Brush Wellman reports 26% improvement in first quarter net income.CLEVELAND--(BUSINESS WIRE)--April 21, 1997--Brush Wellman Wellman(n) may refer to:
See: New York Stock Exchange :BW) today reported net income for the first quarter 1997 of $6.5 million, a 26% increase over first quarter 1996 net income of $5.2 million. Earnings per share improved by 22%, to 39 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. compared with earnings per share of 32 cents in the first quarter 1996. Sales for the first quarter were $100 million, a 6% increase over first quarter 1996 sales of $94 million. The sales and earnings increases were achieved despite the strong dollar and lower copper prices compared with the same period last year. These two factors, combined, reduced revenue by 3%. The stronger dollar alone reduced earnings by five cents per share compared with the first quarter 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 currency. Lower copper prices reduce revenue but do not impact production volume or earnings. Sales increases were achieved by 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, subsidiary, 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 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, reflecting continued strength in electronics markets, as well as the Company's success in developing and delivering new products to meet the changing demands of the engineered materials marketplace. International sales 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 also grew relative to last year despite the translation effects from a stronger dollar. Long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. to total capital at the end of the first quarter remained 8%. Return on invested capital increased to 14.1% from 11.2% in the same period last year. 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 encouraged by the results achieved in the first quarter 1997. In spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite the stronger dollar and 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)]. in some products, sales in the first quarter 1997 established a new first quarter record for the Company and were the second highest for any quarter in the Company's history. We are also maintaining a strong balance sheet and good cash flow. "Brush brush a bushy tail in dogs. brush Cytology A disposible with synthetic 'whiskers', used to scrape cells from mucosal surfaces. See Endocervical brush. Wellman's strategy for the future focuses on three major strategic thrusts: improve our base business, expand alloy and build a microelectronics microelectronics, branch of electronic technology devoted to the design and development of extremely small electronic devices that consume very little electric power. business. During the quarter, we made progress on each of these issues. Improvements are being made in yield and productivity in Ceramic Products, and we are identifying areas for additional, sustainable improvement. Alloy Products performance was strong, both in 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. and overseas, despite the translation effects of the strong dollar. We are proceeding on schedule with our Alloy Strip expansion project and on the construction of our 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. And we are seeing promising sales increases from microelectronics applications for Williams Advanced Materials, Ceramic Products and our newly acquired Circuits Processing Technology subsidiary. "We remain committed to our goal of increased earnings and improved returns for our shareholders in 1997, as we continue to invest time, effort and capital to position the Company to achieve significant and sustainable growth in the years ahead." 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 Balance Sheets
(unaudited)
March 28, Dec. 31,
(Dollars in thousands) 1997 1996
__________________________________________________________________
Assets
Current Assets
Cash and cash equivalents $20,430 $31,749
Accounts receivable 61,877 52,211
Inventories 93,163 96,324
Prepaid expenses and deferred
income taxes 16,998 16,949
________ ________
Total Current Assets 192,468 197,233
Other Assets 27,957 28,326
Property, Plant and Equipment 416,627 404,127
Less allowances for depreciation,
depletion and impairment 278,282 273,907
________ ________
138,345 130,220
________ ________
$358,770 $355,779
________ ________
________ ________
Liabilities and Shareholders' Equity
Current Liabilities
Short-term debt $ 24,034 $ 25,670
Accounts payable 9,529 7,713
Other liabilities and accrued items 23,679 25,694
Dividends payable 0 1,789
Income taxes 11,071 8,195
________ ________
Total Current Liabilities 68,313 69,061
Other Long-Term Liabilities 6,890 6,906
Retirement and Post-Employment Benefits 40,625 40,365
Long-Term Debt 18,705 18,860
Deferred Income Taxes 1,363 1,330
Shareholders' Equity 222,874 219,257
________ ________
$358,770 $355,779
________ ________
See notes to consolidated financial statements.
Consolidated Statements of Cash Flows
(unaudited)
Three Months Ended
March 28, March 29,
(Dollars in thousands) 1997 1996
__________________________________________________________________
Cash Flows from Operating Activities:
Net Income $ 6,490 $ 5,155
Adjustments to Reconcile Net Income to
Net Cash Provided From Operating
Activities:
Depreciation, depletion and amortization 4,814 4,946
Amortization of mine development 1 1,097
Decrease (increase) in accounts
receivable (10,809) (9,059)
Decrease (increase) in inventory 2,040 767
Decrease (increase) in prepaid and other
current assets (630) (2,472)
Increase (decrease) in accounts payable
and accrued expenses (547) (3,142)
Increase (decrease) in interest and taxes
payable 2,832 1,351
Increase (decrease) in deferred income
tax 33 (179)
Increase (decrease) in other long-term
liabilities 1,591 311
Other - net 273 51
________ ________
Net Cash Provided From Operating
Activities 6,088 (1,174)
Cash Flows from Investing Activities:
Payments for purchase of property, plant
and equipment (10,240) (5,898)
Payments for mine development (2,932) (101)
Other investments - net 227 311
________ ________
Net Cash Used in Investing
Activities (12,945) (5,688)
Cash Flows from Financing Activities:
Proceeds from issuance of short-term
debt 316 685
Repayment of short-term debt (742) (362)
Proceeds from issuance of long-term debt - -
Repayment of long-term debt (160) (342)
Issuance of Common Stock under stock
option plans 93 1,040
Purchase of treasury stock (333) (6,656)
Payments of dividends (3,573) (3,197)
________ ________
Net Cash Used in Financing Activities (4,399) (8,832)
Effects of Exchange Rate Changes (63) (604)
________ ________
Net Change in Cash and Cash
Equivalents (11,319) (16,298)
Cash and Cash Equivalents at Beginning
of Period 31,749 29,553
________ ________
Cash and Cash Equivalents at End
of Period 20,430 13,255
________ ________
________ ________
See notes to consolidated financial statements.
Consolidated Statements of Income
(Unaudited)
First Quarter Ended
March 28, March 29,
(Dollars in thousands except 1997 1996
share and per share amounts)
____________________________________________________________________
Net sales $ 99,688 $ 93,801
Cost of sales 73,997 69,008
_____________ _____________
Gross Margin 25,691 24,793
Selling, administrative
and general expenses 15,399 15,480
Research and development
expenses 1,578 1,798
Other-net (522) (125)
_____________ _____________
Operating Profit 9,236 7,640
Interest expense 284 286
_____________ _____________
Income before income
taxes 8,952 7,354
Income taxes 2,462 2,199
_____________ _____________
Net income $ 6,490 $ 5,155
_____________ _____________
_____________ _____________
Per Share of Common Stock: $ 0.39 $ 0.32
Cash dividends per common share $ 0.11 $ 0.10
Weighted average number
of common shares outstanding 16,491,495 16,135,141
See notes to consolidated financial statements.
Notes to Consolidated Financial Statements
(unaudited)
March 28, 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 March 28, 1997, and December 31, 1996 and
the results of operations for the three months ended March 28, 1997
and March 29, 1996.
Note B - Inventories
March 28, Dec. 31,
1997 1996
(Dollars in thousands)
____________________________________________________________________
Principally average cost:
Raw materials and supplies $ 23,464 $ 20,210
In Process 52,528 55,242
Finished 38,584 42,536
_____________ _____________
114,576 117,988
Excess of average cost over
LIFO inventory value 21,413 21,664
_____________ _____________
$93,163 $96,324
_______ _______
_______ _______
CONTACT: Brush Wellman Inc. 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 |
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