RECORD SALES AND EARNINGS REPORTED BY WILLIAMS CONTROLS, INC.
PORTLAND, Ore., Nov. 12 /PRNewswire/ -- Williams Controls, Inc. (NASDAQ: WMCO) announced today through its Chairman and President, Thomas W. Itin, that sales increased 29 percent and earnings before accounting changes increased 93 percent, compared to the prior year. Net earnings for the year ended Sept. 30, 1993, were $1,956,000 or $.14 per share ($.13 fully diluted). For the prior year, earnings were $1,012,000 ($.07 per share) before the cumulative effect of a change in accounting for income taxes of approximately $255,000 ($.02 per share) as a result of adopting FASB No. 109 as of Oct. 1, 1991. The $.14 is fully taxed and includes no extraordinary item. Net earnings in 1992, after change of accounting, were $1,267,000 or $.09 per share which included a gain of $456,000 or $.03 per share resulting from a positive settlement of litigation during the fourth quarter. The increase in earnings is due primarily to increased sales, improved gross margin and a reduction in administrative expenses. Sales for the year ended Sept. 30, 1993, were $25,897,000 compared to $20,072,000 for the prior year. The 29 percent increase in sales is due primarily to the demand for the company's electronic throttles which are used in conjunction with electronic engines and a general increase in demand for pneumatic and hydraulic controls. The acquisition of Kenco in mid-August had limited effect on the sales and earnings since only two months' activity are reflected in these numbers. The company's future sales orders were approximately $4,300,000 at Sept. 30, 1993, an all-time high. Mr. Itin stated: "The company's results reflect the positive impact from the strength of the heavy vehicle manufacturing industry as sales of Class 8 trucks have increased over 30 percent over the prior year. These results are consistent with the company's objective of 15-20 percent sales growth and 20-25 percent increase in earnings per share, fully diluted, fully taxed." Mr. Itin pointed out "results for the fourth quarter were particularly strong as sales increased 32 percent over the prior year. Earnings per share were $.04 compared to $.02 excluding the positive settlement of litigation which added $.03 per share in the fourth quarter of 1992." Williams Controls, Inc. manufactures a wide range of electronic controls, pneumatic and hydraulic controls, and exhaust brakes which are used primarily in the heavy vehicle industry worldwide. Its wholly owned subsidiary, Kenco/Williams, Inc., manufactures light truck and sport utility vehicle accessories sold to a rapidly growing market. These products are marketed primarily through aftermarket distribution channels including mass merchandisers. WILLIAMS CONTROLS, INC. SELECTED FINANCIAL DATA Year Ended Sept. 30 Percent 1993 1992 Increase/(Decrease) Net sales $25,897,000 $20,072,000 29 pct. Earnings before cumulative effect of accounting change 1,956,000 1,012,000 93 pct. Net earnings 1,956,000 1,267,000 54 pct. Earnings per common share before cumulative effect of accounting change Primary .14 .07 100 pct. Fully diluted .13 .07 86 pct. Net earnings per common share Primary .14 .09 56 pct. Fully diluted .13 .09 44 pct. Fourth Quarter Ended Sept. 30 Percent 1993 1992 Increase/(Decrease) Net sales $7,347,000 $5,578,000 32 pct. Net earnings 586,000 628,000 (7 pct.) Net earnings per common share .04 .05 (20 pct.) The prior year amounts include an after tax gain of $456,000 ($.03 per share) for settlement of litigation during the fourth quarter. -0- 11/12/93 /CONTACT: Thomas W. Itin, chairman and president of Williams Controls, 503-684-8600/ (WMCO)
CO: Williams Controls, Inc. ST: Oregon IN: AUT SU: ERN
TO-JG -- DE025 -- 3795 11/12/93 15:19 EST
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|Date:||Nov 12, 1993|
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