U.S. Can Reports First Quarter Results

Apr 25, 2001, 01:00 ET from U.S. Can Corporation

    LOMBARD, Ill., April 25 /PRNewswire/ -- U.S. Can reported net sales of
 $191.2 million for its first quarter ended April 1, 2001 compared to
 $213.8 million for the corresponding period of 2000, a 10.5% decrease.  After
 adjusting for the impact of the translation of sales made in European
 currencies and the disposition of the Wheeling closure business which was sold
 late in the first quarter of 2000, sales decreased 7.7%.  The decrease is
 primarily attributable to volume softness experienced in domestic aerosol
 sales and the slower than expected return to normal volume with May
 Verpackungen's largest customer.
     Chairman and CEO Paul W. Jones stated, "While we expected a decline in
 sales during this period, many of our customers experienced market softness
 resulting in lower volumes.  In line with current market conditions, we are
 adjusting production levels and initiating key customer-driven programs to
 promote future sales growth."
     For the first quarter ended April 1, 2001, U.S. Can reported gross income
 of $24.4 million compared to $29.5 million in 2000.  The volume softness of
 domestic aerosol and May coupled with currency translation were the main
 drivers of the decrease.  Gross margins decreased to 12.8% versus 13.8%
 reported for the first quarter of 2000.  "The lower volume levels and product
 mix contributed to the margin decline," Jones added.  "We have made targeted
 changes in our manufacturing operations during this period to increase our
 operating efficiencies and reduce our overall costs."
     Increased interest expense reflects borrowings made in connection with the
 recapitalization completed on October 4, 2000.  The Company also announced
 that it had amended its Credit Agreement with its senior lenders as of
 April 1, 2001.  The amendment provides for less restrictive financial
 covenants but restricts funds available for acquisitions and capital
 expenditures based on the Company's leverage.  U.S. Can was in compliance with
 all financial and non-financial covenants under the amended agreement as of
 the end of its first quarter.
     Overall, the net loss before preferred stock dividends of $1.3 million for
 the quarter ended April 1, 2001 represented a decrease from the net income of
 $5.6 million reported for the quarter ended April 2, 2000.
     U.S. Can Corporation is a leading manufacturer of steel containers for
 personal care, household, automotive, paint and industrial products in the
 United States and Europe, as well as plastic containers in the United States
 and food cans in Europe.
     The Company will hold a conference call Thursday, April 26, 2001 at
 9:00 am CDT to discuss this news release.  The dial-in number for the
 conference call is (800) 640-5128 and the access password is "U.S. Can
 Conference Call hosted by Paul Jones."  A replay of the conference call will
 be available through the end of Monday, April 30.  The telephone number for
 the replay is (888) 843-8996 and the access code is 392-0261.
     Certain statements in this release constitute "forward-looking statements"
 within the meaning for the Federal securities laws.  Such statements involve
 known and unknown risks and uncertainties which may cause the Company's actual
 results, performance or achievements to be materially different than future
 results, performance or achievements expressed or implied in this release.  By
 way of example and not limitation and in no particular order, known risks and
 uncertainties include the level of cost reduction achieved through
 restructuring; the timing and cost of plant closures; the success of new
 technology; the timing of, and synergies achieved through, integration of
 acquisitions; changes in market conditions or product demand; loss of
 important customers; changes in raw material costs; and currency fluctuations.
 In light of these and other risks and uncertainties, the inclusion of a
 forward-looking statement in this release should not be regarded as a
 representation by the Company that any future results, performance or
 achievements will be attained.
 
                              U.S. CAN CORPORATION
                            STATEMENTS OF OPERATIONS
                             (Dollars in Thousands)
 
                                                   For the First Quarter Ended
                                                April 1, 2001     April 2, 2000
                                                                        (A)
 
     Net sales                                  $   191,168        $   213,761
 
     Cost of Goods Sold                             166,717            184,298
 
     Gross Income                                    24,451             29,463
 
     Selling, General and Administrative
      Expenses                                       11,842             11,941
 
     Operating Income                                12,609             17,522
 
     Interest Expense                                14,804              8,394
 
     Income (Loss) From Operations Before
      Income Taxes                                   (2,195)             9,128
 
     Income Taxes                                      (867)             3,491
 
     Income (Loss) From Operations Before
      Preferred Stock Dividends                      (1,328)       $     5,637
 
     Preferred Stock Dividend Requirements           (2,725)
 
       Net Income (Loss) Available for
         Common Stockholders                    $    (4,053)
 
      (A)  Sales and cost of goods sold have been restated for freight per
           accounting pronouncement EITF 00-10
 
 
                               U.S. CAN CORPORATION
                                   BALANCE SHEET
                     As of April 1, 2001 AND DECEMBER 31, 2000
                              (Dollars in Thousands)
 
                                                   April 1,        December 31,
                                                     2001              2000
     ASSETS
 
     Current Assets                                $275,673          $251,287
 
     Property, Plant and Equipment                  265,675           272,220
 
     Noncurrent Assets                              114,430           114,357
 
     Total Assets                                  $655,778          $637,864
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
 
     Current Liabilities                           $183,493          $177,043
 
     Long-Term Debt                                 501,498           480,374
 
     Long-Term Liabilities                           50,317            45,502
 
     Preferred Stock                                111,993           109,268
 
     Stockholders' Equity                          (191,523)         (174,323)
 
     Total Liabilities and Stockholders'
      Equity                                       $655,778          $637,864
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X23790643
 
