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EXHIBIT 99a
FOR IMMEDIATE RELEASE CONTACT: Donald R. Sheley, Jr.
The Standard Products Co.
(313) 791-2336
or
Patrick Gallagher
Edward Howard & Co.
(216) 781-2400
STANDARD PRODUCTS REPORTS FISCAL 2000 FIRST QUARTER RESULTS
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DEARBORN, Michigan, October 19, 1999 - The Standard Products Co. (NYSE:SPD)
today announced results for its fiscal 2000 first quarter, ended September 30,
1999. The Company generated net income of $5.8 million, or $0.35 diluted
earnings per share of common stock, prior to recording a charge related to the
previously announced reorganization of its European network of manufacturing
facilities. After including a pre-tax charge of $23.5 million, or $0.95 diluted
earnings per share, the Company incurred a net loss for the quarter of $9.6
million, or $0.60 diluted earnings per share, on sales of $264.4 million. This
compares with net income of $0.4 million, or $0.03 diluted earnings per share,
on sales of $231.8 million in the first quarter a year ago.
First quarter sales for the Company's Engineered Rubber Products
segment totaled $180.1 million, a 17.9 percent increase from fiscal 1999 first
quarter sales of $152.7 million. In North America, volumes were particularly
strong on General Motors' truck platforms and Ford's Windstar and Crown
Victoria, while in Europe both Jaguar and Rover volumes were up over last year.
The Engineered Plastics Products segment had first quarter sales of $48.1
million, a 4.8 percent increase from the same period in fiscal 1999. This
increase was due to the acquisition of OEM/Miller in August 1998, as well as
increased volumes in the automotive industry.
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First quarter sales in the Company's Tread Rubber segment were up 15.1
percent over the prior year, from $38.1 million to $43.9 million. This increase
was driven primarily by increased precure product sales across all customer
groups.
"Sales volumes were at near-record levels for any first quarter in the
Company's history. Excluding the nonrecurring charge, these volumes, coupled
with our ongoing Low Cost Producer initiatives, also enabled us to realize
near-record first quarter results," said Ronald L. Roudebush, vice chairman and
chief executive officer. "Each of our business segments participated in the
strong volumes and improved results," he added. Mr. Roudebush also stated that
the proposed merger with Cooper Tire & Rubber Company is proceeding toward a
scheduled closing on October 27, 1999.
Certain statements in this press release, especially those concerning
the Company's future earnings, constitute "forward-looking statements" as that
term is defined under the Private Securities Litigation Reform Act of 1995. The
achievement of the projections and estimates set forth is subject to certain
general risks and uncertainties, including economic and industry conditions that
affect all international businesses and the various factors contained in the
reports filed by the Company with the Securities and Exchange Commission.
Standard Products produces highly engineered polymer-based products and
systems on a global basis for the automotive, appliance and construction
industries. More information may be found on the Internet at
http://www.standardproducts.com.
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(table follows)
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THE STANDARD PRODUCTS COMPANY
Consolidated Earnings Summary (Unaudited) (000 omitted)
THREE MONTHS
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PERIODS ENDED SEPTEMBER 30, 1999 1998
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Net sales $ 264,399 $ 231,815
Costs and expenses:
Cost of goods sold 230,167 209,428
Selling, general and
administrative expenses 22,749 18,173
Nonrecurring charge 23,512 -
Interest expense 3,562 2,973
Other (income) expense, net 194 563
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Income before taxes on income $ (15,785) $ 678
Provision for taxes on income (6,138) 244
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Net income $ (9,647) $ 434
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Per common share:
Basic $ (0.60) $ 0.03
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Diluted $ (0.60) $ 0.03
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Dividends $ 0.18 $ 0.17
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Average shares outstanding:
Basic 16,065 16,698
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Diluted 16,240 16,747
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