Brush Engineered Materials Reports Fourth Consecutive Quarterly Record Sales.Business Editors CLEVELAND--(BUSINESS WIRE)--Oct. 25, 2000 Brush Engineered Materials Brush Engineered Materials Inc. is a multinational company specializing in high performance engineered materials emphasizing the qualities of strength, reliability, miniaturization and weight savings, thermal dissipation, electrical conductivity and reflectivity. Inc. (NYSE NYSE See: New York Stock Exchange :BW) today reported third quarter sales of $143.9 million, the highest quarterly sales in the Company's history. Sales increased 26% over 1999 third quarter sales of $113.8 million and 5% over the previous second quarter record sales of $137.2 million. Third quarter sales represents the fourth consecutive record quarterly sales level. Sales for the first three quarters of 2000 were $416.5 million, a 24% increase over the sales for the same period in 1999. Net income for the third quarter 2000 was $4.1 million or $0.25 per share diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. versus a loss of $0.6 million or ($0.03) per share diluted for the same period last year. Net income for the first three quarters was $10.2 million or $0.62 per share diluted, up 98% over net income of $5.2 million or $0.32 per share diluted for the same period last year. This record sales growth continues to be driven by very strong demand from telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. , computer, automotive electronics and optical media product applications. The Company's engineered materials are often found in critical components of high technology applications such as internet infrastructure equipment and workstation workstation Computer intended for use by one person, but with a much faster processor and more memory than an ordinary personal computer. Workstations are designed for powerful business applications that do large numbers of calculations or require high-speed graphical servers, wireless telecom base stations, cellular phones, personal digital assistants, automotive electronics, undersea fiberoptics fiberoptics /fi·ber·op·tics/ (fi?ber-op´tiks) the transmission of an image along flexible bundles of glass or plastic fibers, each of which carries an element of the image. and CD-R (CD-Recordable) A writable CD technology using a type of compact disc that can be recorded, but not erased (CD-Rs are "write once" discs). CD-R discs are used to master CD-ROMs, to back up data and to make copies of data for distribution. and DVD DVD: see digital versatile disc. DVD in full digital video disc or digital versatile disc Type of optical disc. The DVD represents the second generation of compact-disc (CD) technology. discs. In addition to the positive effect of sales growth and operating improvements, third quarter earnings, as compared to last year, were positively affected by a reduction in the year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. tax rate due to tax benefits associated with foreign operations. Third quarter earnings were negatively impacted by foreign currency translation rates which were partially offset by currency hedge Currency hedge Applies mainly to international equities. Hedging technique to guard against foreign exchange fluctuations (i.e., short Euro l00 mm when holding a long position of Euro l00 mm in stocks). gains, and an increase in administrative expense. For the first nine months, as compared to the same period in 1999, earnings were negatively affected by product mix as well as increased administrative expense. The increased administrative expense includes reorganization The process of carrying out, through agreements and legal proceedings, a business plan for winding up the affairs of, or foreclosing a mortgage upon, the property of a corporation that has become insolvent. costs, planned medical surveillance and research, as well as environmental health and safety and litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. costs related to chronic beryllium beryllium (bərĭl`ēəm) [from beryl ], metallic chemical element; symbol Be; at. no. 4; at. wt. 9.01218; m.p. about 1,278°C;; b.p. 2,970°C; (estimated); sp. gr. 1.85 at 20°C;; valence +2. disease, portions of which are non-recurring. SG&A expense for the quarter and first nine months as a percent of sales is down compared to the same periods in 1999. Most of the increase in these expenses occurred in the first half of the year. Metal Systems Group The Metal Systems Group consists of Alloy alloy (ăl`oi, əloi`) [O. Fr.,=combine], substance with metallic properties that consists of a metal fused with one or more metals or nonmetals. Products, Engineered Material Systems (Technical Materials, Inc. (TMI TMI Too Much Information TMI Three Mile Island TMI TRMM Microwave Imager TMI Transactions on Medical Imaging TMI Texas Military Institute TMI Teen Missions International TMI Tauber Manufacturing Institute )) and Beryllium Products. The Metal Systems Group's third quarter sales of $93.9 million were up 25% over the third quarter sales of $75.1 million for 1999. Sales of $280.2 million for the first three quarters of 2000 were 23% higher than sales of $228.6 million for the same period in 1999. Third quarter operating profit/(loss) was $9.0 million versus $(0.7) million for the same period last year. Year-to-date operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. was $25.4 million or 100% higher than operating profit of $12.7 million for the same period last year. Alloy Products' sales increased 20% and 21% respectively over third quarter and year-to-date 1999. Despite increased production during the third quarter, demand from telecommunications, computers and automotive electronic product applications continues to outpace out·pace tr.v. out·paced, out·pac·ing, out·pac·es To surpass or outdo (another), as in speed, growth, or performance. outpace Verb [-pacing, the ramp up Ramp Up To increase a company's operations in anticipation of increased demand. Notes: A company might 'ramp up' operations if they just signed a contract creating substantially more demand for their product. See also: Demand, Economies of Scale of the new alloy strip mill project at the Company's Elmore, Ohio Elmore is a village in Ottawa County, Ohio, United States. As of the 2000 census, the village had a total population of 1,426. Geography Elmore is located at (41.470067, -83.292115)GR1. facility. Direct shipments from Elmore Elmore may refer to:
n. 1. A continuing after interruption; a renewal. 2. A restoration to use, acceptance, activity, or vigor; a revival. of oil and gas market applications. TMI had record sales for the third consecutive quarter and has experienced an increase in sales for each of the last seven quarters. Sales grew 34% in the third quarter and 36% year to date over the same periods last year. This record sales pace has been fueled by strong demand in all major markets served including telecommunications, computers and automotive electronics. Manufacturing yields and productivity also improved during the third quarter. Beryllium Products' third quarter sales increased 42% over the third quarter 1999 sales. Year-to-date sales are about flat with 1999. Profitability is improving and the order backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. for beryllium metal remains strong. The order rate for AlBeMet(R) materials has slowed. Microelectronics microelectronics, branch of electronic technology devoted to the design and development of extremely small electronic devices that consume very little electric power. Group The Microelectronics Group includes Williams Advanced Materials Advanced Materials is a leading peer-reviewed materials science journal published every two weeks. Advanced Materials includes Communications, Reviews, and Feature Articles from the cutting edge of materials science, including topics in chemistry, physics, Inc. (WAM WAM - Intermediate language for compiled Prolog, used by the Warren Abstract Machine. "An Abstract Prolog Instruction Set", D.H.D. Warren, TR 309, SRI 1983. ) and Electronic Products. Microelectronics' sales were $48.5 million for the third quarter and $131.9 year to date, which represents an increase of 34% and 31% respectively over the same period last year. A portion of the sales increase for the quarter and first nine months is attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to WAM precious metal prices which are in general passed though to customers. Operating profit was $3.6 million for the quarter or 23% over the third quarter of 1999 and $10.2 million year to date, 31% over the same period last year. WAM sales were up 33% for the quarter and 30% year to date as compared to the same periods last year. Approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 33% of the increased sales for the quarter and 29% of the increased sales year to date were due to higher precious metal prices. Demand continues to be strong across all product lines including precious and non-precious metal materials for DVD discs, wireless and photonic Dealing with light (photons). See photon and photonics. wafer fabrication Wafer Fabrication is a procedure composed of many repeated sequential processes to produce complete electrical or photonic circuits. Examples include production of radio frequency (RF) amplifiers, LEDs, optical computer components, and CPUs for computers. , MR & GMR (Giant Magnetoresistance) See magnetoresistance. magnetic heads and refining refining, any of various processes for separating impurities from crude or semifinished materials. It includes the finer processes of metallurgy, the fractional distillation of petroleum into its commercial products, and the purifying of cane, beet, and maple sugar . High purity Purity: see Pearl, The. Purity See also Modesty. almond symbol of the Virgin Mary’s