<<EL PASO, Texas, July 28 /PRNewswire/ -- Elamex S.A. de C.V.
(Nasdaq: ELAMF), a leading Mexican contract manufacturer, today reported sales
of $30.7 million for the second quarter ended June 28, 1998, a 9.3 percent
decrease from sales of $33.8 million for the second quarter of 1997. Net
income for the quarter was $1.0 million or $0.13 per share, down from
$2.1 million or $0.29 per share for the same period in 1997.
For the first half of 1998, sales declined to $59.0 million from
$67.7 million in 1997. Net income fell to $1.6 million or $0.22 per share
versus $3.8 million or $0.52 per share for the first half of last year. On a
sequential basis, sales increased 8.3 percent from $ 28.3 million in the first
quarter of 1998 and net income increased 47 percent from a base of
$0.6 million during the same period.
Hector M. Raynal, Elamex's Chief Executive Officer, said: "Although we
still have not been able to reach sales and margins that compare favorably
with those achieved during the first half of 1997, before two important
projects ended, we saw improvement in our sales and net income results for
this quarter over the first quarter of this year. We expect higher levels of
sales to be achieved during the second half of the year, as we continue to
ramp up our telecommunications project and begin work on three recently signed
projects. Two of these projects will involve mechanical assembly and continue
to expand the business areas served by Elamex. One project is in the durable
goods sector and the other deals with consumer products. The third project is
in consumer electronics, an area where we have also built considerable
expertise."
"To meet the anticipated demand of new and existing projects, we moved
during the Quarter to increase our production capacity in electronics by
50 percent with the addition of two high speed SMT lines," Mr. Raynal added.
"On a different front, our joint venture with GE Mexico S.A. de C.V. is
putting in place the infrastructure necessary to support the anticipated
growth of the plastics and metal stamping operations. Although this business
partnership is not expected to make significant contributions until 1999, we
anticipate that over the medium term it will represent a very important growth
avenue for Elamex," said Mr. Raynal.
Elamex is a Mexican contract manufacturing service provider. 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.)>> |
