Wymam-Gordon Fourth Quarter Earnings Increase
NORTH GRAFTON, Mass. - Wyman-Gordon Company (NYSE:WYG) announced net income of $19.5 million, or $.54 per share (diluted), on revenues of $209.5 million, for its fourth fiscal quarter ended May 29, 1999. During the quarter, the company recorded a $5.0 million benefit for the expected realization of certain tax assets. Excluding this benefit, earnings for the fourth quarter were $.40 per share (diluted). In the fourth quarter of the prior fiscal year, the company reported net income of $9.9 million, or $.27 per share (diluted), on revenues of $201.8 million.
For the full 1999 fiscal year, the company reported net income of $37.0 million, or $1.01 per share (diluted), on revenues of $849.3 million. Net income for the fiscal year was affected by restructuring and other charges of $11.0 million, Houston accident settlement costs of $13.8 million, and a tax benefit of $5.0 million. Excluding these items, net income would have been $47.7 million, or $1.30 per share (diluted). For the prior fiscal year, the company reported net income before extraordinary item of $39.1 million, or $1.05 per share (diluted), on revenues of $752.9 million.
Gross margins in the quarter improved to 19.5%, up from 13.8% in the fourth quarter of the prior fiscal year, and up from 10.8% in the third quarter of fiscal year 1999. This improvement results from cost reduction initiatives announced during the third quarter of fiscal year 1999 and normalization of operations. David P. Gruber, Chairman and Chief Executive Officer commented, "We are pleased to see margins normalizing; rebounding from the 29K ton press problem and excessive costs incurred to reduce our overdue orders to meet our customer commitments."
As previously announced, Precision Castparts Corp. has commenced a cash tender offer to purchase all outstanding shares of Wyman-Gordon Common Stock for $20 per share. The tender offer expires on July 30, 1999.
Wyman-Gordon Company is a leading manufacturer of high quality, technologically advanced forgings, investment castings and composites structures for the commercial transportation, commercial power and defense industries.
This press release contains forward-looking statements as defined in Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve a number of assumptions, risk and uncertainties that could cause actual results of the Company to differ materially from those matters expressed in or implied by such forward-looking statements. Reliance should not be placed on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which are in some case beyond the control of the Company and may cause the actual results, performance or achievements of the Company to differ materially from anticipated future results, performance or achievements expressed or implied by such forward-looking statements. Additional information regarding these risk factors and uncertainties is detailed from time-to time in the Company's SEC filings.
