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 HOLLAND, Mich., Aug. 12 /PRNewswire/ -- Donnelly Corporation (AMEX: DON) today reported annual and fourth quarter financial results for the 1993 fiscal year.
 Annual Financial Results
 Donnelly achieved another record year for sales and earnings in fiscal 1993. Net sales for the fiscal year ending July 3, 1993, were $300,927,000, an increase of nearly 11 percent over $271,399,000 for the fiscal year ending June 27, 1992. This growth is particularly significant in light of the restructuring of Donnelly's Coated Products Business Group in late fiscal 1992, which moved the Display Coatings Product Line into a new joint venture in Colorado. Display Coatings sales represented nearly 10 percent of total company sales prior to the restructure and were not included in fiscal 1993.
 Earnings for fiscal 1993 closed at $7,852,000, up from $7,082,000 last year. Earnings per share of common stock were $1.02 in fiscal 1993, compared with $1.00 in fiscal 1992. While earnings from operations increased significantly, the full impact of this improvement was overshadowed by the cost of Donnelly's recent patent litigation and settlement. These costs were expensed during the fiscal year. The cost to the company of damages and settlement totaled $3.6 million for the year and there were substantial additional costs for legal fees, etc.
 Fourth Quarter Financial Results
 Financial performance during the fourth quarter of fiscal 1993 showed continued improvement. Sales were up over 8 percent compared to the same period in fiscal 1992, increasing from $76,472,000 to $82,792,000. Earnings for the fourth quarter of 1993 were $1,586,000, or $.21 per share of common stock, compared to earnings of $2,911,000, or $.39 per share of common stock in the fourth quarter of 1992. The entire cost for settlement and damages pertaining to the patent litigation were taken during the fourth quarter.
 Business Summary
 Nearly all product lines at Donnelly benefited from a stronger economy and recovering automotive industry production levels, following three years of recession. Industry production increased by 8.1 percent in fiscal 1993, compared to fiscal 1992. Stronger industry production supported higher sales for automotive vision system products, including interior and exterior mirrors, interior lighting and trim, and advanced electronic interior mirror systems. Donnelly also experienced a favorable product mix in the sales of automotive window systems, in particular.
 Three automotive window programs were significantly stronger than expected for the year. First, the popular new Chrysler Jeep Grand Cherokee has exceeded the most optimistic industry sales projections since its introduction in the spring of 1992. This vehicle features five Donnelly window assemblies including fixed vent windows in the rear door, side windows, and the rear liftgate as well as standard interior assemblies and exterior mirror components. Secondly, General Motors Saturn vehicles continue to enjoy popularity among consumers and feature modular window assemblies manufactured by a Donnelly joint venture called D & A Technology, Inc. Third, Donnelly manufactures window and mirror systems for the popular Ford Taurus and Sable model vehicles. Overall, Donnelly is a supplier of over 70 different window assemblies for over 40 vehicles for General Motors, Ford, Chrysler, Honda, Isuzu, and Toyota.
 Dwane Baumgardner, Chairman of the Board for Donnelly Corporation, stated,
 "Donnelly has just closed the books on a very strong year. We continued to invest in strategic initiatives and are adding plant and equipment to support future growth. We have received important new orders for windows, complete exterior mirror systems, and interior lighting and trim, for which production will begin in fiscal 1995, increasing in fiscal 1996 and beyond.
 "While we are building our organization to support future growth, we are also continuing work to improve our operational performance. We believe the recovering economy, strategic investments made to date, and our work to improve productivity are key factors in Donnelly's solid performance this year.
 "Looking forward, we see the 1994 fiscal year as a time of moderate growth during which investments will be made to support new orders that are scheduled to begin production in 1995. For example, Donnelly has been selected by Chrysler to do a series of windows for minivans in late 1995 and has also been selected by Ford and Mazda as a source for complete exterior mirrors. We are very excited about these programs and many others. We believe that we are well positioned in the industry to benefit from improved economic conditions in the future and are excited about the business opportunities that lie ahead."
 Highlights for the 1993 Fiscal Year
 Major events of fiscal 1993 included:
