PITTSBURGH, Nov. 12 /PRNewswire-FirstCall/ -- Matthews
International Corporation (NASDAQ:MATW) today announced earnings
for the quarter and fiscal year ended September 30, 2009. Net
income for the Company's fiscal 2009 fourth quarter was
$15,633,000, representing earnings per share of $0.52. The fiscal
2009 fourth quarter results included net unusual charges of
approximately $3,300,000 (pre-tax), or $0.07 per share. Unusual
items for the current quarter primarily consisted of charges
related to operational and systems improvements in several of the
Company's businesses. Net income for the quarter ended September
30, 2008 was $20,392,000, or $0.65 per share. Sales for the quarter
ended September 30, 2009 were $200,213,000, compared to
$219,178,000 in the same quarter a year ago. The reduction in
consolidated sales reflected the impact of the current recession on
unit volumes and selling prices, and a decline in the casketed
death rate compared to a year ago. Fourth quarter operating profit
for the current fiscal year was $27,683,000. Operating profit was
$35,048,000 for the same period last year. Net income for the year
ended September 30, 2009 was $57,732,000, representing earnings per
share of $1.90. The fiscal 2009 results included unusual charges of
approximately $16,500,000 (pre-tax), or $0.35 per share. Unusual
charges primarily consisted of severance and other costs related to
the consolidation of certain production operations within the
Bronze segment, costs related to operational and systems
improvements in several of the Company's other businesses, and
asset adjustments resulting from current market conditions. In
addition, fiscal 2009 earnings included the favorable effect of
adjustments of $0.04 per share to income tax expense. These
adjustments primarily related to the Company's ability to utilize a
European tax loss carryover generated in prior years. Net income
for the year ended September 30, 2008 was $79,484,000, or $2.55 per
share. Fiscal 2008 earnings included the favorable effect of a
one-time adjustment of $0.06 per share to income tax expense
recorded in the Company's fiscal 2008 first quarter. This
adjustment represented the impact on deferred income taxes
resulting from certain income tax rate reductions in Europe. Sales
for the year ended September 30, 2009 were $780,908,000, compared
to $818,623,000 last year. The reduction in consolidated sales
reflected the impact of the current recession on unit volumes and
selling prices, a decline in the casketed death rate compared to a
year ago, and unfavorable changes in foreign currency values
against the U.S. dollar for most of the fiscal year. These declines
were partially offset by the impact of the acquisition of
Saueressig GmbH & Co. KG. Saueressig reported fiscal 2009 sales
of approximately $106,500,000, compared to $48,900,000 for the
period from the acquisition date (May 2008) through September 30,
2008. Operating profit for the year ended September 30, 2009 was
$101,011,000. Fiscal 2009 operating profit included approximately
$16,500,000 of the unusual charges noted above. Operating profit
was $132,952,000 for fiscal 2008. Changes in foreign currency
values against the U.S. dollar were estimated to have an
unfavorable impact of approximately $24,600,000 and $3,100,000,
respectively, on the Company's sales and operating profit compared
to the fiscal year ended September 30, 2008. In discussing the
Company's operating results for the fiscal 2009 fourth quarter,
Joseph C. Bartolacci, President and Chief Executive Officer,
stated: "The global economic environment continued to impact the
operating results of all of our businesses in the fiscal 2009
fourth quarter. Compared to a year ago, revenues were lower in
almost all of our segments, reflecting a decline in unit volumes
and an unfavorable change in product mix as many customers were
choosing lower-priced products. In addition, our Bronze and Casket
segments were impacted by another decline in the U.S. casketed
death rates compared to the fourth fiscal quarter last year. "Our
Brand Solutions businesses continued to be affected by lower
spending and pricing pressure by retailers and consumer products
companies. The current recession has caused reductions in
industrial capital spending, which has unfavorably impacted our
Marking Products business. In addition, project delays or
cancellations have continued to affect the revenues in our
Merchandising Solutions segment. However, I am pleased to report
that Saueressig, one of our German graphics subsidiaries, reported
an improvement in operating profit compared to the fourth quarter a
year ago, reflecting the benefit of its recent cost structure
initiatives. As a result, the Graphics Imaging segment reported an
increase in profitability compared to the same quarter last year
despite lower sales." Mr. Bartolacci further stated: "While the
Company's operating results for the fiscal 2009 fourth quarter were
lower than a year ago, we began to see stability relative to our
previous quarters. For the year, on a comparative basis, we were
not satisfied with our operating results in fiscal 2009; however,
