<PAGE>
EXHIBIT 99.2
NEWS RELEASE
CONTACT: KATHLEEN P. PEPSKI (NYSE: BMC)
(952) 851-6030 FOR IMMEDIATE RELEASE
BMC INDUSTRIES' THIRD QUARTER EARNINGS RISE; EPS $0.10 VERSUS ($0.02)
October 25, 2000 -- Minneapolis, Minnesota, USA - BMC Industries, Inc. reported
consolidated net earnings for the third quarter ended September 30, 2000 of $2.7
million, or $0.10 per diluted share. This compares to a net loss of $0.4
million, or ($0.02) per diluted share, in the third quarter of 1999. Third
quarter 2000 consolidated revenues increased 2% to $90.2 million from $88.3
million in 1999. Excluding the negative impact from foreign currency translation
during the quarter, consolidated revenues increased 5%.
For the nine months ended September 30, 2000, total revenues increased 3% to
$273.2 million compared to $266.3 million for the same period in 1999. Excluding
the negative impact from foreign currency translation rates during the period,
revenues would have increased 5%. Net earnings for the first nine months in 2000
were $10.5 million, or $0.38 per diluted share, versus $7.8 million, or $0.28
per diluted share, for the same period in 1999.
"We are pleased overall with BMC's third quarter results," said BMC Chairman and
Chief Executive Officer Paul B. Burke. "The Buckbee-Mears group had a solid
quarter delivering earnings of $4.4 million. We continue to enjoy favorable
market dynamics, particularly with respect to the entertainment aperture mask
side of the business."
Mr. Burke continued, "Our Optical Products group had another strong quarter
of revenue growth in the Company's high-end, value-added products,
particularly polycarbonate. Sales of Vision-Ease's higher-margin
Tegra-Registered Trademark- coated polycarbonate and Outlook-TM-
polycarbonate progressive lenses increased substantially
quarter-over-quarter. Vision-Ease's sunwear products including SunSport-TM-
non-ophthalmic and SunRx-Registered Trademark- polarized polycarbonate lenses
also showed substantial continued growth."
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Commenting on the remainder of the year, Mr. Burke said, "Buckbee-Mears remains
on track for a strong 2000. Like other companies, however, this group
anticipates it will begin to incur higher raw material and chemical costs as key
supply agreements are renegotiated. In addition, we expect to continue to make
significant investments for advanced mask development and product line and
customer diversification."
Mr. Burke added, "The challenge at Vision-Ease continues to be improving
operating and manufacturing efficiencies in addition to managing rising raw
material costs. As demand for our high-end products remains strong, we have
experienced resin supply shortages and capacity pressures which may constrain
sales in the near term and impede our cost reduction efforts."
Third quarter revenues from the Buckbee-Mears group, which includes Mask
Operations and Buckbee-Mears St. Paul ("BMSP"), were $53.3 million in 2000, a
slight decrease of $0.4 million from the $53.7 million of revenues reported in
1999. Buckbee-Mears sales were negatively impacted by foreign currency
translation during the quarter. Excluding the impact of foreign currency
translation, revenues for the group would have increased 4%.
Sales of entertainment masks increased 17% in third quarter 2000 compared to the
prior year period. This increase was driven by a 20% rise in sales of jumbo and
large entertainment masks, which are higher margin products. Sales of computer
monitor masks decreased 24% in third quarter 2000 as compared to third quarter
1999. The decrease resulted from a maintenance shutdown of the Cortland monitor
line, continued competitive price reductions and the Company's decision to
utilize monitor mask production capacity for HDTV and other higher-margin
entertainment products, displacing lower-margin monitor volumes.
On this revenue base, Buckbee-Mears' third quarter 2000 earnings were $4.4
million, a decrease of $1.6 million from the $6.0 million earned in third
quarter 1999. Operating profit in the third quarter 2000 was negatively impacted
by computer monitor pricing and by costs associated with the group's normal
maintenance shutdown. Monitor mask production was significantly reduced in third
quarter 2000 compared to last year. The monitor line in Cortland, New York was
restarted in January 1999 and consequently did not require a maintenance
shutdown in the third quarter last year.
Also negatively impacting margins in third quarter 2000 for this group were
higher product engineering and development spending to support the group's
advanced products efforts. In addition, BMSP's third quarter sales were down and
profitability was negatively impacted by significant investments for
diversification of BMSP's customer and product base.
During the quarter, BMC announced it had been named "Outstanding Supplier of the
Year" by American Matsushita Electronics Company ("AMEC") for performance
excellence in 1999. AMEC, a division company of Matsushita Electric Corporation
of America, which manufactures and markets televisions and other display
products under such brand names as Panasonic, Technics, Quasar and National,
announced earlier this summer that BMC
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Industries had received the award in recognition of superior performance during
the previous calendar year. This award is given annually to AMEC's best global
supplier. AMEC executives select the award recipient based on supplier
performance in Supply-Chain Management, Logistics Support, On-Time Delivery,
Cost Reduction and Environmental Awareness.
