TB Wood's Reports Results for the 2001 First Quarter

Apr 24, 2001, 01:00 ET from TB Wood's Corporation

    CHAMBERSBURG, Pa., April 24 /PRNewswire Interactive News Release/ -- TB
 Wood's Corporation (Nasdaq:   TBWC) announced today that net sales for the first
 quarter, ended March 30, 2001, were $29.9 million, a decrease of 16.1% from
 $35.7 million in the prior year's first quarter.  Operating income, before
 minority interest, for the first quarter was $2.0 million versus $3.8 million
 last year, while net income was $0.7 million versus $1.6 million last year.
 Net income per diluted share was $0.13, versus $0.30 last year.
     The lower first quarter 2001 revenues were primarily the result of
 continuing weaker market demand, the strong dollar and distributors reducing
 inventories after participating in marketing incentive programs the previous
 quarter.  Without the impact of the strong dollar and these incentive
 programs, product revenues were down approximately 10%.
     Michael L. Hurt, President, said, "Faced with a weaker U.S. economy, we
 took aggressive actions during the first quarter to reduce cost.  These
 actions resulted in one-time charges of approximately $0.06 per share and the
 strong dollar impacted earnings $0.01 per share compared to the first quarter
 a year ago.  With these cost reduction actions and our new product
 introductions, we presently anticipate an improved performance in the second
 half of this year."
     TB Wood's is an established designer, manufacturer and marketer of
 electronic and mechanical industrial power transmission products which are
 sold to North American and international manufacturers and users of industrial
 equipment.  Headquartered in Chambersburg, Pennsylvania, the Company operates
 production facilities in the United States, Canada, Mexico, Germany, Italy and
 India.
 
     This press release contains statements which are forward-looking within
 the meaning of applicable securities laws.  These statements include or imply
 projections of future performance that are based upon the Company's
 expectations and assumptions.  These expectations and assumptions, as well as
 the Company's future performance, are subject to a number of risks and
 uncertainties.  Factors that could cause actual results to differ from
 projected results are discussed in various of the Company's documents filed
 with the SEC.
 
                             TB Wood's Corporation
                  Condensed Consolidated Statements of Income
                    (in thousands, except per share amounts)
 
                                                   First Quarter Ended
                                                 March 30,      March 31,
                                                   2001           2000
 
     Net Sales                                    29,948         35,687
     Cost of Sales                                19,353         22,498
     Gross profit                                 10,595         13,189
 
       Selling, General, and administrative
        expenses                                   8,590          9,375
     Operating profit, before minority interest    2,005          3,814
       Minority interest                             356            473
 
     Operating profit                              1,649          3,341
 
       Interest expense and other finance charges    437            702
       Other expenses                                 39             14
 
     Income before provision for income taxes
      and extraordinary item                       1,173          2,625
 
     Provision for income taxes                      446            997
     Net income (loss)                               727          1,628
 
     Diluted earnings per share net income (loss)    .13            .30
 
     Diluted weighted average common shares
      outstanding                                  5,466          5,473
 
 
                          Consolidated Balance Sheets
                   as of March 30, 2001 and December 29, 2000
                                 (in thousands)
 
                                         Liabilities and
     Assets             2001     2000    Shareholders' Equity   2001     2000
 
     Current Assets   50,836   53,655    Current Liabilities  21,440   22,483
     Property and     33,298   33,717    Long-term debt       31,093   33,661
      equipment, net
     Deferred Taxes    3,434    3,542    Other long-term
     Goodwill, net     9,490    9,546     liabilities         16,620   16,424
     Other Assets      2,124    2,200    Shareholders' Equity 30,029   30,092
 
     Total assets     99,182  102,660    Total                99,182  102,660
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X85870211
 
 

SOURCE TB Wood's Corporation
    CHAMBERSBURG, Pa., April 24 /PRNewswire Interactive News Release/ -- TB
 Wood's Corporation (Nasdaq:   TBWC) announced today that net sales for the first
 quarter, ended March 30, 2001, were $29.9 million, a decrease of 16.1% from
 $35.7 million in the prior year's first quarter.  Operating income, before
 minority interest, for the first quarter was $2.0 million versus $3.8 million
 last year, while net income was $0.7 million versus $1.6 million last year.
 Net income per diluted share was $0.13, versus $0.30 last year.
     The lower first quarter 2001 revenues were primarily the result of
 continuing weaker market demand, the strong dollar and distributors reducing
 inventories after participating in marketing incentive programs the previous
 quarter.  Without the impact of the strong dollar and these incentive
 programs, product revenues were down approximately 10%.
     Michael L. Hurt, President, said, "Faced with a weaker U.S. economy, we
 took aggressive actions during the first quarter to reduce cost.  These
 actions resulted in one-time charges of approximately $0.06 per share and the
 strong dollar impacted earnings $0.01 per share compared to the first quarter
 a year ago.  With these cost reduction actions and our new product
 introductions, we presently anticipate an improved performance in the second
 half of this year."
     TB Wood's is an established designer, manufacturer and marketer of
 electronic and mechanical industrial power transmission products which are
 sold to North American and international manufacturers and users of industrial
 equipment.  Headquartered in Chambersburg, Pennsylvania, the Company operates
 production facilities in the United States, Canada, Mexico, Germany, Italy and
 India.
 
     This press release contains statements which are forward-looking within
 the meaning of applicable securities laws.  These statements include or imply
 projections of future performance that are based upon the Company's
 expectations and assumptions.  These expectations and assumptions, as well as
 the Company's future performance, are subject to a number of risks and
 uncertainties.  Factors that could cause actual results to differ from
 projected results are discussed in various of the Company's documents filed
 with the SEC.
 
                             TB Wood's Corporation
                  Condensed Consolidated Statements of Income
                    (in thousands, except per share amounts)
 
                                                   First Quarter Ended
                                                 March 30,      March 31,
                                                   2001           2000
 
     Net Sales                                    29,948         35,687
     Cost of Sales                                19,353         22,498
     Gross profit                                 10,595         13,189
 
       Selling, General, and administrative
        expenses                                   8,590          9,375
     Operating profit, before minority interest    2,005          3,814
       Minority interest                             356            473
 
     Operating profit                              1,649          3,341
 
       Interest expense and other finance charges    437            702
       Other expenses                                 39             14
 
     Income before provision for income taxes
      and extraordinary item                       1,173          2,625
 
     Provision for income taxes                      446            997
     Net income (loss)                               727          1,628
 
     Diluted earnings per share net income (loss)    .13            .30
 
     Diluted weighted average common shares
      outstanding                                  5,466          5,473
 
 
                          Consolidated Balance Sheets
                   as of March 30, 2001 and December 29, 2000
                                 (in thousands)
 
                                         Liabilities and
     Assets             2001     2000    Shareholders' Equity   2001     2000
 
     Current Assets   50,836   53,655    Current Liabilities  21,440   22,483
     Property and     33,298   33,717    Long-term debt       31,093   33,661
      equipment, net
     Deferred Taxes    3,434    3,542    Other long-term
     Goodwill, net     9,490    9,546     liabilities         16,620   16,424
     Other Assets      2,124    2,200    Shareholders' Equity 30,029   30,092
 
     Total assets     99,182  102,660    Total                99,182  102,660
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X85870211
 
 SOURCE  TB Wood's Corporation