Press Release
Contact: Adrienne Binenstock
Park Electrochemical Corp.
(516) 354-4100
PARK ELECTROCHEMICAL REPORTS THIRD QUARTER RESULTS
LAKE SUCCESS, New York, December 22, 1998…Park Electrochemical Corp. (NYSE-PKE) reported sales of $103,290,000 for the third quarter ended November 29, 1998 compared to $97,625,000 for the third quarter of last year. Park’s sales for the first nine months were $289,493,000 compared to last year’s first nine months sales of $272,344,000.
Park reported earnings of $4,249,000 for the third quarter compared to $6,996,000 for last year’s third quarter. Earnings for the first nine months were $10,009,000 compared to $18,013,000 for last year’s first nine months.
Park’s earnings per share for the third quarter were $.41 basic and $.40 diluted versus $.62 per share basic and $.56 per share diluted for last year’s third quarter. Park’s earnings per share for the nine months were $.90 basic and $.89 diluted compared to $1.59 per share basic and $1.48 per share diluted for last year’s first nine months.
Brian Shore, Park’s President and CEO, said, “We are pleased with the improvement in our third quarter performance over our second quarter performance. At the end of the second quarter, we indicated that our business had come under extreme pressure as the result of the Asian crisis as well as underlying fundamental global economic weakness. We also indicated that our second quarter results were very adversely affected by the loss of Delco Electronics as a customer.” (As we have previously reported, Delco elected to quit the circuit board manufacturing business and shut their plant earlier in the year. As we also reported, we have sued Delco and its sister company, Delphi Automotive, in connection with these actions which we believe were in violation of our contract and our rights.)
Brian Shore continued, “We also indicated at the end of the second quarter that we were taking certain actions in response to the intense pressure our business had come under, including reducing our internal costs, working more closely and effectively with our preferred suppliers to identify ‘win-win’ opportunities to reduce our raw material costs, and taking on additional market share with certain key customers. I am pleased to report that, although we continue to pursue additional cost reduction and market opportunities, our people have been very successful in reducing our cost structures, maximizing the utilization of our resources and increasing our market share with certain key accounts, and their success is reflected in our third quarter results.”
Brian Shore added, “While Delco’s decision to quit the business had a very negative effect on our third quarter results, our people have worked very hard to convert our plant, which was essentially built to supply Delco, into a plant which will be viable serving other customers. I am very pleased with and gratified by the progress our people have made in the face of extreme adversity. Clearly, we, unlike certain others, are not quitters!”
Brian Shore concluded, “Although we continue to believe the global markets for our electronic products will be challenged over the next two to three years, we are optimistic about our ability to meet the short and longer term challenges our business and our industry will face.”
Certain portions of this press release which do not relate to historical financial information may be deemed to constitute forward looking statements that are subject to various factors which could cause actual results to differ materially from Park’s expectations. Such factors include, but are not limited to, general conditions in the electronics industry, Park’s competitive position, the status of Park’s relationships with its customers, economic conditions in international markets, and the various factors set forth under the caption “Factors That May Affect Future Results” after Item 7 of Park’s Annual Report on Form 10-K for the fiscal year ended March 1, 1998.
Park Electrochemical Corp. is a leading designer and producer of advanced electronic materials used to fabricate complex multilayer printed circuit boards and interconnection systems. Park’s electronic materials business is operated by its “Nelco” group of companies. Park also manufactures specialty adhesive tapes and advanced composite materials for the electronics, aerospace and industrial markets.
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