DONCASTERS plc Reports Record Quarterly Sales and Record Order Backlog

Apr 25, 2001, 01:00 ET from DONCASTERS plc

    MELBOURNE, England, April 25 /PRNewswire Interactive News Release/ --
 HIGHLIGHTS (U.S. GAAP):
 
     -- Net sales for the first quarter of 2001 were 87.5 million pounds
        compared with 71.8 million pounds for the first quarter of 2000.
 
     -- Net income, excluding the effects of SFAS 133, for the first quarter of
        2001 was 4.2 million pounds, or $0.68 per ADS compared with
        1.1 million pounds, or $0.19 per ADS for the first quarter of 2000.
 
     -- EBITDA increased by 4.5 million pounds to 12.7 million pounds for the
        first quarter of 2001, compared with 8.2 million pounds for the first
        quarter of 2000.
 
     -- Order backlog at March 31, 2001 was 238.2 million pounds, an increase
        of 8.5 million pounds from December 31, 2000.
 
     Eric Lewis, Chief Executive Officer of DONCASTERS plc, commented:
 
     "We are pleased to report another improved quarter for sales, the third in
 succession.  At 87.5 million pounds they were an all time record for any
 quarter in our history.
     "The order intake for the quarter at 96.0 million pounds was above our
 expectations, leaving us with an improved backlog of 238.2 million pounds up
 29.9 million pounds on the first quarter 2000 and up 8.5 million pounds on the
 2000 year end.  The improvement in orders booked was witnessed across all of
 our sectors, but especially in the petrochemical sector.
     "Earnings met expectations despite a poor quarter for sales in the
 petrochemical sector and after taking account of approximately 850,000 pounds
 of exceptional costs.
     "The review of our strategic options that commenced last November is
 continuing.  Significant progress has been made, and the Company hopes to
 complete the process shortly.  An announcement will be made upon completion of
 the review."
 
     References are to U.S. GAAP
     DONCASTERS plc, Melbourne, England, today reports net income for the first
 quarter of 2001 of 2.5 million pounds, or 0.29 pounds per ADS ($0.41 per ADS).
 Excluding the effects of SFAS 133 "Accounting for Derivative Instruments and
 Hedging Activities," net income for the first quarter of 2001 was 4.2 million
 pounds, or 0.48 pounds per ADS ($0.68 per ADS) compared with 1.1 million
 pounds, or 0.12 pounds per ADS ($0.19 per ADS) for the first quarter of 2000.
 
     SFAS 133
     Under SFAS 133, which became effective from January 1 2001, DONCASTERS'
 forward currency contracts are required to be recorded at fair value on the
 balance sheet.  Where the hedges do not meet the requirements set out in SFAS
 133 for the adoption of hedge accounting, changes in the fair value of such
 contracts are recognized in the statement of operations as a credit to or
 charge against earnings.  The effect of this accounting standard in the first
 quarter of 2001 has been a charge against income before income taxes of
 2.4 million pounds (1.7 million pounds after tax).  Where it is not
 practicable to apply hedge accounting to specific contracts, fluctuations in
 exchange rates will continue to give rise to a charge or credit in the
 statement of operations.  This non-cash charge or credit will reverse on
 maturity of these contracts.
 
     First quarter 2001 net income is restated below, after excluding the
 effect of SFAS 133.
 
                                            Three months ended March 31,
                                        2001            2001          2000
                                     As reported   Excl. SFAS 133  As reported
                                                   (in thousands)
 
     Operating income                   8,894           8,894         4,867
                                          pounds         pounds        pounds
     Net interest and other
      income (expense)                (2,091)         (2,091)       (2,539)
     Charge in respect of SFAS 133    (2,430)              --            --
     Income before income taxes         4,373           6,803         2,328
     Income taxes                     (1,837)         (2,566)       (1,260)
     Net income                         2,536           4,237         1,068
                                          pounds         pounds        pounds
 
     Net income per ADS                 $0.41           $0.68         $0.19
 
     Net sales of 87.5 million pounds in the first quarter of 2001 were
 15.7 million pounds higher than sales in the corresponding period in 2000 and
 6.0 million pounds higher than sales in the fourth quarter of 2000.
 
