SIFCO Industries, Inc. (NYSE Amex: SIF) today announced financial results for its fiscal 2010 second quarter, which ended March 31, 2010. Income from continuing operations in the second quarter of fiscal 2010 decreased to $1.0 million, compared with $2.1 million in the comparable fiscal 2009 period. Net income for the second quarter of fiscal 2010 was $1.0 million, or $0.19 per diluted share, compared with a net income of $2.4 million, or $0.45 per diluted share for the comparable fiscal 2009 period.

Net sales decreased 23.3% in the second quarter of fiscal 2010 to $19.9 million, compared with $25.9 million for the same period a year ago. In the second quarter of fiscal 20010:
  • Aerospace Component Manufacturing Group net sales decreased by $5.0 million, or 25.3%, to $14.6 million, compared with $19.6 million in the comparable 2009 period;
  • Turbine Component Services and Repair Group net sales decreased by $0.3 million, or 13.2%, to $2.4 million, compared with $2.7 million for the comparable 2009 period; and
  • Applied Surface Concepts Group net sales decreased by $0.7 million, or 20.1%, to $2.9 million, compared with $3.6 million for the comparable 2009 period.

For the first six months of fiscal 2010, income from continuing operations decreased to $3.0 million, compared with $3.6 million in the comparable fiscal 2009 period. Net income for the first six months of fiscal 2010 was $3.0 million, or $0.56 per diluted share, compared with net income of $4.0 million, or $0.76 per diluted share, for the comparable fiscal 2009 period.

Net sales decreased 16.8% in the first six months of fiscal 2010 to $41.2 million, compared with $49.5 million for the same period a year ago. In the first six months of fiscal 2010:
  • Aerospace Component Manufacturing Group net sales decreased by $5.0 million, or 13.9%, to $30.9 million, compared with $35.9 million in the comparable 2009 period;
  • Turbine Component Services and Repair Group net sales decreased by $1.8 million, or 27.3%, to $4.5 million, compared with $6.3 million for the comparable 2009 period; and
  • Applied Surface Concepts Group net sales decreased by $1.6 million, or 21.5%, to $5.8 million, compared with $7.4 million for the comparable 2009 period.

SIFCO Industries, Inc. is engaged in the production and sale of a variety of metalworking processes, services and products produced primarily to the specific design requirements of its customers. The processes and services include forging, heat-treating, coating, welding, machining and selective electrochemical finishing. The products include forged components, machined forged components and other machined metal components, remanufactured component parts for aerospace turbine engines, and selective electrochemical finishing solutions and equipment. The Company’s operations are conducted in three business segments: (1) Aerospace Component Manufacturing Group, (2) Turbine Components Services and Repair Group, and (3) Applied Surface Concepts Group.

Forward-Looking Language

Certain statements contained in this press release are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to financial results and plans for future business development activities, and are thus prospective. Such forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Potential risks and uncertainties include, but are not limited to, economic conditions, competition and other uncertainties detailed from time to time in the Company’s Securities and Exchange Commission filings.

The Company’s Form 10-Q for the quarter ended March 31, 2010 can be accessed through its website: www.sifco.com, or on the Securities and Exchange Commission’s website: www.sec.gov.

 
             

 

 

SIFCO Industries, Inc.

Second Quarter Ended March 31, 2010

Consolidated Condensed Statements of Operations

(Amounts in thousands, except per share data)

 

Second Quarter

Six Months

Ended March 31,

Ended March 31,

2010
 

2009
   

2010
 

2009
 
Net sales $ 19,886 $ 25,941 $ 41,188 $ 49,478
 
Cost of goods sold 15,735 19,812 31,016 37,967
Selling, general and administrative expenses   2,806     2,715     5,743     5,578  
Operating income 1,345 3,414 4,429 5,933
Interest expense, net --- 13 10 24
Foreign currency exchange loss (gain), net (14 ) 7 (16 ) 79
Other income, net   (119 )   (2 )   (235 )   (7 )

Income from continuing operations before income tax provision
1,478 3,396 4,670 5,837
Income tax provision   474     1,296     1,653     2,199  
Income from continuing operations 1,004 2,100 3,017 3,638
Income from discontinued operations, net of tax   ---     294     ---     386  
 
Net income $ 1,004   $ 2,394   $ 3,017   $ 4,024  
 
 
Income per share from continuing operations:
Basic $ 0.19 $ 0.40 $ 0.57 $ 0.69
Diluted $ 0.19 $ 0.40 $ 0.56 $ 0.69
 
Income per share from discontinued operations, net of tax:
Basic $ --- $ 0.06 $ --- $ 0.07
Diluted $ --- $ 0.06 $ --- $ 0.07
 
Net income per share:
Basic $ 0.19 $ 0.45 $ 0.57 $ 0.76
Diluted $ 0.19 $ 0.45 $ 0.56 $ 0.76
 
 
Weighted average number of common shares (basic) 5,307 5,295 5,304 5,295
Weighted average number of common shares (diluted) 5,362 5,315 5,353 5,311

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