business conditions are good and are expected to continue at these levels. Our organization is clearly focused on improving returns from recent investments throughout the company," Shuey concluded. 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. , general economic conditions that can affect demand in the construction and automotive industries Automotive Industries, Ltd. (Hebrew: תעשיות רכב נצרת עלית, תע"ר , and the ability to integrate the Speedline acquisition. 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. -0-
STATEMENTS OF INCOME
($ in thousands except per share amounts)
Three Months Ended
_______________________
November 30 December 1
1997 1996
_______________________
Net sales $ 140,979 $ 90,789
Cost of sales 118,007 71,684
_________ _________
Gross Profit 22,972 19,105
Selling, general and administrative expenses 13,267 10,290
_________ _________
Operating Income 9,705 8,815
Equity in income (loss) of joint venture
and other income and expense 352 (1,277)
Interest expense 3,468 1,123
_________ _________
Income before Income Taxes 6,589 6,415
Income taxes 2,517 2,277
_________ _________
Net Income $ 4,072 $ 4,138
_________ _________
_________ _________
Net income per share $ 0.44 $ 0.48
_________ _________
_________ _________
Average number of shares outstanding 9,184 8,625
CONDENSED BALANCE SHEETS
($ in thousands)
November 30 August 31
1997 1997
_______________________
Current Assets
Cash and cash equivalents $ 15,523 $ 9,608
Accounts receivable 105,261 100,589
Inventories 72,378 71,960
Other current assets 20,814 21,068
_________ _________
213,976 203,225
Property, Plant and Equipment 236,773 235,244
Goodwill 36,614 36,784
Other Assets 33,206 33,665
_________ _________
$ 520,569 $ 508,918
_________ _________
_________ _________
Current Liabilities
Accounts payable $ 77,651 $ 79,732
Current debt 18,075 61,125
Other current liabilities 32,982 36,108
_________ _________
128,708 176,965
Long-Term Debt 201,498 145,304
Deferred Liabilities 29,119 28,423
Shareholders' Equity 161,244 158,226
_________ _________
$ 520,569 $ 508,918
_________ _________
_________ _________
CONTACT: Amcast Industrial Corporation, Dayton Media: Phyllis Naylor, 937/291-7011 Investors: Michael Higgins, 937/291-7015 |
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