     NET SALES BY BUSINESS SECTOR  WERE:-
                                              FIRST QUARTER
                                      2001                        2000
                              pounds                      pounds
                             million            %        million           %
     IGT                       38.3          43.8         26.0          36.2
     Aerospace                 25.5          29.1         23.2          32.3
     Petrochemical              4.3           4.9          5.4           7.5
     Others                    19.4          22.2         17.2          24.0
     TOTAL                     87.5         100.0         71.8         100.0
 
     Sales to the IGT sector in the first quarter of 2001 increased by
 12.3 million pounds to 38.3 million pounds from 26.0 million pounds in the
 corresponding quarter in 2000.  First quarter 2001 sales were 4.9 million
 pounds higher than sales in the fourth quarter of 2000 continuing the trend of
 increased sales to our European IGT customers.  Activity at DONCASTERS' U.S.
 machining facilities also continued at high levels, with sales in the first
 quarter of 2001 exceeding sales in both the first quarter of 2000 and the
 fourth quarter of 2000.
     Sales to the aerospace sector in the first quarter of 2001 increased by
 2.3 million pounds to 25.5 million pounds from 23.2 million pounds in the
 corresponding quarter in 2000.  Sales of both fabricated exhaust systems and
 cast or forged engine components reflected increases compared with the first
 quarter of 2000.
     Sales to the petrochemical market decreased by 1.1 million pounds to
 4.3 million pounds in the first quarter of 2001 from 5.4 million pounds in the
 first quarter of 2000.  This decline reflected the weak market conditions
 experienced in the second half of 2000.  However, in the first quarter of 2001
 order intake, particularly for refurbishment projects, significantly increased
 and should lead to improved sales for future quarters.
     Sales to the other business sector increased by 2.2 million pounds to
 19.4 million pounds in the first quarter of 2001, from 17.2 million pounds in
 the corresponding quarter of 2000.  Sales of medical and specialty automotive
 products were approximately 24% higher than sales in the first quarter of 2000
 with general engineering activities showing growth of approximately 4%.
     The order backlog at March 31, 2001 increased by 8.5 million pounds to
 238.2 million pounds from 229.7 million pounds at December 31, 2000.
     In March 2001, we disposed of our Open Die business at Sheffield, in the
 U.K., for consideration of approximately 1.8 million pounds, of which
 0.7 million pounds is deferred.
 
     Background Information
     DONCASTERS plc is a leading manufacturer of highly-engineered metal
 components for tolerance-critical applications, primarily in the industrial
 gas turbine and aerospace industries.  The Company produces
 precision-engineered parts, sub-assemblies and modules to its customers'
 specifications in a wide range of specialty metals and alloys.
 
     Statements contained in this release may be forward-looking in nature,
 particularly with respect to anticipated changes in our markets, and as such
 are subject to the risks and uncertainties inherent in the business of the
 Company.
 
                                 DONCASTERS plc
           CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (unaudited)
                                  (U.S. GAAP)
                                                         Three months ended
 
 March 31,
                                                        2001            2000
                                                           (in thousands)
 
     Net sales                                         87,544         71,785
                                                        pounds        pounds
     Costs and expenses:
      Cost of sales                                    67,749         56,600
      Selling, general and administration               6,545          5,901
      Depreciation                                      3,299          2,846
      Amortization of goodwill                            534            531
      Other non-recurring costs (Note 3)                  523          1,040
     Total costs and expenses                          78,650         66,918
 
     Operating income                                   8,894          4,867
      Net interest and other income (expense)         (2,091)        (2,539)
      Charge in respect of foreign currency
       forward contracts (SFAS 133) (Note 5)          (2,430)             --
     Income before income taxes                         4,373          2,328
 
