Blount Reports First Quarter Earnings

* Results in line with expectations

* Outdoor Products segment continues with very good results

* As expected, market softness in Sporting Equipment and Industrial

and Power Equipment segments

* Focus on cost reductions



Apr 17, 2001, 01:00 ET from Blount International, Inc.

    MONTGOMERY, Ala., April 17 /PRNewswire/ -- Blount International, Inc.
 (NYSE:   BLT) ("Blount") today reported results for the first quarter ended
 March 31, 2001.  For the first quarter of 2001, sales were $174.6 million, a
 16.6 percent decrease from the prior year's first quarter sales of
 $209.3 million.  Earnings before interest, taxes, depreciation, amortization
 and other income (EBITDA) for the first quarter were $24.3 million before
 accounting for restructuring costs of $16.2 million.  This is a 26.4 percent
 decrease from last year's first quarter EBITDA of $33.0 million.  The
 restructuring actions, which include workforce reductions and a plant closing,
 are expected to provide annualized savings of approximately $6 million with
 approximately $5 million of savings realized in calendar year 2001.  Net loss
 for the first quarter was $4.7 million or ($0.15) per share before accounting
 for after tax restructuring costs of $9.1 million ($0.30 per share) as
 compared to last year's net income for the quarter of $1.4 million ($0.05 per
 share).
     Commenting on the first quarter results, Harold E. Layman, President and
 Chief Executive Officer, stated, "This past quarter continued to reflect a
 challenging environment in both the general economy and specifically in our
 industrial and power equipment business.  We however, saw our financial
 results for the quarter finish in line with our expectations, as results of
 our ongoing cost reduction activities began to show up and partially offset
 slowing economic conditions experienced this year.  Last year we had a record
 first quarter as the economy was doing very well, and we benefited from
 unusually good demand for saw chain due to storm damage in Europe."
     "We continue to make demonstrative cost reduction, performance improvement
 and inventory control actions throughout our organization to offset the
 effects of lower market conditions.  We believe these actions also position
 the Company for higher profitability as our markets improve."
     Commenting on the upcoming retirement of John Pannetiere, Harold Layman
 said "John M. Panettiere, Blount's chairman and previous CEO, announced his
 plans to retire this summer after leading Blount for nine years, during which
 time sales grew from just over $400 million to over $800 million annually.
 John's contributions during this time are much appreciated by all employees
 and we are fortunate to be able to utilize his counsel in the future."
 
     Segment Results
     The Outdoor Products segment reported first quarter sales of
 $91.2 million, a 2.6 percent decrease from last year's sales of $93.6 million.
 EBITDA in the quarter of $22.6 million compares to last year's EBITDA of
 $24.7 million.  These results reflect continued good markets for saw chain and
 bars and lawn care accessories in the United States, Canada and South America
 offset by lower activity in Europe and the Asia Pacific region.  In the first
 quarter of 2000, the European market had heavy demand due to severe windstorm
 damage.  The overall sales and operating income shortfall in this segment
 primarily resulted from the lower sales of lawnmowers from our Dixon operation
 due to cold weather in the southern part of the United States.  Backlog in
 this segment remains high at $47.7 million and compares to $56.6 million last
 year, which was more than double the more customary backlog of $24.0 million
 in March 1999.
     The Sporting Equipment segment reported first quarter sales of
 $55.5 million, down 24.4 percent from last year's first quarter of
 $73.4 million.  EBITDA was $3.6 million, compared to last year's first quarter
 of $9.2 million.  Other than law enforcement, the markets for ammunition
 continue to be negatively impacted by slow retail sales and high distributor
 inventories.  In addition, competitive discounting impacted sales and margins.
 Actions have been implemented to reduce costs and production levels to offset
 the impact of the lower market conditions.  Our statistics indicate that
 distributor and retailer inventories are decreasing rapidly, providing support
 for our expectation of a good hunting selling season in the latter part of the
 third quarter and early fourth quarter.  The backlog in this segment at
 $24.1 million compares to $36.3 million last year.
     The Industrial and Power Equipment segment reported first quarter sales of
 $27.9 million, down 34.0 percent from sales of $42.3 million a year earlier.
 EBITDA for this quarter was a loss of $0.4 million versus a positive
 $2.4 million in last year's first quarter on a comparable basis.  The markets
 for forestry equipment continue to be well below normal levels.  Additional
 steps have been taken to reduce costs and production.  In addition to
 temporary plant shutdowns and personnel reductions, the permanent shutdown of
 the Zebulon, North Carolina manufacturing facility is in process with the
 transfer of production to the Prentice, Wisconsin facility.  Over the past two
 years, the workforce in this segment has been reduced by more than 40%.  A
 bright spot during the quarter was the favorable reaction by the dealers to
 several new product introductions, which resulted in new orders and will
 favorably contribute to future results as the market improves.  There is no
 current indication of a significant upturn in the market.
 
