Brush Wellman Reports Record Sales for the First Quarter 2000.Business Editors CLEVELAND--(BUSINESS WIRE)--April 26, 2000 Brush Wellman Wellman(n) may refer to:
See: New York Stock Exchange :BW) today reported first quarter sales of $135.4 million, the highest quarterly sales in the Company's history, and a 20% increase over 1999 first quarter sales of $113.2 million. First quarter sales were also 13% above 1999 fourth quarter sales of $120.1 million, the previous quarterly sales record. This double-digit dou·ble-dig·it adj. Being between 10 and 99 percent: double-digit inflation. record sales growth continues to be fueled by strong global market 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. Net income for the first quarter 2000 was $2.2 million or 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 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 $2.5 million or 15 cents per share, diluted, for the first quarter of 1999. When compared to the first quarter 1999, earnings were negatively affected by manufacturing costs associated with a higher level of business, product mix shift, and an increase in administrative expense, including certain nonrecurring Non`re`cur´ring a. 1. Nonrecurrent; as, the costs of a layoff are considered as a nonrecurring expense s>. 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 related to the proposed new corporate capital structure, planned medical surveillance and research 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. 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. Overall, currency exchange, including hedge gains, had a positive impact on earnings for the first quarter. 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. Metal Systems Group's first quarter sales of $91.2 million grew 16% over 1999 first quarter sales of $78.7 million. First quarter 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. for the Metal Systems Group of $7.2 million was slightly above 1999 first quarter operating profit of $7.1 million. Despite capacity constraints CONSTRAINTS - A language for solving constraints using value inference. ["CONSTRAINTS: A Language for Expressing Almost-Hierarchical Descriptions", G.J. Sussman et al, Artif Intell 14(1):1-39 (Aug 1980)]. due to the continued 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 AEP AEP - Application Environment Profile , Alloy sales were up 16% over first quarter sales of 1999. The higher sales level was achieved in part by further reducing finished goods inventories and increased sales of rod and wire products, which do not have the same capacity constraints as other strip products. Although first quarter production levels for the AEP increased significantly over the average quarterly production rate for 1999, strong demand for strip products, particularly from the telecommunications market, continued 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, supply. Sales of bulk products also increased due to the strong demand from undersea and welding welding, process for joining separate pieces of metal in a continuous metallic bond. Cold-pressure welding is accomplished by the application of high pressure at room temperature; forge welding (forging) is done by means of hammering, with the addition of heat. product applications and an improvement in demand from the oil and gas market from prior year levels. Engineered Materials Systems Materials system is an advanced type of texture mapping that allows for objects in video games to simulate different types of materials in real life. This makes it so that the texture not only contains graphical data, but references for sound data and physics data (such as density). (TMI) increased sales in the first quarter 2000 by 31% over the first quarter of 1999 establishing a new record for the highest quarterly sales in its history. First quarter sales were fueled by automotive electronics, computer and telecommunications product applications and further enhanced by the addition of new TMI plating technologies. Beryllium Products' first quarter sales declined from the same period last year due to continued delayed government spending Government spending or government expenditure consists of government purchases, which can be financed by seigniorage, taxes, or government borrowing. It is considered to be one of the major components of gross domestic product. on defense programs. 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' first quarter sales of $41.6 million were 27% higher than first quarter 1999 sales of $32.7 million. First quarter operating profit of $3.2 million was 78% above first quarter operating profit of $1.8 million in 1999. WAM first quarter sales were up 25% over first quarter sales of 1999 due to continued strong demand for optical media and the wireless sector of microelectronic The miniaturization of electronic circuits. See chip. product applications. Overall, precious metal prices were higher in the first quarter 2000 as compared to the first quarter of 1999 and accounted for approximately one third of the increase in sales. Electronic Products' first quarter sales were 33% higher than first quarter sales in 1999 due to strong demand from wireless communications wireless communications System using radio-frequency, infrared, microwave, or other types of electromagnetic or acoustic waves in place of wires, cables, or fibre optics to transmit signals or data. applications including core beryllia 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). and direct bond copper products. 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. Harnett, Chairman, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , stated "I am delighted to report the second consecutive record quarterly sales achievement. Our marketing efforts and 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. strategic plans are creating strong demand and growth opportunities across our two business segments. As we continue to ramp up the capacity of the AEP we should experience continued sales growth and cost efficiencies in Alloy Products. I look forward to our continued progress in 2000." 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 Wellman Inc., with headquarters 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. , is a manufacturer of engineered materials. The Company and its subsidiaries supply worldwide markets with Beryllium Products, Alloy Products, Electronic Products, Precious Metal Products and Engineered Material Systems.
Brush Wellman Inc.
