Saturday, March 03, 2012

COMPX INTERNETIONAL ANNOUNCED THE FOURTH QUARTER SALES OF 2011

CompX International Inc.  announced sales of $33.1 million for the fourth quarter of 2011 compared to $32.3 million in the same period of 2010. Fourth quarter 2011 operating income increased primarily due to the increase in sales and lower litigation and facility consolidation expenses in 2011 partially offset by a less favorable product sales mix and higher raw material costs in 2011 compared to 2010. Net income for the fourth quarter of 2011 was $1.0 million, or $0.08 per diluted share, compared to $625,000 or $0.05 per diluted share, in the fourth quarter of 2010.

Net sales for the year ended December 31, 2011, were $138.8 million compared to $135.3 million in the previous year. Operating income was $15.5 million for the year ended December 31, 2011 compared to $9.3 million for the year ended December 31, 2010. Net income was $7.7 million, or $0.62 per diluted share, for the year ended December 31, 2011 compared to $3.1 million, or $0.25 per diluted share, in 2010.

Net income for the year ended December 31, 2011 was impacted by:

- a $7.5 million first quarter litigation settlement gain ($3.4 million, or $0.27 per diluted share, net of income taxes);

- facility consolidation expenses of $2.0 million ($909,000, or $0.07 per diluted share, net of income taxes) mostly in the first half of the year; and

- the third quarter write-down on assets held for sale of $1.1 million ($738,000, or $0.06 per diluted share, net of income taxes) primarily related to the facility consolidation activity.

Net income for the year ended December 31, 2010 was impacted by:
- litigation expenses of $2.4 million ($1.1 million, or $0.09 per diluted share, net of income taxes) mostly in the first half of the year;

- the third quarter write-down on assets held for sale of $500,000 ($305,000, or $0.02 per diluted share, net of income taxes); and

- a $1.9 million ($0.15 per diluted share) income tax charge in the first quarter resulting from a change in the Company's expectation relating to the repatriation of certain non-U.S. earnings.

For the year ended December 31, 2011 our operating income increased primarily due to the net effects of:

- The positive impact of the litigation settlement gain recorded in the first quarter;

- The positive impact of lower litigation expense;

- The positive impact of the higher sales from an increase in customer order rates, primarily in Security Products;

- The negative impact of relocation costs, production inefficiencies and a write-down on assets held for sale related to the consolidation of our precision slides facilities;

- The negative impact on margins caused by higher raw material costs; and

- The negative impact of relative changes in foreign currency exchange rates.

"2011 was a very active year for us as we grew sales, completed the acquisition of a small healthcare related component business, completed a facility consolidation within our Furniture Components segment and favorably resolved significant patent related litigation," commented David A. Bowers, President & CEO.

SOURCE: MarketWatch
 

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