International Specialty Products Announces First Quarter 2001 Results

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

    WAYNE, N.J., April 17 /PRNewswire/ -- International Specialty Products
 Inc. (NYSE:   ISP) reported today first quarter 2001 net income of $22.5 million
 (34 cents per diluted share) compared with net income of $7.7 million (11
 cents per diluted share) in the first quarter of 2000.  First quarter 2001
 earnings include an after-tax charge of $0.4 million (1 cent per diluted
 share) for the cumulative effect of adopting Statement of Financial Accounting
 Standards No. 133, "Accounting for Derivative Instruments and Hedging
 Activities."  Excluding such charge and a one-time gain of $3.5 million in the
 first quarter of 2000, net income for the first quarter of 2001 was
 $22.9 million (35 cents per diluted share) versus $5.4 million (8 cents per
 diluted share) in the same period last year. The improved results were
 attributable to higher investment income, lower interest expense and higher
 operating income.
     Operating income for the first quarter of 2001 was $25.9 million compared
 with $25.6 million in the first quarter of 2000.  The increase was primarily
 attributable to a 42% improvement in operating profits in the Personal Care
 business segment as a result of higher unit volumes and an improved product
 mix, and, to a lesser extent, higher unit volumes in the Pharmaceutical
 business, partially offset by lower volumes in the Alginates business, higher
 energy costs in the Mineral Products business segment, unfavorable results in
 the Fine Chemicals business and by the adverse effect of the stronger U.S.
 dollar in Europe.
     "We are encouraged by the sales and income growth in the first quarter"
 said Sunil Kumar, President and CEO of ISP. "Even though energy costs are
 higher and the adverse effect of the stronger U.S. dollar is likely to
 continue for the remainder of 2001, we believe the improving mix and growth in
 our specialty chemicals business and the firming prices of our Industrial
 business should give us double digit operating profit growth for the remainder
 of the year compared to the same period last year" added Kumar.
     EBITDA, representing earnings before income taxes (excluding nonrecurring
 charges and gains), increased by interest expense, depreciation and goodwill
 amortization, was $68.8 million for the first quarter of 2001 compared with
 $44.5 million for the first quarter of 2000.  The increase resulted
 principally from higher investment income.
     Net sales for the first quarter of 2001 were $203.2 million compared with
 $197.9 million in the same period last year.  The increase in sales resulted
 primarily from higher unit volumes in the Personal Care, Pharmaceutical and
 Performance Chemicals businesses and improved pricing in the Industrial
 business, partially offset by lower unit volumes in the Industrial and
 Alginates businesses and by the adverse effect of the stronger U.S. dollar in
 Europe.
     Interest expense for the first quarter of 2001 was $19.1 million versus
 $19.7 million in the same period last year, with the decrease due mainly to
 lower average interest rates and, to a lesser extent, lower average
 borrowings.  Other income, net for the quarter was $28.5 million compared with
 $2.4 million in the first quarter of 2000, with the increase the result of
 higher investment income.
     International Specialty Products Inc. is a leading multinational
 manufacturer of specialty chemicals and mineral products.
     A conference call regarding the Company's first quarter 2001 results will
 be held at 11:00 A.M. Eastern Time on Tuesday, April 17.  The call-in
 telephone number will be 973-628-6885.  A replay of the conference call will
 be available until the end of the business day, Monday, April 23, by calling
 973-41-3080, PIN Number 2509413.
 
     This press release contains "forward-looking statements" within the
 meaning of the federal securities laws with respect to the Company's financial
 results and future operations and, as such, concerns matters that are not
 historical facts. These statements are subject to risks and uncertainties that
 could cause actual results to differ materially from those expressed in such
 statements. Important factors that could cause such differences are discussed
 in the Company's filings with the U.S. Securities and Exchange Commission and
 are incorporated herein by reference.
 
 
                     INTERNATIONAL SPECIALTY PRODUCTS INC.
                          SALES AND EARNINGS (Unaudited)
                       (Millions, except per share amounts)
 
                                                          First Quarter
                                                     2001              2000
 
     Net sales                                       $203.2            $197.9
 
     Costs and expenses:
         Cost of products sold                        133.3             129.4
         Selling, general and
          administrative                               40.0              38.9
         Goodwill amortization                          4.0               4.0
     Total costs and expenses                         177.3             172.3
 
     Operating income                                  25.9              25.6
 
     Interest expense                                 (19.1)            (19.7)
     Gain on contract settlement                         --               3.5
     Other income,  net                                28.5               2.4
 
     Income before income taxes                        35.3              11.8
     Income taxes                                     (12.4)             (4.1)
     Income before cumulative effect of
      accounting change                                22.9               7.7
 
