Brush Wellman Reports Third Quarter 1997 Results.CLEVELAND--(BUSINESS WIRE)--Oct. 20, 1997--Brush Wellman Wellman(n) may refer to:
See: New York Stock Exchange :BW) today reported net income for the third quarter 1997 of $4.0 million, and earnings per share of 24 cents. Net income and earnings per share in the third quarter 1996 were $4.6 million and 28 cents, respectively. Pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta income was $5.6 million in the third quarter 1997, compared with pre-tax income of $5.7 million in the third quarter 1996. Sales for the third quarter were $109 million, a 24% increase over sales of $88 million during the third quarter last year, and represent the strongest third quarter in the Company's history. For the first nine months of 1997, net income was $18.0 million, a 1% increase over first nine months 1996 net income of $17.9 million. First nine months 1997 earnings per share were $1.07, a decline of 4% compared with earnings per share of $1.11 in the first nine months 1996. Sales during the first nine months 1997 were a record $322 million, a 13% increase over first nine months 1996 sales of $286 million, the previous record. Currency exchange rates were the largest factor contributing to the decline in earnings relative to the third quarter last year despite the strong revenue growth. Other factors included product mix shifts, extreme volatility Volatility 1. A statistical measure of the tendency of a market or security to rise or fall sharply within a period of time. 2. A variable in option pricing formulas that denotes the extent to which the return of the underlying asset will fluctuate between now and the in worldwide platinum platinum (plăt`ənəm), metallic chemical element; symbol Pt; at. no. 78; at. wt. 195.08; m.p. 1,772°C;; b.p. 3,827±100°C;; sp. gr. 21.45 at 20°C;; valence +2 or +4. and palladium palladium, chemical element palladium [Gr. Pallas, goddess of wisdom], metallic chemical element; symbol Pd; at. no. 46; at. wt. 106.42; m.p. 1,554°C;; b.p. 2,970°C;; sp. gr. 12.02 at 20°C;; valence +2, +3, or +4. markets, start-up Start-up The earliest stage of a new business venture. costs for the new Brush brush a bushy tail in dogs. brush Cytology A disposible with synthetic 'whiskers', used to scrape cells from mucosal surfaces. See Endocervical brush. Engineered Bronze bronze, in metallurgy bronze, in metallurgy, alloy of copper, tin, zinc, phosphorus, and sometimes small amounts of other elements. Bronzes are harder than brasses. facility, a higher tax rate, and costs associated with the Company Owned Life Insurance program and SAP sap, fluid in plants consisting of water and dissolved substances. Cell sap refers to this fluid present in the large vacuole, or cell cavity, that occupies most of the central portion of mature plant cells. implementation. These factors, combined, reduced earnings per share by 16 cents compared with the same period last year. The stronger dollar alone reduced earnings by six 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. in the third quarter and 17 cents per share for the first three quarters of 1997, compared with the same periods in 1996. A strong dollar, relative to comparative periods, tends to reduce sales and income from the Company's overseas operations due to currency translation effects. Actual production volumes are generally unaffected by changes in currency exchange rates because overseas sales are typically priced in local currencies. Sales of the Company's 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. ) subsidiary continued to increase dramatically in the third quarter. This performance resulted from the success of the team at WAM in developing new markets and adapting to rapidly changing customer requirements. However, WAM sales, though profitable, tend to contribute lower margins because of their high precious metal content. In addition, volatility in the worldwide platinum and palladium markets caused Williams Advanced Materials profitability to be less than it otherwise would have been in the third quarter. Despite this external pressure, WAM's contribution to third quarter sales and earnings were considerably higher than in the previous year. Technical Materials, Inc. also had a strong third quarter, posting significant increases in sales and profit. 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 sales grew in the third quarter 1997 relative to the third quarter 1996, both domestically and overseas. The gain in International sales of Alloy Products was achieved despite the translation effects from a stronger dollar. Profitability in Alloy Products was adversely impacted by currency rates, and the start-up costs for Brush Engineered Bronze. This new facility is expected to begin generating revenue in the fourth quarter 1997. In addition, strip production continues at full capacity, creating strains on the manufacturing system and cost pressures. These strains should begin to be relieved re·lieve tr.v. re·lieved, re·liev·ing, re·lieves 1. To cause a lessening or alleviation of: relieved all his symptoms; relieved the tension. 2. when the new alloy strip capacity becomes operational. Start-up on the new casting facility is scheduled during the fourth quarter 1997, and the new rolling equipment should be operational in the second half 1998. 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 and 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 each showed improvement from the third quarter 1996, but each continued to operate at a loss in the third quarter 1997. 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, "We are very pleased and encouraged to report the achievement of another sales record in the third quarter 1997. However, we are all disappointed that the strong dollar and a series of one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. events prevented us from bringing more of the sales growth to the bottom line. "Looking forward, demand for our products is at an all time high and continues to grow. We should begin to see some of the benefits of our capital investment program in 1998. Brush Engineered Bronze will go into production by the end of October October: see month. 1997. In addition, test heats on the new casting equipment in Elmore Elmore may refer to:
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, Ceramic Products, Precious Metal Products and Engineered Material Systems. -0-
Consolidated Statements of Income
(Unaudited)
Third Quarter Ended Nine Months Ended
Sept. 26, Sept. 27, Sept. 26, Sept. 27,
1997 1996 1997 1996
(Dollars in thousands except share and per share amounts)
____________________________________________________________________
Net sales $ 109,073 $ 88,312 $ 322,135 $ 286,462
Cost of sales 81,845 64,584 239,430 206,292
_________ _________ _________ _________
Gross Margin 27,228 23,728 82,705 80,170
Selling, administrative
and general expenses 18,531 15,967 51,091 48,415
Research and
development expenses 2,013 1,933 5,573 6,094
Other-net 1,103 (230) 599 (693)
_________ _________ _________ _________
Operating profit 5,581 6,058 25,442 26,354
Interest expense 18 334 382 1,015
_________ _________ _________ _________
Income before
income taxes 5,563 5,724 25,060 25,339
Income taxes 1,574 1,159 7,092 7,475
_________ _________ _________ _________
Net Income $ 3,989 $ 4,565 $ 17,968 $ 17,864
_________ _________ _________ _________
_________ _________ _________ _________
Per Share of Common
Stock: $ 0.24 $ 0.28 $ 1.07 $ 1.11
_________ _________ _________ _________
_________ _________ _________ _________
Cash dividends per
common share $ 0.12 $ 0.11 $ 0.34 $ 0.31
Weighted average number
of common shares
outstanding 16,840,452 16,076,202 16,810,305 16,102,470
See notes to consolidated financial statements.