BMC's Optical Products group generated revenues of $36.8 million in the third
quarter of 2000, up 6%, or $2.2 million, over the prior year quarter. Sales of
high-end, value-added products increased 25% and accounted for 65% of total
third quarter 2000 revenues, compared to 56% of total revenues in third quarter
1999. Partially offsetting this strong high-end product performance were glass
and plastic lens sales, which were down 13% and 20% for the quarter,
respectively, due principally to overall market dynamics in these product
categories and, in the case of plastic, continuing supply problems.
High-end sales growth was due primarily to strong sales of Tegra-Registered
Trademark- coated polycarbonate lenses and Outlook-TM- progressive
polycarbonate lenses, which were introduced last year. Together, third
quarter 2000 sales of these products were up 178% over the same period last
year. In addition, sales of Vision-Ease's SunRx-Registered Trademark-
polarized polycarbonate lenses grew 40% in third quarter 2000 over the same
period in 1999.
Vision-Ease's SunSport-TM- non-ophthalmic polarizing lens business continues to
deliver exceptional sales growth with revenues increasing 106% in third quarter
2000 over the same period a year ago. "Polarizing lens technology continues to
be recognized by sunwear makers and consumers as a superior value-adding
technology," said Mr. Burke. "The growing demand for these products, coupled
with our expanding relationships with a number of high-end sunwear manufacturers
have helped SunSport-TM- to post outstanding year-to-date results."
Optical Product's third quarter earnings were $3.9 million in 2000, compared to
a loss of $1.6 million in 1999. Third quarter 2000 operating margin was 10.5%,
significantly improved from the negative 4.5% posted in the third quarter of
last year. Last year's operating results, however, were negatively impacted by
higher product costs and certain write-offs, discontinuances and phase-outs of
inventory primarily related to the 1998 Orcolite acquisition. The group's third
quarter 2000 operating margin was somewhat reduced from the 11.8% posted in the
second quarter of 2000 primarily as a result of a less favorable plastic and
glass lens sales mix and higher raw material costs.
Total debt, excluding cash and cash equivalents, at September 30, 2000 was
$149.2 million compared with $168.3 million at December 31, 1999, a decrease of
$19.1 million. Capital expenditures during the quarter were $2.9 million versus
$3.8 million in the same quarter a year ago.
This press release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934 that are intended to be covered by the safe harbors created
thereby. Statements made in this
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press release which are not strictly historical, including statements regarding
future performance, are forward-looking statements and as such are subject to a
number of risks and uncertainties, including, among others, lower demand for
televisions, computer monitors and ophthalmic lenses; further mask and
ophthalmic lens price declines, particularly for computer monitor masks, and
imbalances of supply and demand; slowdown in growth of high-end products; rising
raw material and chemical costs; ability to improve operating and manufacturing
efficiencies; ability to meet customer new product qualifications; consumer
demand for direct-view high-definition television and digital receivers;
competition with alternative technologies and products, including laser surgery
for the correction of visual impairment and liquid crystal, plasma, projection
and other types of visual displays; ability to implement the Optical Products
group's initiatives in strategic polycarbonate marketing and manufacturing
sourcing; ability to grow European sales through the operation of processing
laboratories; new product development, introduction and acceptance; cost
reduction and reorganization efforts; continued slowdown at BMSP; ability to
partner with new and existing Buckbee-Mears customers or transition development
relationships into full-scale production; the effect of regional or global
economic slowdowns; adjustments to inventory valuations; liability and other
claims asserted against BMC; negative foreign currency fluctuations; and ability
to recruit and retain key personnel.
BMC Industries, Inc., through its Vision-Ease Lens subsidiary, is a leading
designer, manufacturer and distributor of polycarbonate, glass and hard-resin
plastic eyewear lenses. BMC also, through its Buckbee-Mears division,
manufactures precision imaged products such as aperture masks and a variety of
photo-etched metal and electroformed parts. BMC is the only North American
manufacturer of aperture masks, which are key components used in color
television and computer monitor picture tubes. BMC's common stock is traded on
the New York Stock Exchange under the symbol "BMC". For more information about
BMC Industries, Inc., visit the Company's web site: www.bmcind.com.
Investor Conference Call Information:
10:00 a.m. Central Time (11:00 a.m. Eastern Time)
Call-in Number: 800-260-0712 (U.S.) or 612-332-0228 (International)
Replay Number: 800-475-6701 (U.S.) or 320-365-3844 (International)
Replay Access Code: 540867
The rebroadcast of the conference call will be available starting at 2:00 p.m.