innocence. [O.T.: Numbers 17: 1–11; Art: Hall, 14] crystal its transparency symbolizes pureness. nickel nickel, metallic chemical element; symbol Ni; at. no. 28; at. wt. 58.69; m.p. about 1,453°C;; b.p. about 2,732°C;; sp. gr. 8.902 at 25°C;; valence 0, +1, +2, +3, or +4. and brazed powder powder, any mass of fine particles or dust prepared by various mechanical means, e.g., grinding of solid substances, or by chemical means, e.g., precipitation from solutions. In a special sense, the word is applied to powdered propellant explosives, e.g. production for electron electron, elementary particle carrying a unit charge of negative electricity. Ordinary electric current is the flow of electrons through a wire conductor (see electricity). The electron is one of the basic constituents of matter. tube product applications has been ramping up on schedule Electronic Products' sales increased 37% in the third quarter and 33% year to date as compared to 1999 due to demand for beryllium ceramic This article is about ceramic materials. For the fine art, see Ceramic art. The word ceramic is derived from the Greek word κεραμικός (keramikos). products for wireless telecommunications and high-performance Adj. 1. high-performance - modified to give superior performance; "a high-performance car" superior - of high or superior quality or performance; "superior wisdom derived from experience"; "superior math students" circuitry for fiberoptic fiberoptic pertaining to fiberoptics; coated with flexible glass or plastic fibers having special optical properties and orientation. & defense applications. Operating profit has continued to improve both on a quarter and year-to-date comparison from 1999. Outlook Due to recent production issues in the new alloy cast shop and strip mill, alloy strip production output has been restricted. As a result, we do not anticipate sales and earnings growth in the fourth quarter as compared to third quarter of 2000. However, as compared to the fourth quarter of 1999, fourth quarter 2000 will show substantial sales and earnings improvement. Chairman's Comments Commenting on the results, Gordon Gordon, river in W Tasmania, Australia, 125 mi (200 km) long. Flowing from mountains to the W coast, its main tributaries are the Franklin and Denison from the N, and Serpentine and Olga to the S. D. Harnett, President, Chairman and Chief Executive Officer, said "I am pleased to report the fourth consecutive record quarterly sales and continued improvement in earnings over the last four quarters. Demand continues to be strong across our business lines driven by high-technology product applications in fast growing markets such as telecommunications, computers, automotive electronics and optical media. We are focussed and committed to meeting the needs of our customers in each of these markets. 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. Any forward-looking statements in this announcement are based on current expectations. The Company's performance may differ from that contemplated by the forward-looking statements as a result of a variety of factors including the global and domestic economy, manufacturing yields and operating performances at the Company's various facilities, changes in product mix, the timely and successful completion of pending capital expansions, tax rates and exchange rates. Brush Engineered Materials Inc., is headquartered in Cleveland, Ohio "Cleveland" redirects here. For the Cleveland metropolitan area, see . For other uses, see Cleveland (disambiguation). Cleveland is a city in the U.S. state of Ohio and the county seat of Cuyahoga County, the most populous county in the state. . The Company and its subsidiaries supply worldwide markets with Beryllium Products, Alloy Products, Electronic Products, Precious Metal Products, and Engineered Material Systems. For further information, please contact: Michael Michael, archangel Michael (mī`kəl) [Heb.,=who is like God?], archangel prominent in Christian, Jewish, and Muslim traditions. In the Bible and early Jewish literature, Michael is one of the angels of God's presence. C. Hasychak Vice President, Treasurer TREASURER. An officer entrusted with the treasures or money either of a private individual, a corporation, a company, or a state. 2. It is his duty to use ordinary diligence in the performance of his office, and to account with those whose money he has. and Secretary Brush Engineered Materials Inc. 17876 St. Clair Clair , René Originally René Chomette. 1898-1981. French filmmaker. An early exponent of productions with sound, he directed the classics Sous les Toits de Paris (1929) and Le Million (1931). Ave AVE Avenue AVE Average AVE Alta Velocidad Espanola (train between Madrid and Seville) AVE Alta Velocidad Española (Spanish: High Speed Train) AVE Audio Video Entertainment AVE Advertising Value Equivalent . Cleveland, Ohio 44110 (216) 383-6823 http://www.BEMinc.com
Brush Wellman Inc.
