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WOODHEAD INDUSTRIES, INC. SETS NEW RECORDS FOR FISCAL YEAR SALES INCREASE 13 PERCENT AND NET INCOME INCREASES 22 PERCENT

 BUFFALO GROVE, Ill., Nov. 16 /PRNewswire/ -- Woodhead Industries, Inc. (NASDAQ: WDHD) today reported that sales and net income for the 1993 fiscal year were the highest in the company's seven-decade history. New product development, the inauguration of a number of new computer systems, the continued conversion of products to cellular manufacturing, further marketing innovations, plus the acquisition of three companies all contributed to the company's most successful year.
 Record sales of $89.9 million were 13 percent higher than the $79.5 million reported in fiscal 1992. Alan Reed, chairman, stated: "The increase in sales was driven by higher unit volume plus the additional revenues contributed by our three new acquisitions. Modest price increases made but a slight contribution and were indicative of both the flat economy and a strong competitive climate. Contributors to gross profit improvement were higher productivity from additional cellular manufacturing, cost-effective purchasing, and manufacturing cost reductions derived from continued investment in tooling and product redesigns. Nevertheless, the effect of product mix at our new acquisitions lowered gross profit by a percentage point to 44.1 percent. This effect was more than offset, however, by lower total operating expenses. These expenses were 32.7 percent of sales and compare very favorably with 34.7
percent in the prior year. Record net income of $5.8 million was a 22 percent gain over the $4.8 million reported last year. On a per share basis, earnings climbed to $.83 versus the $.71 achieved for the same period last year." (Earnings per share have been restated to reflect the 100 percent common stock dividend distributed March 1, 1993.)
 Reed further noted that "While total assets rose from $48.6 million in 1992 to $56.4 million in 1993, return on assets also rose from 10.3 percent in the prior year to 11.1 percent for the year just ended." Increases in assets were largely the effect of the three new acquisitions. These acquisitions were made through a combination of internal cash generation and external financing. Total long-term debt therefore increased to a high of $4.5 million at the end of the third quarter; strong cash management reduced that debt to $2.7 million at the end of the fiscal year. Return on shareholders' equity increased, rising from 15.2 percent in 1992 to 16.6 percent in 1993.
 "Shareholders who held Woodhead Industries stock for the entire 1993 fiscal year saw their investment (including dividend reinvestment) appreciate 47 percent. And while past accomplishments are no guarantee of future performance," Reed cautioned, "we will continue to apply our strategies for growth of New Product Development, Market Expansion, International Growth, Increased Market Share, and Acquisitions that made the year such a success."
 Woodhead Industries, Inc. develops, manufactures, and markets specialty electrical devices, custom cable assemblies, motion control products, and ergonomic workstations for a broad range of industrial applications worldwide.
 WOODHEAD INDUSTRIES, INC.
 (In thousands, except per-share numbers)
 Percent
 13 weeks ended: 10/2/93 10/3/92 Change
 Net sales $24,201 $21,064 14.9 percent
 Net income 1,732 1,491 16.2 percent
 Earnings per common and
 common equivalent shares $0.24 $0.22 9.1 percent
 Common and common
 equivalent shares 7,089 6,827
 Percent
 Fiscal year ended: 10/2/93 10/3/92 Change
 Net sales $89,864 $79,518 13.0 percent
 Net income 5,803 4,755 22.0 percent
 Earnings per common and
 common equivalent shares $0.83 $0.71 16.9 percent
 Common and common
 equivalent shares 6,978 6,693
 NOTE: All periods have been adjusted for a two-for-one stock split effected in the form of a stock dividend in March 1993.
 -0- 11/16/93
 /CONTACT: Robert G. Jennings, vice president, finance and CFO of Woodhead Industries, Inc., 708-465-2900/
 (WDHD)


CO: Woodhead Industries, Inc. ST: Illinois IN: CPR SU: ERN

WB -- NY083 -- 5190 11/16/93 15:15 EST
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Publication:PR Newswire
Date:Nov 16, 1993
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