Central Time, October 25, through 11:59 p.m. Central Time, October 27, 2000.
Additionally, all investors are invited to listen to the investor conference
call via live simulcast over the Internet through StreetEvents.com. It can be
accessed from the Investor Relations portion of the company's Web site,
www.bmcind.com.
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BMC INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
(in thousands, except per share amounts)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30 September 30
------------------------------------------------
2000 1999 2000 1999
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<S> <C> <C> <C> <C>
Revenues $ 90,179 $ 88,321 $ 273,167 $ 266,305
Cost of products sold 77,530 79,071 232,563 226,015
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Gross Margin 12,649 9,250 40,604 40,290
Selling 4,356 4,788 12,745 14,152
Administration 1,261 993 4,058 3,712
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Income from Operations 7,032 3,469 23,801 22,426
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Other Income and (Expense)
Interest expense (3,358) (3,265) (9,941) (10,138)
Interest income 112 69 198 155
Other income (expense) 244 (889) 1,271 (430)
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Earnings (Loss) before Income Taxes 4,030 (616) 15,329 12,013
Income Tax Expense (Benefit) 1,293 (190) 4,816 4,241
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Net Earnings (Loss) $ 2,737 $ (426) $ 10,513 $ 7,772
=========================================================================================
Net Earnings (Loss) Per Share:
Basic $ 0.10 $ (0.02) $ 0.38 $ 0.28
Diluted 0.10 (0.02) 0.38 0.28
=========================================================================================
Number of Shares Included in Per Share
Computation:
Basic 27,399 27,349 27,395 27,275
Diluted 27,645 27,349 27,608 27,723
=========================================================================================
</TABLE>
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BMC INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands)
<TABLE>
<CAPTION>
September December 31
2000 1999
ASSETS
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<S> <C> <C>
Current Assets
Cash and cash equivalents $ 1,792 $ 1,146
Trade accounts receivable, net 46,001 42,025
Inventories 71,157 82,312
Deferred income taxes 10,136 11,588
Other current assets 12,978 12,580
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Total Current Assets 142,064 149,651
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Property, plant and equipment 277,497 278,807
Less accumulated depreciation 136,974 127,569
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Property, plant and equipment, net 140,523 151,238
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Deferred income taxes 11,937 9,221
Intangibles assets, net 65,573 68,232
Other assets 6,506 5,211
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Total Assets $ 366,603 $ 383,553
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LIABILITIES AND STOCKHOLDERS' EQUITY
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Current Liabilities
Short-term borrowings $ 1,277 $ 2,303
Accounts payable 27,588 30,342
Income taxes payable 6,914 8,093
Accrued expenses and other current liabilities 21,371 19,197
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Total Current Liabilities 57,150 59,935
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Long-term debt 147,893 165,959
Other liabilities 19,209 18,522
Deferred income taxes 2,195 2,715
Stockholders' Equity
Common stock 49,217 49,077
Retained earnings 101,900 92,620
Accumulated other comprehensive income (loss) (9,311) (3,495)
Other (1,650) (1,780)
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Total Stockholders' Equity 140,156 136,422
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Total Liabilities and Stockholders' Equity $ 366,603 $ 383,553
===============================================================================
</TABLE>
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BMC INDUSTRIES, INC.
SEGMENT INFORMATION
(Unaudited)
(in thousands)
<TABLE>
<CAPTION>
Three Months Ended September 30
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Buckbee-Mears Optical Products Consolidated
-------------------- -------------------- --------------------
2000 1999 2000 1999 2000 1999
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<S> <C> <C> <C> <C> <C> <C>
Revenues $ 53,333 $ 53,681 $ 36,846 $ 34,640 $ 90,179 $ 88,321
Cost of products sold 47,373 46,174 30,157 32,897 77,530 79,071
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Gross margin 5,960 7,507 6,689 1,743 12,649 9,250
Gross margin % 11.2% 14.0% 18.2% 5.0% 14.0% 10.5%
Selling 1,532 1,476 2,824 3,312 4,356 4,788
Unallocated corporate
administration -- -- -- -- 1,261 993
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Income (Loss) from
Operations $ 4,428 $ 6,031 $ 3,865 $ (1,569) $ 7,032 $ 3,469
=============================================================================================
Operating income % 8.3% 11.2% 10.5% (4.5)% 7.8% 3.9%
Capital spending $ 2,900 $ 3,807
Depreciation and
amortization $ 6,055 $ 5,569
EBITDA $ 13,331 $ 8,149
EBITDA % 14.8% 9.2%
</TABLE>
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