Digest of Earnings
March 31, 2000
2000 1999
----------- ------------
First Quarter
Net Sales $135,424,000 $113,168,000
Net Income $2,249,000 $2,486,000
Share Earnings - Basic $0.14 $0.15
Average Shares - Basic 16,206,038 16,193,359
Share Earnings - Diluted $0.14 $0.15
Average Shares - Diluted 16,314,518 16,232,112
Consolidated Statements of Income
(Unaudited)
First Quarter Ended
March 31, April 2,
(Dollars in thousands except
share and per share amounts) 2000 1999
----------------------------------------------------------------------
Net sales $ 135,424 $ 113,168
Cost of sales 107,129 89,069
---------------- ----------------
Gross Margin 28,295 24,099
Selling, administrative
and general expenses 21,818 17,501
Research and development
expenses 2,014 1,819
Other-net 228 448
---------------- ----------------
Operating Profit 4,235 4,331
Interest expense 1,120 937
---------------- ----------------
Income before income taxes 3,115 3,394
Income taxes 866 908
---------------- ----------------
Net Income $ 2,249 $ 2,486
---------------- ----------------
---------------- ----------------
Per Share of Common Stock:
Basic $ 0.14 $ 0.15
Weighted average number
of common shares outstanding 16,206,038 16,193,359
Per Share of Common Stock:
Diluted $ 0.14 $ 0.15
Weighted average number
of common shares outstanding 16,314,518 16,232,112
Cash dividends per common share $ 0.12 $ 0.12
Consolidated Balance Sheets
Mar. 31, Dec. 31,
(Dollars in thousands) 2000 1999
----------------------------------------------------------------
Assets
Current Assets
Cash and cash equivalents $2,159 $99
Accounts receivable 90,393 79,772
Inventories 101,622 110,570
Prepaid expenses 7,260 7,204
Deferred income taxes 27,195 26,610
---------- ----------
Total Current Assets 228,629 224,255
Other Assets 33,543 33,213
Property, Plant and Equipment 441,901 440,234
Less allowances for depreciation,
depletion and impairment 273,683 269,296
---------- ----------
168,218 170,938
---------- ----------
$430,390 $428,406
---------- ----------
---------- ----------
Liabilities and Shareholders' Equity
Current Liabilities
Short-term debt $28,006 $34,687
Accounts payable 30,755 27,731
Other liabilities and accrued
items 28,953 29,869
Dividends payable 1,960 1,959
Income taxes 6,575 5,178
---------- ----------
Total Current Liabilities 96,249 99,424
Other Long-Term Liabilities 15,979 14,407
Retirement and Post-employment Benefits 39,283 39,430
Long-term Debt 45,305 42,305
Deferred Income Taxes 12,990 12,202
Shareholders' Equity 220,584 220,638
---------- ----------
$430,390 $428,406
---------- ----------
---------- ----------
Consolidated Statements of Cash Flows
Three Months Ended
March 31, April 2,
(Dollars in thousands) 2000 1999
---------------------------------------------------------------------
Net Income $ 2,249 $ 2,486
Adjustments to Reconcile Net Income
to Net Cash
Provided from Operating Activities:
Depreciation, depletion and amortization 5,493 5,648
Amortization of mine development 838 1,715
Decrease (Increase) in accounts receivable (11,385) (16,225)
Decrease (Increase) in inventory 8,414 (2,287)
Decrease (Increase) in prepaid and
other current assets 327 (1,450)
Increase (Decrease) in accounts
payable and accrued expenses 2,741 10,872
Increase (Decrease) in interest and
taxes payable 968 3,261
Increase (Decrease) in deferred income tax (62) 1,047
Increase (Decrease) in other
long-term liabilities 1,060 (439)
Other - net (280) 1,405
-------- --------
Net Cash Provided From
Operating Activities 10,363 6,033
Cash Flows from Investing Activities:
Payments for purchase of property,
plant and equipment (3,480) (2,074)
Payments for mine development (70) (69)
Proceeds from (Payments for) other investments -- (118)
-------- --------
Net Cash Provided From (Used
in) Investing Activities (3,550) (2,261)
Cash Flows from Financing Activities:
Proceeds from issuance/repayment of
short-term debt (5,665) (13,596)
Proceeds from issuance of
long-term debt 9,000 12,000
Repayment of long-term debt (6,000) (2,000)
Issuance of Common Stock under
stock option plans 5 76
Purchase of Common Stock for treasury -- --
Payments of dividends (1,959) (1,966)
-------- --------
Net Cash Provided From (Used
in) Financing Activities (4,619) (5,486)
Effects of Exchange Rate Changes (134) (125)
-------- --------
Net Change in Cash and Cash
Equivalents 2,060 (1,839)
Cash and Cash Equivalents at
Beginning of Period 99 1,938
-------- --------
Cash and Cash Equivalents at
End of Period 2,159 99
-------- --------
-------- --------
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