7 May 1998: US-based automotive components manufacturer, Donnelly Corporation, has reported third quarter financial results for the company“s 1998 fiscal year.
The company reported US$ 194 million,…
7 May 1998: US-based automotive components manufacturer, Donnelly Corporation, has reported third quarter financial results for the company“s 1998 fiscal year. The company reported US$ 194 million, representing an increase of approximately 7% over US$ 182 million in sales reported for the same period last year. Contributing to the increase were strong sales in North America and Europe, fuelled by Donnelly“s strong position on a number of high volume vehicles such as the Ford Expedition and Chrysler minivan products, the company said. Donnelly“s net earnings for the third quarter of fiscal 1998 were US$ 3.4 million, or US$ 0.34 per share, an increase of approximately 14% over net earnings of US$ 3 million for the same period last year. Net earnings associated with core automotive operations were approximately 20% higher during the third quarter than for the same period last year. North American automotive operations continued to perform strongly. European operations were slightly positive during the quarter, for the first time since 1995. Automotive operations in France and Spain performed well, and in Germany, management continued working to make the operational improvements necessary to reach mandated levels of profitability, said Donnelly. Operational improvements are also beginning to take effect in Ireland, which experienced improved year-to-year performance during the quarter. In addition, Irish operations have benefited from a favourable shift in currency rates. Improvements in Donnelly“s Irish and German automotive operations are expected to continue in the fourth quarter and throughout fiscal 1999. Donnelly“s third-quarter performance experienced a significant unfavourable impact from two non-automotive ventures, both of which focus on digital imaging technologies. Donnelly Optics is a wholly owned, start-up subsidiary based in Tucson, Arizona (US), which designs and produces precision injection-moulded optical devices. Donnelly Optics continued to experience major losses during the third quarter, due to slower-than-expected consumer acceptance of digital imaging products. The firm said it is currently evaluating options for responding to these market conditions. “Despite some very challenging developments during the third quarter, we were able to improve our overall automotive performance and continue progress toward the performance goals we have set,” said Dwane Baumgardner, Donnelly chairman and chief executive officer. “Given the strength of our North American automotive operations, and the continuing improvements we are seeing at some of our European operations, we are very confident that Donnelly is moving in a more positive earnings direction,” he added. Year-to-date sales for Donnelly“s 1998 fiscal year are US$ 554 million, a 15% increase over the company“s total sales of US$ 483 million during the first nine months of fiscal 1997. Net earnings for the year-to-date period are US$ 9.5 million, or US$ 0.96 per share, compared to earnings of US$ 8.6 million, or US$ 0.87 per share, for the same period last year. Included in 1998 earnings is a one-time, pretax gain of US$ 4.6 million, or US$ 0.22 per share. Meanwhile, Russell B. Scaffede was recently named senior vice president of global manufacturing operations. Scaffede will be responsible for implementing lean manufacturing processes throughout Donnelly“s worldwide operations. In addition to his new responsibilities, Scaffede will continue to be directly responsible for Donnelly“s North American manufacturing operations.