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SHILOH INDUSTRIES EXPECTS IMPROVED RESULTS FOR QUARTER AND YEAR ENDED OCTOBER 31

 MANSFIELD, Ohio, Nov. 2 /PRNewswire/ -- Shiloh Industries, Inc. (NASDAQ-NMS: SHLO) said today that it expects increased net income for its fourth quarter and year ended Oct. 31, 1993, but that results will fall below levels estimated by some securities analysts who have reported on the company.
 For the fourth quarter, the vertically integrated steel processor said net income will increase to approximately $2 million, from $1.7 million in the 1992 fourth quarter. For the year, net income will increase to about $9 million, from $7 million in fiscal 1992, the company said. Shiloh said it expects revenues to exceed $41 million for the quarter and $175 million for the year, compared to $40 million in the 1992 fourth quarter and $142 million for the year, when it reports final results in December.
 "The increases in sales and net income for the fourth quarter were tempered by our previously reported inability to pass along July 1 steel mill price increases to customers, a situation we see continuing into 1994. The increase in steel prices will also result in a significant LIFO inventory adjustment for 1993. Other factors dampening earnings were the retroactive increase in the federal corporate income tax rate and reversal of a previously recognized tax benefit associated with the net operating loss carry forward at a subsidiary," said Robert L. Grissinger, Shiloh president and chief operating officer.
 He said that major factors contributing to growth in 1993 included increased blanking and stamping capacity as a result of a $15 million investment in new plant and equipment during the year, as well as the addition of new customers. Inclusion of a full year of sales for the Shafer Valve subsidiary, which had some $21 million in total sales in 1993, and whose results were included for only five months in 1992, further enhanced revenues, although it did not improve the company's profitability, Grissinger said.
 Grissinger said the company expects more modest gains in revenue and net income for its 1994 fiscal year, with both growing at a rate of between 5 and 10 percent.
 Shiloh is a vertically integrated steel processor that supplies high quality blanks, stampings and processed steel to the automotive and other industries. Shiloh's products include steel blanks used principally by domestic and foreign automotive manufacturers for fenders and hoods and heavy truck wheels and brake parts, as well as steel stampings used principally by automotive component manufacturers. Shiloh also performs a variety of value-added intermediate steel processing services. Through its Shafer Valve Company subsidiary, Shiloh designs, engineers and manufactures standard and custom-built high quality valve actuator systems, primarily for use in the oil and natural gas pipeline transmission industries.
 -0- 11/2/93
 /CONTACT: James J. Roop or Rob Berick of Watt, Roop & Co., 216-566-7019, for Shiloh Industries/
 (SHLO)


CO: Shiloh Industries, Inc. ST: Ohio IN: MNG SU: ERP

KL -- CL008 -- 9600 11/02/93 10:59 EST
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Publication:PR Newswire
Date:Nov 2, 1993
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