     Headquartered in Montgomery, Alabama, Blount International, Inc. is a
 diversified international company operating in three principal business
 segments:  Outdoor Products; Sporting Equipment; and Industrial and Power
 Equipment.  Blount International, Inc. sells its products in more than
 100 countries around the world.  For more information about Blount
 International, Inc., please visit our website at http://www.blount.com
 
     Forward-looking statements in this release, including without limitation
 the Company's "expectations," "beliefs" and their variants, as defined by the
 Private Securities Litigation Reform Law of 1995, involve certain risks and
 actual results subsequent to the date of this announcement may differ
 materially.
 
 
     Blount International, Inc. Financial Data
 
     Consolidated Statements of Income           Three months ended March 31,
     In millions, except share data                      2001           2000
 
     Sales                                       $      174.6     $    209.3
     Cost of sales                                      125.8          147.6
     Gross profit                                        48.8           61.7
     Selling, general and administrative expenses        32.0           35.7
     Restructuring expenses                              16.2
     Income from operations                               0.6           26.0
     Interest expense                                   (25.5)         (24.2)
     Interest income                                      0.3            0.4
     Other income, net                                                   0.3
     Income (loss) before income taxes                  (24.6)           2.5
     Provision (benefit) for income taxes               (10.8)           1.1
     Net income (loss)                           $      (13.8)    $      1.4
     Net income (loss) per share - basic         $      (0.45)    $     0.05
     Shares used for per share computations:
     Basic                                         30,795,882     30,795,882
 
     Segment Information                         Three months ended March 31,
     In millions                                         2001           2000
 
     Sales
     Outdoor products                            $       91.2     $     93.6
     Sporting equipment                                  55.5           73.4
     Industrial and power equipment                      27.9           42.3
                                                 $      174.6     $    209.3
     Operating income (loss)
     Outdoor products                            $       19.5     $     22.0
     Sporting equipment                                   0.7            6.4
     Industrial and power equipment                      (1.6)           1.3
     Operating income from segments                      18.6           29.7
     Corporate office expenses                           (1.8)          (3.7)
     Restructuring expenses                             (16.2)
     Income from operations                      $        0.6     $     26.0
 
     Condensed Consolidated Balance Sheets            March 31,       Dec. 31,
     In millions                                         2001           2000
 
     Assets
     Cash and cash equivalents                   $        3.2     $      4.8
     Accounts receivable                                160.0          149.0
     Inventory                                          161.7          150.7
     Other current assets                                44.6           30.9
     Property, plant and equipment, net                 174.7          177.4
     Other assets                                       190.5          191.1
     Total assets                                $      734.7     $    703.9
     Liabilities
     Notes payable and current maturities
      of long-term debt                          $       10.6     $      8.5
     Other current liabilities                          131.1          135.1
     Long-term debt                                     865.2          824.5
     Other liabilities                                   47.9           48.0
     Total liabilities                                1,054.8        1,016.1
     Stockholders' equity (deficit)                    (320.1)        (312.2)
     Total liabilities and stockholders'
      equity (deficit)                           $      734.7     $    703.9
 
