McWhorter Third Quarter Income Up Slightly
CARPENTERSVILLE, Ill. - McWhorter Technologies, Inc. (NYSE:MWT) today reported net income of $5,613,000, or 56 cents per diluted share, for the quarter ended July 31, 1999, compared to prior year net income for the same period of $5,411,000, or 52 cents per diluted share, excluding nonrecurring items in both periods. Including the nonrecurring items discussed below, net income for the third quarters of 1999 and 1998 was $5,023,000, or 50 cents per diluted share, and $4,852,000, or 47 cents per diluted share, respectively. The third quarter 1999 included an after-tax charge of approximately $590,000, or 6 cents per diluted share, primarily related to divestiture of the equity interest in the Syntech Far East joint venture which is expected to be completed at the end of November 1999. The third quarter 1998 included an after-tax charge of $559,000, or 5 cents per diluted share, for costs related to the relocation of the Minneapolis research facility. Net sales for the third quarter of 1999 were $117,857,000 compared to $125,770,000 in the third quarter of 1998, a six percent decrease.
Excluding the 1999 nonrecurring item discussed above and the 1998 nonrecurring items discussed below, net income for the nine months ended July 31, 1999 was $10,474,000, or $1.03 per diluted share, compared to $10,969,000, or $1.05 per diluted share, for the nine months ended July 31, 1998. The 1998 results included a net benefit of 14 cents per diluted share due to the favorable tax impact of change in Italian tax law, offset by charges for the Minneapolis research facility discussed above and the charges associated with the acquisition of Accurate Dispersion. Including these nonrecurring items, net income for the nine months ended July 31, 1999 and 1998 was $9,884,000, or 97 cents per diluted share, and $12,421,000, or $1.19 per diluted share, respectively. Net sales for the nine months ended July 31, 1999 were $327,586,000 compared to $339,504,000 for the nine months ended July 31, 1998, a four percent decrease.
Commenting on the Company's performance for the quarter, Jeff Nodland, McWhorter Technologies President and Chief Executive Officer said, "Our North American Liquid Coatings business had slightly favorable volume comparisons, but a significant improvement in profitability due to improved product mix, improvements in internal efficiencies, and favorable raw material markets. Europe Liquid Coatings and Non-coatings Aminos performance is improving, but is still not acceptable with lower volumes and profitability. Powder Coatings had mixed results with flat European volumes and weakening U.S. volumes resulting in lower profits compared to last year. As predicated, our Accurate colorant business had double digit growth during the quarter, reversing the previous quarter's negative comparison as a result of new business success. Finally, our Composite business continues its double digit volume growth and good profitability."
McWhorter Technologies, Inc. headquartered in Carpentersville, Illinois is one of the leading manufacturers of resins and colorants used in the paint and coatings industry in the United States and Europe. The Company is also an important manufacturer of resins used in the fiberglass plastics industry.
Except for historical information contained in this press release, certain matters set forth in this press release are forward looking statements that involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward looking statements.