Year end December 31, 1996, earnings:
(PR NEWSWIRE) Elamex 1996 Sales Rise 22 Percent to $119 Million Fourth Quarte
69 Percent
EL PASO, Texas--(BUSINESS WIRE)--Feb. 27, 1997--Elamex S.A. de C.V.
(NASDAQ:
ELAMF), Mexico's leading contract manufacturer, today reported fourth quarter
1996 net sales of $32.2 million, a 31 percent rise over net sales of $24.5
million in fourth quarter 95. Fourth quarter net income reached $2.1 million,
a 69 percent increase over fourth quarter 95 net income of $1.3 million.
Earnings per share was $0.29 on 7.4 million weighted average number of
shares outstanding compared with $0.25 on 5.0 million shares in the fourth
quarter of last year.
Gross profit in the quarter decreased 3 percent to $4.2 million from $4.3
million in the same period of 1995. Operating income fell to $1.7 million
from $2.7 million, and income before taxes fell to $2.0 million from $2.5
million. These changes were due to a governmentally mandated wage increase,
originally not expected until 1997. In addition, there was a shift towards
more turnkey sales with less assembly content.
For the full year, Elamex net sales increased 22 percent to $118.9 million
from $97.4 million in 1995. Net income for 1996 was $7.9 million, an increase
of 28 percent over $6.2 million in 1995.
Gross profit for the year jumped 25 percent to $18.7 million compared with
$15.0 million in 1995. Operating income increased 18 percent to a record
$10.4 million compared with $8.8 million in 1995, and income before taxes rose
32 percent to $10.5 million from $7.9 million last year. The effective tax
rate for 1996 was 25 percent as compared to 22 percent in the prior year.
Hictor M. Raynal, Elamex's Principal Executive Officer, today attributed the
strong revenue and net income growth for 1996 to increased sales to existing
customers and the addition of new customers along with improved efficiencies
and economies of scale.
Mr. Raynal added: "I am extremely pleased that 1996 proved to be another
outstanding year for Elamex. We achieved record revenues and net income,
successfully completed our initial public offering and listed on NASDAQ,
strengthened our balance sheet by increasing equity and reducing debt with a
portion of the proceeds from the offering, and most importantly, positioned
Elamex for strong future growth."
Elamex is Mexico's most important contract manufacturer, fifth largest
employer, and a leading participant in the North American market. The Company
delivers high quality finished goods to US and Canadian blue chip OEMs in
retail, telecommunications, computer, medical and automotive industries.
Elamex operates in an accelerating growth industry, where its unique
competitive advantages lie in its demonstrated capacity to leverage low cost,
highly productive labor, its strategic North American location, recognized
world class quality, and proven ability to combine high- tech with labor.
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