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Financial results
DSM
The company's polymers and ' industrial chemicals business is prone to fluctuating results, even though it generates, on average, good returns on investment. The role of the chemicals and performance materials sector of DSM makes its overall business portfolio less sensitive to the cycles experienced elsewhere in the company's businesses.
announced in June the addition of new machine capacity and capabilities to alleviate the situation.
Core Materials Corp
Brunswick Technologies Inc
i i
i i i i i i i
Dutch chemical company DSM recorded a net profit of NLG570 million for the first half of 1998, an increase of 22% compared with the first half of 1997. Net sales amounted to NLG7.5 billion, also a 22% increase on the corresponding period of 1997. The Performance Materials sector of the company, comprising DSM Elastomers, DSM Engineering Plastics, DSM Resins and DSM Engineering Plastic Products, experienced an 8% increase in sales relative to the first half of 1997. This is attributed to higher sales volumes and higher selling prices, even though the present economic situation in Asia has impacted on the resins business. Acquisitions and divestments resulted in a 19% increase in sales, of which 18% is attributed to the takeover of i n t e r n a t i o n a l biotechnology company Gists-brocades. Higher volumes for nearly all products resulted in a 4% increase in sales, w h i l e exchange rate developments had a positive effect of 1%, the average price level was 2% lower. "DSM's strategy aimed at achieving profitable growth resulted in a substantial increase in sales and net profit in the first half of 1998. A large part of this growth is the result of DSM's take over of Gist-brocades, a move that fits in perfectly with our strategy and will make our results more stable," comments Louis Lighart, deputy chairman of the DSM managing board. "We have realized a major shift in our portfoliol We now distinguish three strategic activity clusters: Life Science Products, Performance Materials and Polymers & Industrial Chemicals."
Composites BusinessAnalyst
1Except per share data
Brunswick Technologies Inc (BTI) makes engineered reinforcement fabrics used to produce composite products for the transportation, infrastructure, recreation, petrochemical, and construction industries. Ending 30 June 1998 revenues for the company reached US$10.96 million, up 36% over the same period last year, and net income increased 28% to $936 000 from last year's $732 000. Included in the results are the operations of UKbased Tech Textiles International, acquired by BTI in March 1998 to expand its product line and geographic reach and renamed BTI Europe (see Reinforced Plastics, April 1998). "BTI continued to achieve record growth and profits in the first half of 1998 and expects this trend will continue for the balance of the year," says Martin Grimnes, BTI's chairman and chief executive officer. "We are even more encouraged with the strength of our base business particularly marine conversions." Though results were good, BTI's financial performance was affected by issues concerning both products and capacity within its North American operations. This has the knock-on negative effect on shipments, reducing BTI's gross margin. The company
Core Materials Corp, based in Columbus, Ohio, USA, is a compounder and compression moulder of sheet moulding compounds (SMC), manufacturing both SMC and glass reinforced plastic (GRP) products for a variety of applications. The company also has manufacturing operations in Columbus and Gaffney, South Carolina. For the three months ended 30 June 1998 net income was US$1 021 000, or $0.10 per diluted share, an increase of 33% over the comparable period in the previous year. This increase was primarily the result of growing sales of medium and heavy-duty truck products to N a v i s t a r I n t e r n a t i o n a l Transportation Corp, and sales to a new customer, Case Corp. These increases were partially offset by a slight decrease in sales of personal watercraft products to Yamaha Motor Manufacturing Corp. In May 1998, Core M a t e r i a l s announced a deal with Case Corp for the manufacture of tractor roof assemblies and in July 1998 the company established another new venture with John Deere and will produce bonnet "assemblies for a new tractor model scheduled to enter production in mid1999. This business coupled with the previously announced addition of residential door products for Caradon Doors and Windows Inc demonstrates progress towards Core Material's objective of obtaining new customers and diversifying its product base.
October 1998
i i i i i i
McWhorter Technologies Inc
facility will be t r a n s f e r r e d to McWhorter's facilities in Columbus, Georgia, and Carpentersville, Illinois. This is expected to be complete by June 2000 with predicated savings of around $2.8 million per year. The company's exit from the joint venture to construct a manufacturing facility in Thailand was influenced by poor economic prospects and the level of additional investment needed to complete the facility.
resistance is vital. With the fragmented nature of the industrial process industry and the small companies, with limited products that comprise it, it seems likely that there is room for further acquisitions by Denali.
Lund International Holdings Inc
Denali Inc 1Except per share data
Bused in Carpentersville, Illinois, USA, McWhorter Technologies Inc (MTI) manufactures resins and colourants used in the paint and coatings industry in the USA and Europe i and is also an important manufacturer i of resins used in glass reinforced plasi tics (GRP). MTI's net sales increased by 47% to i US$125 million up from last year's i third quarter sales of $85 million. This ! . increase, primarily the result of the acquisition of Accurate Dispersions and Syntech SpA, has been offset by an almost equal increase in the cost of sales, which has risen by 46.3% to $103 million from $71 million. "We continue to be pleased with the performance of our composite polymer, powder resin and colourant businesses. Although we experienced some softness in our North American liquid coatings business, primarily in July, we expect our overall business, excluding expansions, to be up slightly for the fourth quarter," says John Stevenson MTI's chairman and CEO. The recent decision by the company to close its manufacturing facility in Chicago Heights, Illinois, and to writedown its investment in the McWhorter Thailand joint venture is expected to generate fourth q u a r t e r pre-tax charges around $4.8 million and $2.5 million respectively. Approximately 40 people will be effected by the facility closure, reflecting the company's review of North American production capabilities and its efforts to improve efficiency. Production from the Georgia Heights
October 1998
1Except per share data
1Except per share data
Formed in December 1994, by chairman Stephen T. Harcrow, US firm Denali Inc provides products and services for handling critical fluids - - fiuids that are economically valuable or potentially hazardous to the environment - - in a wide variety of process industries, including petroleum, chemical, pulp and paper and electric power production. In 1994 Denali acquired the composite underground storage t a n k business of Owens Corning, and in 1997 it acquired Ershigs Inc, which makes glass reinforced plastic products for handling corrosive fluids. Denali reported a net income of US$1.4 million or $0.28 per diluted share on $31.4 million in revenue for its fourth q u a r t e r ending 27 June 1998. Relative to the same period last year, net income increased 257%, earnings per diluted share increased 75% and revenues increased 39%. The company, with headquarters in Houston, Texas, USA, has completed three major acquisitions, SEFCO, LaValley Construction and Fibercast, in the past year. Fibercast is a manufacturer of GRP piping, typically used in environments where corrosion
Automotive accessories designer and m a n u f a c t u r e r Lund I n t e r n a t i o n a l Holdings Inc reports a 31.1% gross profit margin for the second quarter ended 30 June 1998, compared with 34.8% for the same period of 1997. The decrease is primarily attributed to product promotions for aftermarket plastic and glass fibre products. A shift in the sales mix, raw material and labour rate increases, coupled with costs associated with the start up of new facilities in Illinois and Indiana have also been contributing factors to the company's decreased gross margin. Net income for the quarter was US$163 000, or $0.02 per share, compared to $804 000 or $0.18 per share, for the comparable period in 1997. The second quarter showed continued success of the company's newly acquired product lines, specifically heavy duty truck accessories, suspension products and aluminium products. The decline in aftermarket glass fibre and plastic product lines is primarily a result of reduced sales to warehouse distributors who are facing stiff competition from original equipment manufacturers (OEM) and retail chains. Lund's focus is on increasing its m a r k e t share with the traditional distributors while continuing to expand its presence at the OEMs and retail chains.
Composites BusinessAnalyst
The company's polymers and ' industrial chemicals business is prone to fluctuating results, even though it generates, on average, good returns on investment. The role of the chemicals and performance materials sector of DSM makes its overall business portfolio less sensitive to the cycles experienced elsewhere in the company's businesses.
announced in June the addition of new machine capacity and capabilities to alleviate the situation.
Core Materials Corp
Brunswick Technologies Inc
i i
i i i i i i i
Dutch chemical company DSM recorded a net profit of NLG570 million for the first half of 1998, an increase of 22% compared with the first half of 1997. Net sales amounted to NLG7.5 billion, also a 22% increase on the corresponding period of 1997. The Performance Materials sector of the company, comprising DSM Elastomers, DSM Engineering Plastics, DSM Resins and DSM Engineering Plastic Products, experienced an 8% increase in sales relative to the first half of 1997. This is attributed to higher sales volumes and higher selling prices, even though the present economic situation in Asia has impacted on the resins business. Acquisitions and divestments resulted in a 19% increase in sales, of which 18% is attributed to the takeover of i n t e r n a t i o n a l biotechnology company Gists-brocades. Higher volumes for nearly all products resulted in a 4% increase in sales, w h i l e exchange rate developments had a positive effect of 1%, the average price level was 2% lower. "DSM's strategy aimed at achieving profitable growth resulted in a substantial increase in sales and net profit in the first half of 1998. A large part of this growth is the result of DSM's take over of Gist-brocades, a move that fits in perfectly with our strategy and will make our results more stable," comments Louis Lighart, deputy chairman of the DSM managing board. "We have realized a major shift in our portfoliol We now distinguish three strategic activity clusters: Life Science Products, Performance Materials and Polymers & Industrial Chemicals."
