SIF Sifco Industries Inc

SIFCO Industries, Inc. (AMEX:SIF) today announced financial results for its fiscal 2007 third quarter, which ended June 30, 2007. Net income for the third quarter of fiscal 2007 was $2.1 million, or $0.40 per diluted share, compared with a net income of $3.3 million, or $0.64 per diluted share, for the comparable fiscal 2006 period. Income from continuing operations for the third quarter of fiscal 2007 was $3.7 million, or $0.69 per diluted share, compared with income from continuing operations of $0.6 million, or $0.11 per diluted share, for the comparable fiscal 2006 period. Loss from discontinued operations, net of tax, for the third quarter of fiscal 2007 was $1.5 million, or $0.29 per diluted share, compared with income from discontinued operations, net of tax, of $2.7 million, or $0.53 per diluted share, for the comparable fiscal 2006 period. Net sales from continuing operations increased 27.9% in the third quarter of fiscal 2007 to $24.0 million compared with $18.8 million for the same period a year ago. In the third quarter of fiscal 2007, Aerospace Component Manufacturing Group net sales increased by $4.4 million, or 35.2%, to $16.9 million, compared with $12.5 million in the comparable 2006 period. Turbine Components Services and Repair Group net sales increased in the third quarter of fiscal 2007 by $0.4 million, or 12.5%, to $3.6 million, compared with $3.2 million for the comparable 2006 period. In the third quarter of fiscal 2007, Applied Surface Concepts Group net sales increased $0.4 million, or 14.2%, to $3.5 million, compared with $3.1 million in the comparable 2006 period. For the first nine months of fiscal 2007, net income was $6.3 million, or $1.20 per diluted share, compared with net income of $1.2 million, or $0.24 per diluted share, for the comparable fiscal 2006 period. Income from continuing operations for the first nine months of fiscal 2007 was $8.2 million, or $1.56 per diluted share, compared with income from continuing operations of $1.1 million, or $0.21 per diluted share, for the comparable fiscal 2006 period. Loss from discontinued operations, net of tax, for the first nine months of fiscal 2007 was $1.9 million, or $0.36 per diluted share, compared with income from discontinued operations, net of tax, of $0.2 million, or $0.03 per diluted share, for the comparable fiscal 2006 period. Net sales from continuing operations increased 27.2% in the first nine months of fiscal 2007 to $64.7 million compared with $50.8 million for the same period a year ago. In the first nine months of fiscal 2007, Aerospace Component Manufacturing Group net sales increased by $11.8 million, or 36.1% to $44.5 million, compared with $32.7 million in the comparable 2006 period. Turbine Component Services and Repair Group net sales increased in the first nine months of fiscal 2007 by $0.3 million, or 3.5% to $9.4 million, compared with $9.1 million for the comparable 2006 period. In the first nine months of fiscal 2007, Applied Surface Concepts Group net sales increased $1.7 million, or 19.0%, to $10.8 million, compared with $9.1 million in the comparable 2006 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 June 30, 2007 can be accessed through its website: www.sifco.com, or on the Securities and Exchange Commission�s website: www.sec.gov. � SIFCO�Industries, Inc. Third Quarter Ended June 30, 2007 (Amounts in thousands, except per share data) � Consolidated Condensed Statements of Operations � Third Quarter Nine Months Ended June 30, Ended June 30, � 2007 � � 2006 � � 2007 � � � 2006 � � Net sales $ 24,022 $ 18,780 $ 64,678 $ 50,837 � Cost of goods sold 18,435 15,270 49,118 41,657 Selling, general and administrative expenses 3,144 3,004 8,422 8,184 Loss (gain) on disposal of operating assets � (140 ) � 83 � � (136 ) � 87 � Operating income 2,583 423 7,274 909 Interest expense, net 52 � 8 104 5 Foreign currency exchange loss (gain), net (6 ) (3 ) (14 ) 8 Other expense (income), net � 24 � � (166 ) � (9 ) � (205 ) Income from continuing operations before income tax provision 2,513 584 7,193 1,101 Income tax provision (benefit) � (1,162 ) � � -- � � (1,050 ) � 20 � Income from continuing operations 3,675 584 8,243 1,081 Income (loss) from discontinued operations, net of tax � (1,532 ) � 2,747 � � (1,897 ) � 151 � � Net income $ 2,143 � $ 3,331 � $ 6,346 � $ 1,232 � � � � Income per share from continuing operations: Basic $ 0.70 $ 0.11 $ 1.57 $ 0.21 Diluted $ 0.69 $ 0.11 $ 1.56 $ 0.21 � Income (loss) per share from discontinued operations, net of tax: Basic $ (0.29 ) $ 0.53 $ (0.36 ) $ 0.03 Diluted $ (0.29 ) $ 0.53 $ (0.36 ) $ 0.03 � Net income per share: Basic $ 0.41 $ 0.64 $ 1.21 $ 0.24 Diluted $ 0.40 $ 0.64 $ 1.20 $ 0.24 � � Weighted average number of common shares (basic) 5,252 5,222 5,237 5,222 Weighted average number of common shares (diluted) 5,311 5,228 5,274 5,226 � � � � � � � Business Segment Reporting � Third Quarter Nine Months Ended March 31, Ended March 31, � 2007 � � 2006 � � � 2007 � � � 2006 � Net sales Aerospace Component Manufacturing $ 16,941 $ 12,534 $ 44,494 $ 32,692 Turbine Component Services and Repair 3,584 3,185 � 9,399 9,079 Applied Surface Concepts � 3,497 � � 3,061 � � 10,785 � � 9,066 � Consolidated net sales $ 24,022 � $ 18,780 � $ 64,678 � $ 50,837 � Operating income (loss) Aerospace Component Manufacturing 2,583 1,333 7,137 2,415 Turbine Component Services and Repair 403 (7 ) 381 59 Applied Surface Concepts 152 (411 ) 939 (374 ) Corporate unallocated expenses � (555 ) � (492 ) � (1,183 ) � (1,191 ) Consolidated operating income from continuing operations � $ 2,583 � $ 423 � $ 7,274 � $ 909 