| To: Caroline who wrote () | 3/3/1999 7:44:00 AM | | From: walterenergy | | | |
Varlen Reports Highest Fourth Quarter in History And Record Sales, Earnings for 1998
PR Newswire - March 02, 1999 08:30
NAPERVILLE, Ill., March 2 /PRNewswire/ -- Varlen Corporation (Nasdaq: VRLN), a leader in transportation products and petroleum analyzers, today reported record sales and net earnings for its second-consecutive year ended January 31, 1999. The recently completed fourth quarter represented the sixth consecutive quarter that net earnings exceeded the prior year's comparable quarter.
1998 Highlights
-- Net earnings grew 60.8 percent, to $41.2 million, or $2.38 per diluted
share, on 23.8 percent higher sales, at $646.7 million.
-- Operating profit increased 39.6 percent to a record $88.2 million.
-- Varlen completed a 5-for-4 stock split in the form of a stock dividend.
-- Good market dynamics and company performance give Varlen a positive
outlook for 1999.
Financial Summary
(In thousands, except per share and percentages)
(Unaudited)
Three Months Ended Year Ended
Jan. 31, Jan. 31, Percent Jan. 31, Jan. 31,Percent
1999 1998 Change 1999 1998 Change
Net Sales $165,104 $136,978 20.5% $646,672 $522,254 23.8%
Operating Profit(a) 20,845 17,600 18.4% 88,248 63,193 39.6%
Net Earnings 9,636 7,529 28.0% 41,242 25,651 60.8%
Diluted Earnings
Per Share(b) $.56 $.43 30.2% $2.38 $1.54 54.5%
Diluted Weighted
Average Shares(b) 17,352 17,343 .1% 17,300 17,194 .6%
(a) Excludes Corporate and Net Interest Expense
(b) All Periods Reflect the 5-for-4 Stock Split Effected in the Form of
a Stock Dividend Paid on November 17, 1998
"We outperformed our strong transportation markets -- and rose well above record performance in 1997 -- because of the growth engines in each of our businesses, coupled with aggressive productivity initiatives."
-- Raymond A. Jean, President and CEO
Record 1998 Results
Net sales for the year ended January 31, 1999, rose 23.8 percent to $646.7 million compared with $522.3 million for 1997. Operating profit reached a record $88.2 million, up 39.6 percent from $63.2 million a year ago. Net earnings were $41.2 million versus $25.7 million for the prior year, a 60.8 percent improvement. On a diluted share basis, net earnings increased 54.5 percent to $2.38 for 1998 from $1.54 last year.
The 1998 results included a pretax charge of $2.6 million for domestic facility closure and related costs, partially offset by a $1.1 million pretax accounting gain resulting from changes to subsidiary defined benefit pension plans. These items resulted in a net charge to earnings equivalent to 5 cents per diluted share during the fourth quarter ended January 31, 1999.
Strong Fourth Quarter
Sales, operating profit and net earnings all reached fourth quarter records. Net sales grew 20.5 percent to $165.1 million for the latest three months compared with $137.0 million for last year's fourth quarter. Quarterly operating profit, at $20.8 million, rose 18.4 percent from $17.6 million for the same period last year. Net earnings increased 28.0 percent to $9.6 million, compared with $7.5 million for the prior quarter, while diluted earnings per share improved to 56 cents from 43 cents, growing 30.2 percent. These figures would have been higher if the previously discussed charges, equivalent to 5 cents per diluted share, had not been incurred. |
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| To: walterenergy who wrote (7) | 3/5/1999 9:06:00 AM | | From: walterenergy | | | |
Varlen Q4 up, sees record Q1 on rail, truck demand
Reuters Story - March 02, 1999 15:05
NAPERVILLE, Ill., March 2 (Reuters) - Transportation equipment maker Varlen Corp. reported record 1998 fourth quarter earnings on Tuesday and said continued good demand for railcars and trucks should lead to a record 1999 first quarter.
"The fundamentals for our transportation markets remain strong, and the growth engines we have in each transportation end market should lead us to a record first quarter," said Raymond Jean, Varlen's president and chief executive officer.
Net earnings for the fourth quarter ended January 31 rose 28 percent to $9.6 million or $0.56 a diluted share including charges. That figure compares with $7.5 million or $0.43 cents a share for the year-ago quarter.
"With the North American freightcar backlog at 66,000 at the end of calendar 1998, expected 1999 locomotive build rates of 1,500 units, and continued strong demand in Europe, we believe the call for Varlen's locomotive and railcar components should be strong in 1999," Jean said.
The company also said solid demand in heavy-duty truck and trailer markets helped 1998 results.
"North American production for Class 8 trucks rose 18 percent to about 260,000 trucks for the year, and industry backlog closed calendar 1998 at about 263,000 units," Jean said. "Since this is nearly one year's worth of production, the demand for Varlen's truck components seems reasonably assured well into the second half of 1999."
Varlen said it obtained a significant amount of new business in 1998 that will increase its content per vehicle. Higher content will benefit the company in 1999 and should allow it to continue to outperform the industry, it said.
Fourth quarter sales grew 20.5 percent to $165.1 million compared with $137.0 million in the year-ago period. Quarterly operating profit was $20.8 million, compared with $17.6 million for the same period last year.
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