Cordant Technologies' Forecast Remains
Constant After Boeing Announcement
PR Newswire - December 07, 1998 21:04
SALT LAKE CITY, Dec. 7 /PRNewswire/ -- In response to inquiries
following the December 1 Boeing announcement of lower aircraft
shipments in 1999, Cordant Technologies Inc. (NYSE: CDD) issued the
following statement:
Cordant Technologies Inc. has no change in its sales forecast for 1999 in
the wake of the Boeing announcement. Two factors are key in the
Company's sales forecast: Cordant's prior projections were consistent with
Boeing's announced reductions, and Cordant is well diversified in both the
aerospace and industrial markets.
Twenty percent of Cordant's total sales are tied to new aircraft builds, with
approximately 12 percent of total sales related to new aircraft build rates at
Boeing. In addition, 15 percent of total sales are to the commercial aircraft
after-market, 30 percent are to general industrial markets and 35 percent
are to the space and defense industry.
Of Cordant's sales directly tied to Boeing, slightly more than half are from
its Howmet International business and the remainder are from Cordant's
Huck International unit.
At Howmet International, which is the leading supplier of investment cast
components for the aircraft and industrial gas turbine industries, the impact
of the Boeing production cuts in 1999 will be in the $8-10 million range, or
less than one percent of sales. Overall, the Company is still expecting three
to four percent growth in Howmet's aerospace sales in 1999 due to
additional market share and after-market sales.
About one-third of Huck International's fastener sales are to the aerospace
industry. Boeing and Boeing related sales account for about 75 percent of
industry sales. Cordant's previous forecast for 1999 called for a 10 to 15
percent decrease in Huck's aerospace sales. Cordant expects the 1999
aerospace sales decrease to be in the upper end of that range. The
remainder of Huck's sales are to non-aerospace industrial customers.
Cordant's Thiokol Propulsion business remains as previously forecasted.
The recent launch and construction start of the International Space Station
solidified the Space Station launch rate for years to come, ensuring
continued stable production of the reusable solid rocket motors (RSRM)
for NASA.
"Cordant remains confident with the consensus estimates for 1998 and
1999 and we anticipate an additional five to eight percent EPS growth in
2000," said James R. Wilson, Chairman and CEO. "We're optimistic about
our future. We will continue to focus on the things we can control, such as
our costs, quality, productivity and delivering consistent earnings growth for
our shareholders."
With more than 17,500 employees worldwide, Cordant Technologies
(NYSE: CDD) is a strategically balanced global business with consolidated
annual sales of approximately $2.4 billion. Cordant Technologies' Thiokol
Propulsion business is the leading producer of solid propulsion systems,
and its Huck International subsidiary delivers high performance industrial
and aerospace fastener systems. Cordant Technologies also holds a
majority interest in Howmet International Inc., a global manufacturer of
aircraft and industrial gas turbine engine components.
This release includes forward-looking statements that are made pursuant to
the safe harbor provisions of the Securities Litigation Reform Act of 1995.
Such forward-looking statements are subject to certain risks and
uncertainties that could cause actual results to differ materially from those
projected in them. These risks and uncertainties include, but are not limited
to, unanticipated slowdowns in the Company's major markets, the impact
of competition, the effectiveness of operational changes expected to
increase efficiency and productivity, worldwide economic and political
conditions and the effect of foreign currency fluctuations. |
