SIFCO Industries, Inc. (NYSE Amex: SIF) today announced financial results for its fiscal 2010 fourth quarter, which ended September 30, 2010. Net income for the fourth quarter of fiscal 2010 was $1.4 million, or $0.26 per diluted share, compared with net income of $1.6 million, or $0.30 per diluted share, in the comparable fiscal 2009 period.

Net sales increased 8.3% in the fourth quarter of fiscal 2010 to $22.6 million, compared with $20.9 million in the same period a year ago. In the fourth quarter of fiscal 2010:
  • Aerospace Component Manufacturing Group net sales increased by $1.0 million, or 6.3%, to $16.9 million, compared with $15.9 million in the comparable 2009 period,
  • Turbine Components Services and Repair Group net sales increased by $0.5 million, or 25.3%, to $2.4 million, compared with $1.9 million in the comparable 2009 period, and
  • Applied Surface Concepts Group net sales increased $0.3 million, or 8.3%, to $3.3 million, compared with $3.0 million in the comparable 2009 period.

Income before income taxes for the year ended September 30, 2010 decreased to $8.4 million, compared with $12.3 million in fiscal 2009. Included in income before income taxes in fiscal 2010 was $0.2 million of LIFO expense, compared with $1.6 million of LIFO income in fiscal 2009. Net income in fiscal 2010 was $5.4 million, or $1.00 per diluted share, compared with net income of $8.0 million, or $1.51 per diluted share, in fiscal 2009.

Net sales decreased 11.3% in fiscal 2010 to $83.3 million compared with $93.9 million in fiscal 2009. In fiscal 2010:
  • Aerospace Component Manufacturing Group net sales decreased by $6.5 million, or 9.5% to $62.1 million, compared with $68.6 million in fiscal 2009,
  • Turbine Component Services and Repair Group net sales decreased in fiscal 2010 by $2.6 million, or 22.5% to $8.9 million, compared with $11.5 million in fiscal 2009, and
  • Applied Surface Concepts Group net sales decreased in fiscal 2010 by $1.5 million, or 10.8%, to $12.2 million, compared with $13.7 million in fiscal 2009.

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-K for the year ended September 30, 2010 can be accessed through its website: www.sifco.com, or on the Securities and Exchange Commission’s website: www.sec.gov.

Fourth Quarter Ended September 30, 2010
       
(Amounts in thousands, except per share data)
 
 

Consolidated Condensed Statements of Operations

Fourth Quarter

Year Ended

Ended September 30,

September 30,

2010
   

2009
   

2010
   

2009
 
Net sales $

22,601

$
20,892 83,270 $ 93,888
 
Cost of goods sold 17,325 15,463 63,529 69,947
Selling, general and administrative expenses

3,151
  2,929   11,826   11,465  
Operating income 2,125 2,470 7,915 12,476
Interest expense, net 1 13 14 51
Foreign currency exchange loss, net 25 185 (23 ) 217
Other expense (income), net (118 ) (117 ) (470 ) (119 )
Income from continuing operations before income
tax provision 2,217 2,389 8,394 12,327
Income tax provision 856   797   3,032   4,480  
Income from continuing operations 1,361 1,592 5,362 7,847
Income from discontinued operations, net of tax ---   --- ---   188  
 
Net income $ 1,361   $ 1,592   $ 5,362   $ 8,035  
 
 
 
Income per share from continuing operations:
Basic $ 0.26 $ 0.30 $ 1.01 $ 1.48
Diluted $ 0.26 $ 0.30 $ 1.00 $ 1.47
 
Income per share from discontinued operations, net of tax:
Basic $ --- $ --- $ --- $ 0.04
Diluted $ --- $ --- $ --- $ 0.04
 
Net income per share:
Basic $ 0.26 $ 0.30 $ 1.01 $ 1.52
Diluted $ 0.26 $ 0.30 $ 1.00 $ 1.51
 
 
Weighted average number of common shares (basic) 5,283 5,296 5,300 5,295
Weighted average number of common shares (diluted) 5,318 5,348 5,344 5,325

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