Maverick Tube Corporation Reports Fourth Quarter 1998 Charge
ST. LOUIS, Oct. 5 /PRNewswire/ -- Maverick Tube Corporation (Nasdaq: MAVK - news) announced today that it will record a charge of $1.6 million, or $0.07 per share, on an after tax basis, in the fourth fiscal quarter ended September 30, 1998 related to the write-down of certain computer software that will be replaced with a more comprehensive enterprise resource planning system.
Maverick has selected the J. D. Edwards OneWorld enterprise resource planning system and has commenced the implementation phase, with its core implementation scheduled for completion in mid-1999. Gregg Eisenberg, Maverick's President and CEO said, ''We believe that our new system, which is Year 2000 compliant, will be of great value to us in providing improved information and controls for all phases of our operations.''
Maverick anticipates fourth quarter earnings to be depressed due to low sales and production of its energy related products. Eisenberg commented, ''We expect fourth quarter net income, excluding the software charge, to be near break even. We have substantially cut production and reduced finished goods inventories in light of the sharp decline in demand for our energy related products.'' Maverick will report its fourth quarter earnings on October 19, 1998.
Maverick Tube Corporation is a St. Louis, Missouri, based manufacturer of tubular products used in the energy industry in drilling, production and surface transportation applications as well as industrial tubing products (HSS and standard pipe) used in various industrial applications.
This news release contains forward looking information with respect to Maverick's operations and beliefs. Actual results may differ from these forward looking statements due to numerous factors, including those discussed in exhibit 99.1 to Maverick's Form 10-K for its fiscal year ended September, 30, 1997.
SOURCE: Maverick Tube Corporation |
