Hawk Corporation Raises Full Year 2010 Guidance
June 23 2010 - 8:00AM
Marketwired
Hawk Corporation (NYSE Amex: HWK) announced today that it is
raising its guidance for 2010 net sales and operating income based
on the expected strength of its second quarter results and an
improved outlook for the second half of the year.
The outlook for the construction and mining and heavy truck
markets continues to improve, and the strength in these categories
is influencing the Company's revised guidance. Hawk is increasing
its guidance for 2010 full year net sales to a range of between
$225.0 million to $232.0 million from its previous guidance range
of between $200.0 million to $210.0 million. This new guidance
represents an increase of between 30.5% and 34.6% over 2009
revenues of $172.4 million.
Based on the impact of these higher sales volumes, Hawk is also
increasing its guidance for 2010 full year operating income to a
range of between $32.0 million and $35.0 million from its previous
guidance of between $23.0 million and $25.0 million. This new
guidance range represents an increase of between 91.6% and 109.6%
over 2009 operating income of $16.7 million.
Ronald E. Weinberg, Hawk's Chairman and CEO, said, "The
volatility that persisted in the global economy in 2009 is giving
way to more certainty that our first quarter results are
sustainable. We believe that Hawk is benefitting from the improving
global economy, and we see specific strength in our construction
and mining and heavy truck end markets. In addition, because we
continued to focus on key initiatives throughout the downturn, we
have emerged strengthened and find that our business strategies are
beginning to lead to increased revenue."
The Company is revising its guidance for depreciation and
amortization expense to approximately $8.0 million from its
previous guidance of approximately $8.5 million and capital
spending for 2010 to a range of between $7.0 million and $9.0
million from its previous guidance of between $8.0 million and
$10.0 million. Additionally, Hawk is lowering its effective
worldwide tax rate guidance to approximately 35.0% from its
previous guidance of approximately 36.0%.
Management has not scheduled a conference call in conjunction
with this revised guidance. The second quarter ends shortly and
additional information will be available when the Company reports
its financial results in August.
The Company Hawk Corporation is a leading
supplier of friction materials for brakes, clutches and
transmissions used in airplanes, trucks, construction and mining
equipment, farm equipment, recreational and performance automotive
vehicles. The Company also operates a fuel cell components
business. Headquartered in Cleveland, Ohio, Hawk has approximately
1,200 employees at 12 manufacturing, research and development,
sourcing, sales and administrative sites in 6 countries.
Forward-Looking Statements This press
release includes forward-looking statements concerning sales,
operating earnings, depreciation and amortization expense, capital
expenditures and effective tax rates. These forward-looking
statements are based upon management's expectations and beliefs
concerning future events. Forward-looking statements are
necessarily subject to risks, uncertainties and other factors, many
of which are outside the control of the Company and which could
cause actual results to differ materially from such statements.
These risks and uncertainties include, but are not limited to the
Company's ability to execute its business plan to meet its sales,
operating income, cash flow and capital expenditure guidance and
other risks detailed in Hawk's filings with the Securities and
Exchange Commission, including its annual report on Form 10-K for
the year ended December 31, 2009, its quarterly reports on Form
10-Q, and other periodic filings.
Actual results and events may differ significantly from those
projected in the forward-looking statements. Any forward-looking
statement speaks only as of the date on which such statement is
made, and the Company undertakes no obligation to update any
forward-looking statement, whether as a result of new information,
future events or otherwise.
Hawk Corporation is online at: www.hawkcorp.com
Contact Information Thomas A. Gilbride Vice President -
Finance (216) 861-3553 Investor Relations Contact
Information John Baldissera BPC Financial Marketing (800)
368-1217
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