      Income taxes                                    (1,837)        (1,260)
     Net income                                         2,536          1,068
                                                        pounds         pounds
     Net income:
     Per Ordinary Share                                  0.14           0.06
                                                         pounds         pounds
     Per ADS                                             0.29           0.12
                                                         pounds         pounds
                                                                      (Note 1)
 
     Per Ordinary Share (Note 2)                        $0.20          $0.10
     Per ADS (Note 2)                                   $0.41          $0.19
                                                                      (Note 1)
 
     Net income excluding the
      effects of SFAS 133:
       Per Ordinary Share (Note 4)                      $0.34          $0.10
       Per ADS (Note 4)                                 $0.68          $0.19
                                                                      (Note 1)
 
     Ordinary Shares outstanding
      (weighted average, in thousands)                 17,713         17,625
 
     ADS's outstanding (weighted average,
      in thousands)                                     8,857          8,813
                                                                      (Note 1)
 
     Note (1) ADS and income per ADS information is calculated by adjusting the
     share data for the ratio of two Ordinary Shares per ADS.  As at March 31,
     2001 there were 8.857 million ADS's issued representing 17.715 million
     Ordinary Shares.
 
     Note (2) Dollar income per Ordinary Share and Dollar income per ADS
     information for the three months ended March 31, 2001 has been calculated
     by translating pounds sterling into U.S. dollars at the rate of
     1.00 pounds = $1.4190 (The noon buying rate on March 31, 2001).  The
     dollar comparatives for 2000 included above are as reported in our first
     quarter 2000 press release and were calculated by translating pounds
     sterling into U.S. dollars at the rate of 1.00 pounds = $1.5922.  Such
     translation is provided solely for the convenience of the reader and does
     not reflect the financial information in accordance with generally
     accepted accounting principles for foreign currency translation.
 
     Note (3) The other non-recurring costs incurred during the first quarter
     2001 relate to costs associated with the strategic review currently being
     undertaken by the Company.
 
     Note (4) Dollar net income per Ordinary Share and per ADS has also been
     presented excluding the effects of SFAS 133 which amounted to 2.4 million
     pounds (1.7 million pounds after tax) in the first quarter of 2001.
 
     Note (5) Where the Company's foreign currency forward contracts do not
     meet the requirements set out in SFAS 133 for adoption of hedge
     accounting, changes in the fair value of the ineffective portion of the
     contracts are recognized in the statement of operations as either a credit
     to or a charge against earnings.
 
                                 DONCASTERS plc
                CONDENSED CONSOLIDATED BALANCE SHEET (unaudited)
                                  (U.S. GAAP)
 
                                                      March 31,   December 31,
                                                        2001          2000
                                                          (in thousands)
     Assets
 
     Cash and cash equivalents                         20,439         14,365
                                                       pounds         pounds
 
     Accounts receivable (net)                         68,005         62,419
     Inventories                                       47,340         44,778
     Prepaid expenses                                   2,030            933
         Total current assets                         137,814        122,495
 
     Goodwill (net)                                    78,854         79,573
     Property, plant and equipment (net)               91,733         89,972
     Pension benefits                                  15,452         15,433
 
                                                      323,853        307,473
                                                       pounds         pounds
 
     Liabilities and shareholders' equity
 
     Accounts payable                                  35,718         30,004
                                                       pounds         pounds
 
     Accrued liabilities                               30,005         26,659
     Debt due within one year                           3,943          3,812
         Total current liabilities                     69,666         60,475
     Long-term debt                                   122,314        120,934
     Pension benefits                                   5,599          5,683
     Deferred income taxes                              9,269         10,272
     Other liabilities                                 15,252         11,350
         Total liabilities                            222,100        208,714
 
     Share capital                                      4,429          4,427
     Additional paid-in capital                        18,507         18,474
     Retained earnings                                 77,934         76,148
     Cumulative currency translation adjustments          883          (290)
         Total shareholders' equity                   101,753         98,759
 
                                                      323,853        307,473
                                                       pounds         pounds
 
                                   DONCASTERS plc
           CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (unaudited)
                                  (U.S. GAAP)
 
