11 February 1999: A leading maker of rearview mirrors, Donnelly Corp., has posted a 72% decline in second quarter net earnings, but said it will beat analysts“ estimates for the fiscal year.
The com…
11 February 1999: A leading maker of rearview mirrors, Donnelly Corp., has posted a 72% decline in second quarter net earnings, but said it will beat analysts“ estimates for the fiscal year. The company“s net earnings for the second quarter of fiscal 1999, ended 2 January, were US$ 1.5 million or US$ 0.14 a share, compared with US$ 5.2 million or US$ 0.52 a share a year ago. Its prior year net earnings included a one-time, pre-tax gain of about US$ 4.6 million, or US$ 0.22 per share after tax, from the company“s sale of its 50% interest in Applied Films Corp. The company said it will beat analysts“ estimates of US$ 0.60 a share for the year. Net sales for the second quarter were a record US$ 239 million, a 23% increase over the US$ 195 million in sales for the same period last year. The increase was primarily due to a favourable sales mix and continuing strong vehicle demand in North America and Europe. During the quarter, Donnelly moved to sharply reduce the negative impact on earnings created by its two digital imaging affiliates, Donnelly Optics Corp. and VISION Group Plc. In December, the company agreed to merge Donnelly Optics with Applied Image Group of Rochester, New York. Donnelly now owns a minority share of less than 20% in the combined entity. Also in December, Donnelly sold a portion of its ownership in VISION Group, also reducing its ownership stake in the Scotland-based company to less than 20%. Pending closing of a transaction, Donnelly will no longer hold an ownership stake in VISION Group.