Consolidated Balance Sheets
(unaudited)
Sept. 26, Dec. 31,
(Dollars in thousands) 1997 1996
____________________________________________________________________
Assets
Current Assets
Cash and cash equivalents $ 6,954 $31,749
Accounts receivable 73,749 52,211
Inventories 90,840 96,324
Prepaid expenses and deferred
income taxes 17,687 16,949
________ ________
Total Current Assets 189,230 197,233
Other Assets 27,753 28,326
Property, Plant and Equipment 451,282 404,127
Less allowances for depreciation,
depletion and impairment 285,522 273,907
________ ________
165,760 130,220
________ ________
$382,743 $355,779
________ ________
________ ________
Liabilities and Shareholders' Equity
Current Liabilities
Short-term debt $31,530 $25,670
Accounts payable 16,138 7,713
Other liabilities and accrued
items 25,781 25,694
Dividends payable 1,972 1,789
Income taxes 6,018 8,195
________ ________
Total Current Liabilities 81,439 69,061
Other Long-Term Liabilities 6,990 6,906
Retirement and Post-Employment Benefits 41,100 40,365
Long-Term Debt 17,905 18,860
Deferred Income Taxes 1,830 1,330
Shareholders' Equity 233,479 219,257
________ ________
$382,743 $355,779
________ ________
________ ________
See notes to consolidated financial statements.
Consolidated Statements of Cash Flows
(unaudited) Nine Months Ended
Sept. 26, Sept. 27,
(Dollars in thousands) 1997 1996
____________________________________________________________________
Cash Flows From Operating Activities:
Net Income $17,968 $17,864
Adjustments to Reconcile Net Income to Net
Cash Provided from Operating Activities:
Depreciation, depletion and amortization 13,012 14,574
Amortization of mine development 1 4,427
Decrease (Increase) in accounts receivable (22,657) (4,764)
Decrease (Increase) in inventory 4,200 919
Decrease (Increase) in prepaid and other
current assets (1,872) (225)
Increase (Decrease) in accounts payable
and accrued expenses 8,990 (5,018)
Increase (Decrease) in interest and
taxes payable (2,472) (96)
Increase (Decrease) in deferred income tax 438 (1,030)
Increase (Decrease) in other long-term
liabilities 1,590 1,846
Other-net (10) (6)
________ ________
Net Cash Provided From Operating
Activities 19,188 28,491
Cash Flows from Investing Activities:
Payments for purchase of property, plant
and equipment (38,918) (20,754)
Payments for mine development (9,398) (529)
Other investments-net 883 1,212
________ ________
Net Cash Used in Investing Activities (47,433) (20,071)
Cash Flows from Financing Activities:
Proceeds from issuance of short-term debt 7,829 1,219
Repayment of short-term debt (93) (3,449)
Proceeds from issuance of long-term debt - (768)
Repayment of long-term debt (960) (800)
Issuance of Common Stock under
compensation plans 4,118 1,248
Purchase of treasury stock (2,038) (6,655)
Payments of dividends (5,343) (6,503)
________ ________
Net Cash Used in Financing Activities 3,513 (15,708)
Effects of Exchange Rate Changes (63) (971)
________ ________
Net Change in Cash and Cash
Equivalents (24,795) (8,259)
Cash and Cash Equivalents at Beginning
of Period 31,749 29,553
________ ________
Cash and Cash Equivalents at End
of Period $ 6,954 $21,294
________ ________
________ ________
See notes to consolidated financial statements.
Notes to Consolidated Financial Statements
(unaudited)
Sept. 26, 1997
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 Sept. 26, 1997, and Dec. 31, 1996 and the
results of operations for the nine months ended Sept. 26, 1997 and
Sept. 27, 1996.
Note B - Inventories
Sept. 26, Dec. 31,
(Dollars in thousands) 1997 1996
____________________________________________________________________
Principally average cost:
Raw materials and supplies $16,997 $20,210
In Process 56,146 55,242
Finished 40,091 42,536
_______ _______
113,234 117,988
Excess of average cost over
LIFO inventory value 22,394 21,664
_______ _______
$90,840 $96,324
_______ _______
_______ _______
CONTACT: Brush Wellman Inc., Cleveland Cleveland, former county, England Cleveland, former county, NE England, created under the Local Government Act of 1972 (effective 1974). It was composed of the county boroughs of Hartlepool and Teeside and parts of the former counties of Durham and Timothy Timothy, epistles in the New Testament Timothy, two letters of the New Testament. With Titus they comprise the Pastoral Epistles, in which St. Paul addresses his coworkers as the guardians and transmitters of his teaching. J. Reid, 216/383-6835 http://www.brushwellman.com |
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