Simpson Industries Reports Strong Sales
17 July 2000
Earnings Exceed Consensus Expectations
PLYMOUTH, Mich. - Simpson Industries, Inc. today announced first quarter
sales of $138.6 million and net earnings of $6.3 million for the quarter ended
June 30, 2000. Diluted earnings per share were $0.36 versus First Call
consensus estimates of $0.35.
Net sales for the quarter were essentially flat at $138,572,000 compared
to $139,399,000 in the second quarter of 1999.
Net earnings of $6,347,000 or $0.36 per share diluted, were higher than
first quarter but slightly below diluted earnings per share of $0.38 in the
second quarter of 1999.
For the six months ended June 30, 2000, net sales were $283,137,000, up
3.9% over 1999 first half. Net earnings were $12,494,000 or 70 cents a share
diluted, same as 1999.
"We are pleased to report strong sales and earnings for the second quarter
despite a 20%+ drop in the North American heavy duty engine volumes," said Roy
E. Parrott, Chairman and Chief Executive Officer of Simpson Industries. "We
are on track to beat last year's record earnings per share in Year 2000,"
added Mr. Parrott.
Simpson Industries supplies powertrain and chassis products to original
equipment manufacturers and Tier 1 integrators in the worldwide automotive and
medium and heavy-duty diesel engine markets. Simpson's products are focused
in three groups: noise, vibration and harshness, wheel-end and suspension,
and modular engine assemblies. Simpson's manufacturing units are located in
the United States, Canada, Mexico, Brazil, England, India, France, Spain and
South Korea. Information about Simpson is available on the Internet at
http://www.simpsonind.com .
Simpson Industries, Inc.
Consolidated Statements of Operations (Unaudited)
(Dollar and share amounts in thousands, except per share data)
Three Months Ended Six Months Ended
June 30 June 30
2000 1999 2000 1999
Net Sales $138,572 $139,399 $283,137 $272,501
Cost of products sold 122,629 123,237 251,205 242,000
GROSS PROFIT 15,943 16,162 31,932 30,501
Administrative and selling 3,518 2,748 6,790 5,524
Amortization of intangible assets 487 504 1,053 1,025
OPERATING EARNINGS 11,938 12,910 24,089 23,952
Interest and other income - net 96 (13) (341) (109)
Interest expense (2,269) (2,184) (4,526) (4,316)
EARNINGS BEFORE INCOME TAXES 9,765 10,713 19,222 19,527
Income taxes 3,418 3,750 6,728 6,835
NET EARNINGS $6,347 $6,963 $12,494 $12,692
BASIC EARNINGS PER SHARE $0.36 $0.39 $0.70 $0.70
DILUTED EARNINGS PER SHARE $0.36 $0.38 $0.70 $0.70
Cash dividends per share $0.10 $0.10 $0.20 $0.20
Basic weighted average shares
outstanding 17,874 18,066 17,890 18,105
Diluted weighted average shares
outstanding 17,875 18,098 17,908 18,130
Depreciation expense $6,671 $6,407 $13,081 $12,765
Capital expenditure $9,100 $14,740 $17,965 $19,775
Simpson Industries, Inc.
Condensed Consolidated Balance Sheets
(Dollar amounts in thousands)
June 30, December 31,
2000 1999
ASSETS
Cash & Cash Equivalents $4,439 $7,362
Other Current Assets 134,398 121,936
Total Current Assets 138,837 129,298
Property, Plant & Equipment - net 188,300 182,913
Other Assets & Intangible 46,029 49,245
Total Assets $373,166 $361,456
LIABILITIES & SHAREHOLDERS' EQUITY
Notes Payable 16,879 10,908
Current Liabilities 90,274 95,405
Total Current Liabilities $107,153 $106,313
Long-Term Debt 102,898 98,955
Other Liabilities 26,906 23,156
Shareholders' Equity 136,209 133,032
Total Liabilities & Equity $373,166 $361,456