Brush Engineered Materials Reports Strong Sales and Improved Earnings for the First Quarter 2001.Business Editors CLEVELAND--(BUSINESS WIRE)--April 26, 2001 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 first quarter sales of $145.5 million, the second highest quarterly sales in the Company's history and a 7.5% increase over 2000 first quarter sales of $135.4 million. The stronger dollar negatively affected sales growth by approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 1.5%. During the first quarter the strong sales performance was driven by demand for telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. , computer and optical media product applications. Net income for the first quarter 2001 was $6.2 million or $0.37 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 first quarter 2000 net income of $2.2 million or $0.14 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. diluted, an increase of $0.23 per share. Gross margin for the first quarter 2001 as a percent of sales was 23.4% versus 20.9% for the same period last year, an improvement of 2.5 percentage points, primarily due to improved yield and productivity and increased prices in 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 and overall favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. product mix. The margin growth was negatively affected by foreign currency. Selling, administrative and general expense as a percent of sales was down by over 1% compared to the first quarter of 2000. Business Segment Reporting Business segment reporting Reporting the results of the separate divisions or subsidiaries of a business. The first quarter 2001 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. results for each segment include certain corporate and shared service allocated expense and other costs and expenses due to the 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. of the Company's corporate and capital structure approved by shareholders on May 2, 2000 and completed on January January: see month. 1, 2001. Financial results for each segment have been adjusted for the first quarter 2000 to reflect these changes. Metal Systems Group The Metal Systems Group consists of Alloy Products, 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 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. Products. The Metal Systems Group's first quarter sales of $98.6 million grew 8% over 2000 first quarter sales of $91.2 million. First quarter operating profits were $6.6 million, an increase of $7.3 million over the first quarter 2000 operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. . Alloy Product sales of $71.2 million were up 6% over 2000 first quarter sales and up 2% over fourth quarter sales of 2000. Margins were impacted favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. by improved yield and productivity across the Alloy strip manufacturing supply chain, product mix and price increases. During the first quarter, equipment utilization utilization, n 1. the extent to which a given group uses a particular service in a specified period. Although usually expressed as the number of services used per year per 100 or per 1000 persons eligible for the service, utilization rates may be rates associated with the alloy strip expansion project at 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. continued to improve. This progress, along with ongoing improvements at the Reading, Pennsylvania Reading (IPA:/ˈrɛdɪŋ/) is the county seat of Berks County, Pennsylvania and the center of the Greater Reading Area. facility, is continuing to increase the finishing capacity across the Alloy strip supply chain. The weaker economy began to impact strip sales, especially 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. computer and telecommunications product applications, in the latter part of the quarter. It is anticipated that this slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. will continue through the second quarter. Overall, Alloy strip international sales remained strong, driven particularly by demand in Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). and
Southeast Asia Southeast Asia, region of Asia (1990 est. pop. 442,500,000), c.1,740,000 sq mi (4,506,600 sq km), bounded roughly by the Indian subcontinent on the west, China on the north, and the Pacific Ocean on the east. . Alloy bulk products markets, including oil and gas,
undersea and aerospace, remain strong and thus far have only moderately
