Ameron Reports Increase in Third Quarter Sales and Earnings
PASADENA, Calif., Sept. 19, 2001 - Ameron International Corporation (NYSE:AMN) today reported earnings of $2.09 per diluted share and sales of $144.9 million for the third quarter ended August 31, 2001. During the same period in 2000, earnings totaled $2.02 per share on sales of $133.1 million.
Earnings for the nine months ended August 31, 2001 totaled $4.30 per share on sales of $410.1 million, compared to $3.81 per share on sales of $394.6 million during the first three quarters of 2000.
James S. Marlen, Ameron's Chairman, President and Chief Executive Officer, commented, "Overall, Ameron exceeded prior year results because of the outstanding performance of consolidated operations, led by the Water Transmission Group. The higher reported results were achieved despite lower equity income from joint venture companies, including TAMCO, our steel mini-mill venture in California."
Water Transmission's profits increased substantially on higher sales as demand for water piping in Ameron's markets in the Western U.S. remained strong. As previously reported, Water Transmission's backlog increased earlier in 2001, and sales are expected to remain robust throughout the rest of 2001.
Fiberglass-Composite Pipe's profits declined on higher sales during the third quarter. While increased sales of oil-field piping were offset by lower sales to industrial markets, total fiberglass pipe sales grew because of shipments of large-diameter fiberglass pipe for a water project in California. Profits were lower because of uneven plant utilization associated with declining sales of industrial piping.
Performance Coatings & Finishes had slightly higher sales and higher profits than in the third quarter of 2000. While much of the improvement came from the U.S. business, operations in Europe and Australasia also improved. The increased profits came primarily from higher margins and lower selling, general and administrative costs due to cost reduction programs implemented during the past year.
The Infrastructure Products Group had higher sales but lower profits during the third quarter of 2001, compared to the third quarter of 2000. Profits were lower because of start-up costs of the new concrete pole plant in Alabama. The new pole plant, which began operating in May, is expected to enable Ameron to serve the large Southeastern U.S. market.
James Marlen continued, "We are pleased with Ameron's performance during the third quarter. TAMCO continued to suffer from higher energy costs and increased competition; however, in the aggregate, operations met expectations."
Ameron International Corporation is a multinational manufacturer
of highly-engineered products and materials for the chemical,
industrial, energy, transportation and infrastructure markets. Traded
on the New York Stock Exchange (AMN), Ameron is a leading producer of
water transmission lines; high-performance coatings and finishes for
the protection of metals and structures; fiberglass-composite pipe for
transporting oil, chemicals and corrosive fluids and specialized
materials and products used in infrastructure projects. The Company
operates businesses in North America, South America, Europe,
Australasia and Asia. It also participates in several joint-venture
companies in the U.S., Saudi Arabia, Kuwait, Egypt and Mexico.
Cautionary statement for purposes of the "Safe Harbor" provisions of The Private Securities Litigation Reform Act of 1995: Any statements in this report that refer to Ameron's estimated or anticipated future results are forward-looking and reflect the Company's current analysis of existing trends and information. Actual results may differ from current expectations based on a number of factors affecting Ameron's businesses, including competitive conditions and changing market situations. Matters affecting the economy generally, including the state of economies worldwide, can affect Ameron's results. Forward-looking statements represent the Company's judgment only as of the date of this report. Since actual results could differ materially, the reader is cautioned not to rely on these forward-looking statements. Moreover, Ameron disclaims any intent or obligation to update these forward-looking statements.
