EXHIBIT 99.3
Contact: Jeffrey J. Hattara (NYSE-BMC)
(612) 851-6030 FOR IMMEDIATE RELEASE
BMC ANNOUNCES SECOND QUARTER AND
TOTAL YEAR 1998 EARNINGS WILL BE SHORT
OF ANALYSTS' EXPECTATIONS
June 9, 1998 -- Minneapolis, Minnesota - BMC Industries, Inc. today announced
that the Company expects its operating earnings to fall short of analysts'
expectations for the second quarter and total year 1998. The Company expects
earnings per share from operations in the second quarter in the range of 8 to
13 cents per share and for the total year 1998 of 50 to 60 cents per share.
In addition to the operating earnings shortfall, the Company is evaluating a
one-time non-cash charge in the second quarter related to in-process research
and development projects purchased in conjunction with the recent acquisition
of Orcolite.
In summarizing the earnings shortfall, Paul B. Burke, Chief Executive Officer,
stated: "The earnings shortfall is resulting solely from soft market conditions
being experienced by the Mask Operations division of the Company. Recent
extreme pricing pressure in the computer monitor mask marketplace and lower
demand than expected for both television and computer monitor masks have caused
the Company to reduce its earnings estimate."
The combination of weak demand and excess inventory in Asia has depressed demand
for television and monitor masks and has made it difficult for BMC to achieve
the share of market goals established for the expansion completed last year. In
addition, weak Asian currencies coupled with the stagnant demand have created
price pressures that contributed to the Company's decision to temporarily idle
production.
As a result of these difficult market conditions, the Company is planning to
shutdown a portion of its computer monitor and television mask manufacturing
lines for some period of time. These shutdowns will be done in conjunction
with the Company's normal summer maintenance shutdowns to avoid additional
yield ramp-up time. Additionally, during the shutdown, Mask Operations will
be modifying the manufacturing lines to add certain automated handling
equipment and to make provisions for production of larger masks in more
multiple-up formats. The shutdown will also allow Mask Operations to reduce
its inventory levels in the second half of the year.
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Mask Operations' production performance has been very good in the second
quarter. Manufacturing yields on the new Cortland monitor line have exceeded
plan during the second quarter to date while the yields on the existing Cortland
entertainment lines have improved significantly over the second half of 1997 and
are now approaching pre-expansion levels. The Hungarian monitor mask inspection
facility has continued to make solid improvement and has significantly increased
its mask inspection throughput in the past few months.
Optical Products and Buckbee-Mears St. Paul (BMSP), the Company's other two
operating units, are both achieving excellent financial performance
significantly ahead of the prior year. Integration of the Orcolite acquisition
is proceeding as scheduled. The Orcolite acquisition is expected to further
enhance Optical Products' growth prospects and further establish it as a major
earnings contributor for the Company.
Statements made in this press release which are not historical, including
statements regarding forecasted second quarter and total year 1998 earnings, are
forward-looking statements and as such are subject to a number of risks. These
and other risks and uncertainties are detailed in the Company's Form 10-K for
the year ended December 31, 1997.
BMC Industries, Inc. is one of the world's largest manufacturers of aperture
masks for color picture tubes used in televisions and computer monitors. The
Company is also a leading producer of polycarbonate, glass and plastic eyewear
lenses. BMC's common stock is traded on the New York Stock Exchange under the
symbol BMC.
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