- Net sales increase by 29.8% to record $71.8 million
- Income from continuing operations, after taxes increases 226.3% to $6.2 million
- Driving 2008 second quarter diluted EPS to $0.66 from $0.20 in prior year period
- Net income increases 138.1% to $5.0 million
- Company raises 2008 earnings guidance
CLEVELAND, Aug. 7 /PRNewswire-FirstCall/ -- Hawk Corporation (Amex: HWK)
announced today that net sales from continuing operations for the second
quarter ended June 30, 2008 increased by 29.8% to a record $71.8 million from
$55.3 million in the comparable prior year period. The Company's second
quarter 2008 net sales benefited from strong economic conditions in all of its
end markets, pricing actions to partially offset cost increases, favorable
foreign currency exchange rates and new product introductions. The effect of
foreign currency exchange rates accounted for 7.8% of the total net sales
increase of 29.8% during the second quarter of 2008. The Company experienced
strong sales growth from all of its facilities in the second quarter of 2008.
(Logo: http://www.newscom.com/cgi-bin/prnh/20001129/HWKLOGO )
Net sales for the six months ended June 30, 2008 were $137.6 million, an
increase of 25.7%, from $109.5 million in the comparable prior year period.
The effect of foreign currency exchange rates accounted for 7.2% of the
consolidated net sales increase of 25.7% during the six months ended June 30,
2008.
Income from continuing operations for the second quarter ended June 30,
2008 was $10.6 million, an increase of $5.3 million, or 100.0%, from $5.3
million in the prior year period. Income from continuing operations benefited
from the impact of sales volume increases, a continued implementation of the
Company's lean manufacturing process improvement initiatives and foreign
currency exchange rates. This increase during the second quarter of 2008
compared to 2007 was partially offset by increases in wages, employee benefits
and variable incentive compensation expense and increases in raw material
costs during the quarter.
For the six month period ended June 30, 2008, the Company reported income
from continuing operations of $18.1 million, an increase of $7.6 million, or
72.4%, from $10.5 million in the comparable prior year period.
Ronald E. Weinberg, Hawk's Chairman and CEO, said, 'We are extremely
pleased with our second quarter 2008 results as we achieved record sales,
earnings from continuing operations and net income during the quarter. We
achieved gains in our Hawk Performance(R) automotive aftermarket, our
industrial aftermarkets served by our Velvetouch(R) brand as well as continued
strong global industrial markets and the dedicated efforts of our worldwide
employees.' Mr. Weinberg continued, 'The results that we have achieved in
the second quarter, as well as for the year to date, give us confidence about
our growth potential for the balance of the year. The technical solutions we
provide to our customers combined with the diversity of markets served has
provided us continued growth in spite of a slowdown in the general North
American marketplace.'
For the quarter ended June 30, 2008, the Company reported income from
continuing operations, after income taxes, of $6.2 million, or $0.66 per
diluted share, an improvement of $4.3 million or 226.3%, compared to $1.9
million, or $0.20 per diluted share, in the comparable prior year period. For
the six months ended June 30, 2008, the Company reported net income from
continuing operations, after income taxes of $10.0 million, or $1.06 per
diluted share, an improvement of $6.2 million, or 163.2%, compared to net
income from continuing operations, after income taxes of $3.8 million, or
$0.40 per diluted share, in the comparable prior year period.
For the second quarter 2008, the Company reported net income of $5.0
million, or $0.53 per diluted share, an increase of $2.9 million, or 138.1%,
compared to net income of $2.1 million, or $0.22 per diluted share, in the
second quarter of 2007. For the six months ended June 30, 2008, the Company
reported net income of $8.2 million, or $0.86 per diluted share compared to
$14.9 million or $1.58 per diluted share during the comparable prior year
period. The June 30, 2007 results included a gain (net of tax) on the sale of
our precision components segment of $11.8 million.
During the second quarter of 2008, the Company completed the sale of its
performance racing transmission business that was accounted for as a component
of its discontinued operations. The Company expects to complete the sale of
its remaining performance racing business prior to the end of 2008.
Working Capital and Liquidity
-----------------------------
At June 30, 2008, working capital increased by $8.7 million to $121.9
million from $113.2 million at December 31, 2007.
