Volume 35, Number 5, May 2000

FinancialFlash

Flour City International Announces Common Stock Repurchase Plan

The board of directors of Flour City International Inc., based in Kingsport, Tenn., has authorized a program to repurchase 200,000 shares of the company’s common stock.

“We believe our current stock price, also influenced by current market conditions, does not reflect the company’s operational or significant growth prospects,” said John W. Tang, Flour City chairman and CEO.

All purchases of the company’s common stock will be made on the open market at prevailing prices, or in privately negotiated transactions. Shares may be retired, held in treasury, used for acquisitions or for other purposes.

In a second announcement, the company posted first quarter revenues of $12.9 million, a 75.7 percent increase over the same quarter last fiscal year. For the quarter ending January 2000, the company reported net income of $175,000, or $0.03 earnings per share. This compared with a net loss for the same quarter last year of $0.14 per share.

“Our refocus of assets, additional key management and investment in our infrastructure has produced a 90 percent increase in revenue from the Pacific-Rim region,” said Flour City president Richard M. Boyle. He also attributed the increase to the construction industry in North America where the company saw a 53 percent increase in revenues.

 

PPG Writes Off Pittsburgh Corning Investment

PPG Industries will take an after-tax charge against first quarter earnings of about $35 million, or $0.20 per share, to write off its investment in Pittsburgh Corning Corp., which has filed a petition for reorganization under the federal bankruptcy code.

“The write-off simply represents a one-time loss on an investment that, for a number of years, has produced insignificant earning for PPG,” said PPG chairman and chief executive officer Raymond W. LeBoeuf.

 

Apogee Reports Fourth Quarter Loss

Consistent with its January announcement of expected financial results, Apogee reported a net loss from continuing operations for the fourth quarter ending February 26, 2000, of $2.0 million, or $0.07 per diluted share. This compares with net income of $2.3 million for the same quarter last year. Total fourth quarter net loss was $3.5 million compared with net earnings of $5.0 million for the same quarter last year. The company says fourth quarter losses included a $1.4 million net loss from discontinued operations due to discontinuance of the company’s non-auto glass focused insurance claims processing operation. Russell Huffer, chairman and CEO, said other factors contributing to the loss were industry conditions and seasonal weakness in the auto glass services group. Huffer said the auto glass group typically operates at a loss during the fourth quarter.

For the 12-months ending February 26, 2000, the company reported earnings of $3.1 million from continuing operations, and total net earnings of $12.2 million.

 

Lilly Reports Record
First Quarter Sales

Lilly Industries of Indianapolis reported record sales of $161.1 million for the first quarter ending February 2000. This represents an increase of 10 percent over the same quarter last year. Net income for the first quarter 2000 declined to $4.5 million from $5.6 million last year. The company attributed some of the decline in profit margins to the rapid escalation in petroleum-based raw materials. Other factors were higher operating expenses due to weather-related manufacturing disruptions, transition start-up costs, and higher selling expenses due to business building initiatives.

Commenting on efforts to increase margins, Donald W. Huemme, Lilly’s chairman and chief executive officer said, “We have implemented a number of margin improvement activities, including price increases, headcount reductions, plant closures and administrative consolidations.”

 

Goldray Posts 1999 Year-End Financial Results

Headquartered in Calgary, Alberta, Goldray Inc. recently announced its financial results for 1999. In October of last year, Goldray, formerly Raypath Resources Ltd., went public, acquiring all shares of the private company, Goldray Corp.

The company noted a 53 percent increase over 1998 with year-end revenue totaling CAD $10,752,236 (USD $7,241,483). Net earnings for the year were $192,395 (USD $129,576) compared to a $106,714 (USD $71,871) loss in 1998. Cash flow from 1999 operations increased 209 percent to $781,832 from $373,716 in 1998.

In addition, gross margin improved from 16.2 percent on 1998 sales to 19.7 percent in 1999, while operating expenses rose 51 percent to $1,893,417 (USD $1,275,200).

CertainTeed Offers to Buy all Outstanding Shares of Brunswick

CertainTeed Corp., based in Valley Forge, Pa., has announced a tender offer for all of the outstanding common shares of Brunswick Technologies Inc. (BTI) not already owned by Vetrotex CertainTeed Corporation. CertainTeed has offered $8.00 per share for the approximately 5.2 million shares outstanding. This offer represents a premium of approximately 46 percent over BTI’s closing price on April 14, 2000. Currently, Vetrotex owns about 14 percent of the outstanding shares of BTI.

This offer was made after CertainTeed made repeated requests to negotiate a transaction with BTI.

 It was a month dominated by decreases, for the period between March 31 and April 28, for 11 of the publicly-traded glass companies or companies that own glass concerns. ThermoView posted the largest drop (29 percent), followed by Vitro (20 percent). Of the five that reported increases, Donnelly and Asahi were tied for the top spot—both posted a healthy 16 percent increase.

Correction

In the March 2000 issue of USGlass, which featured the Fourth Annual Guide to Industry Websites, a few companies had web addresses listed incorrectly. The correct address for Glazers Choice is www.glazerschoice.com; O’Keeffe’s Inc. is www.okeeffes.com; and Mayflower Sales website is www.mfsales.com

It was a month dominated by decreases, for the period between March 31 and April 28, for 11 of the publicly-traded glass companies or companies that own glass concerns. ThermoView posted the largest drop (29 percent), followed by Vitro (20 percent). Of the five that reported increases, Donnelly and Asahi were tied for the top spot—both posted a healthy 16 percent increase.

Company Name Monthly Range  (March 31 - 
April 28)
52-Wk Range  P/E Ratio
Apogee (APOG) 3 31/32 - 3 9/16 3.50-14.31 8.1
Alcoa (AA)
owns Alumax & Kawneer
70 1/4 - 64 7/8 40.25-87.25 20.5
Asahi (ASGLY) 77.000-89.5 yen NA NE
Butler Mfg. (BBR)
owns Vistawall
24 7/16 - 23 9/16  21.00-29.93 6.0
Compudyne (CDCY)
owns Norment
10-9 6.00-12.75 19.6
Donnelly (DON)    11 13/16 - 13 3/4 11.75-17.50 4.8
Dow Chemical (DOW) 114-113   92.00-141.50 18.0
Dupont (DD) 52 15/16 - 47 7/16 45.06-75.18 6.6
Dwyer Group (DWYR)  
owns the Glass Doctor
2 7/8 - 2 9/16 1.75-4.25 11.6
Flour City Int’l (FCIN) 3 5/8 - 3 3/4 1.31-6.00 NE
Lilly Industries (LI)  12 3/8 - 10 7/8 10.50-19.75 7.8
Monsanto (MTC) 51 1/2 - 51 1/2 32.75-51.50 56.6
Pilkington plc (PILK) 76.00 - 70.5 pounds NA NA
PPG (PPG) 52 5/16 - 54 3/8 44.37-70.75 4
Solutia (SOI)    13 3/8 - 13 5/8 11.25-26.31 6.6
ThermoView Ind. (THV)  3 1/2 - 2 1/2 1.81-7.12 NE
Vitro (VTO) 
owns VVP America
4 3/4 - 3 13/16 3.56-7.50 NE

NA = Not Applicable; NE = Negative Earnings 


USG

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