Hexcel Reports Continued Improvement in Net Income for Second Quarter of 1997; Net Income Increases to $15.1 Million, or $0.38 Per Share, Fully Diluted.STAMFORD Stamford, town, England Stamford, town (1991 pop. 18,127), in the Parts of Kesteven, Lincolnshire, E central England, on the Welland River. It is a market town. Products include diesel engines, electrical equipment, bricks, and tiles. , Conn.--(BUSINESS WIRE)--July 23, 1997--Hexcel Corporation (NYSE/PCX:HXL) today reported that net income for the second quarter of 1997 improved to $15.1 million, or $0.38 per share on a fully 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. basis, compared with a net loss of $23.7 million, or $0.65 per share, for the second quarter of 1996. The results include business acquisition and consolidation expenses of $2.8 million, or $0.06 per share on a fully diluted basis after income taxes, for 1997 and $29.2 million, or $0.77 per share after income taxes, for 1996. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the second quarter of 1997 were $241.6 million, compared with $166.8 million for the second quarter of 1996. Results for the first and second quarters of 1997 include the composites businesses acquired February February: see month. 29, 1996 from Ciba-Geigy and June June: see month. 27, 1996 from Hercules Hercules, in astronomy Hercules (hûr`kyəlēz'), in astronomy, northern constellation located between Lyra and Corona Borealis. It is traditionally depicted as the hero Hercules in a kneeling position. . Second quarter 1996 results include only the Ciba operations. On a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma basis, including the acquired businesses, the net loss for the second quarter of 1996 was $25.6 million, or $0.70 per share, on sales of $198.1 million. Commenting on Hexcel's second quarter results, John J. Lee, the company's chairman, president and chief executive officer, said, "Hexcel's performance continues to be strong. The company's results for the second quarter of 1997 exceeded both our business plan and our expectations. The second quarter is traditionally Hexcel's strongest, and this year we had the advantage of improved performance in three areas. First, continuing strength in the commercial aerospace market is having a substantial positive effect on the company's sales volumes. Second, our past and current restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). initiatives, which remain on target, are providing ongoing benefits. And, third, the investments we have made in our carbon fibers business are beginning to benefit our overall performance." Lee also noted, "The strong commercial aerospace market is reflected in Hexcel's backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. of orders for aerospace materials scheduled for delivery within 12 months, which increased by almost 13% during the second quarter, to $428 million. The 12-month order backlog for non-aerospace materials remained stable on a quarter-to-quarter basis, at about $70 million." Second quarter results also compare favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. with the first quarter of 1997, when Hexcel Hexcel is a company based in Stamford, Connecticut that manufactures advanced structural materials. The company was founded in 1946 and its first product was supplying honeycomb for the construction of military bombers. reported net income of $8.2 million, or $0.22 per share, including business acquisition and consolidation expenses of $2.9 million, or $0.07 per share after income taxes. Net sales for the first quarter of 1997 were $214.0 million. Net sales for the second quarter of 1997, historically the company's best sales quarter, increased by 12.9% from the first quarter of 1997 and 22.0% from pro forma sales for the second quarter of 1996. These increases were primarily due to continued strength in sales of composite materials composite material or composite, any material made from at least two discrete substances, such as concrete. Many materials are produced as composites, such as the fiberglass-reinforced plastics used for automobile bodies and boat hulls, but the to the commercial aerospace market in both the U.S. and 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). . The gains were partially offset by the translation
impact of a strengthening U.S. dollar; if exchange rates had been at the
same levels as in the second quarter of 1996, European Europeanemanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. revenues for the second quarter of 1997 would have been about $9 million higher. Hexcel's gross margin for the second quarter of 1997 was 23.9% of sales, compared with 21.1% for the second quarter of 1996 and 21.9% for the first quarter of 1997. The improvement over the second quarter of 1996 reflects higher sales volume and continued advances in manufacturing productivity resulting from the company's consolidation and restructuring programs. The improvement over the first quarter of 1997 also reflected a more favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. product mix. Earnings before business consolidation expenses, other income, interest, taxes, depreciation and amortization ("adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become ") were $37.3 million for the second quarter of 1997, against $16.8 million for the second quarter of 1996 and $27.7 million for the 1997 first quarter. On a year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. basis, Hexcel's net income for the six months ended June 30, 1997 was $23.4 million, or $0.60 per share on a fully diluted basis, including $5.7 million of business acquisition and consolidation expenses. This compares with a