been affected by the economic slowdown. Alloy Products comprise To embrace, cover, or include; to confine within; to consist of.In the law governing patents—grants of an exclusive right or privilege to make, use, or sell an invention or product for a term of years—the term comprise approximately half of the Company's total sales. Technical Materials, Inc.'s first quarter sales of $20.5 million grew 9% over the same period last year. Sales, however, were flat with fourth quarter 2000 sales. TMI is experiencing slowness in telecommunications, automotive electronics and computer/ semiconductor market applications. It is anticipated that this slowdown will continue through the third quarter of 2001. Beryllium Products' first quarter sales of $6.9 million are up 32% over first quarter 2000 sales. Robust demand for aerospace/defense and medical market applications continued through the first quarter and order rates remain strong for the second quarter. 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. (Electronic Products includes Zentrix Zentrix is a 3D-CG Chinese animated TV series directed by Tony Tong and Felix Ip under the Hong Kong based company Imagi Animation Studios. The original story was written by Tony Tang, Benny Chow, Felix Ip and Francis Kao. Technologies Inc. and Brush brush a bushy tail in dogs. brush Cytology A disposible with synthetic 'whiskers', used to scrape cells from mucosal surfaces. See Endocervical brush. 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 Inc.) The Microelectronics Group's first quarter sales of $46.9 million were up 13% over first quarter 2000 sales of $41.6 million. Operating profit of $2.4 million was slightly over first quarter 2000 operating profit of $2.1 million. WAM's first quarter sales of $35.4 million grew 11% over the same period last year. Absent precious metal prices, sales were up 8% compared to the first quarter of 2000. Strong sales continued to be fueled by demand for physical vapor deposition  This article or section is in need of attention from an expert on the subject.Please help recruit one or [ improve this article] yourself. See the talk page for details. and packaging materials used for photonic Dealing with light (photons). See photon and photonics. devices and fiber optic optic /op·tic/ (op´tik) ocular (1). op·tic or op·ti·cal adj. 1. Of or relating to the eye or vision. 2. components. WAM's improved performance in the first quarter resulted in record profits. Electronic Products' sales of $11.5 million increased 18% over the same period last year, fueled by strong demand for circuitry and electronic package products for wireless base station and fiber optics fiber optics, transmission of digitized messages or information by light pulses along hair-thin glass fibers. Each fiber is surrounded by a cladding having a high index of refractance so that the light is internally reflected and travels the length of the fiber . Electronic Products is, however, experiencing a slowdown in older and higher volume beryllia ceramic automotive electronic and wireless telecommunications product applications. Outlook Sales of $145.5 million for the first quarter of 2001 were slightly below the fourth quarter 2000 record sales of $147.2 million. Overall sales to the Company's major markets, including telecommunications, computers and optical media, were strong during most of the first quarter. However, the growth rate in several of these markets has slowed, particularly telecommunications and computer. Announcements from certain key demand generators in these markets have reported excess inventory positions and advised caution regarding their future revenue growth and earnings. The length and magnitude magnitude, in astronomy, measure of the brightness of a star or other celestial object. The stars cataloged by Ptolemy (2d cent. A.D.), all visible with the unaided eye, were ranked on a brightness scale such that the brightest stars were of 1st magnitude and the of the U.S. economic slowdown will determine the extent of the impact on the Company's sales and earnings for the remainder of 2001. The Company anticipates, however, that the growth in revenue will continue to soften in the second quarter and that earnings are likely to fall short of analysts' current earnings estimates, which range from $0.32 to $0.35 per share for the second quarter. Our current expectation is for earnings for the second quarter of 2001 to be similar to the earnings of $0.24 per share in the second quarter of 2000. 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, Chairman, President and Chief Executive Officer, said, "I am delighted with the strong sales and substantial earnings improvement we had during the first quarter. I am particularly pleased with the yield and productivity improvement and progress with equipment reliability that we experienced with the Alloy Products' strip expansion. Although we are experiencing some of the effects of the weakness in the U.S. economy, I am convinced con·vince tr.v. con·vinced, con·vinc·ing, con·vinc·es 1. To bring by the use of argument or evidence to firm belief or a course of action. See Synonyms at persuade. 2. , long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. , that our major target markets including telecommunications, computer, automotive electronics and optical media are the right place to be for the future growth of the Company." 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, including those in the Outlook Section, 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, exchange rates and energy costs. 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, though its wholly-owned subsidiaries, supplies worldwide markets with Beryllium Products, Alloy Products, Electronic Products, Precious Metal Products, and Engineered Material Systems.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Investors:
Michael C. Hasychak
Brush Engineered Materials Inc.