     Cumulative effect of change in
      accounting principle, net of
          income tax benefit of $0.2                   (0.4)               --
     Net income                                       $22.5              $7.7
 
     Earnings per common share:
         Basic:
           Income before cumulative effect
            of accounting change                       $.35              $.11
           Cumulative effect of accounting
            change                                     (.01)               --
           Net income                                  $.34              $.11
         Diluted:
           Income before cumulative effect
            of accounting change                       $.35              $.11
           Cumulative effect of accounting
            change                                     (.01)               --
           Net income                                  $.34              $.11
 
     Weighted average number of common and
      common
         equivalent shares outstanding
          (thousands):
           Basic                                     66,328            68,849
           Diluted                                   66,373            68,857
 
     EBITDA, excluding non-recurring
      charges and gains(A)                            $68.8             $44.5
 
     (A) EBITDA represents earnings before income taxes (excluding one-time
         charges and gains),
         increased by interest expense, depreciation and goodwill
         amortization.
 
 
                       INTERNATIONAL SPECIALTY PRODUCTS INC.
                    SALES AND EARNINGS (Unaudited) - (Continued)
                                     (Millions)
 
 
                                                            First Quarter
                                                       2001               2000
 
     Supplemental Business Segment
      Information:
 
     Net sales:
         Personal Care                                $56.3              $48.6
         Pharmaceutical, Food and
          Beverage                                     57.4               59.8
         Performance Chemicals, Fine
          Chemicals
           and Industrial                              71.1               70.9
         Total Specialty Chemicals                    184.8              179.3
         Mineral Products                              18.4               18.6
     Net sales                                       $203.2             $197.9
 
     Operating income:
         Personal Care                                $12.2               $8.6
         Pharmaceutical, Food and
          Beverage                                     12.8               12.7
         Performance Chemicals, Fine
          Chemicals
           and Industrial                              (0.1)               1.7
         Total Specialty Chemicals                     24.9               23.0
         Mineral Products                               0.6                2.6
         Total segment operating income                25.5               25.6
         Unallocated corporate office                   0.4                 --
     Operating income                                 $25.9              $25.6
 
     Depreciation and Amortization                    $17.0              $16.5
     Capital Expenditures                              $9.9              $11.3
 
 

SOURCE International Specialty Products Inc.
    WAYNE, N.J., April 17 /PRNewswire/ -- International Specialty Products
 Inc. (NYSE:   ISP) reported today first quarter 2001 net income of $22.5 million
 (34 cents per diluted share) compared with net income of $7.7 million (11
 cents per diluted share) in the first quarter of 2000.  First quarter 2001
 earnings include an after-tax charge of $0.4 million (1 cent per diluted
 share) for the cumulative effect of adopting Statement of Financial Accounting
 Standards No. 133, "Accounting for Derivative Instruments and Hedging
 Activities."  Excluding such charge and a one-time gain of $3.5 million in the
 first quarter of 2000, net income for the first quarter of 2001 was
 $22.9 million (35 cents per diluted share) versus $5.4 million (8 cents per
 diluted share) in the same period last year. The improved results were
 attributable to higher investment income, lower interest expense and higher
 operating income.
     Operating income for the first quarter of 2001 was $25.9 million compared
 with $25.6 million in the first quarter of 2000.  The increase was primarily
 attributable to a 42% improvement in operating profits in the Personal Care
 business segment as a result of higher unit volumes and an improved product
 mix, and, to a lesser extent, higher unit volumes in the Pharmaceutical
 business, partially offset by lower volumes in the Alginates business, higher
 energy costs in the Mineral Products business segment, unfavorable results in
 the Fine Chemicals business and by the adverse effect of the stronger U.S.
 dollar in Europe.
     "We are encouraged by the sales and income growth in the first quarter"
 said Sunil Kumar, President and CEO of ISP. "Even though energy costs are
 higher and the adverse effect of the stronger U.S. dollar is likely to
 continue for the remainder of 2001, we believe the improving mix and growth in
 our specialty chemicals business and the firming prices of our Industrial
 business should give us double digit operating profit growth for the remainder
 of the year compared to the same period last year" added Kumar.
     EBITDA, representing earnings before income taxes (excluding nonrecurring
 charges and gains), increased by interest expense, depreciation and goodwill
 amortization, was $68.8 million for the first quarter of 2001 compared with
 $44.5 million for the first quarter of 2000.  The increase resulted
 principally from higher investment income.
     Net sales for the first quarter of 2001 were $203.2 million compared with
 $197.9 million in the same period last year.  The increase in sales resulted
 primarily from higher unit volumes in the Personal Care, Pharmaceutical and
 Performance Chemicals businesses and improved pricing in the Industrial
 business, partially offset by lower unit volumes in the Industrial and
 Alginates businesses and by the adverse effect of the stronger U.S. dollar in
 Europe.
     Interest expense for the first quarter of 2001 was $19.1 million versus
 $19.7 million in the same period last year, with the decrease due mainly to
 lower average interest rates and, to a lesser extent, lower average
 borrowings.  Other income, net for the quarter was $28.5 million compared with
 $2.4 million in the first quarter of 2000, with the increase the result of
 higher investment income.
     International Specialty Products Inc. is a leading multinational
 manufacturer of specialty chemicals and mineral products.
     A conference call regarding the Company's first quarter 2001 results will
 be held at 11:00 A.M. Eastern Time on Tuesday, April 17.  The call-in
 telephone number will be 973-628-6885.  A replay of the conference call will
 be available until the end of the business day, Monday, April 23, by calling
 973-41-3080, PIN Number 2509413.
 
