CITATION FY 1996 EPS EXPECTED TO BE BELOW ANALYST EXPECTATIONS.BIRMINGHAM, Ala.--(BUSINESS WIRE)--Sept. 17, 1996--Citation Corporation (Nasdaq: CAST) today announced that based upon preliminary results, its earnings per share (EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. ) for its fiscal year ending September 29, 1996 are expected to be approximately 15 to 20 per cent below published analyst forecasts due to an expected shortfall The introduction to this article provides insufficient context for those unfamiliar with the subject matter. Please help [ improve the introduction] to meet Wikipedia's layout standards. You can discuss the issue on the talk page. in its fiscal fourth quarter. Despite the expected EPS shortfall, the company believes it will report record sales and earnings for fiscal 1996. Citation reported $1.27 EPS on sales of $307.7 million and earnings of $17.1 million for fiscal 1995. Due to a secondary offering of approximately four million shares in September 1995, EPS is currently based on 17.7 million shares versus 13.4 million shares outstanding for fiscal 1995. The shortfall, which would affect fourth quarter EPS, was caused by a combination of factors including normal maintenance shutdowns of most divisions in July or August, continued slow progress of expansion iron casting production lines at the Texas Foundries division in Lufkin, Texas, the idling of a steel foundry at that same location, and equipment problems at the Iroquois Foundry division in Browntown, Wisconsin Browntown is a village in Green County, Wisconsin, United States. The population was 252 at the 2000 census. Geography Browntown is located at (42.577268, -89.793134)GR1. . In addition, the Mansfield Foundry division in Mansfield, Ohio Mansfield is a city in the U.S. state of Ohio and the county seat of Richland CountyGR6. The municipality is located in north-central Ohio in the western foothills of the Alleghenies, approximately 80 miles (129 km) southwest of Cleveland and 66 miles lost money in part due to excessive inventory which reduced operating levels. Mansfield Foundry had built inventory in expectation of a strike at that plant. The strike which occurred at the end of May 1996 was only a week in duration. The Oberdorfer Industries division in Syracuse, New York
Syracuse (IPA: also lost money in July and August due to shutdown, low volume and losses on a major contract. Oberdorfer primarily serves aircraft engine and compressor markets. T. Morris Hackney, Chairman 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. of Citation, said, "Most of the shortfall in July and August is attributable to the maintenance shut down or to one-time equipment problems. The loss at the Iroquois division was due to equipment problems which are now resolved. The Mansfield division should reduce its excessive inventory by the end of September although it also needs to attract additional sales volume. The Oberdorfer division has new work coming in during the Fall. "In addition, we expect to complete phase out of the steel foundry at the Texas Foundries division in September. That should stem losses which amounted to $2.3 million in fiscal 1995 and are expected to be approximately $1.6 million in fiscal 1996. "The iron castings expansion at the Texas Foundries division continues a slow and difficult startup and is still experiencing equipment problems, low productivity and high scrap. We are concentrating significant attention on this area. "The problems with the execution of this major expansion is a significant part of the reason we saw the need to strengthen the operations management Operations management is an area of business that is concerned with the production of goods and services, and involves the responsibility of ensuring that business operations are efficient and effective. of the corporation, including the addition of our new President and COO, Frederick F. (Rick) Sommer Sommer is a surname, from the German and Danish word for the season "summer". It may refer to:
"There are a number of positives. The acquisitions we've made in fiscal 1996 (Texas Steel, Ft. Worth, Texas; Bohn Aluminum, Butler, Indiana Butler is a city in DeKalb County, Indiana, United States. The population was 2,725 at the 2000 census. Geography Butler is located at (41.430166, -84.871859)GR1. ; Hi Tech, Albion, Indiana; and Southern Aluminum, Bay Minette, Alabama Bay Minette is a city in Baldwin County, Alabama, United States. As of the 2000 census, the population of the city was 7,820. [1] According to the 2005 U.S. Census estimates, the city had a population of 7,808. [2] The city is the county seat of Baldwin County. ) generally continue to meet or exceed our expectations. "Our Alabama Ductile and Southern Ductile divisions continue to perform above expectations. Of our fiscal 1995 acquisitions, the Castwell Products division and the Berlin Foundry divisions are making a strong contribution. "Our fiscal 1997 volume outlook appears good, based upon an economy which is approximately the same as this year. During the next two weeks, we will complete a detailed fiscal 1997 budget review process which should give us a better handle on our outlook." Citation Corporation is a metal components producer for the durable goods durable goods Goods, such as appliances and automobiles, that have a useful life over a number of periods. Firms that produce durable goods are often subject to wide fluctuations in sales and profits. Also called consumer durables. industry with 16 manufacturing divisions located in nine states. Sales for the most recent nine-months period was $356.1 million. CONTACT: Citation Corp., Birmingham Stanley B. Atkins, 205/871-5731 |
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