Niagara (NASDAQ:NIAG)
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Niagara Corporation Announces Results for Third Quarter and Nine
Months
Record Performance Continues
NEW YORK, Oct. 28 /PRNewswire-FirstCall/ -- Niagara Corporation (OTC:NIAG)
announced today results for the third quarter and nine months ended September
30, 2004.
In the third quarter, sales increased to $113.1 million from $69.8 million in
the comparable quarter in 2003. Net income for the quarter increased to
$5,565,000 from $567,000, and earnings per share increased to $.68 from $.07
for the third quarter of 2003. The third quarter 2004 results were achieved
after giving affect to a LIFO charge of approximately $6.1 million. No such
charge was taken for the third quarter of 2003.
Comparing the nine months ended September 30, 2004 and 2003, sales increased to
$319.2 million from $222.5 million, net income increased to $13,938,000 from
$2,559,000, and net income per share increased to $1.69 from $.31 for the first
nine months of 2003. The results for the nine months ended September 30, 2004
reflect a LIFO charge of approximately $11.1 million. No such charge was taken
for the comparable period in 2003.
In commenting on these results, Michael Scharf, Chairman and CEO of Niagara,
stated:
"For the third quarter of 2004, Niagara rode the wave of higher prices and
strong demand for cold finished steel bar products and achieved record results.
Tons shipped, sales, profit margins and net income for our U.S. operations
improved significantly in comparison to the third quarter of last year. Strong
relationships with key suppliers and customers were instrumental to our
success. Because of supplier support, we had levels of inventory sufficient to
satisfy our customers' needs in a timely manner. Our diverse operations in the
U.K. benefited primarily from tight supply, increased prices and a modest
increase in demand from Western Europe.
I am also pleased to report that, during the nine months ended September 30,
2004, Niagara reduced its debt by $19.3 million and paid a special dividend of
$ .25 per share. This was Niagara's first dividend. Also, it should be noted
that, because of sharply rising prices during the first nine months of the
year, Niagara has recorded a LIFO charge of approximately $11.1 million.
Anyone who follows the steel industry or Niagara typically is curious about
China and its effect on the future of the steel industry. While it is difficult
to predict the length or magnitude of the "China effect," suffice it to say
that demand from China created an extremely tight steel supply situation in
2004, and this certainly benefited Niagara. In recent weeks, however, we have
begun to experience a slight decline in demand as customers seek to adjust
their high inventory levels in anticipation of year-end.
I am optimistic about Niagara's future. In the U.S. cold finished steel bar
business, Niagara is the number one producer, and we have the broadest and most
specialized range of products. We are continuously upgrading our equipment and
production capabilities, and we provide excellent service to our customers. Our
success is made possible by the competence, dedication and "teamworker
attitude" of our valued employees at all levels and at all locations of our
company."
Niagara Corporation
Selected Financial Data
Quarter Ended Quarter Ended
September 30, 2003 September 30, 2004
Revenues $69,786,000 $113,079,000
Net Income $567,000 $5,565,000
Share Earnings
(basic and diluted) $.07 $.68
Average Shares
(basic and diluted) 8,238,517 8,238,517
Nine Months Ended Nine Months Ended
September 30, 2003 September 30, 2004
Revenues $222,537,000 $319,218,000
Net Income $2,559,000 $13,938,000
Share Earnings
(basic and diluted) $.31 $1.69
Average Shares
(basic and diluted) 8,238,517 8,238,517
This release contains certain "forward-looking statements" made pursuant to the
"safe-harbor" provisions of the Private Securities Litigation Reform Act of
1995. These statements involve known and unknown risks, uncertainties and
other factors, many of which are beyond the control of the Company, that may
cause the Company's actual results to be materially different from those
expressed or implied by such statements. Such risks, uncertainties and other
factors include those described in the Company's Annual Report on Form 10-K for
the year ended December 31, 2003. The forward-looking statements made herein
are only made as of the date of this release, and the Company undertakes no
obligation to publicly update such forward-looking statements to reflect
subsequent events or circumstances.
DATASOURCE: Niagara Corporation
CONTACT: Michael Scharf, CEO of Niagara Corporation, +1-212-317-1000
Web site: http://www.niag.com/