                                                         Three months ended
                                                              March 31,
                                                         2001           2000
                                                           (in thousands)
     Cash flow from operating activities
     Net income                                         2,536          1,068
                                                        pounds         pounds
     Adjustments to reconcile net income
      to net cash provided by operating activities:
     Depreciation and amortization                      3,833          3,377
     Deferred taxes                                       170            160
     Gain on disposal of property,
      plant and equipment                               (354)            (2)
     Changes in operating working capital
      excluding effects of acquisitions                 2,366          1,413
     Accruals in excess of payments for
      post-retirement benefits other than pensions        200             71
     Net cash provided by operating activities          8,751          6,087
 
     Cash flows from investing activities
     Sale of businesses                                 1,126             --
     Capital expenditures                             (4,563)        (3,284)
     Proceeds from sales of property,
      plant and equipment                                  10             19
     Net cash used in investing activities            (3,427)        (3,265)
 
     Cash flows from financing activities
     Issue of share capital                                35             --
     Net proceeds of long-term debt                       941             --
     Long-term debt repayment                           (280)          (162)
     Net cash provided by (used in)
      financing activities                                696          (162)
 
     Effect of exchange rate changes on cash               54             17
 
     Increase in cash and cash equivalents              6,074          2,677
 
     Cash and cash equivalents at beginning of period  14,365         11,187
 
     Cash and cash equivalents at end of period        20,439         13,864
                                                       pounds         pounds
 
     CONFERENCE CALL TELEPHONE NUMBERS
     Thursday, April 26, 2001 at 9:30 am Eastern Time
     US: 800-946-0785
     UK and Europe: 0800-028-7957
 
     Replay Numbers:
     US: 888-203-1112
     UK and Europe: 0800-028-8204
     Passcode: 778947
 
     Ask for DONCASTERS Conference Call -- hosted by Mr. E J Lewis.
     Replay scheduled to run from 12:30PM EDT on Thursday, April 26 through
     12:00PM EDT on Monday, April 30, 2001.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X88321649
 
 

SOURCE DONCASTERS plc
    MELBOURNE, England, April 25 /PRNewswire Interactive News Release/ --
 HIGHLIGHTS (U.S. GAAP):
 
     -- Net sales for the first quarter of 2001 were 87.5 million pounds
        compared with 71.8 million pounds for the first quarter of 2000.
 
     -- Net income, excluding the effects of SFAS 133, for the first quarter of
        2001 was 4.2 million pounds, or $0.68 per ADS compared with
        1.1 million pounds, or $0.19 per ADS for the first quarter of 2000.
 
     -- EBITDA increased by 4.5 million pounds to 12.7 million pounds for the
        first quarter of 2001, compared with 8.2 million pounds for the first
        quarter of 2000.
 
     -- Order backlog at March 31, 2001 was 238.2 million pounds, an increase
        of 8.5 million pounds from December 31, 2000.
 
     Eric Lewis, Chief Executive Officer of DONCASTERS plc, commented:
 
     "We are pleased to report another improved quarter for sales, the third in
 succession.  At 87.5 million pounds they were an all time record for any
 quarter in our history.
     "The order intake for the quarter at 96.0 million pounds was above our
 expectations, leaving us with an improved backlog of 238.2 million pounds up
 29.9 million pounds on the first quarter 2000 and up 8.5 million pounds on the
 2000 year end.  The improvement in orders booked was witnessed across all of
 our sectors, but especially in the petrochemical sector.
     "Earnings met expectations despite a poor quarter for sales in the
 petrochemical sector and after taking account of approximately 850,000 pounds
 of exceptional costs.
     "The review of our strategic options that commenced last November is
 continuing.  Significant progress has been made, and the Company hopes to
 complete the process shortly.  An announcement will be made upon completion of
 the review."
 
     References are to U.S. GAAP
     DONCASTERS plc, Melbourne, England, today reports net income for the first
 quarter of 2001 of 2.5 million pounds, or 0.29 pounds per ADS ($0.41 per ADS).
 Excluding the effects of SFAS 133 "Accounting for Derivative Instruments and
 Hedging Activities," net income for the first quarter of 2001 was 4.2 million
 pounds, or 0.48 pounds per ADS ($0.68 per ADS) compared with 1.1 million
 pounds, or 0.12 pounds per ADS ($0.19 per ADS) for the first quarter of 2000.
 
     SFAS 133
     Under SFAS 133, which became effective from January 1 2001, DONCASTERS'
 forward currency contracts are required to be recorded at fair value on the
 balance sheet.  Where the hedges do not meet the requirements set out in SFAS
 133 for the adoption of hedge accounting, changes in the fair value of such
 contracts are recognized in the statement of operations as a credit to or
 charge against earnings.  The effect of this accounting standard in the first
 quarter of 2001 has been a charge against income before income taxes of
 2.4 million pounds (1.7 million pounds after tax).  Where it is not
 practicable to apply hedge accounting to specific contracts, fluctuations in
 exchange rates will continue to give rise to a charge or credit in the
 statement of operations.  This non-cash charge or credit will reverse on
 maturity of these contracts.
 
     First quarter 2001 net income is restated below, after excluding the
 effect of SFAS 133.
 
                                            Three months ended March 31,
                                        2001            2001          2000
                                     As reported   Excl. SFAS 133  As reported
                                                   (in thousands)
 
     Operating income                   8,894           8,894         4,867
                                          pounds         pounds        pounds
     Net interest and other
      income (expense)                (2,091)         (2,091)       (2,539)
     Charge in respect of SFAS 133    (2,430)              --            --
     Income before income taxes         4,373           6,803         2,328
     Income taxes                     (1,837)         (2,566)       (1,260)
     Net income                         2,536           4,237         1,068
                                          pounds         pounds        pounds
 
     Net income per ADS                 $0.41           $0.68         $0.19
 
     Net sales of 87.5 million pounds in the first quarter of 2001 were
 15.7 million pounds higher than sales in the corresponding period in 2000 and
 6.0 million pounds higher than sales in the fourth quarter of 2000.
 
     NET SALES BY BUSINESS SECTOR  WERE:-
                                              FIRST QUARTER
                                      2001                        2000
                              pounds                      pounds
                             million            %        million           %
     IGT                       38.3          43.8         26.0          36.2
     Aerospace                 25.5          29.1         23.2          32.3
     Petrochemical              4.3           4.9          5.4           7.5
     Others                    19.4          22.2         17.2          24.0
     TOTAL                     87.5         100.0         71.8         100.0
 
     Sales to the IGT sector in the first quarter of 2001 increased by
 12.3 million pounds to 38.3 million pounds from 26.0 million pounds in the
 corresponding quarter in 2000.  First quarter 2001 sales were 4.9 million
 pounds higher than sales in the fourth quarter of 2000 continuing the trend of
 increased sales to our European IGT customers.  Activity at DONCASTERS' U.S.
 machining facilities also continued at high levels, with sales in the first
 quarter of 2001 exceeding sales in both the first quarter of 2000 and the
 fourth quarter of 2000.
     Sales to the aerospace sector in the first quarter of 2001 increased by
 2.3 million pounds to 25.5 million pounds from 23.2 million pounds in the
 corresponding quarter in 2000.  Sales of both fabricated exhaust systems and
 cast or forged engine components reflected increases compared with the first
 quarter of 2000.
     Sales to the petrochemical market decreased by 1.1 million pounds to
 4.3 million pounds in the first quarter of 2001 from 5.4 million pounds in the
 first quarter of 2000.  This decline reflected the weak market conditions
 experienced in the second half of 2000.  However, in the first quarter of 2001
 order intake, particularly for refurbishment projects, significantly increased
 and should lead to improved sales for future quarters.
     Sales to the other business sector increased by 2.2 million pounds to
 19.4 million pounds in the first quarter of 2001, from 17.2 million pounds in
 the corresponding quarter of 2000.  Sales of medical and specialty automotive
 products were approximately 24% higher than sales in the first quarter of 2000
 with general engineering activities showing growth of approximately 4%.
     The order backlog at March 31, 2001 increased by 8.5 million pounds to
 238.2 million pounds from 229.7 million pounds at December 31, 2000.
     In March 2001, we disposed of our Open Die business at Sheffield, in the
 U.K., for consideration of approximately 1.8 million pounds, of which
 0.7 million pounds is deferred.
 
     Background Information
     DONCASTERS plc is a leading manufacturer of highly-engineered metal
 components for tolerance-critical applications, primarily in the industrial
 gas turbine and aerospace industries.  The Company produces
 precision-engineered parts, sub-assemblies and modules to its customers'
 specifications in a wide range of specialty metals and alloys.
 
     Statements contained in this release may be forward-looking in nature,
 particularly with respect to anticipated changes in our markets, and as such
 are subject to the risks and uncertainties inherent in the business of the
 Company.
 
                                 DONCASTERS plc
           CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (unaudited)
                                  (U.S. GAAP)
                                                         Three months ended
 
 March 31,
                                                        2001            2000
                                                           (in thousands)
 
     Net sales                                         87,544         71,785
                                                        pounds        pounds
     Costs and expenses:
      Cost of sales                                    67,749         56,600
      Selling, general and administration               6,545          5,901
      Depreciation                                      3,299          2,846
      Amortization of goodwill                            534            531
      Other non-recurring costs (Note 3)                  523          1,040
     Total costs and expenses                          78,650         66,918
 
     Operating income                                   8,894          4,867
      Net interest and other income (expense)         (2,091)        (2,539)
      Charge in respect of foreign currency
       forward contracts (SFAS 133) (Note 5)          (2,430)             --
     Income before income taxes                         4,373          2,328
 
      Income taxes                                    (1,837)        (1,260)
     Net income                                         2,536          1,068
                                                        pounds         pounds
     Net income:
     Per Ordinary Share                                  0.14           0.06
                                                         pounds         pounds
     Per ADS                                             0.29           0.12
                                                         pounds         pounds
                                                                      (Note 1)
 
     Per Ordinary Share (Note 2)                        $0.20          $0.10
     Per ADS (Note 2)                                   $0.41          $0.19
                                                                      (Note 1)
 
     Net income excluding the
      effects of SFAS 133:
       Per Ordinary Share (Note 4)                      $0.34          $0.10
       Per ADS (Note 4)                                 $0.68          $0.19
                                                                      (Note 1)
 
     Ordinary Shares outstanding
      (weighted average, in thousands)                 17,713         17,625
 
     ADS's outstanding (weighted average,
      in thousands)                                     8,857          8,813
                                                                      (Note 1)
 
     Note (1) ADS and income per ADS information is calculated by adjusting the
     share data for the ratio of two Ordinary Shares per ADS.  As at March 31,
     2001 there were 8.857 million ADS's issued representing 17.715 million
     Ordinary Shares.
 
     Note (2) Dollar income per Ordinary Share and Dollar income per ADS
     information for the three months ended March 31, 2001 has been calculated
     by translating pounds sterling into U.S. dollars at the rate of
     1.00 pounds = $1.4190 (The noon buying rate on March 31, 2001).  The
     dollar comparatives for 2000 included above are as reported in our first
     quarter 2000 press release and were calculated by translating pounds
     sterling into U.S. dollars at the rate of 1.00 pounds = $1.5922.  Such
     translation is provided solely for the convenience of the reader and does
     not reflect the financial information in accordance with generally
     accepted accounting principles for foreign currency translation.
 
     Note (3) The other non-recurring costs incurred during the first quarter
     2001 relate to costs associated with the strategic review currently being
     undertaken by the Company.
 
     Note (4) Dollar net income per Ordinary Share and per ADS has also been
     presented excluding the effects of SFAS 133 which amounted to 2.4 million
     pounds (1.7 million pounds after tax) in the first quarter of 2001.
 
