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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
November 18,1998
EXCEL INDUSTRIES, INC.
(Exact name of registrant as specified in its charter)
Indiana 1-8684 35-1551685
(State of Incorporation)(Commission File (I.R.S. Employer
Number) Identification No.)
1120 North Main Street 46514
Elkhart, Indiana (Zip Code)
(Address of pincipal offices)
Registrant's telephone number, including area code (219) 264-2131
N/A
(Former name or former address, if changed since last report)
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Item 5. Other Events
On February 18, 1999, Excel Industries, Inc. announced the
company's earnings for the year ended and fourth quarter ended
January 2, 1999. Pursuant to General Instruction F to Form 8-K,
the February 18, 1999 Press Release is incorporated herein by
reference and is attached hereto as Exhibit 99.
Item 7. Exhibits
Exhibit
Number Description
99 Press Release dated February 18, 1999 announcing the Excel
Industries, Inc.'s earnings for the year ended January 2,
1999.
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned hereunto duly authorized.
EXCEL INDUSTRIES, INC.
Date: February 22, 1999
By: /s/ Joseph A. Robinson
_______________________________
Joseph A. Robinson, Senior Vice
President, Secretary, Treasurer
and Chief Financial Officer
EXHIBIT INDEX
Exhibit
Number Description Page No.
99 Press Release dated February 18, 1999 announcing the
Excel Industries, Inc.'s earnings for the year ended
January 2, 1999.
EXCEL INDUSTRIES
120 North Main Street
Elkhart, Indiana 46514
219/264-2131
EXCEL INDUSTRIES
TOPS $1 BILLION SALES
IN REPORTED 1998 RESULTS
ELKHART, Ind., Feb. 18 -- Excel Industries, Inc. (NYSE: EXC) today
reported that sales rose 15 percent to exceed $1 billion for the
first time last year. Profit declined 3 percent, impacted by
operating results in the seat systems business. In the final
quarter of the year, however, profit more than doubled on a 49
percent increase in sales.
For the year ended January 2, 1999, sales were $1,106,103,000
compared to $962,333,000 in 1998. Net income for 1998 of
$16,953,000, or $1.37 per share, declined from $17,564,000, or
$1.59 per share, the previous year. In the fourth quarter of 1998,
sales rose to $347,641,000 from $233,095,000 in the final 1997
quarter. Net income increased 123 percent to $4,229,000, or 35
cents per share, from $1,898,000, or 16 cents per share, in the
fourth quarter of 1997.
The sales increase in the fourth quarter reflects
consolidation of Schade GmbH & Co. KG, in which the company
acquired a majority interest at mid-year, and improved sales levels
in automotive, RV, mass transit and heavy truck industries.
Results for the quarter and the year were adversely affected by
problems in seat systems operations that reduced net income more
than $1.00 per share. The General Motors strikes in the second and
third quarters of the year cost 16 cents per share.
Basic per-share earnings in 1998 were computed on 12,370,000
weighted average shares outstanding versus 11,079,000 weighted
average shares outstanding in 1997. On a diluted basis, net income
per share was $1.36 in 1998 compared to $1.48 in 1997. In the
fourth quarter, diluted per-share earnings were 35 cents versus 16
cents in the 1997 quarter.
James O. Futterknecht, Jr., Chief Executive of Excel, said one
of the company's primary operational goals in 1998 was resolution
of unsatisfactory performance in seat systems operations while
continuing the beneficial trends in the majority of the business.
"We tackled the managerial and technical issues aggressively so
that by year-end we knew we would at least be at break-even in this
acquired business during 1999 and profitable in 2000." He added
that the year would have been a record for profit as well as sales
without the costs of those actions.
Futterknecht noted that besides the turnaround in seat
systems, the company acquired a strong position in Europe and won
important new contracts in all its product sectors. "We integrated
our European manufacturing base at mid-year by acquiring a 70
percent interest in Schade GmbH & Co. KG, our long-time strategic
partner. Schade added about $165 million in sales and $9 million
in operating profit, and we expect this newest business unit to at
least double those sales and continue to improve operating margins
this year."
"We will increase the already-significant content on the
current Ford Explorer program when it's replaced in 2001. In an
industry first, one of our Explorer window products will be
supplied in 14 trim colors in customer-determined assembly order,
known as in-line vehicle sequencing (ILVS). We also pushed the
technology frontier with our rear window on Ford's new Explorer
Sport Trac that is powered by a smart' motor for one-touch up and
down operation."
Futterknecht said that Excel is about to begin a new phase in
OEM supply by merging with Dura Automotive Systems, Inc.
(Nasdaq:DRRA). "Larger size does count because it permits the
scale to tackle the global automotive market and permits suppliers
to spread support costs over a larger production base. By merging
with Dura, our joint venture partner in Brazil for the last three
years, the combined entity will have annual revenue near $2.5
billion."
Futterknecht said that the two companies have already
initiated the process of integration. "By the time we have
received shareholder and regulatory approvals, we expect to move
together quickly and provide a powerful global competitor," he
said. "In North America alone, the combined companies will rank in
the top 25 suppliers and in Europe will exceed $900 million in
sales." Record date for the merger was February 16, 1999, and
proxy materials for the March 23 special shareholders meeting to
approve the transaction will be distributed next week.
Serving customers since 1928, Excel Industries, Inc. Is a
technically innovative tier-one and tier-two supplier to the
automotive, heavy truck, recreational vehicle and bus industries.
It produces window, door and seating systems, RV appliances, and
complex injection-molded parts. Excel has a global commitment to
continuous improvement of quality, cost and delivery of reliable
components and systems.
EXCEL INDUSTRIES, INC. AND SUBSIDIARIES
Condensed Statements of Income
Year ended
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January 2, December 27,
1999 1997
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(Audited)
Net Sales $1,106,103,000 $ 962,233,000
Gross profit 110,121,000 115,343,000
Operating income 31,506,000 36,076,000
Income before income taxes 21,952,000 27,022,000
Net income $ 16,953,000 $ 17,564,000
Basic net income per share $1.37 $1.59
Diluted net income per share $1.36 $1.48
Average shares outstanding 12,370,000 11,079,000
Fourth Quarter ended
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January 2, December 27,
1999 1997
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(Unaudited)
Net sales $347,641,000 $233,095,000
Gross profit 33,243,000 25,587,000
Operating income 10,785,000 4,905,000
Income before income taxes 7,837,000 2,920,000
Net income $4,229,000 $1,898,000
Basic net income per share $0.35 $0.16
Diluted net income per share $0.35 $0.16
Average shares outstanding 12,191,000 12,134,000
# # #
For Further Information:
COMPANY CONTACT: CHICAGO:
Joseph A. Robinson William C. Schall
Senior VP and CFO 3023 N. Clark St. #210
219/264-2131 773/281-4727
[You can obtain recent investor communications, such as
shareholder reports and news releases, by fax from Excel.
Call 219/262-9961, ext. 555, and follow recorded
instructions. You can reach Excel as www.excelinc.com on
the Internet.]
Some of the statements in this news release are forward-looking
statements that involve certain risks and
uncertainties. Potential risks and uncertainties include
economic factors, concentration of a substantial
percentage of sales in a few major OEM customers, and
other business factors. Investors should also review
other risks and uncertainties discussed in company
documents filed with the Securities and Exchange
Commission.
