SIF Sifco Industries Inc

SIFCO Industries, Inc. (AMEX:SIF) today announced financial results for the third quarter of fiscal 2005, which ended June 30, 2005. Net loss for the third quarter of fiscal 2005 was $0.7 million, or $0.13 per diluted share, compared with a net loss of $0.3 million, or $0.05 per diluted share for the comparable fiscal 2004 period. Net sales decreased 9.5% in the third quarter of fiscal 2005 to $20.8 million compared with $23.0 million for the same period a year ago. In the third quarter of fiscal 2005, Turbine Component Services and Repair Group net sales decreased by $2.2 million, or 19.0%, to $9.3 million, compared with $11.5 million in the comparable 2004 period. Aerospace Component Manufacturing Group net sales in the third quarter of fiscal 2005 decreased by $0.2 million, or 1.5%, to $8.5 million, compared with $8.7 million for the comparable 2004 period. In the third quarter of fiscal 2005, Applied Surface Concepts (formerly named Metal Finishing) Group net sales increased $0.2 million, or 5.5%, to $3.0 million, compared with $2.8 million in the comparable 2004 period. For the first nine months of fiscal 2005, net income was $0.3 million, or $0.06 per diluted share, compared with a net loss of $1.4 million, or $0.27 per diluted share for the comparable fiscal 2004 period. Included in net income in the first nine months of fiscal 2005 was a $6.2 million gain on the sale of a building and land. Net sales decreased 10.4% in the first nine months of fiscal 2005 to $59.7 million compared with $66.6 million for the same period a year ago. In the first nine months of fiscal 2005, Turbine Component Services and Repair Group net sales decreased by $7.5 million, or 21.2% to $28.0 million, compared with $35.5 million in the comparable 2004 period. Aerospace Component Manufacturing Group net sales decreased in the first nine months of fiscal 2005 by $0.3 million, or 1.4% to $22.7 million, compared with $23.0 million for the comparable 2004 period. In the first nine months of fiscal 2005, Applied Surface Concepts (formerly named Metal Finishing) Group net sales increased $0.9 million, or 11.5%, to $9.1 million, compared with $8.2 million in the comparable 2004 period. Forward-Looking Language Certain statements contained in this press release may be "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 June 30, 2005 can be accessed through its website: www.sifco.com, or on the Securities and Exchange Commission's website: www.sec.gov. 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 forgings, machined forged parts and other machined metal parts, remanufactured component parts for turbine engines, and selective electrochemical finishing solutions and equipment. The Company's operations are conducted in three business segments: (1) Turbine Component Services and Repair Group, (2) Aerospace Component Manufacturing Group, and (3) Applied Surface Concepts Group. -0- *T Third Quarter and Nine Months Ended June 30, 2005 (Amounts in thousands, except per share data) Consolidated Condensed Statements of Operations Third Quarter Nine Months Ended June 30, Ended June 30, ----------------- ------------------ 2005 2004 2005 2004 ------------------------------------- Net sales $20,822 $23,015 $59,746 $66,648 Cost of goods sold 18,877 20,421 55,521 58,887 Selling, general and administrative expenses 2,888 2,849 9,064 8,687 ------- ------- ------- ------- Operating loss (943) (255) (4,839) (926) Interest expense, net 38 175 242 552 Foreign currency exchange loss (gain), net (127) (55) (56) 93 Other income, net (263) (132) (6,774) (185) ------- ------- ------- ------- Income (loss) before income tax provision (591) (243) 1,749 (1,386) Income tax provision 104 10 1,442 43 ------- ------- ------- ------- Net income (loss) $ (695) $ (253) $ 307 $(1,429) ======== ======== ======== ======== Net income (loss) per share (basic) $ (0.13) $ (0.05) $ 0.06 $ (0.27) Net income (loss) per share (diluted) $ (0.13) $ (0.05) $ 0.06 $ (0.27) Weighted average number of common shares (basic) 5,230 5,220 5,223 5,223 Weighted average number of common shares (diluted) 5,231 5,220 5,228 5,223 Business Segment Reporting Third Quarter Nine Months Ended June 30, Ended June 30, ----------------- ---------------- 2005 2004 2005 2004 ----------------------------------- Net sales Turbine Component Services and Repair $ 9,293 $11,474 $27,968 $35,476 Aerospace Component Manufacturing 8,520 8,687 22,676 23,005 Applied Surface Concepts 3,009 2,854 9,102 8,167 ------- ------- ------- ------- Consolidated net sales $20,822 $23,015 $59,746 $66,648 ======== ======== ======== ======== Operating income (loss) Turbine Component Services and Repair (1,201) (874) (3,769) (2,011) Aerospace Component Manufacturing 255 733 (584) 1,700 Applied Surface Concepts 323 158 767 575 Corporate unallocated expenses (320) (272) (1,253) (1,190) ------- ------- ------- ------- Consolidated operating loss $ (943) $ (255) $(4,839) $ (926) ======== ======== ======== ======== *T