Matthews International Announces Third Quarter Earnings and Declares Quarterly Dividend

2008-07-24 15:31:00

Matthews International Announces Third Quarter Earnings and Declares Quarterly Dividend

    PITTSBURGH, July 24 /EMWNews/ -- Matthews International

Corporation (Nasdaq: MATW) today announced earnings for the third fiscal

quarter ended June 30, 2008. Net income for the quarter was $21,378,000

versus $12,029,000 for the same quarter last year. Earnings per share for

the third quarter of fiscal 2008 were $0.69 compared to $0.38 a year ago.

The third quarter a year ago included one-time charges of $0.21 per share,

principally related to the resolution of employment agreements from the

acquisition of Milso Industries (acquired in July 2005) and cost structure

initiatives in several of the Company's segments. Sales in the fiscal 2008

third quarter were $219,270,000 versus $185,477,000 in the fiscal 2007

third quarter. A portion of the consolidated sales increase for the current

quarter reflected the Company's acquisition of a 78% interest in Saueressig

GmbH & Co. KG in May 2008.



    Net income for the nine months ended June 30, 2008 was $59,092,000

versus $44,501,000 for the nine months ended June 30, 2007. Earnings per

share for the first nine months of fiscal 2008 were $1.90, compared to

$1.40 for the first nine months a year ago. Year-to-date fiscal 2008

earnings included the favorable effect of a one-time adjustment (recorded

in the fiscal 2008 first quarter) of $0.06 per share to income tax expense.

This adjustment represented the impact on deferred income taxes resulting

from certain income tax rate reductions in Europe. The results for the

first nine months last year included one-time charges of $0.25 per share,

principally related to the resolution of employment agreements from the

acquisition of Milso and cost structure initiatives in several of the

Company's segments. Sales for the first nine months of fiscal 2008 were

$599,445,000 versus $563,880,000 for the first nine months of fiscal 2007.



    In discussing the financial results for the quarter and first nine

months of the fiscal year, Joseph C. Bartolacci, President and Chief

Executive Officer, stated:



    "For the quarter ended June 30, 2008, five of our six operating

segments reported increased profitability on higher sales. Each of our

Memorialization businesses performed well despite increased commodity

costs, reflecting the benefit of higher sales. Higher volume and higher

average selling prices favorably impacted sales in the Casket segment. The

segment's higher average selling prices were partially attributable to a

change in channel mix as a result of its shift to direct distribution.

Bronze segment sales also improved for the quarter reflecting an increase

in selling prices compared to a year ago. Improved operating results in the

Cremation segment were principally due to higher sales of cremation

equipment and related services."



    "In the Brand Solutions businesses, the Graphics Imaging and

Merchandising Solutions segments reported improved operating results

compared to the third quarter a year ago. In general, our European Graphics

Imaging businesses performed well, particularly in our existing German

businesses, and the U.S. operations continued to improve. The U.K.

operation also reported improved operating results reflecting the benefit

of last year's cost structure initiatives. The year-over-year increase in

the operating profit of the Graphics Imaging segment also reflected the

absence of one-time charges in connection with various cost structure

changes last year. We continue to be encouraged by the recent improvements

in the Merchandising Solutions profitability as their current year

operating profit as a percent of sales was 9.0% on a year-to-date basis

compared to 7.4% a year ago. The Marking Products segment also reported an

increase in sales for the 2008 third quarter compared to a year ago,

principally as a result of its Chinese acquisition in June last year. The

segment's operating profit declined, however, reflecting the continued

weakness in the U.S. economy."



    Mr. Bartolacci further stated, "Based on our current operating

projections, we are expecting earnings per share for our fiscal 2008 fourth

quarter in the range of $0.64 to $0.66 per share. This range excludes the

impact of unusual items. Excluding the impact of unusual items from the

fourth quarter last year, this range represents an increase of 14% to 18%

over the prior year and would result in earnings per share (excluding

unusual items) within our 12% to 15% growth target for fiscal 2008. We

continue to remain cautious in the near term as the U.S. economy continues

to be challenging and with the ongoing volatility in the commodity markets,

specifically for copper, steel and fuel."



    The Board of Directors of Matthews International Corporation also

declared at its regularly scheduled meeting today a dividend of $0.06 per

share on the Company's common stock for the quarter ended June 30, 2008.

The dividend is payable August 18, 2008 to stockholders of record August 4,

2008.



    Matthews International Corporation, headquartered in Pittsburgh,

Pennsylvania, is a designer, manufacturer and marketer principally of

memorialization products and brand solutions. Memorialization products

consist primarily of bronze memorials and other memorialization products,

caskets and cremation equipment for the cemetery and funeral home

industries. Brand solutions include graphics imaging products and services,

marking products, and merchandising solutions. The Company's products and

services include cast bronze memorials and other memorialization products;

caskets; cast and etched architectural products; cremation equipment and

cremation-related products; mausoleums; brand management, printing plates,

pre-press services and imaging services for the primary packaging and

corrugated industries; marking and coding equipment and consumables, and

industrial automation products for identifying, tracking and conveying

various consumer and industrial products, components and packaging

containers; and merchandising display systems and marketing and design

services.




MATTHEWS INTERNATIONAL CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (In Thousands, except Share Data) Three Months Ended Nine Months Ended 6/30/08 6/30/07 6/30/08 6/30/07 Sales $219,270 $185,477 $599,445 $563,880 Operating Profit 36,734 21,129 97,904 76,958 Income before Taxes 33,571 19,277 90,811 71,315 Income Taxes 12,193 7,248 31,719 26,814 Net Income $21,378 $12,029 $59,092 $44,501 Earnings per Share * $0.69 $0.38 $1.90 $1.40 Weighted Average Shares 31,041,113 31,715,590 31,085,134 31,853,637 * Earnings per share for the nine months ended June 30, 2008 included a one-time tax benefit of $0.06 per share, which was recorded in the fiscal 2008 first quarter. Earnings per share for the quarter and nine months ended June 30, 2007 included special charges of $0.21 per share and $0.25 per share, respectively. Any forward-looking statements contained in this release are included pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks and uncertainties that may cause the Company's actual results in future periods to be materially different from management's expectations. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove correct. Factors that could cause the Company's results to differ materially from the results discussed in such forward-looking statements principally include economic, competitive, and technological factors beyond the Company's control.

Major Newsire & Press Release Distribution with Basic Starting at only $19 and Complete OTCBB / Financial Distribution only $89

Get Unlimited Organic Website Traffic to your Website 
TheNFG.com now offers Organic Lead Generation & Traffic Solutions





























Leave a Reply

Your email address will not be published. Required fields are marked *

*