CLEVELAND, April 14 /PRNewswire-FirstCall/ -- Hawk Corporation (Amex: HWK)announced today that its Board of Directors has authorized the Company to sellits performance racing segment. The performance racing segment, consisting ofQuarter Master Industries, Inc. and Tex Racing Enterprises, Inc., engineers,manufactures and markets premium branded clutch, transmission and drivelinesystems for the performance racing market. The segment reported net sales of$12.8 million for the year ended December 31, 2007 accounting for 5.6% of theCompany's total net sales for the year. The Company will retain its HawkPerformance(R) brake business which will remain a part of its frictionproducts segment.
(Logo: http://www.newscom.com/cgi-bin/prnh/20001129/HWKLOGO )
Ronald E. Weinberg stated, 'This announcement is in keeping with ourstrategy of focusing on our friction businesses. We are a world leader infriction technology and we see many opportunities to which we should directour energies and attention.'
The Company is currently evaluating the impact that the sale of theperformance racing segment will have on the Company's financial statements aswell as to its previously announced 2008 financial guidance. Hawk willreflect the performance racing segment as a discontinued operation in itsMarch 31, 2008 financial results. The Company is in discussions with severalparties and, cannot, at this time, provide the terms of a possibletransaction.
The Company
Hawk Corporation is a leading worldwide supplier of highly engineeredproducts. Its friction products group is a leading supplier of frictionmaterials for brakes, clutches and transmissions used in airplanes, trucks,construction and mining equipment, farm equipment, recreational andperformance automotive vehicles. The Company's performance racing groupmanufactures clutches and gearboxes for motorsport applications andperformance automotive markets. Headquartered in Cleveland, Ohio, Hawk hasapproximately 1,150 employees at 13 manufacturing, research, sales andadministrative sites in 7 countries.
Forward-looking Statements
This press release includes forward-looking statements concerning salesand operating earnings. These forward-looking statements are based uponmanagement's expectations and beliefs concerning future events. Forward-looking statements are necessarily subject to risks, uncertainties and otherfactors, many of which are outside the control of the Company and which couldcause actual results to differ materially from such statements.