 

SOURCE U.S. Can Corporation
    LOMBARD, Ill., April 25 /PRNewswire/ -- U.S. Can reported net sales of
 $191.2 million for its first quarter ended April 1, 2001 compared to
 $213.8 million for the corresponding period of 2000, a 10.5% decrease.  After
 adjusting for the impact of the translation of sales made in European
 currencies and the disposition of the Wheeling closure business which was sold
 late in the first quarter of 2000, sales decreased 7.7%.  The decrease is
 primarily attributable to volume softness experienced in domestic aerosol
 sales and the slower than expected return to normal volume with May
 Verpackungen's largest customer.
     Chairman and CEO Paul W. Jones stated, "While we expected a decline in
 sales during this period, many of our customers experienced market softness
 resulting in lower volumes.  In line with current market conditions, we are
 adjusting production levels and initiating key customer-driven programs to
 promote future sales growth."
     For the first quarter ended April 1, 2001, U.S. Can reported gross income
 of $24.4 million compared to $29.5 million in 2000.  The volume softness of
 domestic aerosol and May coupled with currency translation were the main
 drivers of the decrease.  Gross margins decreased to 12.8% versus 13.8%
 reported for the first quarter of 2000.  "The lower volume levels and product
 mix contributed to the margin decline," Jones added.  "We have made targeted
 changes in our manufacturing operations during this period to increase our
 operating efficiencies and reduce our overall costs."
     Increased interest expense reflects borrowings made in connection with the
 recapitalization completed on October 4, 2000.  The Company also announced
 that it had amended its Credit Agreement with its senior lenders as of
 April 1, 2001.  The amendment provides for less restrictive financial
 covenants but restricts funds available for acquisitions and capital
 expenditures based on the Company's leverage.  U.S. Can was in compliance with
 all financial and non-financial covenants under the amended agreement as of
 the end of its first quarter.
     Overall, the net loss before preferred stock dividends of $1.3 million for
 the quarter ended April 1, 2001 represented a decrease from the net income of
 $5.6 million reported for the quarter ended April 2, 2000.
     U.S. Can Corporation is a leading manufacturer of steel containers for
 personal care, household, automotive, paint and industrial products in the
 United States and Europe, as well as plastic containers in the United States
 and food cans in Europe.
     The Company will hold a conference call Thursday, April 26, 2001 at
 9:00 am CDT to discuss this news release.  The dial-in number for the
 conference call is (800) 640-5128 and the access password is "U.S. Can
 Conference Call hosted by Paul Jones."  A replay of the conference call will
 be available through the end of Monday, April 30.  The telephone number for
 the replay is (888) 843-8996 and the access code is 392-0261.
     Certain statements in this release constitute "forward-looking statements"
 within the meaning for the Federal securities laws.  Such statements involve
 known and unknown risks and uncertainties which may cause the Company's actual
 results, performance or achievements to be materially different than future
 results, performance or achievements expressed or implied in this release.  By
 way of example and not limitation and in no particular order, known risks and
 uncertainties include the level of cost reduction achieved through
 restructuring; the timing and cost of plant closures; the success of new
 technology; the timing of, and synergies achieved through, integration of
 acquisitions; changes in market conditions or product demand; loss of
 important customers; changes in raw material costs; and currency fluctuations.
 In light of these and other risks and uncertainties, the inclusion of a
 forward-looking statement in this release should not be regarded as a
 representation by the Company that any future results, performance or
 achievements will be attained.
 
                              U.S. CAN CORPORATION
                            STATEMENTS OF OPERATIONS
                             (Dollars in Thousands)
 
                                                   For the First Quarter Ended
                                                April 1, 2001     April 2, 2000
                                                                        (A)
 
     Net sales                                  $   191,168        $   213,761
 
     Cost of Goods Sold                             166,717            184,298
 
     Gross Income                                    24,451             29,463
 
     Selling, General and Administrative
      Expenses                                       11,842             11,941
 
     Operating Income                                12,609             17,522
 
     Interest Expense                                14,804              8,394
 
     Income (Loss) From Operations Before
      Income Taxes                                   (2,195)             9,128
 
     Income Taxes                                      (867)             3,491
 
     Income (Loss) From Operations Before
      Preferred Stock Dividends                      (1,328)       $     5,637
 
     Preferred Stock Dividend Requirements           (2,725)
 
       Net Income (Loss) Available for
         Common Stockholders                    $    (4,053)
 
      (A)  Sales and cost of goods sold have been restated for freight per
           accounting pronouncement EITF 00-10
 
 
                               U.S. CAN CORPORATION
                                   BALANCE SHEET
                     As of April 1, 2001 AND DECEMBER 31, 2000
                              (Dollars in Thousands)
 
                                                   April 1,        December 31,
                                                     2001              2000
     ASSETS
 
     Current Assets                                $275,673          $251,287
 
     Property, Plant and Equipment                  265,675           272,220
 
     Noncurrent Assets                              114,430           114,357
 
     Total Assets                                  $655,778          $637,864
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
 
     Current Liabilities                           $183,493          $177,043
 
     Long-Term Debt                                 501,498           480,374
 
     Long-Term Liabilities                           50,317            45,502
 
     Preferred Stock                                111,993           109,268
 
     Stockholders' Equity                          (191,523)         (174,323)
 
     Total Liabilities and Stockholders'
      Equity                                       $655,778          $637,864
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X23790643
 
 SOURCE  U.S. Can Corporation