Printer Friendly

DONNELLY CORPORATION REPORTS SECOND-QUARTER FINANCIAL RESULTS

 HOLLAND, Mich., Jan. 20 /PRNewswire/ -- Donnelly Corporation (AMEX: DON) today reported second-quarter financial results for the 1993 fiscal year.
 Net sales for the second quarter were $70,659,000 which represents an increase of 6 percent over $66,535,000 for the same period last year. Net income for the second quarter decreased slightly to $2,089,000, compared to $2,373,000 for the second quarter of fiscal 1992. Earnings per share for the second quarter were $.27 compared to $.34 in the same period last year.
 Net sales for the first half were $138,510,000 which represents an increase of nearly 10 percent over $126,129,000 for the first half of fiscal 1992. Net income for the first half of fiscal 1993 was $3,635,000, compared to $2,476,000 for the first half of fiscal 1992. This is an increase of 47 percent. Earnings per share increased from $.35 for the first half of fiscal 1992 to $.47 for the first half of this year.
 Sales increased during the second quarter due to: 1) a 12-percent increase in automotive industry production levels compared to the same period last year, and 2) continued strong sales for modular window systems in both Donnelly's Holland operations and at D & A Technology (a joint venture) in Tennessee. D & A Technology manufactures window systems for the popular Saturn vehicles.
 Sales continued to grow in spite of lower production schedules at Honda of America, one of Donnelly's largest customers, and the fact that display coatings sales are no longer included in Donnelly's total sales. The display coatings product line has been consolidated into a joint venture called Donnelly Applied Films, located in Boulder, Colo., and sales of this product are now incorporated into that venture. If these sales had been included in Donnelly's second quarter (as was the case last year), total corporate sales would have increased by 18 percent.
 Earnings during the first half remain strong due to Donnelly's sharp focus on reducing costs and improving operations. These improvements helped offset the negative impact of legal expenses associated with the patent litigation between Donnelly and Gentex. A significant portion of these expenses was taken during the second quarter and similar expenses will likely be taken in future quarters as the legal process continues.
 Dwane Baumgardner, chairman of the board for Donnelly Corporation, stated,
 "Donnelly's 1993 fiscal year is shaping up nicely. Sales are improving and earnings are respectable considering the extraordinary legal expenses currently being incurred in our patent litigation. There are signs now that the recession is over and a slow recovery has begun. Although there remains uncertainty in the marketplace, we are hopeful that industry conditions will continue to improve in the months ahead."
 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 13 facilities in western Michigan. In addition, Donnelly has manufacturing and/or office facilities in Mount Pleasant, Tenn.; Detroit; Tokyo; Naas, Ireland; Tucson, Ariz.; and a new manufacturing facility is under construction in Mount Sterling, Ky. Donnelly is also recognized as a leader in the application of participative management practices.
 DONNELLY CORPORATION
 COMBINED CONSOLIDATED BALANCE SHEETS
 (in thousands)
 Jan. 2, 1993 June 27, 1992
 ASSETS
 Current Assets:
 Cash & equivalents $2,818 $3,769
 Accounts receivable 36,485 43,092
 Inventories 16,239 15,959
 Other current assets 6,007 4,715
 Total current assets 61,549 67,535
 Net property, plant and equipment 60,188 59,429
 Other assets 8,878 4,265
 $130,615 $131,229
 LIABILITIES AND SHAREHOLDERS' EQUITY
 Current Liabilities:
 Accounts payable $20,198 $25,774
 Accruals 14,399 13,583
 Current maturities of long-term debt 93 93
 Total current liabilities 34,690 39,450
 Long-term debt 26,243 24,789
 Deferred income taxes & other liabilities 6,099 5,832
 Total liabilities 67,032 70,071
 Minority interest 80 ---
 Shareholders' equity 63,503 61,158
 $130,615 $131,229
 DONNELLY CORPORATION
 COMBINED CONSOLIDATED STATEMENTS OF INCOME
 (in thousands, except per-share data)
 Three Months Ended
 Jan. 2, 1993 Dec. 28, 1991
 Net sales $70,659 $66,535
 Gross profit 15,561 15,052
 Operating income 3,483 3,352
 Interest expense 812 902
 Income before taxes on income,
 minority interest, equity earnings and
 extraordinary gain 3,032 3,142
 Net income 2,089 2,373
 Income per share of common stock (a) .27 .34
 Dividends per share of common stock .070 .056
 Weighted average number of
 common shares outstanding 7,679 6,967
 Six Months Ended
 Jan. 2, 1993 Dec. 28, 1991
 Net sales $138,510 $126,129
 Gross profit 30,815 26,995
 Operating income 6,117 4,066
 Interest expense 1,657 1,851
 Income before taxes on income,
 minority interest, equity earnings and
 extraordinary gain 5,129 3,312
 Net income 3,635 2,476
 Income per share of common stock (a) .47 .35
 Dividends per share of common stock .140 .112
 Weighted average number of
 common shares outstanding 7,675 6,966
 (a) Due to D & A's (a joint venture in Tennessee) strong sales and improvements in operational performance, the company was able to take advantage of a tax benefit associated with prior operation losses. These losses were incurred during the start-up of this venture and no tax benefit could be obtained until the venture earned profits against which the losses could be taken. This benefit is extraordinary and the effect on EPS is $.06 in the second quarter and for the first half.
 -0- 1/20/93
 /CONTACT: Maryam Komejan, 616-786-6022, or Ron Winowiecki, 616-786-6303, both of Donnelly Corporation/
 (DON)


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

JG-SB -- DE008 -- 6794 01/20/93 10:27 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jan 20, 1993
Words:972
Previous Article:FIRST OF AMERICA BANK CORP. REPORTS STRONG 1992 OPERATING EARNINGS; IMPLEMENTS FAS 106 AND FAS 109; AND REDUCES UNAMORTIZED INTANGIBLES
Next Article:WALBRO CORPORATION AGREES TO ACQUIRE FITZSIMONS MANUFACTURING COMPANY FROM COPPER AND BRASS SALES
Topics:


Related Articles
DONNELLY CORPORATION REPORTS SECOND-QUARTER FINANCIAL RESULTS
DONNELLY CORPORATION REPORTS 4TH-QUARTER AND YEAR-END EARNINGS
DONNELLY CORPORATION REPORTS FOURTH QUARTER AND YEAR-END EARNINGS
DONNELLY CORPORATION REPORTS SECOND QUARTER FINANCIAL RESULTS
DONNELLY CORPORATION REPORTS THIRD QUARTER FINANCIAL RESULTS
DONNELLY CORPORATION REPORTS FOURTH QUARTER AND YEAR-END EARNINGS
DONNELLY CORPORATION REPORTS THIRD QUARTER FINANCIAL RESULTS
Donnelly Corporation Reports First Quarter Financial Results.
Donnelly Corporation Reports Increased Sales And Earnings for Third Fiscal Quarter.
Donnelly Extends Record of Highest-Ever Quarterly Operating Earnings.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters