Volume 35, Number 3, March 2000

FinancialFlash

Saint-Gobain Reports Increase in Net Income

France’s Saint-Gobain Group estimates 1999 consolidated net income to be $1.22 million Euro (U.S. $1.19 million), an increase of 11.5 percent over 1998. This estimate reflects the consolidation of Essilor and Flat Glass processing subsidiaries beginning January 1, 1999. Earnings per share amount to $14.02 EURO, an increase of 15.4 percent over 1998. Sales in the Americas and Asia account for 32.7 percent of total sales.

In other developments, Standard & Poor’s (S&P) has placed its single A-plus long-term rating with negative implications on the company, while leaving the short-term ratings at A-1. This follows Saint-Gobain’s bid to acquire 100 percent of Meyer International PLC. While the $1.75 billion Euro (U.S. $1.69 billion) acquisition would have a positive impact on Saint-Gobain’s business profile by reinforcing its business activities in the UK, S&P said the resulting debt burden would exceed S&P’s previous expectations at the current rating level. The company’s rating is not expected to fall below the A-1 rating.

Dwyer Reaches New
Five Year High

The Dwyer Group Inc., based in Waco, Texas, reported a new quarterly high in revenue from franchise sales. Revenues of approximately $1.4 million were reported for the quarter ending December 31, 1999, marking the highest quarterly total in the past five years. For all of 1999, franchise sales revenues were approximately $4.3 million, again a five-year high.

 Lilly Posts Earnings Drop

Lilly Industries Inc. announced that for the first quarter ending February 29, 2000, it expects earnings per share to be down approximately 15 percent from the previous year. According to the Indianapolis-based company, while sales volume is strong across most markets, profit margins are being affected by a variety of factors. These include: the rapid cost increase of petroleum-based raw materials, weather related closures along the Mid-Atlantic Coast, and transition costs related to international start-ups and expansion of the North Carolina powder coatings facility.

briefly

Allen-Rite International Inc. of Los Angeles, expects third quarter revenues to be approximately $14.2 million which represents a 16 percent increase over the same period for the prior year but a decrease from the immediately preceding quarter … Sunsource Inc. of Philadelphia paid a cash distribution on Nov. 30, 1999, of $0.241667 for holders of record on Nov. 22, 1999, of Sunsource Capital Trust preferred securities.

stock watch

It was a month marked by decreases for publicly-traded glass companies or companies that own glass concerns. For the period between February 4 and March 3, 12 companies posted decreases. Dupont reported the biggest downturn (14 percent), followed by Vitro (10 percent). On the up side, the Dwyer Group was the big winner with a 34 percent increase, followed by Compudyne (19 percent).

                                                   

Company Name  Monthly Range
(Feb 4-March 3)
52-Wk Range P/E Ratio
Apogee (APOG)   4-15/16 - 41/2 4.00 - 14.31 6.1
Alcoa (AA)
owns Alumax & Kawneer
701/2-6715/16 35.93-87.25 24.1
Asahi (ASGLY)   77.000-77.000 yen NA NA
Butler Mfg. (BBR)  
owns Vistawall
24-5/8  - 25-3/16 21.00-29.93 6.9
Compudyne (CDCY)  
owns Norment
8-91/2 6.00-9.75 20.7
Donnelly (DON)  13 - 121-1/16 11.75-17.50 4.4
Dow Chemical (DOW)   112-3/16   -  109-3/4 90.06-141.50 18.5
Dupont (DD)   581-3/16  -  50-3/4 46.87-75.18 7.3
Dwyer Group (DWYR)  
owns the Glass Doctor
2-3/4  -   31-1/16 1.68-4.25 19.4
Flour City Int’l (FCIN)   41/8-41/8 1.31-5.00 NE
Lilly Industries (LI)   12-3/4   -   12-3/8 12.37-19.75 8.7
Monsanto (MTC)  42-1/4   -    361-5/16 32.75-50.81 40.6
Pilkington plc (PILK)  79.75 -  76.00 pounds NA NA
PPG (PPG)  54-1/16  -   49-1/16 46.62  -  70.75 15.2
Solutia (SOI)   13-9/16   -  13-5/8 11.37-26.31 7.6
ThermoView Ind. (THV) 3-31/4 2.00-7.12 NA
Vitro (VTO)  
owns VVP America
49/16-41/8 3.62-7.50 NE

NA = Not Applicable; NE = Negative Earnings


USG

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