Digest of Earnings
September 29, 2000
2000 1999
------------- --------------
Third Quarter
Net Sales $143,926,000 $113,794,000
Net Income $4,084,000 ($552,000)
Share Earnings - Basic $0.25 ($0.03)
Average Shares - Basic 16,315,523 16,200,229
Share Earnings - Diluted $0.25 ($0.03)
Average Shares - Diluted 16,521,028 16,200,229
Year-to-date
Net Sales $416,532,000 $335,628,000
Net Income $10,231,000 $5,168,000
Share Earnings - Basic $0.63 $0.32
Average Shares - Basic 16,248,733 16,197,158
Share Earnings - Diluted $0.62 $0.32
Average Shares - Diluted 16,392,435 16,261,878
Consolidated Statements of Income
(Unaudited)
(Dollars in thousands Third Quarter Ended Nine Months Ended
except share and Sept. 29, Oct. 1, Sept. 29, Oct. 1,
per share amounts) 2000 1999 2000 1999
----------------------------------------------------------------------
Net sales $143,926 $113,794 $416,532 $335,628
Cost of sales 115,304 94,981 329,912 267,557
---------- ---------- ---------- ----------
Gross Margin 28,622 18,813 86,620 68,071
Selling, administrative
and general expenses 21,101 17,298 64,065 52,919
Research and development
expenses 1,870 2,191 5,571 6,207
Other-net (19) 259 314 287
---------- ---------- ---------- ----------
Operating Profit 5,670 (935) 16,670 8,658
Interest expense 1,227 913 3,407 2,697
---------- ---------- ---------- ----------
Income before income taxes 4,443 (1,848) 13,263 5,961
Income taxes 359 (1,296) 3,032 793
---------- ---------- ---------- ----------
Net Income $ 4,084 $ (552) $ 10,231 $ 5,168
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
Per Share of Common Stock:
Basic $ 0.25 $ (0.03) $ 0.63 $ 0.32
Weighted average number
of common shares
outstanding 16,315,523 16,200,229 16,248,733 16,197,158
Per Share of Common Stock:
Diluted $ 0.25 $ (0.03) $ 0.62 $ 0.35
Weighted average number
of common shares
outstanding 16,521,028 16,200,229 16,392,435 16,261,878
Cash dividends
per common share $ 0.12 $ 0.12 $ 0.36 $ 0.36
See notes to consolidated financial statements.
Consolidated Balance Sheets
Sep. 29, Dec. 31,
(Dollars in thousands) 2000 1999
----------------------------------------------------------------------
Assets
Current Assets
Cash and cash equivalents $6,182 $99
Accounts receivable 101,534 79,772
Inventories 108,448 110,570
Prepaid expenses 6,923 7,204
Deferred income taxes 27,837 26,610
--------------- -------------
Total Current Assets 250,924 224,255
Other Assets 31,613 33,213
Property, Plant and Equipment 448,690 440,234
Less allowances for depreciation,
depletion and impairment 280,699 269,296
--------------- -------------
167,991 170,938
--------------- -------------
$450,528 $428,406
--------------- -------------
--------------- -------------
Liabilities and Shareholders' Equity
Current Liabilities
Short-term debt $21,814 $34,687
Accounts payable 33,315 27,731
Other liabilities and accrued
items 35,052 29,869
Dividends payable 1,985 1,959
Income taxes 5,039 5,178
--------------- -------------
Total Current Liabilities 97,205 99,424
Other Long-Term Liabilities 17,109 14,407
Retirement and Post-employment Benefits 39,603 39,430
Long-term Debt 53,305 42,305
Deferred Income Taxes 15,347 12,202
Shareholders' Equity 227,959 220,638
--------------- -------------
$450,528 $428,406
--------------- -------------
--------------- -------------
See notes to consolidated financial statements.
