Exhibit 99
STANDARD AUTOMOTIVE CORPORATION
321 Valley Road, Hillsborough, New Jersey 08876-4056
PRESS RELEASE FOR IMMEDIATE RELEASE
Contact: John Silane, EVP
Standard Automotive Corporation
(212) 286-1300
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STANDARD AUTOMOTIVE CORPORATION IMPLEMENTS
COST SAVINGS AND INVENTORY REDUCTION PROTOCOL
TO ENHANCE CASH GENERATION
TEMPORARILY SUSPENDS QUARTELY DIVIDEND ON PREFERRED STOCK
HILLSBOROUGH TOWNSHIP, N.J. . . .December 20, 2000 . . . STANDARD AUTOMOTIVE
CORPORATION (AMEX:AJX, AJX.PR) (the "Company") announced today that its Board of
Directors has implemented an aggressive cost savings and inventory reduction
protocol designed to enhance cash generation. The aggressive measures have been
taken to offset a general industry slowdown impacting the Company's
Truck/Trailer Division. Although the Company is in full compliance with payment
of interest and principal on its bank debt, it is now in violation of two loan
covenants.
Standard's Board also approved suspending the $289,000 quarterly dividend on the
Company's 8 1/2% Senior Convertible Redeemable Preferred Stock. The Board
anticipates a resumption of the Cumulative Preferred Stock dividend once the
Company is back in compliance with performance measured covenants contained in
the Company's credit agreement. In the interim, all preferred dividends will
accrue pursuant to the terms of the Certificate of Designation for the Preferred
Stock.
Steven Merker, the Company's Chairman and CEO commented, "While we are
disappointed with the cyclical impact on our Truck/Trailer Division, we are very
pleased with the performance of our Critical Components Division. Sales of jet
engine and aerospace parts are running well ahead of last year. Thus, we are
more than a little surprised that our common stock is selling at less than 30%
of its book value of approximately $6.80 per share."
STANDARD AUTOMOTIVE CORPORATION is a diversified company with production
facilities strategically located throughout the United States, Canada and
Mexico. Standard currently operates two divisions: the Truck/Trailer Body
Division which designs, manufactures and distributes trailer chassis for
transporting maritime and railroad shipping containers and a broad line of
specialized dump truck bodies, dump trailers, truck suspensions and other
related assemblies, and the Critical Components Division, which specializes in
the design, fabrication and machining of precision assemblies and components and
remotely operated systems for the aerospace, nuclear, industrial and military
markets.
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This release contains certain forward-looking statements which involve known
and unknown risks, uncertainties, and other factors not under the Company's
control which may cause actual results, performance, and achievements of
the Company to be materially different from the results, performance or
expectations of the Company. These factors may include, but are not
limited to those detailed in the Company's periodic filings
with the Securities and Exchange Commission.
