From Dayton Daily News
DAYTON — Amcast Industrial Corp. on Tuesday said it is having “very serious confidential negotiations” with potential buyers interested in one or more of its business units.
Joseph Grewe, Amcast’s president and chief executive, said: “It is our expectation that one or more of these situations will result in a transaction.”
But Grewe said it’s not certain whether a divestiture will improve the company’s ability to refinance remaining debt.
Amcast, a Washington Twp., Dayton-based maker of automotive components and copper and brass plumbing supplies for the construction markets, also reported fiscal third-quarter net income of $1.9 million, or 20 cents per share, compared with a net loss of $1.8 million, or 20 cents per share, during the third quarter last year.
Third-quarter sales were $111.4 million, down one-half percent from $111.8 million during the same period in 2003.
Last year the third quarter included a $2.5 million loss from discontinued operations relating to the sale of Speedline, Amcast’s European wheel business.
For the nine months which ended May 30, Amcast reported a net income of $1.7 million, or 18 cents per share, compared with a net loss of $111.4 million, or $12.58 per share loss, during the same nine- month period last year.
The first nine months of fiscal 2003 included discontinued operations and the cumulative effect of a change in accounting. Combined, these items created a $109 million expense for the company.
Grewe said Amcast is successful in its cost reduction and manufacturing improvement programs. In particular, Grewe said selling, general and administrative expenses for the year have declined more than 10 percent, and year-to-date labor productivity improved 14 percent.
“We were very pleased to be able to achieve these performance improvements without revenue growth,” Grewe said.
Amcast released its earnings after the stock markets closed for the day. Amcast shares closed Tuesday at $2.70, down 45 cents. The 52-week range is 80 cents to $5.50.
Copyright 2004 Dayton Daily News. via ProQuest Information and Learning Company; All Rights Reserved.
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