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EXHIBIT 99.1
CORPORATE HEADQUARTERS NEWS RELEASE CONTACT:
1525 Perimeter Parkway, Suite 210 James E. Deason
Huntsville, Alabama 35806 Executive Vice President,
256 353 1310 / fax 256 890 0470 Chief Financial Officer
(256) 890-0460
(http://www.wlv.com)
WOLVERINE TUBE REPORTS RECORD EARNINGS PER SHARE
AND 16% INCREASE IN NET INCOME FOR SECOND QUARTER 1998
Huntsville, Alabama (July 22, 1998) - Wolverine Tube, Inc. (NYSE:WLV) today
reported record net income and earnings per share for the second quarter ended
July 4, 1998. Net income for the second quarter of 1998 was $11.7 million, or
$0.81 per diluted share, a 16% increase over the net income, before one-time
charges of $10.1 million, or $0.70 per diluted share, in the second quarter of
1997. Second quarter earnings are in line with analysts' consensus estimates.
Total pounds of product shipped increased 9.8 % to 96.5 million pounds in the
second quarter of 1998, compared with 87.9 million pounds in the second quarter
of 1997. Net sales for the second quarter of 1998 were $169.6 million compared
with $178.1 million in the second quarter a year ago. This is the result of a
significant drop in the average price of copper of $0.78 per pound in the
second quarter of 1998 compared with $1.14 per pound in the second quarter of
1997. The Company's cost of copper is a "pass through" to a majority of
customers. As a result, while total pounds shipped increased, the drop in
copper prices resulted in a decline in sales.
For the six months ended July 4, 1998, net income was $22.2 million or $1.55
per diluted share, a 17% increase compared with $18.9 million, or $1.32 per
diluted share before one-time charges, for the six months ended June 28, 1997.
Total pounds of product shipped increased 11.3 % to 192.1 million pounds in the
first six months of 1998 compared with 172.6 million pounds in the first six
months of 1997. Net sales for the first six months of 1998 were $339.9 million
compared with $351.7 million in the first six months of 1997. This decrease is
primarily the result of a significant drop in the average price of copper of
$0.78 per pound in first six months of 1998 compared with $1.13 per pound in
the first six months of 1997.
Commenting on the results, Dennis Horowitz, president and chief executive
officer, stated, "The second quarter of 1998 has been the most profitable
quarter in the Company's history, and we are very pleased with these record
results. During the second quarter, the demand for industrial tube, used
primarily in unitary air conditioners, continued to improve as the cooling
season arrived, and the demand for our technical tube used in commercial air
conditioning applications remained ahead of the same period in the prior year.
In addition, we are pleased to report that our manufacturing costs, exclusive of
direct materials costs, decreased two percentage points from the same period in
the prior year as the Company continued its focus on operating efficiencies and
cost controls."
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Wolverine Tube, Inc. is a leading North American manufacturer and distributor
of copper and copper alloy tube. The Company believes that it offers the
broadest product line of any North American tube manufacturer and focuses on
custom-engineered, high value-added copper and copper alloy tubular products
which enhance performance and energy efficiency in many applications. The
Company also manufactures and distributes copper and copper alloy rod, bar and
strip products.
This release contains forward-looking statements regarding the
anticipated financial and operating results of the Company. The Company
undertakes no obligation to publicly release any revisions to any
forward-looking statements contained herein to reflect events or circumstances
occurring after the date hereof or to reflect the occurrence of unanticipated
events. The Company's actual results may differ materially from those projected
in forward-looking statements made by, or on behalf of, the Company.
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WOLVERINE TUBE, INC.
Unaudited Financial Highlights
(In thousands, except share data)
Three-Month Six-Month
----------- ---------
Periods Ended Periods Ended
------------- -------------
July 4, June 28, July 4, June 28,
1998 1997 1998 1997
---- ---- ---- ----
Net Sales $ 169,640 $ 178,082 $ 339,939 $ 351,658
========= ========= ========= =========
Net income before one-time charges $ 11,668 $ 10,060 $ 22,243 $ 18,897
One-time charges* -- 7,735 -- 7,735
--------- --------- --------- ----------
Net income $ 11,668 $ 2,325 $ 22,243 $ 11,162
========= ========= ========= =========
Basic earnings per share:
Income before one-time charges $ 0.82 $ 0.71 $ 1.57 $ 1.34
One-time charges* -- (0.55) -- (0.55)
--------- --------- --------- ---------
Net income** $ 0.82 $ 0.16 $ 1.57 $ 0.79
========= ========= ========= =========
Basic weighted average
common equivalent shares 14,112 14,016 14,099 14,000
========= ========= ========= =========
Diluted earnings per share:
Income before one-time charges $ 0.81 $ 0.70 $ 1.55 $ 1.32
One-time charges* -- (0.54) -- (0.54)
--------- --------- --------- ---------
Net income** $ 0.81 $ 0.16 $ 1.55 $ 0.78
========= ========= ========= =========
Diluted weighted average
common equivalent shares 14,317 14,200 14,295 14,220
========= ========= ========= =========
* One-time charges relating to the Company's early retirement program,
severance, professional fees, closing ST Poland operations and debt
refinancing.
** After preferred stock dividends.
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