At Annual Stockholder Meeting, Sequa Estimates First Quarter Results.Business Editors NEW YORK--(BUSINESS WIRE)--May 8, 2003 Sequa Corporation (NYSE NYSE See: New York Stock Exchange ; SQAA SQAA Sequa Corp (stock symbol) SQAA Software Quality Assurance Analyst SQAA Scottish Quality Assurance Agency SQAA Société Québécoise des Astronomes Amateurs SQAA Supervising Quality Assurance Authority (UK) ), at its annual meeting here today, announced that, due to the continuing downturn in the airline industry, it expects to post a first-quarter loss approximately equal to the 35 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. loss recorded in last year's first quarter. Results for the first quarter ended March 31, 2003 will be available next week. In his address to stockholders at the annual meeting, Norman E. Alexander, Sequa's chairman and chief executive officer, said, "Business conditions have improved for a number of our operations and they are moving solidly ahead. Meanwhile, our largest operating unit operating unit A type of operating company that engages in transactions with outsiders and that is owned by another business. For example, in 1995 the stockholders of Capital Cities/ABC approved a $19 billion merger with the Walt Disney Company, whereupon , Chromalloy Gas Turbine, continues to combat the turmoil that has affected the airline industry for the past year and a half." The ongoing downturn in demand for engine component repair services continued to undercut profits at Chromalloy in the first quarter of 2003, and the company has increased inventory reserves to reflect reduced demand. The effect on overall results of the decline at Chromalloy was mitigated by improvement at other Sequa businesses, including two large operations, Warwick International and Precoat Metals - both of which are expected to post higher 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. for the first quarter. In other comments at the meeting, Alexander told stockholders that Chromalloy is expanding its participation in the $8 billion industrial turbine market through a newly formed global repair partnership with industrial turbine manufacturer, Siemens. He referred to a previously announced agreement to sell the company's military propulsion operation, ARC Propulsion, for $133 million and noted that the transaction is slated to close in late summer. Calling 2003 "another challenging year" for Sequa Corporation, Alexander expressed confidence in the company's ability to achieve its long-term objectives. In voting at the meeting, stockholders elected 11 directors and ratified the appointment of Ernst & Young LLP LLP - Lower Layer Protocol as independent auditors Independent Auditor An external auditor with a certified public accounting designation that qualifies him or her to provide an auditor's report. Notes: These auditors aren't affiliated with the company being audited. for fiscal 2003. Note: This press release may include 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. that are subject to risks and uncertainties. A number of factors, including political, currency, regulatory and competitive and technological developments, could result in material differences between actual results and those outlined in any forward looking statements. For additional information, see the comments included in Sequa's filings with the Securities and Exchange Commission. |
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