Ameron International Corporation
Consolidated Statements of Income
Third Quarter Ended August 31,
(In thousands, except per share data)
(Unaudited)
2001 2000
--------- ---------
Sales $ 144,864 $ 133,094
Cost of Sales (108,354) (100,280)
--------- ---------
Gross Profit 36,510 32,814
Selling, General and Administrative Expenses ( 23,906) ( 25,774)
Royalty, Equity and Other Income 1,504 6,515
--------- ---------
Income before Interest and Income Taxes 14,108 13,555
Interest Expense, Net ( 2,484) ( 2,914)
--------- ---------
Income before Income Taxes 11,624 10,641
Provision for Income Taxes ( 3,254) ( 2,660)
--------- ---------
Net Income $ 8,370 $ 7,981
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Net Income Per Diluted Share $ 2.09 $ 2.02
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Cash Dividends Paid Per Share $ .32 $ .32
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Ameron International Corporation
Consolidated Statements of Income
Nine Months Ended August 31,
(In thousands, except per share data)
(Unaudited)
2001 2000
--------- ---------
Sales $ 410,139 $ 394,630
Cost of Sales (308,964) (296,567)
--------- ---------
Gross Profit 101,175 98,063
Selling, General and Administrative Expenses ( 77,347) ( 84,668)
Royalty, Equity and Other Income 8,188 15,768
--------- ---------
Income before Interest and Income Taxes 32,016 29,163
Interest Expense, Net ( 8,372) ( 9,002)
--------- ---------
Income before Income Taxes 23,644 20,161
Provision for Income Taxes ( 6,620) ( 5,040)
--------- ---------
Net Income $ 17,024 $ 15,121
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Net Income Per Diluted Share $ 4.30 $ 3.81
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Cash Dividends Paid Per Share $ .96 $ .96
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Ameron International Corporation
Condensed Consolidated Statements of Cash Flows
Nine Months Ended August 31,
(In thousands)
(Unaudited)
2001 2000
--------- ---------
Operating Activities
Net Income $ 17,024 $ 15,121
Adjustments to Reconcile Net Income
to Net Cash from by Operations 18,272 17,525
Changes in Operating Assets
and Liabilities (26,109) (28,023)
--------- ---------
Net Cash Provided by Operations 9,187 4,623
Investing Activities
Proceeds from Sale of Assets 830 309
Additions to Property, Plant
and Equipment (15,593) (13,479)
--------- ---------
Net Cash Used in Investing Activities (14,763) (13,170)
Financing Activities
Short and Long-Term Borrowings, Net 8,682 14,896
Dividends on Common Stock ( 3,716) ( 3,811)
Issuance of Common Stock 130 -
Change in Treasury Stock 13 ( 2,885)
--------- ---------
Net Cash Provided By Financing Activities 5,109 8,200
Effect of Exchange Rate Changes on
Cash and Cash Equivalents 149 ( 632)
--------- ---------
Net Change in Cash and Cash Equivalents $ ( 318) $ ( 979)
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Ameron International Corporation
Consolidated Balance Sheets
(In thousands)
August 31, November 30,
2001 2000
(Unaudited)
--------- ---------
ASSETS
Current Assets
Cash and Cash Equivalents $ 11,196 $ 11,514
Receivables, Net 139,872 139,961
Inventories 93,055 82,470
Other Current Assets 31,289 30,025
--------- ---------
Total Current Assets 275,412 263,970
Investments and Advances -
Joint Ventures 22,407 21,773
Property, Plant and Equipment, Net 147,728 145,196
Other Assets 53,204 47,510
--------- ---------
Total Assets $ 498,751 $ 478,449
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Short-Term Borrowings $ 4,428 $ 5,001
Current Portion of Long-Term Debt 8,736 8,848
Trade Payables 41,554 41,127
Accrued Liabilities 51,121 58,265
Income Taxes Payable 9,629 15,103
--------- ---------
Total Current Liabilities 115,468 128,344
Long-Term Debt, Less Current Portion 150,278 140,718
Other Long-Term Liabilities 33,470 26,957
--------- ---------
Total Liabilities 299,216 296,019
Stockholders' Equity
Common Stock 13,017 13,007
Additional Paid-In Capital 19,428 17,857
Retained Earnings 237,928 224,620
Accumulated Other Comprehensive Loss (22,179) (24,382)
Treasury Stock (48,659) (48,672)
--------- ---------
Total Stockholders' Equity 199,535 182,430
--------- ---------
Total Liabilities and Stockholders' Equity $ 498,751 $ 478,449
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CONTACT: Ameron International Corporation, James S. Marlen or Gary Wagner, 626-683-4000