net loss of $21.8 million, or $0.72 per share including $34.4 million of business acquisition and consolidation expenses, for the first half of 1996. On a pro forma basis, including the acquired businesses, the net loss for the first half of 1996 was $23.4 million, or $0.65 per share. Net sales for the first half of 1997 were $455.6 million, compared with $293.2 million for the comparable 1996 period; pro forma sales for the first half of 1996 were $397.0 million. Gross margin for the first half of 1997 was 23.0% of sales, compared with 21.1% of sales for the same period last year. As announced April 21, 1997, Hexcel has entered into an agreement to acquire selected assets and businesses of Fiberite, Inc. for about $300 million in cash. Fiberite, headquartered in Tempe Tempe (tĕm`pē), city (1990 pop. 141,865), Maricopa co., S Ariz., in the Salt River valley, a suburb of Phoenix; inc. 1894. Its population has grown markedly since the 1970s with the expansion of the greater Phoenix area. , Ariz., is a supplier of advanced composite materials to the commercial aerospace, recreation and general industrial markets. In keeping with its expansion and diversification Diversification A risk management technique that mixes a wide variety of investments within a portfolio. It is designed to minimize the impact of any one security on overall portfolio performance. Notes: Diversification is possibly the greatest way to reduce the risk. strategy, Hexcel will acquire certain prepreg operations, as well as Fiberite's ablatives, carbon-carbon, molding compounds and engineered components businesses. The Fiberite transaction is expected to be completed towards the end of the third quarter of 1997, subject to customary conditions of closing and required regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. approvals. Hexcel Corporation, headquartered in Stamford, manufactures lightweight, high performance carbon fibers, structural fabrics, composite materials and engineered parts and structures. It sells these products to customers in the commercial aerospace, space and defense, recreation and general industrial markets. Forward Looking Statements This news release contains forward looking statements, including statements made relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc future profits, financial goals, acquisition activity and orders. Stated goals are not projections or assured results. Actual results may differ materially from the results anticipated in the statements made due to a variety of factors, including adverse market conditions, increased competition, delays in implementing the company's business consolidation program and failure to obtain necessary regulatory approvals. Additional risk factors are described in the company's filings with the SEC. The company does not undertake an obligation to update its forward looking statements to reflect future events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or . -0-
Hexcel Corporation and Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share data)
The quarter The Year-to-Date
Ended June 30 Ended June 30
1997 1996 1997 1996
Net sales $241,629 $ 166,770 $455,638 $293,188
Cost of sales (183,811) (131,582) (350,931) (231,217)
Gross Margin 57,818 35,188 104,707 61,971
Selling, general &
administrative
expenses (30,484) (23,879) (58,090) (41,361)
Business acquisition &
consolidation expenses (2,818) (29,209) (5,717) (34,420)
Other income, net -- 288 -- 2,985
Operating Income (loss) 24,516 (17,612) 40,900 (10,825)
Interest expense (5,829) (4,849) (11,517) (8,482)
Income (loss) before
income taxes 18,687 (22,461) 29,383 (19,307)
Provision for income
taxes (3,552) (1,206) (6,022) (2,512)
Net income (loss) $15,135 $(23,667) $23,361 $(21,819)
Net income (loss) per
share & equivalent
share:
Primary $ 0.40 $ (0.65) $ 0.62 $ (0.72)
Fully Diluted 0.38 (0.65) 0.60 (0.72)
Weighted average shares
and equivalent shares:
Primary 37,904 36,547 37,917 30,483
Fully Diluted 45,145 36,547 45,158 30,483
Net Sales to Third-Party Customers by Product Group and Market
Segment
Commercial Space & General
(in millions) Aerospace Defense Recreation Industrial Total
Second Quarter
1997 Net Sales
Fibers and
Fabrics $ 5.0 $ 2.7 $ 3.0 $ 33.0 $ 43.7
Composite
Materials 101.0 18.0 17.4 18.5 155.0
Engineered
Products 40.8 2.1 -- -- 42.9
Total $ 146.9 $ 22.8 $ 20.4 $ 51.5 $241.6
61% 9% 9% 21% 100%
First Quarter
1997 Net Sales
Fibers and
Fabrics $ 8.8 $ 3.3 $ 1.5 $ 29.8 $ 43.4
Composite
Materials 91.6 12.3 15.0 14.1 133.0
Engineered
Products 33.2 3.0 -- 1.4 37.6
Total $ 133.6 $ 18.6 $ 16.5 $ 45.3 $214.0
62% 9% 8% 21% 100%
Backlog of Orders by Product Group(1)
Non
(In millions) Aerospace Aerospace Total
As of June 30, 1997
Fibers and Fabrics $ 20.5 $ 35.8 $ 56.3
Composite Materials 256.7 33.6 290.3
Engineered Products 150.4 0.5 150.9
Total $ 427.6 $ 69.9 $ 497.5
As of March 30, 1997
Fibers and Fabrics $ 24.5 $ 36.2 $ 60.7
Composite Materials 234.1 33.4 267.5
Engineered Products 120.6 0.8 121.4
Total 379.2 70.4 449.6
As of December 31, 1996
Fibers and Fabrics $ 26.9 $ 33.6 $ 60.5
Composite Materials 194.6 15.8 210.4
Engineered Products 126.0 4.8 130.8
Total $ 347.5 $ 54.2 $ 401.7
(1) Backlog consists of sales orders scheduled for delivery within
12 months.
CONTACTS: Hexcel Corporation, Stamford Stephen Stephen, 1097?–1154, king of England (1135–54). The son of Stephen, count of Blois and Chartres, and Adela, daughter of William I of England, he was brought up by his uncle, Henry I of England, who presented him with estates in England and France and C. Forsyth Forsyth is a Scottish surname. It may refer to: People
Ronald S. Ziemba, 203/969-0666 ext. 405 (Media) |
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