CMP Highlights from CEM's Release:
Seems to me that CEM's own R&D for the MOYC CMP is now behind
them and they forsee higher rev's from the CMP slurry
sales coming right up. THis is NOT from MOYC, but from CEM. Mel
First CMP Highlight "extractions" then the whole Release:
Outlook - ''First quarter 1999 will be weaker than
last year, but we expect the year to be better.
We expect increased aniline production and
improvement in the semiconductor industry with
higher electronic chemicals revenues during
the year and revenues from new CMP products in
the second half,'' said Williams.
Fourth quarter improved over third quarter
primarily on better results from custom manufacturing
and electronic chemicals despite difficult
industry conditions. Fourth quarter was down from
last year primarily due to lower custom manufacturing
sales and higher CMP development costs. The decline
in earnings for the year reflected lower first half
aniline production at Pascagoula, Miss., lower
custom manufacturing sales, higher CMP development
costs and lower sales of nitrotoluenes and
derivatives.
ChemFirst Inc. Announces Fourth
Quarter and Year-End Earnings
JACKSON, Miss.--(BUSINESS WIRE)--Feb. 4, 1999--ChemFirst Inc. (NYSE:CEM - news)
earnings from continuing operations for the quarter ended Dec. 31, 1998, were $6.3 million or 33
cents per diluted common share including 3 cents per share from special items. Earnings excluding
special items were up 10 percent from prior quarter on 4 percent higher sales. Earnings from
continuing operations for the same quarter last year were $15.8 million or 76 cents per share
including 43 cents per share from special items. Sales were down 4 percent to $78 million versus last
year.
Earnings from continuing operations for the year were $24.7 million or $1.27 per share including
special items of 29 cents per share. Sales increased slightly to $305 million. Earnings last year were
$37.8 million or $1.81 per share including 54 cents per share from special items.
Special items this year include gains on the sale of former equity affiliate Power Sources, Inc. net of a
writedown related to the sale of aluminum dross processing operations last year. Special items last
year included gains on the sale of Melamine Chemicals Inc. and equity affiliate income.
Discontinued operations include Steel and Engineered Products and Services. Losses of $2.2 million
or 11 cents per share for the quarter and $14.6 million or 75 cents per share for the year in these
businesses reflected depressed steel industry conditions and lower sales and higher cost in
Engineered Products and Services. Results for the year include an estimated loss of $12 million or
61 cents per share on the disposal of Steel.
''Engineered Products and Services are now shown as discontinued in anti cipation of a sale to the
managers of this business. We hope to complete this in 1999 with no material gain or loss expected,''
said J. Kelley Williams, ChemFirst's chairman and chief executive officer. ''We are still working to
sell the steel business but have been hampered by adverse industry conditions. Once these
dispositions are complete, we will be focused exclusively on chemicals.''
Chemicals pretax operating profits for the quarter were up 16 percent over prior quarter to $12.1
million but down 11 percent from same quarter last year. Operating profits for the year were $40.4
million, down 22 percent versus last year.
Fourth quarter improved over third quarter primarily on better results from custom manufacturing
and electronic chemicals despite difficult industry conditions. Fourth quarter was down from last year
primarily due to lower custom manufacturing sales and higher CMP development costs. The decline
in earnings for the year reflected lower first half aniline production at Pascagoula, Miss., lower
custom manufacturing sales, higher CMP development costs and lower sales of nitrotoluenes and
derivatives.
Unallocated corporate expenses were down 9 percent for the quarter and 14 percent for the year.
Net interest expense was $294,000 for the quarter versus $578,000 interest income same quarter
last year. For the year, net interest income was $213,000 versus $3 million last year reflecting higher
debt from capital expenditures and stock repurchases.
Capital expenditures were $12.8 million for the quarter and $43.8 million for the year. Capital
expenditures during the quarter included an engineering applications lab in Japan and capacity for
deep ultra violet resins at Dayton, Ohio. Most of the expenditures for the year were for completion
of the Baytown aniline plant.
Dividend - A quarterly cash dividend of 10 cents per share, was declared payable Dec. 28, 1998,
to stockholders of record at the close of business Dec. 10, 1998.
Stock Repurchase - During the quarter 393,900 shares of ChemFirst stock were acquired, bringing
total purchases for the year to 1,852,800 shares at a cost of approximately $42.6 million.
Outlook - ''First quarter 1999 will be weaker than last year, but we expect the year to be better.
We expect increased aniline production and improvement in the semiconductor industry with higher
electronic chemicals revenues during the year and revenues from new CMP products in the second
half,'' said Williams. ''We also expect 1999 to reflect recent cost-cutting measures offset somewhat
by higher interest expense.''
Unaudited condensed financial information will follow.
A conference call for the investment community is scheduled for Feb. 4, 1999, at 9 a.m., Eastern
Standard Time. J. Kelley Williams will host the call. Participants may access the call by dialing
888/459-8594 and giving the passcode ''ChemFirst.'' A taped replay of the call will be available for
48 hours after the call and may be accessed by dialing 800/677-1310.
This release includes forward-looking statements based on management assumptions and
expectations. These forward-looking statements are subject to risks and uncertainties that could
cause actual results to differ materially. For additional information on risk factors that could affect
actual results, please refer to the company's 1997 Form 10-K.
ChemFirst Inc. companies produce specialty chemicals and chemical intermediates for industry and
agriculture. Additional information about the company is available on ChemFirst's website located at
chemfirst.com. |