Consolidated Statements of Cash Flows
Nine months ending
Sept 29, Oct 1,
(Dollars in thousands) 2000 1999
---------------------------------------------------------------------
Net Income $10,231 $5,168
Adjustments to Reconcile
Net Income to Net Cash
Provided From Operating Activities:
Depreciation, depletion and amortization 15,929 16,645
Amortization of mine development 1,661 4,408
Decrease (Increase) in accounts receivable (18,713) (17,448)
Decrease (Increase) in inventory 993 (7,454)
Decrease (Increase) in prepaid and
other current assets 803 (2,665)
Increase (Decrease) in accounts payable
and accrued expenses 6,478 19,459
Increase (Decrease) in interest
and taxes payable 1,682 2,251
Increase (Decrease) in deferred income tax (136) 2,738
Increase (Decrease) in other
long-term liabilities 1,518 (541)
Other - net 2,253 1,027
----------- -------------
Net Cash Provided From
Operating Activities 22,699 23,588
Cash Flows from Investing Activities:
Payments for purchase of property,
plant and equipment (13,030) (11,556)
Payments for mine development (308) (261)
Proceeds from (Payments for)
other investments - 141
------------- -------------
Net Cash Provided From (Used in)
Investing Activities (13,338) (11,676)
Cash Flows from Financing Activities:
Proceeds from issuance (repayment)
of short-term debt (11,331) (13,271)
Proceeds from issuance of long-term debt 23,000 17,200
Repayment of long-term debt (12,000) (7,000)
Issuance of Common Stock
under stock option plans 3,175 171
Purchase of Common Stock for treasury - -
Payments of dividends (5,882) (5,854)
------------- -------------
Net Cash Provided From
(Used in) Financing Activities (3,038) (8,754)
Effects of Exchange Rate Changes (240) (36)
------------- -------------
Net Change in Cash
and Cash Equivalents 6,083 3,122
Cash and Cash Equivalents
at Beginning of Period 99 1,938
------------- -------------
Cash and Cash Equivalents
at End of Period 6,182 5,060
------------- -------------
------------- -------------
See notes to consolidated financial statements.
Notes to Consolidated Financial Statements
Note A - Accounting Policies
In management's opinion, the accompanying consolidated financial
statements contain all adjustments necessary to present fairly the
financial position as of September 29, 2000 and December 31, 1999 and
the results of operations for the nine months ended September 29, 2000
and October 1, 1999. Certain amounts in prior years have been
reclassified to conform with the 2000 consolidated financial statement
presentation.
Note B - Inventories
Sep. 29, Dec. 31,
(Dollars in thousands) 2000 1999
--------------------------------------------------------------------
Principally average cost:
Raw materials and supplies $15,777 $20,520
In process 84,891 73,192
Finished goods 32,729 39,634
---------- ----------
Gross inventories 133,397 133,346
Excess of average cost over LIFO
Inventory value 24,949 22,776
---------- ----------
Net inventories $108,448 $110,570
---------- ----------
---------- ----------
Note C - Comprehensive Income
During the third quarter 2000 and 1999, comprehensive income
amounted to $3,748,364 and $438,988 respectively. For September
year-to-date 2000 and 1999, comprehensive income amounted to
$10,231,141 and $5,171,335 respectively. The difference between net
income and comprehensive income is the cumulative translation
adjustment for the periods presented.
Note D - Segment Reporting
Selected financial data by business segment as prescribed by SFAS
No. 131, "Disclosures about Segments of an Enterprise and Related
Information", for the third quarter 2000 and 1999 and for the first
nine months of 2000 and 1999 are as follows:
Metal Micro- Total All
Systems Electronics Segments Other Total
-------- ----------- -------- ----- -----
(Dollars in thousands)
Third Quarter 2000
----------------------
Revenues from
external customers $93,917 $48,498 $142,415 $1,511 $143,926
Intersegment revenues 36 553 589 - 589
Segment profit (loss)
before interest
and taxes 9,033 3,613 12,646 (6,976) 5,670
Third Quarter 1999
----------------------
Revenues from
external customers 75,099 36,331 111,430 2,364 113,794
Intersegment revenues 67 287 354 - 354
Segment profit (loss)
before interest
and taxes (740) 2,940 2,200 (3,135) (935)
First Nine Months 2000
----------------------
Revenues from external
customers $280,181 $131,923 $412,104 $4,428 $416,532
Intersegment revenues 245 1,076 1,324 - 1,324
Segment profit (loss)
before interest
and taxes 25,361 10,214 35,575 (18,905) 16,670
First Nine Months 1999
----------------------
Revenues from
external customers 228,537 100,857 329,394 6,234 335,628
Intersegment revenues 211 1,145 1,356 - 1,356
Segment profit (loss)
before interest
and taxes 12,740 7,790 20,530 (11,872) 8,658
Note E - New Pronouncements
In December 1999, the Securities and Exchange Commission issued
Staff Accounting Bulletin No. 101, "Revenue Recognition" (SAB 101),
which provides guidance on the measurement and timing of revenue
recognition in financial statements. The provisions of SAB 101 must be
adopted by the fourth quarter 2000. Management has not determined the
effect SAB 101 will have, if any, on the Company's financial
statements.
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