7 May 1998: Selas Corporation of America, a producer of precision electronic components, heat processing equipment and cable winch products, reported net income for the quarter ending 31 March 1998, o…
7 May 1998: Selas Corporation of America, a producer of precision electronic components, heat processing equipment and cable winch products, reported net income for the quarter ending 31 March 1998, of US$ 559,000 or US$ 0.11 per share (US$ 0.10 fully diluted) on revenues of US$ 21,867,000 compared to net income of US$ 1,162,000 or US$ 0.22 per share on revenues of US$ 30,905,000 for the similar period in 1997. Stephen F. Ryan, president and chief executive officer of Selas, said that earnings for the quarter were adversely affected by lower sales in the heat technology segment and a significant back charge on a large steel line order executed in Europe, causing the company“s heat technology segment to report lower earnings than expected for the quarter. He said that, while all business areas of Selas were profitable, and performance by Selas“ Deuer Manufacturing subsidiary serving the automotive industry was especially strong, RTI fell short of the prior year“s first quarter. This was the result of expenses to gear up for new development and to put RTI on track with its long-term business plan. Ryan said that management is confident that full-year 1998 performance will be better than 1997, continuing the company“s sales and earnings growth for the fourth consecutive year. At the Selas annual meeting of shareholders, held recently, Ryan said that he expects Selas to reach US$ 200,000,000 in revenue by the beginning of the 21st century. He said this growth was possible from business already in hand. Recently acquired CFR, the Paris, France, furnace maker, has more potential than Selas anticipated when it did due diligence during the acquisition process, he said, adding that he believes that CFR alone could expand to US$ 35 million in revenue in just a few years. “CFR is a perfect fit for Selas heat technology business and is a much more steady business because of its more manageable order size,” he said. He added that RTI has a dozen new programmes for products and partnership ventures in place that will add another $30,000,000 when fully ramped up by the year 2000.