WOODHEAD REPORTS FINANCIAL RESULTS FOR 4TH QUARTER AND FISCAL YEAR
NORTHBROOK, Ill., Nov. 12 /PRNewswire/ -- Woodhead Industries Inc. (NASDAQ: WDHD) reported a decline in earnings and a slight increase in sales for both its fourth quarter and 1991 fiscal year.
For the 13 weeks ended Sept. 28, 1991, Woodhead reported net income of $855,000 or 27 cents per share compared with net income of $1,319,000 or 42 cents per share in the comparable quarter last year. Sales for the 1991 fourth quarter were $17,707,000 compared with $17,130,000 in same period of 1990.
For the 1991 fiscal year, Woodhead reported earnings of $2,820,000 or 88 cents per share compared with $5,020,000 or $1.56 per share in the previous fiscal year. Earnings for the 1991 fiscal year were negatively affected by higher manufacturing costs associated with reduced plant utilization rates, increased costs for health care, and expenses related to new product development and market expansions. Earnings were also affected by a 23 cents per share charge in the second quarter for reserves and expenses relating to various litigation matters.
Sales for the 1991 fiscal year were $73,499,000, a 1.8 percent increase over the $72,168,000 reported a year ago.
Alan Reed, chairman and chief executive officer, stated that, "The increase in sales for the fiscal year was due to the combined contribution of Woodhead's new acquisition, Advanced Interconnect, plus a 6.3 percent annual increase in the company's international sales."
Reed noted that capital investment also increased during the year, totalling $3.7 million compared with $2.5 million for the prior year. "This increase was part of a $6 million capital spending plan announced at the company's annual meeting last year," he stated. "Thus far, these investments have shown increasing returns for the company in the form of a broad range of new products, the expansion of our marketing presence at home and abroad, and cost reductions in plant operations. The timing of implementation will extend the remainder of our planned investments into fiscal 1992."
Commenting on the future, Reed stated, "This year's investment in products and markets has strengthened the company considerably. Although business in the industrial sector remains soft, we believe Woodhead is well-positioned to profit from any improvement in the economic climate. The company's backlog of orders totalled $5.9 million at the end of the fiscal year compared with encouraging prospects for the months ahead."
Woodhead Industries, Inc., headquartered in Northbrook, Ill., develops, manufactures, and markets specialty electrical products, motion control products, and ergonomic workstations for worldwide use by a broad range of industries.
WOODHEAD INDUSTRIES, INC.
(In thousands, except per-share numbers)
13 weeks ended: 9-28-91 9-29-90 Percent Change
Sales 17,707 17,130 +3.4
Net income 855 1,319 -35.2
Earnings per share 0.27 0.42 -35.7
Avg. shares outstanding 3,218 3,190
Year ending: 9-28-91 9-29-90 Percent Change
Sales $73,499 72,168 +1.8
Net Income 2,820 5,020 -43.8
Earnings per share 0.88 1.56 -43.5
Avg. shares outstanding 3,205 3,224
/CONTACT: Robert Jennings, vice president finance and CFO of Woodhead, 708-272-8181/
(WDHD) CO: Woodhead Industries Inc. ST: Illinois IN: SU: ERN JT -- NY090 -- 3670 11/12/91 17:40 EST