SIFCO Industries Inc (SIF, Financial) filed Quarterly Report for the period ended 2008-12-31.
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 include forging heat treating coating welding machining and electroplating; and the products include forgings machined forgings and other machined metal parts remanufactured component parts for turbine engines and electroplating solutions and equipment. SIFCO Industries Inc has a market cap of $32.41 million; its shares were traded at around $5.5 with a P/E ratio of 5.3 and P/S ratio of 0.32.
Net sales in the first quarter of fiscal 2009 increased 2.6% to $16.2 million, compared with $15.8 million in the comparable period of fiscal 2008. For purposes of the following discussion, the ACM Group considers aircraft that can accommodate less than 100 passengers to be small aircraft and those that can accommodate 100 or more passengers to be large aircraft. Net sales of airframe components for small aircraft increased $0.6 million to $8.7 million in the first quarter of fiscal 2009, compared with $8.1 million in the comparable period in fiscal 2008. Net sales of turbine engine components for small aircraft, which consist primarily of business and regional jets as well as military transport and surveillance aircraft, increased $0.8 million to $5.1 million in the first quarter of fiscal 2009, compared with $4.3 million in the comparable period in fiscal 2008. Net sales of airframe components for large aircraft decreased $0.7 million to $1.2 million in the first quarter of fiscal 2009, compared with $1.9 million in the comparable period in fiscal 2008. Net sales of turbine engine components for large aircraft were $0.7 million in the first quarters of both fiscal 2009 and 2008. Commercial product and non-product sales were $0.5 million and $0.8 million in the first quarters of fiscal 2009 and 2008, respectively.
The ACM Groups selling, general and administrative expenses decreased $0.5 million to $1.0 million, or 6.2% of net sales, in the first quarter of fiscal 2009, compared with $1.5 million, or 9.6% of net sales, in the comparable period in fiscal 2008. Included in the $1.5 million of selling, general and administrative expenses in the first quarter of fiscal 2008 is a $0.5 million payment to a customer that (i) was made to achieve an amicable settlement related to a product dispute and (ii) the Company agreed to make as a business gesture of good faith and cooperation without admission of liability. The remaining selling, general and administrative expenses in the first quarters of fiscal 2009 and 2008 were $1.0 million, or 6.2% and 6.4% of net sales, respectively.
Net sales of the ASC Group were $3.8 million in the first quarter of fiscal 2009, compared with $3.4 million in the comparable fiscal 2008 period. In the first quarter of fiscal 2009, product net sales, consisting of selective electrochemical metal finishing equipment and solutions, increased 5.1% to $1.7 million, compared with $1.6 million in the same period in fiscal 2008. In the first quarter of fiscal 2009, customized selective electrochemical metal finishing contract service net sales increased 13.1% to $2.1 million, compared with $1.8 million in the same period in fiscal 2008. A portion of the ASC Groups business is conducted in Europe and is denominated in local European currencies, which have weakened in relation to the U.S. dollar resulting in an unfavorable currency impact on net sales in the first quarter of fiscal 2009 of approximately $0.2 million.
The $1.7 million of cash consumed by operating activities of continuing operations in first quarter of fiscal 2009 was primarily due to (i) income from continuing operations, before depreciation expense and deferred taxes, of $1.9 million and (ii) a $0.8 million decrease in refundable income taxes; offset by (i) a $0.8 million increase in accounts receivable, (ii) a $1.8 million increase in inventory, and (iii) a $1.8 million decrease in accounts payable and accrued liabilities. These changes in the components of working capital were due primarily to factors resulting from normal business conditions of the Company, including (i) the ACM Groups expanded consignment inventory arrangements, (ii) the relative timing of collections from customers as may be impacted by the current global economic climate, including the selective extension of payment terms, and (iii) the relative timing of payments to suppliers and tax authorities.
Capital expenditures, all of which were from continuing operations, were $1.0 million in the first quarter of fiscal 2009 compared to $0.5 million in the comparable fiscal 2008 period. Fiscal 2009 capital expenditures consist of $0.8 million by the ACM Group and $0.2 million by the Repair Group. The Company anticipates that total fiscal 2009 capital expenditures to be within the range of $3.0 to $4.0 million, of which $0.7 million has been committed as of December 31, 2008.
