EXHIBIT 99.1
NEWS RELEASE CONTACT: Randy Lieble
FOR IMMEDIATE RELEASE (715) 839-2164
NATIONAL PRESTO INDUSTRIES, INC. ANNOUNCES
SECOND QUARTER 2003 SALES AND EARNINGS
Eau Claire, Wisconsin (July 25, 2003) -- National Presto
Industries, Inc. (NYSE: NPK) announced today second quarter sales and earnings,
as shown in the table below. Net earnings per share have been computed on the
basis of the weighted average number of common shares outstanding for the
respective periods.
In response to questions about sales and earnings, Maryjo Cohen,
President, stated, "Second quarter 2003 sales and earnings largely followed the
pattern set during first quarter. Once again, housewares and small appliance
sales declined, reflecting the ongoing weak retail environment. The decline,
however, was more than offset by a bulge in sales at its absorbent products
subsidiary flowing from a production contract entered into late 2002 with
another manufacturer in temporary need of additional capacity. That contract was
completed during the review quarter. The earnings improvement was primarily
attributable to two of the elements that enhanced first quarter earnings: 1)
partial reversal of the Company's LIFO manufacturing reserve reflecting the
ongoing sale of products produced prior to the transition of production from
domestic plants to the Orient (see footnote below), and 2) cost reductions
emanating from the sourcing of product overseas. As in the first quarter,
reduced yields from the Company's portfolio, reflecting the interest rate cuts
implemented by the Federal Reserve over the past several years, served as a
retardant to earnings improvement."
National Presto manufactures and sells small household electric
appliances and pressure cookers under the PRESTO(R) brand name. The Company is
widely recognized as an innovator of new products.
THREE MONTHS ENDED
June 29, 2003 June 30, 2002
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Net Sales $21,452,000 $20,378,000
Net Earnings $ 1,918,000* $ 1,083,000
Net Earnings Per Share $ .28* $ .16
Weighted Shares Outstanding 6,818,000 6,841,000
SIX MONTHS ENDED
June 29, 2003 June 30, 2002
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Net Sales $43,506,000 $42,974,000
Net Earnings (Loss) $ 3,971,000* $(1,277,000)*
Net Earnings Per Share $ .58* $ (.19)*
Weighted Shares Outstanding 6,825,000 6,839,000
* Second quarter and first half 2003 comparative earnings were favorably
impacted, respectively by a partial reversal of the LIFO reserve net of tax of
$662,000 - $.10 per share and $1,435,000 - $.21 per share. First half 2003
comparative earnings were also enhanced by the absence of the first quarter 2002
after-tax charge relating to plant closings of $2,423,000 - $.35 per share.
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