 

SOURCE Blount International, Inc.
    MONTGOMERY, Ala., April 17 /PRNewswire/ -- Blount International, Inc.
 (NYSE:   BLT) ("Blount") today reported results for the first quarter ended
 March 31, 2001.  For the first quarter of 2001, sales were $174.6 million, a
 16.6 percent decrease from the prior year's first quarter sales of
 $209.3 million.  Earnings before interest, taxes, depreciation, amortization
 and other income (EBITDA) for the first quarter were $24.3 million before
 accounting for restructuring costs of $16.2 million.  This is a 26.4 percent
 decrease from last year's first quarter EBITDA of $33.0 million.  The
 restructuring actions, which include workforce reductions and a plant closing,
 are expected to provide annualized savings of approximately $6 million with
 approximately $5 million of savings realized in calendar year 2001.  Net loss
 for the first quarter was $4.7 million or ($0.15) per share before accounting
 for after tax restructuring costs of $9.1 million ($0.30 per share) as
 compared to last year's net income for the quarter of $1.4 million ($0.05 per
 share).
     Commenting on the first quarter results, Harold E. Layman, President and
 Chief Executive Officer, stated, "This past quarter continued to reflect a
 challenging environment in both the general economy and specifically in our
 industrial and power equipment business.  We however, saw our financial
 results for the quarter finish in line with our expectations, as results of
 our ongoing cost reduction activities began to show up and partially offset
 slowing economic conditions experienced this year.  Last year we had a record
 first quarter as the economy was doing very well, and we benefited from
 unusually good demand for saw chain due to storm damage in Europe."
     "We continue to make demonstrative cost reduction, performance improvement
 and inventory control actions throughout our organization to offset the
 effects of lower market conditions.  We believe these actions also position
 the Company for higher profitability as our markets improve."
     Commenting on the upcoming retirement of John Pannetiere, Harold Layman
 said "John M. Panettiere, Blount's chairman and previous CEO, announced his
 plans to retire this summer after leading Blount for nine years, during which
 time sales grew from just over $400 million to over $800 million annually.
 John's contributions during this time are much appreciated by all employees
 and we are fortunate to be able to utilize his counsel in the future."
 
     Segment Results
     The Outdoor Products segment reported first quarter sales of
 $91.2 million, a 2.6 percent decrease from last year's sales of $93.6 million.
 EBITDA in the quarter of $22.6 million compares to last year's EBITDA of
 $24.7 million.  These results reflect continued good markets for saw chain and
 bars and lawn care accessories in the United States, Canada and South America
 offset by lower activity in Europe and the Asia Pacific region.  In the first
 quarter of 2000, the European market had heavy demand due to severe windstorm
 damage.  The overall sales and operating income shortfall in this segment
 primarily resulted from the lower sales of lawnmowers from our Dixon operation
 due to cold weather in the southern part of the United States.  Backlog in
 this segment remains high at $47.7 million and compares to $56.6 million last
 year, which was more than double the more customary backlog of $24.0 million
 in March 1999.
     The Sporting Equipment segment reported first quarter sales of
 $55.5 million, down 24.4 percent from last year's first quarter of
 $73.4 million.  EBITDA was $3.6 million, compared to last year's first quarter
 of $9.2 million.  Other than law enforcement, the markets for ammunition
 continue to be negatively impacted by slow retail sales and high distributor
 inventories.  In addition, competitive discounting impacted sales and margins.
 Actions have been implemented to reduce costs and production levels to offset
 the impact of the lower market conditions.  Our statistics indicate that
 distributor and retailer inventories are decreasing rapidly, providing support
 for our expectation of a good hunting selling season in the latter part of the
 third quarter and early fourth quarter.  The backlog in this segment at
 $24.1 million compares to $36.3 million last year.
     The Industrial and Power Equipment segment reported first quarter sales of
 $27.9 million, down 34.0 percent from sales of $42.3 million a year earlier.
 EBITDA for this quarter was a loss of $0.4 million versus a positive
 $2.4 million in last year's first quarter on a comparable basis.  The markets
 for forestry equipment continue to be well below normal levels.  Additional
 steps have been taken to reduce costs and production.  In addition to
 temporary plant shutdowns and personnel reductions, the permanent shutdown of
 the Zebulon, North Carolina manufacturing facility is in process with the
 transfer of production to the Prentice, Wisconsin facility.  Over the past two
 years, the workforce in this segment has been reduced by more than 40%.  A
 bright spot during the quarter was the favorable reaction by the dealers to
 several new product introductions, which resulted in new orders and will
 favorably contribute to future results as the market improves.  There is no
 current indication of a significant upturn in the market.
 
