CITATION CORPORATION
2 Office Park Circle, Suite 204
Birmingham, AL 35223
Contact: Stanley B. Atkins
205-871-5731
Fax: 205-871-5772
July 21, 1997
BIRMINGHAM, Alabama - Citation Corporation (Nasdaq: CAST) today announced record sales and earnings for its fiscal third quarter and nine months ended June 29, 1997.
Sales for the third quarter of fiscal 1997 were $177.9 million, a 24 per cent increase over the fiscal 1996 third quarter of $143.4 million. Net income for the 1997 quarter was $7.8 million, versus $6.9 million for the third quarter of fiscal 1996, an increase of 13 per cent. Earnings per share for the fiscal 1997 third quarter was $0.44 compared to $0.39 in the fiscal 1996 third quarter, a 13 per cent increase. For the fiscal 1997 nine months, sales were $488.8 million, a 37 per cent increase over the $356.1 million sales in the first nine months of fiscal 1996. Net income for the 1997 nine months was $17.7 million versus net income of $15.3 million for the fiscal 1996 nine months, a 16 percent increase. Earnings per share for the first nine months of fiscal 1997 was $1.00, versus $0.87 in the fiscal 1996 comparable period, a 15 per cent increase.
Excluding acquisitions and discontinued units, same store sales increased approximately 10 per cent in the third quarter of fiscal 1997 versus the third quarter of fiscal 1996. For the fiscal 1997 nine months, same store sales increased by five per cent. Shipments during the first nine months of fiscal 1997 were approximately 209,000 tons versus approximately 170,000 tons in the comparable period of fiscal 1996. Shipments for the third quarter of fiscal 1997 were approximately 76,000 tons as compared to 61,000 tons in 1996s third quarter.
Morris Hackney, Chairman and CEO, said, we are pleased to report continued improvement of our operations, particularly when compared to a very strong quarter last year. In general, our aluminum, steel and high alloy iron divisions which are part of our Special Foundry Group are performing at a high level of capacity and orders appear good through at least the first quarter of our fiscal 1998, which begins in October. Our Forging Group, likewise, is performing well, with sales at better than expected levels. This is primarily based upon construction equipment business and new products for heavy trucks, he said. Our Medium Products Group, which includes our lower volume iron foundries, showed some increase in the quarter. Markets for this group encompass a wide variety of capital goods manufacturers. We continue to have capacity available in our High Volume Foundry Group, which is based primarily on automotive, light and heavy truck business. Part of the reason for additional capacity relates to the major expansion of our facilities at Texas Foundries in Lufkin, Texas. However, the expansion of our Citation Foam Casting operations at Columbiana, Alabama, which will double our capacity there, is largely for new business which has been sold. This expansion continues to proceed on target for startup late in calendar 1997. Our fiscal fourth quarter (July, August and September) is normally slower than our fiscal second and third quarters, because of shutdowns of our customers facilities for model changeover and maintenance. We also expect to take brief shutdowns of many of our facilities in July and August. As a result of the shutdowns, we anticipate revenues below second and third quarters this year, however, we expect a positive comparison with our fourth quarter of last year, Mr. Hackney stated. Looking forward, our backlogs are in good shape and we continue to expect reasonably good demand for our products as long as the economy stays approximately in its current path. Broadly, our passenger car business appears softer than earlier in the year, although light trucks continue very strong. Our orders for heavy truck components appear somewhat stronger than last year and heavy capital goods remain strong, he said.
Citation Corporation is a metal components supplier to capital and durable goods industries. The company currently operates 16 manufacturing divisions in eight states and employs more than 5,600 employees.
Note: The statements in this news release that are not historical fact are forward-looking statements that involve risks and uncertainties including, but not limited to, changes in the economy, demand for durable goods, pricing by competitors, entry of new competitors, and other risks detailed in the Companys 10-Q for the quarter ended June 29, 1997, and other filings with the Securities and Exchange Commission.
|
|
June 29, 1997 |
June 30, 1996 |
| Sales |
$ 177,858 |
$ 143,420 |
| Gross Profit |
$ 32,221 |
$ 26,253 |
| S, G & A Expenses |
$ 15,648 |
$ 12,326 |
| Operating income |
$ 16,573 |
$ 13,927 |
| Interest Expense |
$ 3,778 |
$ 2,559 |
| Other Income (Expense): |
- |
(141) |
| Income before tax |
$ 12,795 |
$ 11,509 |
| Taxes |
$ 4,990 |
$ 4,604 |
| Net income |
$ 7,805 |
$ 6,905 |
| Earnings per share |
$ 0.44 |
$ 0.39 |
| Avg. Number of Shares Outstanding |
17,734,427 |
17,699,331 |
NINE MONTHS ENDED
|
June 29, 1997 |
June 30, 1996 |
| Sales |
$ 488,779 | $ 356,136 |
| Gross Profit |
$ 83,929 |
$ 64,458 |
| S, G & A Expenses |
$ 43,743 | $ 34,059 |
| Operating income |
$ 40,186 |
$ 30,399 |
| Interest Expense |
$ 11,131 |
$ 5,210 |
| Other Income (Expense): |
$ 91 |
(358) |
| Income before tax |
$ 28,964 |
$ 25,547 |
| Taxes |
$ 11,296 |
$ 10,219 |
| Net income |
$ 17,668 |
$ 15,328 |
| Earnings per share |
$ 1.00 |
$ 0.87 |
| Avg. Number of Shares Outstanding |
17,725,929 |
17,686,639 |