GENERAL MAGNAPLATE REPORTS SIX MONTHS ENDED DEC. 31, 1991 RESULTS TO STOCKHOLDERS
GENERAL MAGNAPLATE REPORTS SIX MONTHS ENDED DEC. 31, 1991
RESULTS TO STOCKHOLDERS
LINDEN, N.J., Feb. 13 /PRNewswire/ -- General Magnaplate Corporation (NASDAQ: GMCC) today issued the following:
Financial results for the past six months are a direct reflection of the nation's depressed economic condition. Earnings per share were down 73.3 percent when compared to the similar six months period last year. Revenues declined from $5,326,205 in 1990 to $4,265,797, a 20 percent decrease for this period. A major part of this shortfall in revenues was due to the cancellation of the IBM business.
We are maintaining our customer base and still adding new users of our processes; however, all segments of the broad spectrum of industries it services has slowed down. Inventory buildups that were anticipated in the past have not materialized, defense requirements for new or replacement parts are not on the horizon. Consumer product customers are extremely slow or not replacing inventories. The large IBM contract was shut down completely and will not return since they are using less costly methods on order to compete in their fast changing markets.
We have streamlined all plants and implemented labor saving cost reduction strategies whenever possible. We have tighten our belts and all personnel have been made aware of the need to increase output per man-hour.
The board of directors has eliminated the proposed dividend for this period to conserve cash. Directors' fees have been reduced by 25 percent and management staff reduced.
New facilities in Wisconsin and Canada are now fully operational and slowly increasing sales; however, we do not anticipate profits before June of 1992.
GENERAL MAGNAPLATE CORPORATION
(Condensed Statement of Income)
Six months ended Dec. 31: 1991 1990
Gross revenue $4,265,797 $5,326,205
Income before taxes 181,658 768,733
Net income 111,514 475,233
Earnings per share $0.04 $0.15
Average shares outstanding 3,091,511 3,092,844
/CONTACT: Candida C. Aversenti of General Magnaplate, 908-862-6200/
(GMCC) CO: General Magnaplate Corporation ST: New Jersey IN: SU: ERN SM-TS -- NY057 -- 9748 02/13/92 12:22 EST