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Stock Symbol - TSX: SKD
TORONTO, July 24 /CNW/ - Stackpole Limited today reported its results of operations for the second quarter of fiscal year 2002.
Highlights
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Stackpole's operating highlights for the second quarter 2002 include the following:
- Stackpole's oil pump systems business commenced production in
June 2002 of three new engine and transmission oil pump programs with
annual sales of approximately $52 million.
- Stackpole was honored by General Motors as a Supplier of the Year for
the second consecutive year.
- Stackpole received the prestigious MPIF powder metal innovation award
for the third consecutive year.
- Sales increased by 13.5% to $66.7 million from $58.8 million in the
second quarter 2001.
- Gross margin improved to 23.3% in the second quarter from 21.3% in the
prior year.
- Net income increased 80% to $5.0 million, or diluted earnings of $0.52
per share, in the second quarter 2002 versus $2.8 million or $0.29 per
share in the prior year.
- Cash flow provided by operating activities remained at a strong level
of $13.7 million in the second quarter 2002, an improvement from the
cash provided by operating activities of $13.0 million in the prior
year.
Results of Operations
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Second quarter 2002 sales of $66.7 million increased by 13.5% compared with the second quarter of 2001. The increased sales reflected both an increase in North American automotive production of approximately 6% coupled with the impact of content growth from new programs that reached full production in late 2001. Gross margins improved to 23.3% in the second quarter 2002 from 21.3% in the prior year as a result of ongoing operational improvements and the impact of increased capacity utilization in each of the Company's facilities due to the year over year sales increase. Stackpole continued to benefit from lower market interest rates and a year over year reduction in long-term debt of approximately $21 million with interest expense of $0.5 million in the second quarter of 2002 decreased from $1.0 million in the prior year. Income tax expense in the second quarter 2002 as a percentage of income before income taxes at 33% was reduced from 36% in 2001 and was consistent with the expected statutory tax rate for manufacturing and processing...