Exhibit 99.2
NEWS RELEASE
For further information, please contact:
Mr. John O'Mahoney, Chairman/CEO, or Mr. Mark Joslin, CFO & Treasurer
LAWTER INTERNATIONAL FIRST QUARTER EPS INCREASES 21%
Pleasant Prairie, Wisconsin - April 28, 1999 -- Lawter International,
Inc. announced today fully diluted earnings per share of $0.17 for the quarter
ended March 31, 1999 compared to $0.14 for the first quarter of 1998.
Sales revenue for the first quarter of 1999 was $55,102,000, an improvement of
4% over first quarter 1998 sales revenue of $52,755,000. Sales volumes were up
9% for the quarter including the business purchased on December 31, 1998 from
Robert Kraeme r. Excluding this acquisition, worldwide sales volumes would have
been up 1%. Sales gains in North America were largely offset by lower volumes
in Europe, where difficult economic conditions adversely impacted the European
graphic arts market, part icularly in January.
Gross margins for the first quarter of 1999 improved to 31% of sales compared to
30% of sales for the 1998 period. Margins in 1999 benefited from cost reduction
programs initiated in Europe in 1998 and from strategic purchases of raw
materials. By holding growth in selling, administration, research and
distribution expenses to 3%, income from operations of $9,859,000 for the first
quarter of 1999 was 12% ahead of 1998 first quarter income from operations.
Despite the improvement in operating earnings, interest expense incurred on
borrowings to repurchase 11.5 million shares of the company stock on April 1,
1998, resulted in lower net earnings of $5,468,000 for the first quarter of
1999,14% below 1998 first quarter net earnings. With fewer shares outstanding
in 1999 however, earnings per share increased 21% over the comparable 1998
period.
Lawter is a specialty chemical company, with 17 facilities in 11 countries
throughout the world. It is a major manufacturer and distributor of printing
ink vehicles, wax compounds and powders, and synthetic and hydrocarbon resins
to the graphic arts industry. Lawter also serves the industrial coatings,
adhesives and rubber industries.
This press release contains forward-looking statements which are not historical
facts. These statements involve risks and uncertainties that could cause actual
results to differ materially, including, but not limited to, certain global and
regional economic conditions and factors detailed in the Company's Securities
and Exchange Commission filings.
News Release - continued:
CONDENSED CONSOLIDATED REPORT OF EARNINGS
(In thousands, except per share figures)
(Unaudited)
Three Months Ended
March 31
------------------ % Inc.
1999 1998 (Dec.)
-------- -------- ------
Net Sales $ 55,102 $ 52,755 4
Cost of Goods Sold 38,014 36,935 3
-------- --------
Gross Margin $ 17,088 $ 15,820 8
Selling, Admin., Research
and Distribution Exps. 7,229 7,017 3
-------- --------
Income from Operations $ 9,859 $ 8,803 12
Investment Income 360 1,072 (66)
Interest Expense (2,408) (745) 223
-------- --------
Earnings before Tax $ 7,811 $ 9,130 (14)
Income Taxes 2,343 2,739 (14)
-------- --------
Net Earnings $ 5,468 $ 6,391 (14)
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Earnings Per Share $ 0.17 $ 0.14
Average Shares Outstanding 33,068 45,533
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
Mar. 31 Dec. 31
1999 1998
-------- --------
Cash and Equivalents $ 43,825 $ 40,078
Other Current Assets 87,127 92,964
Net PP&E 88,203 92,142
Other Assets 27,367 29,066
-------- --------
$246,522 $254,250
======== ========
Current Liabilities $ 51,974 $ 56,332
Deferred Income Taxes 35,816 35,344
Long-Term Obligations 129,050 129,050
Stockholders' Equity 29,682 33,524
-------- --------
$246,522 $254,250
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