17876 St. Clair Ave.
Cleveland, OH 44110
216/383-6823
Media:
Patrick S. Carpenter
Brush Engineered Materials Inc.
17876 St. Clair Ave.
Cleveland, OH 44110
216/383-6835
http://www.BEMinc.com
Brush Engineered Materials Inc.
Digest of Earnings
March 30, 2001
2001 2000
----------- ------------
First Quarter
Net Sales $145,524,000 $135,424,000
Net Income $6,206,000 $2,249,000
Share Earnings - Basic $0.38 $0.14
Average Shares - Basic 16,467,368 16,206,038
Share Earnings - Diluted $0.37 $0.14
Average Shares - Diluted 16,677,767 16,314,518
Year-to-date
Net Sales $145,524,000 $135,424,000
Net Income $6,206,000 $2,249,000
Share Earnings - Basic $0.38 $0.14
Average Shares - Basic 16,467,368 16,206,038
Share Earnings - Diluted $0.37 $0.14
Average Shares - Diluted 16,677,767 16,314,518
Consolidated Balance Sheets
Mar. 30, Dec. 31,
(Dollars in thousands) 2001 2000
----------------------------------------------------------
Assets
Current Assets
Cash and cash equivalents $2,912 $4,314
Accounts receivable 93,804 92,334
Inventories 128,279 115,643
Prepaid expenses 7,638 8,525
Deferred income taxes 30,082 29,263
---------- ---------
Total Current Assets 262,715 250,079
Other Assets 32,825 31,967
Property, Plant and Equipment 456,375 449,697
Less allowances for depreciation,
depletion and impairment 284,081 279,237
---------- ---------
172,294 170,460
---------- ---------
$467,834 $452,506
========== =========
Liabilities and Shareholders' Equity
Current Liabilities
Short-term debt $29,068 $25,435
Accounts payable 28,487 34,714
Other liabilities and accrued
items 38,089 39,021
Dividends payable 1,986 1,987
Income taxes 9,356 5,535
---------- ---------
Total Current Liabilities 106,986 106,692
Other Long-Term Liabilities 18,287 15,878
Retirement and Post-employment Benefits 39,579 39,576
Long-term Debt 51,305 43,305
Deferred Income Taxes 18,009 17,148
Shareholders' Equity 233,668 229,907
---------- ---------
$467,834 $452,506
========== =========
See notes to consolidated financial statements.
Consolidated Statements of Income
(Unaudited)
First Quarter Ended
(Dollars in thousands except March 30, March 31,
share and per share amounts) 2001 2000
------------------------------------------------------------
Net sales $ 145,524 $ 135,424
Cost of sales 111,490 107,129
----------- -----------
Gross Margin 34,034 28,295
Selling, administrative
and general expenses 21,506 21,818
Research and development
expenses 1,692 2,014
Other-net 802 228
----------- -----------
Operating Profit 10,034 4,235
Interest expense 974 1,120
----------- -----------
Income before income taxes 9,060 3,115
Income taxes 2,854 866
----------- -----------
Net Income $ 6,206 $ 2,249
=========== ===========
Per Share of Common Stock: Basic $ 0.38 $ 0.14
Weighted average number
of common shares outstanding 16,467,368 16,206,038
Per Share of Common Stock: Diluted $ 0.37 $ 0.14
Weighted average number
of common shares outstanding 16,677,767 16,314,518
Cash dividends per common share $ 0.12 $ 0.12
See notes to consolidated financial statements.
