Berg Electronics Holdings and Berg Electronics report strong results for third quarter and first nine months of 1994.

ST. LOUIS--(BUSINESS WIRE)--Nov. 11, 1994--Berg Electronics Holdings Corp. and its wholly-owned subsidiaries, principally including Berg Electronics Inc. today announced their financial results for the third quarter and first nine months of 1994.

Sales for the 1994 third quarter of $146.6 million were up 57.0 percent over 1993 third-quarter sales of $93.4 million. Sales for the first nine months of 1994 were $378.4 million vs. $284.1 million for the first nine months of 1993, an increase of 33.2 percent.

Earnings before interest, taxes, depreciation and amortization (EBITDA) were $24.7 million and $65.5 million for the three and nine months ended Sept. 30, 1994, respectively, representing 63.0 percent and 43.3 percent increases over the three and nine months ended Sept. 30, 1993.

Net sales for the nine months ended Sept. 30, 1994 were $378.4 million, representing a $94.3 million, or 33.2 percent increase from the comparable period in 1993. North American sales for the nine months ended Sept. 30, 1994, increased to $186.0 million from $109.4 million in 1993. The North American sales increase reflects growth in Berg's core business and the acquisitions of Harbor in July 1993, Socket Express in January 1994, Mold-Con/Tri-Tec in March 1994, AT&T Connector Systems in May 1994 and McKenzie Technology in August 1994.

Sales in Europe increased by $12.1 million, or 14.4 percent, due primarily to increased sales of telecom applications to OEMs and increased sales to distributors. Sales in Asia/Pacific increased by $5.7 million, or 6.2 percent, primarily due to the growth of Berg's new emerging products, held back by flat performance in Japan.

The company's net sales for the three months ended Sept. 30, 1994, were $146.6 million, representing a $53.2 million or 57.0 percent increase from the comparable period in 1993. North American sales were $79.5 million, an increase of 211 percent over the same period in 1993. Core operation sales were up 10.6 percent with the remaining increase attributable to the newly acquired companies. European sales increased in the third quarter of 1994 to $33.2 million, or 26.9 percent, over the same period in 1993, primarily reflecting increased sales of standard products, improved penetration with distributors, and the strengthening European economy. Third-quarter Asia/Pacific sales, including Japan, reached $33.9 million, for a 14.9 percent increase over the third quarter of 1993, reflecting market acceptance of Berg's new emerging products and the continuing shift of its customers' production into Asia/Pacific, partially offset by the sluggish Japanese economy.

Operating expenses were $32.1 million, or 21.9 percent of sales, in the quarter as compared with $21.1 million, or 22.6 percent of sales, in 1993. For the first nine months of 1994, such expenses increased to $90.6 million from $72.8 million and decreased as a percentage of revenue to 23.9 percent from 25.6 percent. Berg continues to invest in international sales and marketing activities while containing expense levels year to year. EBITDA was $65.5 million and $45.7 million for the nine-month periods ended Sept. 30, 1994 and 1993, respectively, representing a 43.3 percent increase. Operating income for the nine months ended Sept. 30, 1994 was $34.3 million compared to $22.9 million for the nine months ended Sept. 30, 1993, an increase of 49.7 percent.

James N. Mills, chairman, said, "We're very pleased with our strong performance and solid progress at Berg Electronics. Since our acquisition of Berg in March 1993, we have substantially grown its product range, market penetration, sales and cash flow, by both internal and external means, and we plan to continue to do so as we continue to build on Berg's leadership position in the electronic connector industry."

Berg Electronics, headquartered in St. Louis, is the third-largest worldwide manufacturer of electronic connectors and cable assembly products. Berg's broad range of products serves high-end data processing, personal computing, telecommunications, industrial and instrumentation markets. Berg Electronics, formerly a division of E.I. du Pont de Nemours and Co., was acquired by Hicks, Muse, Tate & Furst Inc. and Mills and Partners Inc. in March 1993. Employing more than 4,700 people worldwide, its manufacturing facilities are strategically located in the United States, the Netherlands, France, Taiwan, Singapore, Korea, Japan and India.

The 1993 amounts discussed above are pro forma and include two months ownership under DuPont and seven months under current ownership. For further information, please contact David Sindelar, senior vice president, chief financial officer, at 314/746-2157 or Roy Winnick, Kekst and Co. at 212/593-2655.

CONTACT: Berg Electronics Inc., St. Louis

             David Sindelar, 314/746-2157
                           or
             Kekst and Co., New York
             Roy Winnick, 212/593-2655