FiberMark Announces Second Quarter 1998 Earnings
BRATTLEBORO, Vt.--(BUSINESS WIRE)--July 23, 1998--FiberMark (NYSE:FMK - news) today announced that net
earnings for the quarter ended June 30, 1998 were $3.8 million, or $.46 per share (diluted), compared with $3.1 million, or
$.48 per share, for the same period last year. Net sales for the quarter increased 32% to $78.6 million from $59.4 million for
the comparable quarter of 1997.
Sales in the filter products market increased 130% to $25.1 million compared to $10.9 million in the second quarter of 1997.
The January 1998 acquisition of Steinbeis Gessner accounts for $13.9 million of this increase. Technical specialties sales
increased 4.0% to $20.4 million compared to $19.6 million for the second quarter of 1997. Sales in this market were up $1.9
million due to the Gessner acquisition. Sales in the durable specialties market increased by 38% to $20.7 million as compared
to $15.0 million in the second quarter of 1997. Sales in this market were up by $5.4 million due to the Gessner acquisition.
Sales in the office products market decreased by 10.1% to $12.4 million compared to $13.8 million for the second quarter of
1997.
Earnings for the six-month period ended June 30, 1998 were $8.1 million, or $1.00 per share, compared with $5.8 million, or
$.91 per share, for the first six months of 1997, representing a 9.9% increase on a per share (diluted) basis. Net sales for the
six-month period ended June 30, 1998 increased 33% to $158.5 million compared with $118.9 million for the first six months
of 1997. The Gessner acquisition accounted for $42.6 million of this increase. Excluding the Gessner acquisition, sales were
$116.0 million compared with $118.9 million for the comparable period in 1997, a decrease of 2.4%.
''Sales softness, particularly in our office products market, impacted earnings during the second quarter,'' said Alex Kwader,
president and chief executive officer. ''Additionally, the company experienced a temporary dip in productivity at two of its
facilities. While we successfully completed labor contract negotiations in Fitchburg, productivity during the two-month
negotiation period was below typical levels,'' Kwader said. ''In Hughesville, initial productivity on some of the grades
transferred from the Owensboro, KY facility, closed in January, 1998, was below expectations.
''Raw material costs increased slightly during the quarter, but remain below 1997 levels,'' Kwader said. ''We believe these
increases are unlikely to be sustainable through the summer, given the slower pace of the economy and weaker demand within
the paper industry.
''With our commitment to market and new product development, cost reduction, facility rationalization and acquisitions, we
remain very optimistic about FiberMark's outlook, despite the temporary market softness,'' said Kwader.
FiberMark is a leading producer of specialty fiber-based materials meeting industrial and consumer needs worldwide.
Products cover a broad spectrum including filter materials for the automotive, heavy equipment, beverage and fast food
industries; cover and presentation materials for office and school supplies; specialty tape base and labels for medical tapes and
jeans labels; and technical specialties such as photographic and graphic arts materials, transformer paper, and base materials
for printed circuit boards, book covers and abrasives. The company, a leader in the use of recycled materials, currently has ten
facilities throughout the United States and Europe.
This press release contains forward-looking statements. Actual results may differ depending on the economy and other factors
discussed in the company's Form 10K filed with the SEC March 31, 1998.
Web address: fibermark.com |