Consolidated Statements of Cash Flows
Three Months Ended
March 30, March 31,
(Dollars in thousands) 2001 2000
-----------------------------------------------------------
Net Income $ 6,206 $ 2,249
Adjustments to Reconcile
Net Income to Net Cash
Provided From Operating
Activities:
Depreciation, depletion
and amortization 5,520 6,331
Decrease (Increase) in
accounts receivable 412 (11,385)
Decrease (Increase) in
inventory (13,170) 8,414
Decrease (Increase) in
prepaid and other
current assets 276 327
Increase (Decrease) in
accounts payable and
accrued expenses (10,785) 2,741
Increase (Decrease) in
interest and taxes payable 4,467 968
Increase (Decrease) in
deferred income taxes (131) (62)
Increase (Decrease) in
other long-term liabilities 2,574 1,060
Other - net (1,238) (280)
-------- --------
Net Cash Provided From
(Used in) Operating
Activities (5,869) 10,363
Cash Flows from Investing Activities:
Payments for purchase of property,
plant and equipment (7,415) (3,480)
Payments for mine development (76) (70)
Proceeds from (Payments for)
other investments -- --
-------- --------
Net Cash Provided From
(Used in) Investing
Activities (7,491) (3,550)
Cash Flows from Financing Activities:
Proceeds from issuance/ (repayment
of) short-term debt 5,146 (5,665)
Proceeds from issuance of
long-term debt 15,500 9,000
Repayment of long-term debt (7,500) (6,000)
Issuance of Common Stock
under stock option plans 950 5
Purchase of Common Stock
for treasury -- --
Payments of dividends (1,987) (1,959)
-------- --------
Net Cash Provided From
(Used in) Financing
Activities 12,109 (4,619)
Effects of Exchange Rate Changes (151) (134)
-------- --------
Net Change in Cash
and Cash Equivalents (1,402) 2,060
Cash and Cash Equivalents
at Beginning of Period 4,314 99
-------- --------
Cash and Cash Equivalents
at End of Period $ 2,912 $ 2,159
======== ========
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 March 30, 2001 and December 31, 2000 and the
results of operations for the first quarter ended March 30, 2001 and
March 31, 2000.
Note B - Inventories
Mar. 30, Dec. 31,
(Dollars in thousands) 2001 2000
----------------------------------------------------
Principally average cost:
Raw materials and supplies $ 17,799 $ 19,458
In process 101,940 88,956
Finished goods 34,877 33,202
-------- --------
Gross inventories 154,616 141,616
Excess of average cost over LIFO
Inventory value 26,337 25,973
-------- --------
Net inventories $128,279 $115,643
======== ========
Note C - Comprehensive Income
During the first quarter 2001 and 2000, comprehensive income amounted
to $5,616,039 and $1,847,763 respectively. The difference between net
income and comprehensive income is the cumulative translation
adjustment for the periods presented.
Note D - Segment Reporting
As a result of the recent corporate restructuring, the Company changed
how costs flowed between its businesses. Certain costs that were
previously included in the "All Other" column in the segment
disclosures are being charged to Metal Systems and Microelectronics
beginning in the first quarter 2001. Beginning in 2001, the "All
Other" column includes the operating results of BEM Services Inc. and
Brush Resources Inc., two wholly-owned subsidiaries of the Company, as
well as the parent company's operating expenses. BEM Services charges
a management fee for the services provided to the other businesses
within the Company on a cost-plus basis. Brush Resources may sell
beryllium hydroxide, produced from its mine and extraction mill in
Utah, to outside customers and to businesses within the Metal Systems
Group. Segment results from the prior year have been restated to
reflect these changes on a pro forma basis.
Metal Micro- Total All
Systems Electronics Segments Other Total
-------- -------- -------- ------- --------
(Dollars in thousands)
First Quarter 2001
-----------------------
Revenues from
external customers $ 98,629 $ 46,895 $145,524 $ 0 $145,524
Intersegment revenues 1,586 829 2,415 4,847 7,262
Segment profit (loss)
before interest
and taxes 6,560 2,418 8,978 1,056 10,034
First Quarter 2000
-----------------------
Revenues from
external customers 91,175 41,607 132,782 2,642 135,424
Intersegment revenues 1,554 286 1,840 5,267 7,107
Segment profit (loss)
before interest
and taxes (739) 2,121 1,382 2,853 4,235
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion