Fansteel Reports Results for First Quarter 2001

Apr 25, 2001, 01:00 ET from Fansteel Inc.

    NORTH CHICAGO, Ill., April 25 /PRNewswire/ -- Fansteel Inc. (NYSE:   FNL)
 net sales were $38,600,000 in the first quarter of 2001 compared with net
 sales of $39,498,000 for the same period of 2000.  The decline in sales is
 mostly attributable to decreased demand from the automotive and truck
 industries, which negatively impacted sales of powdered metal components and
 investment castings in the Industrial Metal Components segment.  Forging sales
 in the Advanced Structures segment also declined due to reduced production
 releases from the aircraft industry.  Partially offsetting these decreases
 were improved sales in the Industrial Tools segment for rotary cutting tools
 to the metalworking industry and increased volume in the Advanced Structures
 segment for sand castings to the aircraft industry.
     Net income for the first quarter of 2001 was $503,000, or $.06 per share,
 compared with net income in $1,712,000, or $.20 per share in the first quarter
 of 2000.  Current quarter income declined at all three of the Company's
 business segments.  Despite the sales volume growth in the Industrial Tools
 segment, income declined due to higher material costs and manufacturing
 inefficiencies.  Income for the Advanced Structures segment was down as a
 result of lower sales volume and higher energy costs at the California forging
 facility along with higher maintenance and scrap costs at the sand casting
 operation.  At the Industrial Metals Components segment, lower sales volume
 was the primary factor for the decrease in income, although higher operating
 costs at the investment casting facility in Addison, IL also had a negative
 impact on income.  Cost reduction actions have been undertaken by a number of
 Fansteel businesses in response to the ongoing reduced volume levels.
     To further reduce costs and improve operating efficiencies, Fansteel will
 close its Addison, IL investment casting facility by year-end and consolidate
 manufacturing at its investment casting operation in Mexico.  The move will
 allow the Company to maximize production at its world-class foundry located in
 Reynosa, Mexico and offer improved service to its customers.  Closure and
 relocation costs of approximately $1,000,000 will be incurred in 2001 with
 approximately $800,000 to be recorded in the second quarter.
     Fansteel is a specialty manufacturer of engineered metal components and
 tungsten carbide products.  Fansteel classifies its business into three
 business segments.  The Industrial Tools segment manufactures tungsten carbide
 parts including cutting tools, underground mining tools, construction tools,
 and diverse components for wear applications.  The Advanced Structures segment
 manufactures closed die forgings, machined components, and sand castings
 primarily for the aerospace market.  The Industrial Metal Components segment
 manufactures investment castings and investment casting production equipment,
 custom wire forms and fasteners, and powdered metal components used in diverse
 industrial and commercial applications.
 
 
     FANSTEEL INC.:  STATEMENT OF INCOME
     (Unaudited)
 
                                                         First Quarter
                                                      2001           2000
 
     Net Sales                                    $38,600,000    $39,498,000
 
     Operating Income                                 944,000      2,641,000
 
     Other Expense                                   (104,000)       (59,000)
 
     Income Before Income Taxes                       840,000      2,582,000
 
     Income Tax Provision                             337,000        870,000
 
     Net Income                                      $503,000     $1,712,000
 
     Net Income Per Weighted Average Common
      Shares Outstanding (a)
                                                        $0.06          $0.20
 
     Weighted Average Common Shares Outstanding     8,656,265      8,623,034
 
     Depreciation and Amortization Expense           $641,000       $633,000
 
     (a)Basic earnings per share and diluted earnings per share are the same.
 
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SOURCE Fansteel Inc.
    NORTH CHICAGO, Ill., April 25 /PRNewswire/ -- Fansteel Inc. (NYSE:   FNL)
 net sales were $38,600,000 in the first quarter of 2001 compared with net
 sales of $39,498,000 for the same period of 2000.  The decline in sales is
 mostly attributable to decreased demand from the automotive and truck
 industries, which negatively impacted sales of powdered metal components and
 investment castings in the Industrial Metal Components segment.  Forging sales
 in the Advanced Structures segment also declined due to reduced production
 releases from the aircraft industry.  Partially offsetting these decreases
 were improved sales in the Industrial Tools segment for rotary cutting tools
 to the metalworking industry and increased volume in the Advanced Structures
 segment for sand castings to the aircraft industry.
     Net income for the first quarter of 2001 was $503,000, or $.06 per share,
 compared with net income in $1,712,000, or $.20 per share in the first quarter
 of 2000.  Current quarter income declined at all three of the Company's
 business segments.  Despite the sales volume growth in the Industrial Tools
 segment, income declined due to higher material costs and manufacturing
 inefficiencies.  Income for the Advanced Structures segment was down as a
 result of lower sales volume and higher energy costs at the California forging
 facility along with higher maintenance and scrap costs at the sand casting
 operation.  At the Industrial Metals Components segment, lower sales volume
 was the primary factor for the decrease in income, although higher operating
 costs at the investment casting facility in Addison, IL also had a negative
 impact on income.  Cost reduction actions have been undertaken by a number of
 Fansteel businesses in response to the ongoing reduced volume levels.
     To further reduce costs and improve operating efficiencies, Fansteel will
 close its Addison, IL investment casting facility by year-end and consolidate
 manufacturing at its investment casting operation in Mexico.  The move will
 allow the Company to maximize production at its world-class foundry located in
 Reynosa, Mexico and offer improved service to its customers.  Closure and
 relocation costs of approximately $1,000,000 will be incurred in 2001 with
 approximately $800,000 to be recorded in the second quarter.
     Fansteel is a specialty manufacturer of engineered metal components and
 tungsten carbide products.  Fansteel classifies its business into three
 business segments.  The Industrial Tools segment manufactures tungsten carbide
 parts including cutting tools, underground mining tools, construction tools,
 and diverse components for wear applications.  The Advanced Structures segment
 manufactures closed die forgings, machined components, and sand castings
 primarily for the aerospace market.  The Industrial Metal Components segment
 manufactures investment castings and investment casting production equipment,
 custom wire forms and fasteners, and powdered metal components used in diverse
 industrial and commercial applications.
 
 
     FANSTEEL INC.:  STATEMENT OF INCOME
     (Unaudited)
 
                                                         First Quarter
                                                      2001           2000
 
     Net Sales                                    $38,600,000    $39,498,000
 
     Operating Income                                 944,000      2,641,000
 
     Other Expense                                   (104,000)       (59,000)
 
     Income Before Income Taxes                       840,000      2,582,000
 
     Income Tax Provision                             337,000        870,000
 
     Net Income                                      $503,000     $1,712,000
 
     Net Income Per Weighted Average Common
      Shares Outstanding (a)
                                                        $0.06          $0.20
 
     Weighted Average Common Shares Outstanding     8,656,265      8,623,034
 
     Depreciation and Amortization Expense           $641,000       $633,000
 
     (a)Basic earnings per share and diluted earnings per share are the same.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X67651944
 
 SOURCE  Fansteel Inc.