     Headquartered in Montgomery, Alabama, Blount International, Inc. is a
 diversified international company operating in three principal business
 segments:  Outdoor Products; Sporting Equipment; and Industrial and Power
 Equipment.  Blount International, Inc. sells its products in more than
 100 countries around the world.  For more information about Blount
 International, Inc., please visit our website at http://www.blount.com
 
     Forward-looking statements in this release, including without limitation
 the Company's "expectations," "beliefs" and their variants, as defined by the
 Private Securities Litigation Reform Law of 1995, involve certain risks and
 actual results subsequent to the date of this announcement may differ
 materially.
 
 
     Blount International, Inc. Financial Data
 
     Consolidated Statements of Income           Three months ended March 31,
     In millions, except share data                      2001           2000
 
     Sales                                       $      174.6     $    209.3
     Cost of sales                                      125.8          147.6
     Gross profit                                        48.8           61.7
     Selling, general and administrative expenses        32.0           35.7
     Restructuring expenses                              16.2
     Income from operations                               0.6           26.0
     Interest expense                                   (25.5)         (24.2)
     Interest income                                      0.3            0.4
     Other income, net                                                   0.3
     Income (loss) before income taxes                  (24.6)           2.5
     Provision (benefit) for income taxes               (10.8)           1.1
     Net income (loss)                           $      (13.8)    $      1.4
     Net income (loss) per share - basic         $      (0.45)    $     0.05
     Shares used for per share computations:
     Basic                                         30,795,882     30,795,882
 
     Segment Information                         Three months ended March 31,
     In millions                                         2001           2000
 
     Sales
     Outdoor products                            $       91.2     $     93.6
     Sporting equipment                                  55.5           73.4
     Industrial and power equipment                      27.9           42.3
                                                 $      174.6     $    209.3
     Operating income (loss)
     Outdoor products                            $       19.5     $     22.0
     Sporting equipment                                   0.7            6.4
     Industrial and power equipment                      (1.6)           1.3
     Operating income from segments                      18.6           29.7
     Corporate office expenses                           (1.8)          (3.7)
     Restructuring expenses                             (16.2)
     Income from operations                      $        0.6     $     26.0
 
     Condensed Consolidated Balance Sheets            March 31,       Dec. 31,
     In millions                                         2001           2000
 
     Assets
     Cash and cash equivalents                   $        3.2     $      4.8
     Accounts receivable                                160.0          149.0
     Inventory                                          161.7          150.7
     Other current assets                                44.6           30.9
     Property, plant and equipment, net                 174.7          177.4
     Other assets                                       190.5          191.1
     Total assets                                $      734.7     $    703.9
     Liabilities
     Notes payable and current maturities
      of long-term debt                          $       10.6     $      8.5
     Other current liabilities                          131.1          135.1
     Long-term debt                                     865.2          824.5
     Other liabilities                                   47.9           48.0
     Total liabilities                                1,054.8        1,016.1
     Stockholders' equity (deficit)                    (320.1)        (312.2)
     Total liabilities and stockholders'
      equity (deficit)                           $      734.7     $    703.9
 
 SOURCE  Blount International, Inc.