     This press release contains "forward-looking statements" within the
 meaning of the federal securities laws with respect to the Company's financial
 results and future operations and, as such, concerns matters that are not
 historical facts. These statements are subject to risks and uncertainties that
 could cause actual results to differ materially from those expressed in such
 statements. Important factors that could cause such differences are discussed
 in the Company's filings with the U.S. Securities and Exchange Commission and
 are incorporated herein by reference.
 
 
                     INTERNATIONAL SPECIALTY PRODUCTS INC.
                          SALES AND EARNINGS (Unaudited)
                       (Millions, except per share amounts)
 
                                                          First Quarter
                                                     2001              2000
 
     Net sales                                       $203.2            $197.9
 
     Costs and expenses:
         Cost of products sold                        133.3             129.4
         Selling, general and
          administrative                               40.0              38.9
         Goodwill amortization                          4.0               4.0
     Total costs and expenses                         177.3             172.3
 
     Operating income                                  25.9              25.6
 
     Interest expense                                 (19.1)            (19.7)
     Gain on contract settlement                         --               3.5
     Other income,  net                                28.5               2.4
 
     Income before income taxes                        35.3              11.8
     Income taxes                                     (12.4)             (4.1)
     Income before cumulative effect of
      accounting change                                22.9               7.7
 
     Cumulative effect of change in
      accounting principle, net of
          income tax benefit of $0.2                   (0.4)               --
     Net income                                       $22.5              $7.7
 
     Earnings per common share:
         Basic:
           Income before cumulative effect
            of accounting change                       $.35              $.11
           Cumulative effect of accounting
            change                                     (.01)               --
           Net income                                  $.34              $.11
         Diluted:
           Income before cumulative effect
            of accounting change                       $.35              $.11
           Cumulative effect of accounting
            change                                     (.01)               --
           Net income                                  $.34              $.11
 
     Weighted average number of common and
      common
         equivalent shares outstanding
          (thousands):
           Basic                                     66,328            68,849
           Diluted                                   66,373            68,857
 
     EBITDA, excluding non-recurring
      charges and gains(A)                            $68.8             $44.5
 
     (A) EBITDA represents earnings before income taxes (excluding one-time
         charges and gains),
         increased by interest expense, depreciation and goodwill
         amortization.
 
 
                       INTERNATIONAL SPECIALTY PRODUCTS INC.
                    SALES AND EARNINGS (Unaudited) - (Continued)
                                     (Millions)
 
 
                                                            First Quarter
                                                       2001               2000
 
     Supplemental Business Segment
      Information:
 
     Net sales:
         Personal Care                                $56.3              $48.6
         Pharmaceutical, Food and
          Beverage                                     57.4               59.8
         Performance Chemicals, Fine
          Chemicals
           and Industrial                              71.1               70.9
         Total Specialty Chemicals                    184.8              179.3
         Mineral Products                              18.4               18.6
     Net sales                                       $203.2             $197.9
 
     Operating income:
         Personal Care                                $12.2               $8.6
         Pharmaceutical, Food and
          Beverage                                     12.8               12.7
         Performance Chemicals, Fine
          Chemicals
           and Industrial                              (0.1)               1.7
         Total Specialty Chemicals                     24.9               23.0
         Mineral Products                               0.6                2.6
         Total segment operating income                25.5               25.6
         Unallocated corporate office                   0.4                 --
     Operating income                                 $25.9              $25.6
 
     Depreciation and Amortization                    $17.0              $16.5
     Capital Expenditures                              $9.9              $11.3
 
 SOURCE  International Specialty Products Inc.