Printer Friendly


 CLEVELAND, Jan. 17 /PRNewswire/ -- The Standard Products Co. (NYSE: SPD) today announced sales for the second quarter of fiscal 1994 of $198,335,000, including $31,637,000 from Standard Products Industriel (SPI) in France and SPI's 5 Rubber affiliate in the U.S. which were acquired in late January 1993, compared with sales of $174,795,000 in the fiscal 1993 quarter.
 Net income for the second quarter was $6,187,000, equal to 37 cents per share on 16.6 million shares outstanding, versus $7,813,000, or 52 cents per share on 15.1 million shares outstanding, in the prior year's period.
 North American automotive operations had sales of $105,799,000 compared with sales of $111,290,000 last year. Included in this year's results are sales of $4,195,000 contributed by 5 Rubber Corporation. Together with a drop off in the build of certain automotive models carrying Standard Products parts, the company's sales were affected by the previously announced shutdown in Canada of the Chevrolet Lumina during the second quarter when Standard Products started the shift to production of the new Lumina model. The first customer production is scheduled to start in late February with a slow ramp up to full production in June. Also affecting North American results, Standard Products incurred excess costs at its Winnsboro, South Carolina automotive plastics plant, related to manufacturing start-up difficulties. The decline in Lumina sales combined with the Winnsboro costs had an adverse impact on net results of approximately 13 cents per share.
 NISCO, the company's joint venture with Nishikawa Rubber Company of Japan, turned in a profit with momentum for continuing improvement. Standard Products Limited in the United Kingdom also was profitable and expects to have good production levels during the third and fourth quarters. Standard Products Industriel in France broke even for the quarter and continued to outperform the European car build.
 Sales of Holm Industries, a leading manufacturer of plastic and magnetic door seals for home and commercial appliances, were ahead of last year's high volume, and profitability also improved. At Oliver Rubber, which supplies retread tire rubber to the truck tire industry, sales of $28,396,000 were up slightly from last year's sales of $28,125,000, but profits were off, principally because of higher sales of lower-margin products and manufacturing variances at two plants.
 Selling, general and administrative expenses as a percentage of sales were 6.6 pct, slightly above last year's 6.4 pct ratio but well below the 7.2 pct of this year's first quarter. The dollar increases from a year ago were attributable largely to the acquisition of SPI and 5 Rubber Corporation.
 James S. Reid, Jr., chairman and chief executive officer, said, "We and our customers are now in the midst of the launch of three major new models -- the General Motors Lumina, Ford Windstar and Chrysler Neon. They represent $110,000,000 of annual sales for Standard Products. Even with the most successful program management, launches such as these involve a number of factors, any one of which could add extra costs and disrupt plant operations. We expect smoother going in the fourth quarter as the major launches move toward normal levels of production."
 Standard Products manufactures sealing and trimming systems for the automotive original equipment industry at its plants in North America, France and the United Kingdom, and its NISCO joint venture manufactures automotive sealing systems in the United States. The company's Holm Industries subsidiary produces seals for home and commercial refrigerators and freezers and for residential doors and windows, and its Oliver Rubber subsidiary manufactures tread rubber and equipment for the retread industry.
 Consolidated Earnings Summary (Unaudited) (000 omitted)
 Three Months Six Months
 Periods Ended Dec. 31, and
 Jan. 3 1993 1993 1993 1993
 Net sales $198,335 $ 174,795 $400,026 $339,212
 Costs and expenses:
 Cost of goods sold 173,712 150,314 349,238 296,924
 Selling, general and
 expenses 13,123 11,170 27,599 21,774
 Net interest expense 2,379 1,534 5,131 2,800
 Other income (expense),
 net 71 6 (766) 648
 Income before taxes
 and nonrecurring items 9,192 11,783 17,292 18,362
 Provision for taxes on
 income 3,005 3,970 6,253 6,113
 Income before
 nonrecurring items 6,187 7,813 11,039 12,249
 Cumulative effect on
 accounting change,
 net of tax 0 0 0 (8,301)
 Net income $6,187 $ 7,813 $ 11,039 $3,948
 Earnings loss per
 common share:
 Income before
 nonrecurring items $ .37 $ .52 $ .66 $ .81
 Cumulative effect
 of accounting change,
 net of tax 0 0 0 (.55)
 $ .37 $ .52 $ .66 $ .26
 Average shares outstanding 16,616 15,094 16,598 15,079
 -0- 1/17/94
 /CONTACT: Aubrey E. Arndt of The Standard Products Co., 216-281-8300; or William L. Dupuy of Edward Howard & Co., 216-781-2400, for The Standard Products Co./
 (SPD) CO: The Standard Products Co. ST: Ohio IN: AUT SU: ERN

BM -- CL010 -- 2376 01/17/94 08:25 EST
COPYRIGHT 1994 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1994 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jan 17, 1994

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