OMG OM Group Completes Sale of SCM Metals to Hoganas AB
Tuesday April 1, 8:06 am ET
OMG On Track to Generate Up to $100 million from Divestitures
Company Re-Affirms Previous First Quarter, Full-Year 2003 Guidance
CLEVELAND, April 1 /PRNewswire-FirstCall/ -- OM Group, Inc. (NYSE: OMG - News) today announced that the Company has completed the sale of SCM Metal Products, Inc., a leader in the powdered metal products industry, to Hoganas AB for $65 million in cash.
James P. Mooney, chairman and ceo of OM Group, stated, "With this transaction we have made significant progress towards our goal of generating up to $100 million from the sale of non-core assets, one component of our broad-based restructuring initiatives."
On December 12, 2002 OMG announced details of its plan to improve cash flow and strengthen its balance sheet. In addition to divesting non-core assets, the Company's restructuring plan included reducing workforce expenses by roughly $45 million annually by eliminating approximately 550 positions and lowering other manufacturing and administrative costs by approximately $40 million annually.
Commenting on the 2003 first quarter, Thomas R. Miklich, chief financial officer, added that the Company remains comfortable with its previous guidance of $.07 - $.10 per diluted share and $1.00 - $1.20 per diluted share for the first quarter and full year of 2003, respectively. "The benefits from higher than expected cobalt and nickel prices at the start of the year were offset by the negative impact of the strong Euro as well as production issues at the Company's joint venture smelter operation in the Democratic Republic of the Congo. We continue to make progress in improving that operation, but achieving our objectives may require shutting down the smelter for a short period later this year."
OM Group, Inc. through its operating subsidiaries, is a leading, vertically integrated international producer and marketer of value-added, metal-based specialty chemicals and related materials. OMG is a recognized leader in manufacturing products from base and precious metals and managing metals procurement related to these activities. The Company supplies more than 1,700 customers in 50 countries with over 3000-product offerings.
Headquartered in Cleveland, Ohio, OMG operates manufacturing facilities in the Americas, Europe, Asia, Africa and Australia, with approximately 5,200 associates worldwide. For additional information on OMG, visit the Company's web site at www.omgi.com.
Commentary on business trends and the Company's financial outlook is provided on the earnings release date during the quarterly teleconference call which is webcasted, transcribed and posted on the Company's web site. In the interest of fair disclosure, the Company does not intend to comment on business trends or financial outlook between quarterly earnings release dates. The foregoing discussion may include forward-looking statements relating to the business of the Company. Such forward-looking statements are subject to uncertainties and factors relating to the Company's operations and business environment, all of which are difficult to predict and many of which are beyond the control of the Company. These uncertainties and factors could cause actual results of the Company to differ materially from those expressed or implied in the forward-looking statements contained in the foregoing discussion. Such uncertainties and factors include the price and supply of the Company's raw materials, particularly cobalt, copper, nickel and precious metals; the demand for the Company's products; the effect of non-currency risks inherent in the Company's operations in foreign countries including political, social, economic and regulatory factors; the effects of the substantial debt incurred in connection with the Company's acquisitions or ability to refinance or repay debt; the impact of the Company's restructuring program on its continuing operations; the ability of the Company to identify potential buyers for its assets held for sale, and a financial partner for its precious metal chemistry business, which in turn may impact the Company's ability to meet its debt covenants with respect to net proceeds from asset sales; and the effect of fluctuations in currency exchange rates on the Company's international operations.
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Source: OM Group, Inc. |
