Exhibit 99.1
ElkCorp Increases Earnings per Diluted Share Outlook to $0.72 to $0.74
for its Fiscal Third Quarter; Company to Present at SunTrust Conference
April 12 at 8:10 a.m. EDT
DALLAS--(BUSINESS WIRE)--April 11, 2005--ElkCorp, (NYSE:ELK), announced an
increased earnings outlook for its third fiscal quarter of 2005, ended March 31,
2005. The company now expects earnings per diluted share to be in the range of
$0.72 to $0.74 compared to the $0.62 to $0.67 per diluted share guidance given
in ElkCorp's second quarter earnings release dated January 20, 2005.
The increased estimate for the quarter is primarily driven by record
laminated shingle shipments, production improvements and improved pricing, which
offset continued high raw material and transportation costs. The better than
anticipated performance in the company's roofing business was partially offset
by a challenging quarter in the composite lumber business. Slower than expected
ramp up of new production, higher than anticipated raw material costs and slower
than anticipated ramp-up of Elk's new line of products for non-decking markets
resulted in lower than anticipated results. Because of the challenges faced in
the third quarter the company does not expect the composite business to meet
prior expectations for the fiscal year. However, the company remains confident
in the platform's ability to meet its long-term goals. The recent appointment of
a new Executive Vice President as well as the addition of key personnel to
provide enhancements to the composite platform's organizational structure,
combined with the capacity added as the newly commissioned extruders come
on-line, will assist Elk in taking advantage of the substantial growth
opportunities in these key markets.
"We continue to see strong demand from the areas affected by hurricanes
last year and we anticipate this demand to continue throughout the calendar
year, although we do expect demand to trail off toward the end of the calendar
year," said Thomas Karol, chairman and chief executive officer of ElkCorp. "The
significant shingle demand has brought our inventories lower than we would like
but we have been able to leverage efficiencies in production to increase our
shingle shipments to record levels and service demand. Raw material and freight
costs remain high throughout the industry; however, we have been able to
effectively manage expenses and minimize the overall impact of these costs with
offsetting price increases."
Mr. Karol continued, "In our composites business, we faced some obstacles
in the quarter such as longer than anticipated code body approval of our
products, higher raw material costs and a slower than anticipated ramp-up of our
composites into non-decking markets. We continue to make progress in addressing
the issues faced in this quarter and are pleased with the impact the new
organizational structure has made since their appointment. We are confident in
the future of this product platform and its long-term positive impact on the
business."
The company will release its fiscal third quarter results on Thursday,
April 21, following the close of the market. ElkCorp will also host a conference
call on April 22, 2005, at 11:00 a.m. EDT to further discuss its earnings and
operations for the third quarter as well as expectations for its fourth quarter
and fiscal year end. Investors and other interested parties may participate in
the live audio webcast by visiting the investor relations section of the ElkCorp
Web site at www.elkcorp.com.
ElkCorp will be presenting at the SunTrust Robinson Humphrey 34th Annual
Institutional Investor Conference on April 12 at the Ritz-Carlton, Buckhead in
Atlanta. Chairman and Chief Executive Officer Thomas Karol will be addressing
key investors and analysts regarding the Company's operations and strategies for
the future. A live audio Web broadcast of the presentation will begin at
approximately 8:10 am EDT and can be accessed through the investor relations
section of the ElkCorp Web site. A replay of this presentation will also be
available on the site for 30 days.
About ElkCorp
ElkCorp, through its subsidiaries, manufactures Elk brand premium roofing
and building products (over 90% of consolidated revenue) and provides
technologically advanced products and services to other industries. Each of
ElkCorp's principal operating subsidiaries is a leader within its particular
market. Its common stock is listed on the New York Stock Exchange (NYSE:ELK).
See www.elkcorp.com for more information.
Safe Harbor Provisions
In accordance with the safe harbor provisions of the securities law
regarding forward-looking statements, in addition to the historical information
contained herein, the above discussion contains forward-looking statements that
involve risks and uncertainties. The statements that are not historical facts
are forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. These statements usually are accompanied by words
such as "optimistic," "vision," "outlook," "believe," "estimate," "potential,"
"forecast," "project," "expect," "anticipate," "plan," "predict," "could,"
"should," "may," "likely," or similar words that convey the uncertainty of
future events or outcomes and include the earnings outlook for the fiscal 2005
third quarter. These statements are based on judgments the company believes are
reasonable; however, ElkCorp's actual results could differ materially from those
discussed here. Factors that could cause or contribute to such differences could
include, but are not limited to, changes in demand, prices, raw material costs,
transportation costs, changes in economic conditions of the various markets the
company serves, changes in the amount and severity of inclement weather, acts of
God, war or terrorism, as well as the other risks detailed herein, and in the
company's reports filed with the Securities and Exchange Commission, including
but not limited to, its Form 10-K for the fiscal year ending June 30, 2004 and
Form 10-Q for the quarter ended December 31, 2004. ElkCorp undertakes no
obligation to update or revise publicly any forward-looking statements, whether
as a result of new information, future events or otherwise.
CONTACT: ElkCorp, Dallas
Investor Relations Contact
Stephanie Elwood, 972-851-0472