 -- Donnelly introduced its new "flush surface" window technology to customers and received a strong positive response. This system greatly improves the aerodynamics of the vehicle and offers a sleek new look, all at a competitive cost.
 -- Donnelly's new INTELLIGENT VISION(TM) System was introduced at the annual conference of the Society of Automotive Engineers. This system combines a unique new video microchip with electrochromic technology to produce a mirror system which automatically darkens each of the three mirrors in a vehicle independently to eliminate glare. The system is expected to be available in 1996.
 -- A program to improve productivity was initiated. This program, called Delta, will focus the attention of Donnelly teams on reexamining the work process at every level of the company. The first large scale application of process redesign will be the construction of a new mirror manufacturing facility during fiscal 1994.
 -- A joint venture was formed in China to produce coated glass used by electronics manufacturers for LCDs (liquid crystal displays). The venture is located in the Yantai Peninsula of China and is called Donnelly Yantai Electronics Corporation. Operations will begin during fiscal 1994 and this venture will become part of Donnelly Applied Films, another Donnelly coatings venture.
 -- Another joint venture was formed with a company in Scotland called VVL (VLSI Vision Limited). This venture will commercialize the new video microchip for certain automotive applications and also secures an equity position for Donnelly in VVL as other applications are commercialized in the areas of security, toys, communications, medical, etc.
 -- A decision was made to establish a manufacturing operation in Mexico to produce exterior mirror glass components. This move will help position Donnelly to participate in the rapid development of the Mexican automotive industry over the next 5-10 years.
 -- Donnelly was the recipient of numerous awards including the General Motors Mark of Excellence Award, the R & D 100 Award, and the "Recycler of the Year" Award. The company also was named as one of the "Top 10" in the new book entitled The 100 Best Companies to Work for in America, and was cited as one of the 100 Best in America for working mothers by Working Mother Magazine.
 -- The largest order in the history of the company was received by Chrysler for a window system for its newly redesigned series of minivans.
 Donnelly Corporation is an international company dedicated to serving customers around the world with high-quality fabricated, molded and coated glass products for the automotive and electronics industries. The company has been based in Holland since 1905 and today operates from 20 facilities around the world. Donnelly is also recognized as a leader in the application of participative management practices and was recently named as one of the "Top 10" in the new book entitled, The 100 Best Companies to Work for in America.
 (in thousands, except Three Months Ended
 per share data) July 3, 1993 June 27, 1992
 Net Sales $82,792 $ 76,472
 Gross profit 20,100 19,022
 Operating income 5,917 6,045
 Interest expense 804 695
 Income before taxes on income 2,080 4,967
 Net income 1,586 2,911
 Income per share of common stock .21 .39
 Dividends per share of common stock .07 .07
 Weighted average number of
 common shares outstanding 7,702 7,377
 (in thousands, except Fiscal Year Ending
 per share data) July 3, 1993 June 27, 1992
 Net Sales $300,927 $271,399
 Gross Profit 68,910 60,752
 Operating income 16,058 12,892
 Interest expense 3,216 3,506
 Income before taxes on income 10,936 10,805
 Net income 7,852 7,082
 Income per share of common stock 1.02 1.00
 Dividends per share of common stock .28 .24
 Weighted average number of
 common shares outstanding 7,686 7,070
 (in thousands) July 3, 1993 June 27, 1992
 Current Assets:
 Cash & Equivalents $ 1,214 $ 3,769
 Accounts Receivable, Net 39,226 43,092
 Inventories 15,049 15,959
 Other Current Assets 12,050 4,715
 Total Current Assets 67,539 67,535
 Net Property, Plant and Equipment 65,919 59,429
 Other Assets 6,382 4,265
 139,840 131,229
 Current Liabilities:
 Accounts Payable $ 22,819 $ 25,774
 Accruals 10,811 13,583
 Current Maturities of
 Long-Term Debt 77 93
 Total Current Liabilities 33,707 39,450
 Long-Term Debt 33,688 24,789
 Deferred Income Taxes & Other Liab. 6,210 5,832
 Total Liabilities 73,605 70,071
 Minority Interest 689 ---
 Shareholders' Equity 65,546 61,158
 139,840 131,229
 -0- 8/12/93
 /CONTACT: Maryam Komejan of Donnelly Corporation, 616-786-6022/

CO: Donnelly Corporation ST: Michigan IN: AUT SU: ERN

JG -- DE011 -- 2168 08/12/93 14:18 EDT
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Publication:PR Newswire
Date:Aug 12, 1993

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