Morton Industrial Group, Inc., a leading contract manufacturing supplier to large industrial original equipment manufacturers (OEMs), announced on 4 April its financial results for the 2001 fourth qua…
Morton Industrial Group, Inc., a leading contract manufacturing supplier to large industrial original equipment manufacturers (OEMs), announced on 4 April its financial results for the 2001 fourth quarter and year ended 31 December 2001. The company also announced the details of an in-process restructuring of its operations and the establishment of new credit facilities with its lenders. Revenues for the company“s 2001 fourth quarter were US$ 47.9 million as compared to US$ 66.3 million in the year ago quarter. For the year ended 31 December 2001, sales were US$ 236.4 as compared to US$ 278.8 million in the same period a year ago. Sales declined because of decreased demand by existing customers in response to the 2001 economic downturn. Operating loss for the fourth quarter of 2001 was US$ 8.5 million compared to an operating income of US$ 29 thousand in the year ago quarter. The operating loss for 2001 was US$ 3.6 million compared to operating income of US$ 9.1 million in 2000. The net loss available to common shareholders for the 2001 fourth quarter was US$ 13.0 million, or US$ 2.83 per basic and diluted share, compared to a net loss of US$ 244 thousand, or US$ 0.05 per basic and diluted share, in the comparable year ago period. The net loss available to common shareholders for 2001 was US$ 16.1 million, or US$ 3.51 per basic and diluted share, compared to a net loss of US$ 20 thousand in 2000, or US$ 0.00 per basic and diluted share. The results for the fourth quarter and year end include a US$ 2.1 million deferred tax adjustment and a US$ 1.3 million restructuring charge taken in conjunction with an in-process closing of one of the company“s manufacturing operations. The year-end results include an accretion of a discount on preferred stock of US$ 1.1 million. The company“s 2001 restructuring plan has flattened the organization, consolidated divisions, and right-sized each operating facility reducing staff by over 1,000 or nearly one-third of its employees. It has also implemented lean manufacturing activities in each of its operating facilities, which has resulted in improved customer quality and delivery, employee efficiency, and the lowering of overall operating cost levels. As a result of its enhanced customer performance and manufacturing processes, the company has received additional projects from most of its key customers, which positions the company for improved financial performance in 2002. The company also announced the establishment of new credit facilities with the Harris Trust and Savings-led syndicate and General Electric Credit Corporation. The credit facilities are expected to provide appropriate working capital to support the company“s business objectives. Morton Industrial Group, Inc., at the completion of its restructuring, will operate 11 manufacturing facilities in the Midwestern and Southeastern US strategically located near its customers“ manufacturing and assembly facilities. Morton“s principal customers include B/E Aerospace, Bombardier, Caterpillar Inc., Compaq Computer Corporation, Deere & Company, EMC Corp., GE Appliances, and Honda of America Mfg., Inc.