Donnelly Corporation of the US released fourth-quarter financial results for calendar year 1999 that included the company“s highest-ever earnings for the October-December period, on total sales of US…
Donnelly Corporation of the US released fourth-quarter financial results for calendar year 1999 that included the company“s highest-ever earnings for the October-December period, on total sales of US$ 213 million. It was the fourth straight quarter of record earnings at Donnelly, and represented the company“s highest ever earnings for a 12-month period. Net earnings for the fourth quarter of calendar 1999 were US$ 8.1 million, or US$ 0.80 per share, compared with earnings of US$ 1.5 million, or US$ 0.14 per share during the same period one year ago. Net earnings for the period included a one-time gain of US$ 2.9 million, or US$ 0.29 per share, which was a deferred gain from the sale of Donnelly“s stake in Lear Donnelly Overhead Systems. That gain resulted from the conclusion of negotiations on a specific piece of business that were not completed when the sale went forward in the third quarter. Without the one-time gain, net earnings for the period were US$ 5.2 million, or US$ 0.51 per share, which represents the company“s highest-ever fourth quarter earnings on operations. Net sales for the quarter were US$ 213 million, down from sales of US$ 239 million during the same period one year ago. However, the decrease in sales was largely attributable to the exclusion of sales previously booked through the company“s interest in Lear Donnelly Overhead Systems, reductions in window glass prices that the company passed through to it“s customers, and fluctuations in foreign exchange rates due to the strength of the dollar against the Euro. The overall impact of these adjustments on net income was minimal. On an adjusted basis, sales during the quarter would have been roughly equal to the year-earlier period. “We are clearly seeing the benefits of the steps taken over the past 15 months to improve our operating performance,” said Dwane Baumgardner, Donnelly chairman and CEO. “With our cost controls firmly in place, and improved profitability in our European operations, we have begun to demonstrate what we can achieve. Now our work must be to continue building on that progress.” Donnelly said its strong fourth-quarter results were due largely to improved margins, significant results from ongoing initiatives to control spending and the sustained high demand for new cars and light trucks in North America. The company“s total sales for the 1999 calendar year were US$ 898 million, an increase of 8% over the US$ 832 million in sales during the same period one year ago. Net earnings for the 1999 calendar year were US$ 29.2 million, compared to US$ 6.3 million in net earnings during 1998.