Composites BusinessAnalyst
1Except per share data
Brunswick Technologies Inc (BTI) makes engineered reinforcement fabrics used to produce composite products for the transportation, infrastructure, recreation, petrochemical, and construction industries. Ending 30 June 1998 revenues for the company reached US$10.96 million, up 36% over the same period last year, and net income increased 28% to $936 000 from last year's $732 000. Included in the results are the operations of UKbased Tech Textiles International, acquired by BTI in March 1998 to expand its product line and geographic reach and renamed BTI Europe (see Reinforced Plastics, April 1998). "BTI continued to achieve record growth and profits in the first half of 1998 and expects this trend will continue for the balance of the year," says Martin Grimnes, BTI's chairman and chief executive officer. "We are even more encouraged with the strength of our base business particularly marine conversions." Though results were good, BTI's financial performance was affected by issues concerning both products and capacity within its North American operations. This has the knock-on negative effect on shipments, reducing BTI's gross margin. The company
Core Materials Corp, based in Columbus, Ohio, USA, is a compounder and compression moulder of sheet moulding compounds (SMC), manufacturing both SMC and glass reinforced plastic (GRP) products for a variety of applications. The company also has manufacturing operations in Columbus and Gaffney, South Carolina. For the three months ended 30 June 1998 net income was US$1 021 000, or $0.10 per diluted share, an increase of 33% over the comparable period in the previous year. This increase was primarily the result of growing sales of medium and heavy-duty truck products to N a v i s t a r I n t e r n a t i o n a l Transportation Corp, and sales to a new customer, Case Corp. These increases were partially offset by a slight decrease in sales of personal watercraft products to Yamaha Motor Manufacturing Corp. In May 1998, Core M a t e r i a l s announced a deal with Case Corp for the manufacture of tractor roof assemblies and in July 1998 the company established another new venture with John Deere and will produce bonnet "assemblies for a new tractor model scheduled to enter production in mid1999. This business coupled with the previously announced addition of residential door products for Caradon Doors and Windows Inc demonstrates progress towards Core Material's objective of obtaining new customers and diversifying its product base.
October 1998
i i i i i i
McWhorter Technologies Inc
facility will be t r a n s f e r r e d to McWhorter's facilities in Columbus, Georgia, and Carpentersville, Illinois. This is expected to be complete by June 2000 with predicated savings of around $2.8 million per year. The company's exit from the joint venture to construct a manufacturing facility in Thailand was influenced by poor economic prospects and the level of additional investment needed to complete the facility.
resistance is vital. With the fragmented nature of the industrial process industry and the small companies, with limited products that comprise it, it seems likely that there is room for further acquisitions by Denali.
Lund International Holdings Inc
Denali Inc 1Except per share data
Bused in Carpentersville, Illinois, USA, McWhorter Technologies Inc (MTI) manufactures resins and colourants used in the paint and coatings industry in the USA and Europe i and is also an important manufacturer i of resins used in glass reinforced plasi tics (GRP). MTI's net sales increased by 47% to i US$125 million up from last year's i third quarter sales of $85 million. This ! . increase, primarily the result of the acquisition of Accurate Dispersions and Syntech SpA, has been offset by an almost equal increase in the cost of sales, which has risen by 46.3% to $103 million from $71 million. "We continue to be pleased with the performance of our composite polymer, powder resin and colourant businesses. Although we experienced some softness in our North American liquid coatings business, primarily in July, we expect our overall business, excluding expansions, to be up slightly for the fourth quarter," says John Stevenson MTI's chairman and CEO. The recent decision by the company to close its manufacturing facility in Chicago Heights, Illinois, and to writedown its investment in the McWhorter Thailand joint venture is expected to generate fourth q u a r t e r pre-tax charges around $4.8 million and $2.5 million respectively. Approximately 40 people will be effected by the facility closure, reflecting the company's review of North American production capabilities and its efforts to improve efficiency. Production from the Georgia Heights
October 1998
1Except per share data
1Except per share data
Formed in December 1994, by chairman Stephen T. Harcrow, US firm Denali Inc provides products and services for handling critical fluids - - fiuids that are economically valuable or potentially hazardous to the environment - - in a wide variety of process industries, including petroleum, chemical, pulp and paper and electric power production. In 1994 Denali acquired the composite underground storage t a n k business of Owens Corning, and in 1997 it acquired Ershigs Inc, which makes glass reinforced plastic products for handling corrosive fluids. Denali reported a net income of US$1.4 million or $0.28 per diluted share on $31.4 million in revenue for its fourth q u a r t e r ending 27 June 1998. Relative to the same period last year, net income increased 257%, earnings per diluted share increased 75% and revenues increased 39%. The company, with headquarters in Houston, Texas, USA, has completed three major acquisitions, SEFCO, LaValley Construction and Fibercast, in the past year. Fibercast is a manufacturer of GRP piping, typically used in environments where corrosion
Automotive accessories designer and m a n u f a c t u r e r Lund I n t e r n a t i o n a l Holdings Inc reports a 31.1% gross profit margin for the second quarter ended 30 June 1998, compared with 34.8% for the same period of 1997. The decrease is primarily attributed to product promotions for aftermarket plastic and glass fibre products. A shift in the sales mix, raw material and labour rate increases, coupled with costs associated with the start up of new facilities in Illinois and Indiana have also been contributing factors to the company's decreased gross margin. Net income for the quarter was US$163 000, or $0.02 per share, compared to $804 000 or $0.18 per share, for the comparable period in 1997. The second quarter showed continued success of the company's newly acquired product lines, specifically heavy duty truck accessories, suspension products and aluminium products. The decline in aftermarket glass fibre and plastic product lines is primarily a result of reduced sales to warehouse distributors who are facing stiff competition from original equipment manufacturers (OEM) and retail chains. Lund's focus is on increasing its m a r k e t share with the traditional distributors while continuing to expand its presence at the OEMs and retail chains.
Composites BusinessAnalyst