     Note (5) Where the Company's foreign currency forward contracts do not
     meet the requirements set out in SFAS 133 for adoption of hedge
     accounting, changes in the fair value of the ineffective portion of the
     contracts are recognized in the statement of operations as either a credit
     to or a charge against earnings.
 
                                 DONCASTERS plc
                CONDENSED CONSOLIDATED BALANCE SHEET (unaudited)
                                  (U.S. GAAP)
 
                                                      March 31,   December 31,
                                                        2001          2000
                                                          (in thousands)
     Assets
 
     Cash and cash equivalents                         20,439         14,365
                                                       pounds         pounds
 
     Accounts receivable (net)                         68,005         62,419
     Inventories                                       47,340         44,778
     Prepaid expenses                                   2,030            933
         Total current assets                         137,814        122,495
 
     Goodwill (net)                                    78,854         79,573
     Property, plant and equipment (net)               91,733         89,972
     Pension benefits                                  15,452         15,433
 
                                                      323,853        307,473
                                                       pounds         pounds
 
     Liabilities and shareholders' equity
 
     Accounts payable                                  35,718         30,004
                                                       pounds         pounds
 
     Accrued liabilities                               30,005         26,659
     Debt due within one year                           3,943          3,812
         Total current liabilities                     69,666         60,475
     Long-term debt                                   122,314        120,934
     Pension benefits                                   5,599          5,683
     Deferred income taxes                              9,269         10,272
     Other liabilities                                 15,252         11,350
         Total liabilities                            222,100        208,714
 
     Share capital                                      4,429          4,427
     Additional paid-in capital                        18,507         18,474
     Retained earnings                                 77,934         76,148
     Cumulative currency translation adjustments          883          (290)
         Total shareholders' equity                   101,753         98,759
 
                                                      323,853        307,473
                                                       pounds         pounds
 
                                   DONCASTERS plc
           CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (unaudited)
                                  (U.S. GAAP)
 
                                                         Three months ended
                                                              March 31,
                                                         2001           2000
                                                           (in thousands)
     Cash flow from operating activities
     Net income                                         2,536          1,068
                                                        pounds         pounds
     Adjustments to reconcile net income
      to net cash provided by operating activities:
     Depreciation and amortization                      3,833          3,377
     Deferred taxes                                       170            160
     Gain on disposal of property,
      plant and equipment                               (354)            (2)
     Changes in operating working capital
      excluding effects of acquisitions                 2,366          1,413
     Accruals in excess of payments for
      post-retirement benefits other than pensions        200             71
     Net cash provided by operating activities          8,751          6,087
 
     Cash flows from investing activities
     Sale of businesses                                 1,126             --
     Capital expenditures                             (4,563)        (3,284)
     Proceeds from sales of property,
      plant and equipment                                  10             19
     Net cash used in investing activities            (3,427)        (3,265)
 
     Cash flows from financing activities
     Issue of share capital                                35             --
     Net proceeds of long-term debt                       941             --
     Long-term debt repayment                           (280)          (162)
     Net cash provided by (used in)
      financing activities                                696          (162)
 
     Effect of exchange rate changes on cash               54             17
 
     Increase in cash and cash equivalents              6,074          2,677
 
     Cash and cash equivalents at beginning of period  14,365         11,187
 
     Cash and cash equivalents at end of period        20,439         13,864
                                                       pounds         pounds
 
     CONFERENCE CALL TELEPHONE NUMBERS
     Thursday, April 26, 2001 at 9:30 am Eastern Time
     US: 800-946-0785
     UK and Europe: 0800-028-7957
 
     Replay Numbers:
     US: 888-203-1112
     UK and Europe: 0800-028-8204
     Passcode: 778947
 
     Ask for DONCASTERS Conference Call -- hosted by Mr. E J Lewis.
     Replay scheduled to run from 12:30PM EDT on Thursday, April 26 through
     12:00PM EDT on Monday, April 30, 2001.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X88321649
 
 SOURCE  DONCASTERS plc