SIF Sifco Industries Inc

SIFCO Industries, Inc. (AMEX:SIF) today announced financial results for its fiscal 2007 fourth quarter, which ended September 30, 2007. Income from continuing operations for the fourth quarter of fiscal 2007 was $2.3 million, or $0.43 per diluted share, compared with net loss from continuing operations of $1.1 million, or $0.22 per diluted share, for the comparable fiscal 2006 period. Net income for the fourth quarter of fiscal 2007 was $2.2 million, or $0.40 per diluted share, compared with a net loss of $0.3 million, or $0.05 per diluted share, for the comparable fiscal 2006 period. Net sales from continuing operations increased 27.1% in the fourth quarter of fiscal 2007 to $22.6 million compared with $17.8 million for the same period a year ago. In the fourth quarter of fiscal 2007: Aerospace Component Manufacturing Group net sales increased by $4.3 million, or 37.8%, to $15.5 million, compared with $11.2 million for the comparable 2006 period; Turbine Components Services and Repair Group net sales increased by $0.3 million, or 8.6%, to $3.5 million, compared with $3.3 million for the comparable 2006 period; and Applied Surface Concepts Group net sales increased by $0.3 million, or 8.5%, to $3.5 million, compared with $3.3 million for the comparable 2006 period. Income from continuing operations for the year ended September 30, 2007 was $8.8 million, or $1.66 per diluted share, compared with a net loss of $0.1 million, or $0.01 per diluted share, for the comparable fiscal 2006 period. Net income for the year ended September 30, 2007 was $6.7 million, or $1.27 per diluted share, compared with net income of $1.0 million, or $0.18 per diluted share, for the comparable fiscal 2006 period. Net sales from continuing operations increased 27.2% for the year ended September 30, 2007 to $87.3 million, compared with $68.6 million for the comparable fiscal 2006 period. In the year ended September 30, 2007: Aerospace Component Manufacturing Group net sales increased by $16.1 million, or 36.5%, to $60.0 million, compared with $43.9 million for the comparable fiscal 2006 period; Turbine Component Services and Repair Group net sales increased by $0.6 million, or 4.9%, to $12.9 million, compared with $12.3 million for the comparable fiscal 2006 period; and Applied Surface Concepts Group net sales increased by $2.0 million, or 16.2%, to $14.3 million, compared with $12.3 million for the comparable fiscal 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-K for the year ended September 30, 2007 can be accessed through its website: www.sifco.com, or on the U. S. Securities and Exchange Commission�s website: www.sec.gov. Fourth Quarter and Year Ended September 30, 2007 (Amounts in thousands, except per share data) � � Consolidated Condensed Statements of Operations � Fourth Quarter Ended Year Ended September 30, September 30, 2007 2006 2007 2006 � Net sales $ 22,577 $ 17,769 $ 87,255 $ 68,606 � Cost of goods sold 16,717 16,005 65,835 57,662 Selling, general and administrative expenses 2,751 2,922 11,173 11,106 Loss (gain) on disposal of operating assets (1 ) � 2 � (137 ) 89 � Operating income (loss) 3,110 (1,160 ) 10,384 (251 ) Interest expense, net 59 20 163 25 Foreign currency exchange loss (gain), net (6 ) (2 ) (20 ) � 6 Other income, net (5 ) (42 ) (14 ) (247 ) Income from continuing operations before income tax provision (benefit) 3,062 (1,136 ) 10,255 (35 ) Income tax provision (benefit) 753 � (6 ) 1,483 � 14 � Income (loss) from continuing operations 2,309 (1,130 ) 8,772 (49 ) Income (loss) from discontinued operations, net of tax (147 ) 858 � (2,044 ) 1,009 � � Net income (loss) $ 2,162 � $ (272 ) $ 6,728 � $ 960 � � � � Income (loss) per share from continuing operations: Basic $ 0.44 $ (0.22 ) $ 1.67 $ (0.01 ) Diluted $ 0.43 $ (0.22 ) $ 1.66 $ (0.01 ) � Income (loss) per share from discontinued operations, net of tax: Basic $ (0.03 ) $ 0.16 $ (0.39 ) $ 0.19 Diluted $ (0.03 ) $ 0.16 $ (0.39 ) $ 0.19 � Net income (loss) per share: Basic $ 0.41 $ (0.05 ) $ 1.28 $ 0.18 Diluted $ 0.40 $ (0.05 ) $ 1.27 $ 0.18 � � Weighted average number of common shares (basic) 5,277 5,222 5,246 5,222 Weighted average number of common shares (diluted) 5,339 5,228 5,286 5,227 Business Segment Reporting � � Fourth Quarter Ended Year Ended September 30, � September 30, 2007 2006 � � 2007 2006 Net sales Aerospace Component Manufacturing $ 15,499 $ 11,249 $ 59,993 $ 43,941 Turbine Component Services and Repair 3,543 3,261 12,942 12,340 Applied Surface Concepts 3,535 � � 3,259 � 14,320 � 12,325 � Consolidated net sales $ 22,577 � $ 17,769 � $ 87,255 � $ 68,606 � Operating income (loss) Aerospace Component Manufacturing 3,201 (742 ) 10,338 1,673 Turbine Component Services and Repair 323 187 704 246 Applied Surface Concepts 91 (185 ) 1,030 (559 ) Corporate unallocated expenses (505 ) (420 ) (1,688 ) (1,611 ) Consolidated operating income (loss) from continuing operations $ 3,110 � $ (1,160 ) $ 10,384 � $ (251 )