Quarter ended June 30, 1997, earnings:
(PR NEWSWIRE) Elamex Second Quarter 1997 Sales Rise 9 Percent to $33.8 Million
EL PASO, Tex., July 28 -- Elamex S.A. de C.V. (Nasdaq: ELAMF), Mexico's
leading contract manufacturer, today announced record sales of $33.8 million
for the second quarter ended June 30, 1997, a 9.4 percent rise over sales of
$30.9 million in second quarter 1996.
Net income for the quarter was $2.1 million, 5.6 percent over the same
period of last year. Earnings per share were $0.29 compared with $0.27 per
share the prior year.
Elamex's six months sales totaled $67.6 million, up 20.2 percent from the
comparable period in 1996. Earnings per share were up 10% to reach $0.52 for
the 26 weeks ended June 29, 1997 as compared to $0.47 on a normalized basis
for the first half of 1996.
Hector M. Raynal, Elamex's Chief Executive Officer, said: "During the first
half of 1997 we saw continued demand from existing customers, but we have been
anticipating that the demand from some of these existing customers will be
reduced. We continue to focus on the addition of new customers and have been
successful in establishing new accounts at a higher rate than in prior years.
These projects will ramp up during the second half of this year and early next
year. Going forward we expect these new relationships will develop to
contribute to Elamex's future growth."
Elamex's gross margin was 15.6 percent in the second quarter which compares
to 17 percent in the second quarter of last year. This margin increased from
the 13.1 percent obtained in the first quarter of 1997. "We have achieved
expected EPS, in spite of pressure on our cost structure derived from the
combined effect of Mexican inflation and the continued stability of the peso
which has placed an additional strain in our operations," Mr. Raynal added.
"We remain committed to our growth strategy focused on developing core
accounts and making strategic acquisitions to help us accelerate the growth of
the Company. Our recent acquisition of the assets of Eurotec, a Mexico based
corporation dedicated to plastic molding and metal stamping, is the first step
in the implementation of this strategy," Mr. Raynal concluded.
Mr. Raynal will conduct a group of conference call at 10:00 a.m. Eastern
Time on Tuesday, July 29. To participate, dial 201-633-1010. The call will
also be available on replay after the conclusion of the conference for 24
hours. The number for the replay is: 402-220-9154.
Elamex is Mexico's largest contract manufacturing service provider, fifth
largest contract manufacturing employer worldwide, and a leading participant
in the North American market. The Company delivers high quality finished
assemblies to U.S. and Canadian Original Equipment Manufacturers (OEM's) in
the consumer, telecommunications, computer, industrial, medical and automotive
industries. Elamex participates in an accelerating growth industry, where its
unique competitive advantage results from its demonstrated capability to
leverage low cost, highly productive labor, strategic North American
locations, recognized world class quality, and proven ability to combine high
technology with labor intensive manufacturing processes.
This press release includes forward looking statements that involve risks
and uncertainties, including, but not limited to, risks associated with the
company's future growth and profitability, the ability of the Company to
continue to increase sales to existing customers and to new customers and the
effects of competitive and general economic conditions.
ELAMEX, S.A. DE C.V. AND SUBSIDIARIES
Consolidated Statements of Earnings
(In U.S. Dollars)
13 weeks ended 26 weeks ended
June 29, June 30, June 29, June 30,
1997 1996 1997 1996
Net sales $33,826,874 30,924,505 67,642,145 56,261,707
Cost of sales 28,559,425 25,681,125 57,940,852 47,165,533
Gross Profit 5,267,449 5,243,380 9,701,293 9,096,174
Operating expenses:
General and
administrative 2,150,765 1,856,499 4,029,095 3,355,860
Selling 193,35 162,77 345,12 333,715
Total operating
expenses ingencies -- --
Total $71,112,68 67,976,053
See accompanying notes to consolidated financial statements.
CONTACT: Jorge Torres of Elamex S.A. De C.V., 915-774-8254; or Marilena
Michaelidou of The Anne McBride Co., 212-983-1702, for Elamex/
20:05 EDT
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