Lamson & Sessions Expects Record Net Sales for 2004 and Anticipates Strong Growth in 2005
- Net Earnings
for 2004 Are Estimated to Rise 66-74 Percent From Continuing
Operations
- 2005
Net Sales Expected to Rise 8-11 Percent
- 2005
Net Earnings and Diluted Earnings Per Share Are Projected
to Grow 55-78 Percent to a Range of 70-80 Cents
CLEVELAND, Jan. 24 /PRNewswire-FirstCall/
-- Lamson & Sessions
(NYSE: LMS) today announced that it expects to report record
net sales for the fourth quarter and full year 2004. Net sales
for
the fourth quarter of 2004 are expected to reach a record $97
million compared with $82.1 million in the fourth quarter of
2003, an increase
of 18 percent. For the full year 2004, net sales are expected
to reach approximately $387 million, which would also be a
record based on its current structure, and would represent a growth
rate
of over 13 percent for the year. The net sales for the fourth
quarter and full year reflect a reclassification of certain
cooperative
advertising expenses and service commissions, which were reclassified
from operating expenses, resulting in a reduction in net sales.
These reclassifications have no impact on operating income.
The Company expects to report its results for 2004 on February 17,
2005.
As a result of the expected fourth quarter performance, the Company
currently expects diluted earnings per share for 2004 to be in
the range of 45-47 cents. Its previous guidance for diluted earnings
per share was 43-48 cents for the year. For the fourth quarter
of 2004, diluted earnings per share from continuing operations
are expected to range from 8-10 cents. Diluted earnings per share
from continuing operations for the fourth quarter of 2003 were
2 cents, and 27 cents for the full year.
In 2005, the Company anticipates that net sales will grow 8-11
percent to a range of $420 million to $430 million, reflecting
strengthening conditions in the commercial and industrial construction
markets and the telecom infrastructure market. Based on this net
sales growth and higher operating capacity utilization, the Company
projects that net income will rise to a range of $10 million to
$11.5 million, or 70-80 cents per diluted share in 2005, an increase
in the range of 55-70 percent over the expected 2004 results.
For the first quarter of 2005, net sales are anticipated to rise
approximately 10 percent to $94 million over the $85.3 million
reported in the first quarter of 2004. Diluted earnings per share
for the first quarter of 2005 are expected to grow strongly to
8-10 cents compared with the first quarter of 2004. In the first
quarter of 2004, the Company reported diluted earnings per share
of 9 cents from continuing operations, which included a gain on
the sale of a plant of $952,000 (approximately $554,000, or 4 cents
per diluted share, net of tax).
On October 5, 2004, the Company announced that it was beginning
a review of various strategic alternatives to enhance shareholder
value, which may include the sale of part or all of the Company.
This evaluation process is continuing.
Lamson & Sessions
is a leading producer of thermoplastic enclosures, fittings,
wiring outlet boxes and conduit
for the electrical,
telecommunications, consumer, power and wastewater markets. For
additional information,
please visit our Web site at: http://www.lamson-sessions.com
.
This press release contains forward-looking statements that involve
risks and uncertainties within the meaning of the Private Securities
Litigation Reform Act of 1995. Actual results may differ materially
from those expected as a result of a variety of factors, such as:
(i) the impact, outcome and effects of the Company's exploration
of strategic alternatives, (ii) the volatility of resin pricing,
(iii) the ability of the Company to pass through raw material cost
increases to its customers, (iv) maintaining a stable level of
housing starts, telecommunications infrastructure spending, consumer
confidence and general construction trends, (v) the continued availability
and reasonable terms of bank financing, and (vi) any adverse change
in the recovery trend of the country's general economic condition
affecting the markets for the Company's products. Because forward-looking
statements are based on a number of beliefs, estimates and assumptions
by management that could ultimately prove to be inaccurate, there
is no assurance that any forward-looking statement will prove to
be accurate. |
