The Oilgear Company (NASDAQ:OLGR) today reported record sales and
increased earnings for the second quarter ended June 30, 2005. For
the second quarter of 2005, Oilgear reported net sales of
$25,512,000, a 9.6% increase from sales of $23,271,000 for the same
period in 2004. The company reported net earnings of $621,000 or
$0.31 per diluted share for the second quarter of 2005, compared to
net earnings of $3,000 or $0.00 per share for the comparable prior
period. For the first half of 2005, net sales were a record
$51,554,000, a 15.7% increase from sales of $44,563,000 for the
first half of 2004. Net earnings were $1,046,000 or $0.52 per
diluted share for the first six months of 2005, compared to net
earnings of $13,000 or $0.01 per diluted share for the same period
in the prior year. Orders increased 6.2% to a record $26.8 million
in the second quarter of 2005 and 9.9% to a record $56.5 million
for the first half, compared to the same periods in 2004. The
growth in orders in the second quarter was lead by the
international segment where orders exceeded their previous best
quarter by over 20%. The backlog increased 14% from the beginning
of 2005 to $39.0 million at June 30, 2005, a record backlog for any
quarter in the company's history. "Our domestic segment was the
leading contributor to our record sales for the second quarter and
first half. Shipments increased 25.4% for the second quarter and
27.1% for the first six months of 2005 over the same periods in
2004. The increases reflect the strong level of shipments in the
fluid power industry overall, where U.S. shipments of hydraulic
equipment for the first six months of 2005 were up 19.4% over 2004,
according to data provided by the National Fluid Power
Association," said David A. Zuege, president and chief executive
officer. "We are especially pleased with the increase in net
earnings to $621,000 in the second quarter of 2005, from a virtual
break-even in the second quarter of last year. Gross margin was
27.6% for the second quarter of 2005, up from 23.5% in the second
quarter of 2004. A better mix of business, coupled with the fact
that all of our plants are operating at near capacity thereby
spreading operating costs over a higher volume, were the principal
reasons for the margin improvement. While we are making good
progress, margin enhancement remains our top priority," said Zuege.
A leader in the fluid power industry, The Oilgear Company provides
advanced technology in the design and production of unique fluid
power components and electronic controls. The company serves
customers in the primary metals, machine tool, automobile,
petroleum, construction equipment, chemical, plastic, glass,
lumber, rubber and food industries. Its products are sold as
individual components or integrated into high performance
applications. Certain matters discussed in this press release are
"forward-looking statements" intended to qualify for the safe
harbors from liability established by the Private Securities
Litigation Reform Act of 1995. These forward-looking statements can
generally be identified as such because the context of the
statement will include words such as the Company "believes,"
"anticipates," "expects" or words of similar import. Similarly,
statements that describe the Company's future plans, objectives or
goals are also forward-looking statements. Such forward-looking
statements are subject to certain risks and uncertainties which
could cause actual results to differ materially from those
currently anticipated. In addition to the assumptions and other
factors referenced specifically in connection with such statements,
the following could impact the business and financial prospects of
the Company: factors affecting the economy generally, including the
financial and business conditions of the Company's customers, the
demand for customers' products and services that utilize the
Company's products, and national and international events; factors
affecting the Company's financial performance or condition,
including restrictions or conditions imposed by current or
prospective lenders, tax legislation, and changes in accounting
principles; factors affecting percentage of completion contracts,
including the accuracy of estimates and assumptions regarding the
timing and levels of costs to complete those contracts; factors
affecting the Company's international operations, including
fluctuations in currencies, changes in laws and political or
financial insecurity of foreign governments; factors affecting the
Company's ability to hire and retain competent employees, including
unionization of non-union employees and strikes or work stoppages;
any further decrease in stock price as a result of market
conditions; changes in the law or standards applicable to the
Company, including environmental laws and accounting
pronouncements; availability of raw materials; unanticipated
technological developments that result in competitive disadvantages
and may impair existing assets; and factors set forth in the
Company's periodic reports filed with the SEC in accordance with
the Securities Exchange Act. Shareholders, potential investors and
other readers are urged to consider these factors and those set
forth in the Company's filings with the SEC carefully in evaluating
the forward-looking statements. The forward-looking statements made
herein are only made as of the date of this press release and the
Company undertakes no obligation to publicly update such
forward-looking statements to reflect subsequent events or
circumstances. -0- *T The Oilgear Company Consolidated Condensed
Operating Statement (Unaudited) Three Months Ended Six Months Ended
June 30, June 30, 2005 2004 2005 2004 ----------- -----------
----------- ------------ Net sales $25,512,000 $23,271,000
$51,554,000 $44,563,000 Cost of sales 18,460,000 17,795,000
37,695,000 33,896,000 ----------- ----------- -----------
------------ Gross profit $7,052,000 $5,476,000 $13,859,000
$10,667,000 Selling, general and administrative expenses 5,587,000
5,000,000 11,255,000 9,671,000 ----------- ----------- -----------
------------ Operating income $1,465,000 $476,000 $2,604,000
$996,000 ----------- ----------- ----------- ------------ Interest
expense 603,000 327,000 1,213,000 657,000 Other non-operating
income, net 41,000 37,000 83,000 (9,000) ----------- -----------
----------- ------------ Earnings before income taxes 903,000
186,000 1,474,000 330,000 Income tax expense 214,000 149,000
342,000 262,000 ------------------------------------------------
Net earnings before minority interest 689,000 37,000 1,132,000
68,000 Minority Interest 68,000 34,000 86,000 55,000 -----------
----------- ----------- ------------ Net earnings $621,000 $3,000
$1,046,000 $13,000 =========== =========== =========== ============
Basic earnings per share of common stock $0.31 $0.00 0.53 $0.01
=========== =========== =========== ============ Diluted earnings
per share of common stock $0.31 $0.00 $0.52 $0.01 ===========
=========== =========== ============ Basic weighted average
outstanding shares 1,992,000 1,960,000 1,987,000 1,959,000 Diluted
weighted average outstanding shares 2,021,000 1,979,000 2,018,000
1,980,000 The Oilgear Company Consolidated Condensed Balance Sheet
(Unaudited) June 30, December 31, 2005 2004 -----------
------------ ASSETS Current Assets Cash and cash equivalents
$4,862,000 $4,109,000 Accounts receivable 18,940,000 17,030,000
Inventories 25,362,000 25,529,000 Other current assets 4,909,000
5,861,000 ----------- ------------ Total current assets $54,073,000
$52,529,000 ----------- ------------ Net property, plant and
equipment 16,640,000 18,163,000 Other assets 2,889,000 2,123,000
----------- ------------ $73,602,000 $72,815,000 ===========
============ LIABILITIES AND SHAREHOLDERS' EQUITY Current
Liabilities Current debt $16,571,000 $21,334,000 Accounts payable
9,390,000 10,830,000 Other current liabilities 8,719,000 8,508,000
----------- ------------ Total current liabilities $34,680,000
$40,672,000 ----------- ------------ Long-term debt 8,364,000
1,302,000 Unfunded employee benefit costs 22,614,000 23,024,000
Other non-current liabilities 716,000 694,000 -----------
------------ Total liabilities $66,374,000 $65,692,000 -----------
------------ Minority interest in consolidated subsidiary 1,035,000
1,037,000 Shareholders' equity 6,193,000 6,086,000 -----------
------------ $73,602,000 $72,815,000 =========== ============ *T
Oilgear (NASDAQ:OLGR)
Historical Stock Chart
From Aug 2024 to Sep 2024
Oilgear (NASDAQ:OLGR)
Historical Stock Chart
From Sep 2023 to Sep 2024