Niagara Corporation Announces Results for Third Quarter and Nine Months
29 Oktober 2004 - 2:59AM
PR Newswire (US)
Niagara Corporation Announces Results for Third Quarter and Nine
Months Record Performance Continues NEW YORK, Oct. 28
/PRNewswire-FirstCall/ -- Niagara Corporation (OTC:NIAG) announced
today results for the third quarter and nine months ended September
30, 2004. In the third quarter, sales increased to $113.1 million
from $69.8 million in the comparable quarter in 2003. Net income
for the quarter increased to $5,565,000 from $567,000, and earnings
per share increased to $.68 from $.07 for the third quarter of
2003. The third quarter 2004 results were achieved after giving
affect to a LIFO charge of approximately $6.1 million. No such
charge was taken for the third quarter of 2003. Comparing the nine
months ended September 30, 2004 and 2003, sales increased to $319.2
million from $222.5 million, net income increased to $13,938,000
from $2,559,000, and net income per share increased to $1.69 from
$.31 for the first nine months of 2003. The results for the nine
months ended September 30, 2004 reflect a LIFO charge of
approximately $11.1 million. No such charge was taken for the
comparable period in 2003. In commenting on these results, Michael
Scharf, Chairman and CEO of Niagara, stated: "For the third quarter
of 2004, Niagara rode the wave of higher prices and strong demand
for cold finished steel bar products and achieved record results.
Tons shipped, sales, profit margins and net income for our U.S.
operations improved significantly in comparison to the third
quarter of last year. Strong relationships with key suppliers and
customers were instrumental to our success. Because of supplier
support, we had levels of inventory sufficient to satisfy our
customers' needs in a timely manner. Our diverse operations in the
U.K. benefited primarily from tight supply, increased prices and a
modest increase in demand from Western Europe. I am also pleased to
report that, during the nine months ended September 30, 2004,
Niagara reduced its debt by $19.3 million and paid a special
dividend of $ .25 per share. This was Niagara's first dividend.
Also, it should be noted that, because of sharply rising prices
during the first nine months of the year, Niagara has recorded a
LIFO charge of approximately $11.1 million. Anyone who follows the
steel industry or Niagara typically is curious about China and its
effect on the future of the steel industry. While it is difficult
to predict the length or magnitude of the "China effect," suffice
it to say that demand from China created an extremely tight steel
supply situation in 2004, and this certainly benefited Niagara. In
recent weeks, however, we have begun to experience a slight decline
in demand as customers seek to adjust their high inventory levels
in anticipation of year-end. I am optimistic about Niagara's
future. In the U.S. cold finished steel bar business, Niagara is
the number one producer, and we have the broadest and most
specialized range of products. We are continuously upgrading our
equipment and production capabilities, and we provide excellent
service to our customers. Our success is made possible by the
competence, dedication and "teamworker attitude" of our valued
employees at all levels and at all locations of our company."
Niagara Corporation Selected Financial Data Quarter Ended Quarter
Ended September 30, 2003 September 30, 2004 Revenues $69,786,000
$113,079,000 Net Income $567,000 $5,565,000 Share Earnings (basic
and diluted) $.07 $.68 Average Shares (basic and diluted) 8,238,517
8,238,517 Nine Months Ended Nine Months Ended September 30, 2003
September 30, 2004 Revenues $222,537,000 $319,218,000 Net Income
$2,559,000 $13,938,000 Share Earnings (basic and diluted) $.31
$1.69 Average Shares (basic and diluted) 8,238,517 8,238,517 This
release contains certain "forward-looking statements" made pursuant
to the "safe-harbor" provisions of the Private Securities
Litigation Reform Act of 1995. These statements involve known and
unknown risks, uncertainties and other factors, many of which are
beyond the control of the Company, that may cause the Company's
actual results to be materially different from those expressed or
implied by such statements. Such risks, uncertainties and other
factors include those described in the Company's Annual Report on
Form 10-K for the year ended December 31, 2003. The forward-looking
statements made herein are only made as of the date of this
release, and the Company undertakes no obligation to publicly
update such forward-looking statements to reflect subsequent events
or circumstances. DATASOURCE: Niagara Corporation CONTACT: Michael
Scharf, CEO of Niagara Corporation, +1-212-317-1000 Web site:
http://www.niag.com/
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