Second Quarter Report:
Monday September 22 5:03 PM EDT
Company Press Release
Cherry Net Up 29 Percent for Second Quarter, Sales for Quarter and First Half at Record
Levels
WAUKEGAN, Ill., Sept. 22 /PRNewswire/ -- The Cherry Corporation (Nasdaq:CHERA) today reported substantial earnings increases for its
second fiscal quarter and first six months on record sales for both periods. Margins improved markedly, aided by the higher volume. Demand was
particularly strong at the company's semiconductor and European operations.
For the quarter ended August 31, 1997, net earnings rose 29.2 percent to $1,944,000, or $.16 per share, compared with $1,505,000, or $.12 per share,
for last year's second quarter. Sales reached $105,776,000, up from $102,377,000 a year ago, a 3.3 percent increase.
The first six months produced a greater earnings gain, as net earnings jumped 37.2 percent to $6,464,000, or $.52 per share, up from $4,710,000, or
$.38 per share, for the first half of last year. First half sales were $220,311,000, higher by 2.9 percent over the $214,078,000 for the like period last
year.
``Although the second quarter is typically our slowest due to normal seasonal factors, we are pleased to see a continuation of healthier demand,
especially for our semiconductor products,'' said Peter Cherry, chairman and president. ``I also am very encouraged by the sales increase
experienced by our international operations year over year on a local currency basis, although this accomplishment is masked by a stronger dollar.''
The Cherry Corporation manufactures proprietary and custom electrical switches, sensors, electronic keyboards and displays and semiconductors
for the worldwide automotive, computer, and consumer and commercial markets. The company has eight wholly owned subsidiaries in the United
States, Germany, England, France, Australia, Czech Republic, Mexico and Hong Kong. Cherry also has 50-50 joint ventures in Japan, Hirose
Cherry Precision Co., Ltd., and in India, TVS Cherry Private, Ltd., and a Japanese automotive sales and engineering office.
THE CHERRY CORPORATION
Summary of Consolidated Statements of Earnings
(Unaudited)
(in thousands, except share data)
Three Months Ended August 31,
1997 1996 % Change
Net Sales $105,776 $102,377 3.3
Cost of Products Sold 77,775 76,939 1.1
Gross Profit 28,001 25,438 10.1
Operating Expenses 24,711 22,706 8.8
Operating Income 3,290 2,732 20.4
Other Income, Net 429 526 -18.4
Earnings Before Interest
and Taxes 3,719 3,258 14.1
Interest Expense, Net 677 946 -28.4
Earnings Before Income Taxes 3,042 2,312 31.6
Income Tax Provision 1,098 807 36.1
Net Earnings $1,944 $1,505 29.2
Earnings Per Share $.16 $.12 33.3
Average Shares Outstanding 12,444,112 12,368,642 0.6
Six Months Ended August 31,
1997 1996 % Change
Net Sales $220,311 $214,078 2.9
Cost of Products Sold 159,785 159,265 0.3
Gross Profit 60,526 54,813 10.4
Operating Expenses 49,262 46,251 6.5
Operating Income 11,264 8,562 31.6
Other Income, Net 527 841 -37.3
Earnings Before Interest
and Taxes 11,791 9,403 25.4
Interest Expense, Net 1,530 2,043 -25.1
Earnings Before Income Taxes 10,261 7,360 39.4
Income Tax Provision 3,797 2,650 43.3
Net Earnings $6,464 $4,710 37.2
Earnings Per Share $.52 $.38 36.8
Average Shares Outstanding 12,436,617 12,353,740 0.7
THE CHERRY CORPORATION
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands, except share data)
Aug. 31, Feb. 28, %
1997 1997 Change
Assets
Cash $7,048 $6,215 13.4
Accounts Receivable 53,250 57,118 -6.8
Inventory 53,741 54,786 -1.9
Other Current Assets 8,401 6,734 24.8
Land, Buildings & Equip., Net 156,008 159,267 -2.0
Investment in Affiliates &
Other Assets 12,454 11,526 8.1
Total Assets $290,902 $295,646 -1.6
Liabilities and Stockholders' Equity
Short-term Debt $23,437 $23,806 -1.6
Current Maturities of Long-term
Debt 1,782 2,051 -13.1
Other Current Liabilities 41,593 43,776 -5.0
Long-term Debt 31,613 37,009 -14.6
Deferred Taxes and Credits 19,337 20,928 -7.6
Total Liabilities 117,762 127,570 -7.7
Stockholders' Equity 173,140 168,076 3.0
Total Liabilities and
Stockholders' Equity $290,902 $295,646 -1.6
Stockholders' Equity
Per Share $13.91 $13.54 2.7
SOURCE Cherry Corporation |