the recent activity in some of our markets is encouraging. As
evidenced by this year's unusual charges, our managers continue to
work on strategies for near-term improvement, while remaining
focused on our long-term growth objectives. "With respect to fiscal
2010, we remain cautious in our outlook. Based on our view of the
markets that we serve, we expect continued challenges particularly
in the next several quarters. Although we see signs that our
markets may be beginning to stabilize, we are not yet in a position
to project a definitive trend toward improvement. In addition, we
expect a significant increase in our pension costs next year as a
result of the market's impact on plan assets and the valuation of
the pension obligation compared to a year ago. On this basis, we
currently estimate overall earnings for fiscal 2010 at a level
relatively consistent with fiscal 2009 (excluding unusual charges
from both years), with results relative to the comparable periods
in fiscal 2009 improving as fiscal 2010 progresses. We continue to
believe that, as the economy improves, we are well positioned to
improve as well." Matthews International Corporation, headquartered
in Pittsburgh, Pennsylvania, is a designer, manufacturer and
marketer principally of memorialization products and brand
solutions. Memorialization products consist primarily of bronze
memorials and other memorialization products, caskets and cremation
equipment for the cemetery and funeral home industries. Brand
solutions include graphics imaging products and services, marking
products, and merchandising solutions. The Company's products and
services include cast bronze memorials and other memorialization
products; caskets; cast and etched architectural products;
cremation equipment and cremation-related products; mausoleums;
brand management; printing plates and cylinders, pre-press services
and imaging services for the primary packaging and corrugated
industries; marking and coding equipment and consumables, and
industrial automation products for identifying, tracking and
conveying various consumer and industrial products, components and
packaging containers; and merchandising display systems and
marketing and design services. Any forward-looking statements
contained in this release are included pursuant to the "safe
harbor" provisions of the Private Securities Litigation Reform Act
of 1995. Such forward-looking statements involve known and unknown
risks and uncertainties that may cause the Company's actual results
in future periods to be materially different from management's
expectations. Although the Company believes that the expectations
reflected in such forward-looking statements are reasonable, no
assurance can be given that such expectations will prove correct.
Factors that could cause the Company's results to differ materially
from the results discussed in such forward-looking statements
principally include changes in economic conditions, competitive
environment, death rate, foreign currency exchange rates, and
technological factors beyond the Company's control. MATTHEWS
INTERNATIONAL CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED
STATEMENTS OF INCOME (Unaudited) (In Thousands, except Share Data)
================================= Three Months Ended Fiscal Year
Ended 9/30/09 9/30/08 9/30/09 9/30/08 -------- -------- --------
-------- Sales $200,213 $219,178 $780,908 $818,623 ----- --------
-------- -------- -------- Operating Profit 27,683 35,048 101,011
132,952 ---------------- ------ ------ ------- ------- Income
before Taxes 24,555 30,760 88,543 121,571 -------------------
------ ------ ------ ------- Income Taxes 8,922 10,368 30,811
42,087 ============ ===== ====== ====== ====== Net Income $15,633
$20,392 $57,732 $79,484 ---------- ------- ------- ------- -------
Earnings per Share $0.52 $0.65 $1.90 $2.55 ------------ ----- -----
----- ----- Weighted Average Shares 30,166,198 31,003,437
30,435,070 31,158,303 ================ ========== ==========
========== ========== Notes: Earnings for the fourth quarter and
fiscal year ended September 30, 2009 included net pre-tax unusual
charges of approximately $3,300,000 ($0.07 per share) and
$16,500,000 ($0.35 per share), respectively, which primarily
consisted of severance and other costs related to the consolidation
of certain production operations within the Company's Bronze
segment, costs related to operational and systems improvements in
several of the Company's other businesses, and asset adjustments
resulting from current market conditions. In addition, fiscal 2009
earnings included the favorable effect of an adjustment of $0.04
per share to income tax expense. Fiscal 2008 earnings included the
favorable effect of a one-time adjustment of $0.06 per share to
income tax expense. This adjustment represented the impact on
deferred income taxes resulting from certain income tax rate
reductions in Europe. DATASOURCE: Matthews International
Corporation CONTACT: Steven F. Nicola, Chief Financial Officer,
Secretary & Treasurer of Matthews International Corporation,
+1-412-442-8262 Web Site: http://www.matw.com/
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