Read the The complete Report
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 include forging heat treating coating welding machining and electroplating; and the products include forgings machined forgings and other machined metal parts remanufactured component parts for turbine engines and electroplating solutions and equipment. SIFCO Industries Inc has a market cap of $32.41 million; its shares were traded at around $5.5 with a P/E ratio of 5.3 and P/S ratio of 0.32.
Highlight of Business Operations:
Net sales in the first quarter of fiscal 2009 increased 2.1% to $23.5 million, compared with $23.1 million in the comparable period in fiscal 2008. Income from continuing operations in the first quarter of fiscal 2009 was $1.5 million, compared with $1.1 million in the comparable period in fiscal 2008. Included in the $1.1 million of income from continuing operations in the first quarter of fiscal 2008 was expense of $0.5 million related to the business settlement of a product dispute that originated in fiscal 2007. Income (loss) from discontinued operations, net of tax, was $0.1 million of income in the first quarter of fiscal 2009, compared with a loss of $0.1 million in the comparable period in fiscal 2008. Net income in the first quarter of fiscal 2009 was $1.6 million, compared with $1.1 million in the comparable period in fiscal 2008.Net sales in the first quarter of fiscal 2009 increased 2.6% to $16.2 million, compared with $15.8 million in the comparable period of fiscal 2008. For purposes of the following discussion, the ACM Group considers aircraft that can accommodate less than 100 passengers to be small aircraft and those that can accommodate 100 or more passengers to be large aircraft. Net sales of airframe components for small aircraft increased $0.6 million to $8.7 million in the first quarter of fiscal 2009, compared with $8.1 million in the comparable period in fiscal 2008. Net sales of turbine engine components for small aircraft, which consist primarily of business and regional jets as well as military transport and surveillance aircraft, increased $0.8 million to $5.1 million in the first quarter of fiscal 2009, compared with $4.3 million in the comparable period in fiscal 2008. Net sales of airframe components for large aircraft decreased $0.7 million to $1.2 million in the first quarter of fiscal 2009, compared with $1.9 million in the comparable period in fiscal 2008. Net sales of turbine engine components for large aircraft were $0.7 million in the first quarters of both fiscal 2009 and 2008. Commercial product and non-product sales were $0.5 million and $0.8 million in the first quarters of fiscal 2009 and 2008, respectively.
The ACM Groups selling, general and administrative expenses decreased $0.5 million to $1.0 million, or 6.2% of net sales, in the first quarter of fiscal 2009, compared with $1.5 million, or 9.6% of net sales, in the comparable period in fiscal 2008. Included in the $1.5 million of selling, general and administrative expenses in the first quarter of fiscal 2008 is a $0.5 million payment to a customer that (i) was made to achieve an amicable settlement related to a product dispute and (ii) the Company agreed to make as a business gesture of good faith and cooperation without admission of liability. The remaining selling, general and administrative expenses in the first quarters of fiscal 2009 and 2008 were $1.0 million, or 6.2% and 6.4% of net sales, respectively.
Net sales of the ASC Group were $3.8 million in the first quarter of fiscal 2009, compared with $3.4 million in the comparable fiscal 2008 period. In the first quarter of fiscal 2009, product net sales, consisting of selective electrochemical metal finishing equipment and solutions, increased 5.1% to $1.7 million, compared with $1.6 million in the same period in fiscal 2008. In the first quarter of fiscal 2009, customized selective electrochemical metal finishing contract service net sales increased 13.1% to $2.1 million, compared with $1.8 million in the same period in fiscal 2008. A portion of the ASC Groups business is conducted in Europe and is denominated in local European currencies, which have weakened in relation to the U.S. dollar resulting in an unfavorable currency impact on net sales in the first quarter of fiscal 2009 of approximately $0.2 million.
The $1.7 million of cash consumed by operating activities of continuing operations in first quarter of fiscal 2009 was primarily due to (i) income from continuing operations, before depreciation expense and deferred taxes, of $1.9 million and (ii) a $0.8 million decrease in refundable income taxes; offset by (i) a $0.8 million increase in accounts receivable, (ii) a $1.8 million increase in inventory, and (iii) a $1.8 million decrease in accounts payable and accrued liabilities. These changes in the components of working capital were due primarily to factors resulting from normal business conditions of the Company, including (i) the ACM Groups expanded consignment inventory arrangements, (ii) the relative timing of collections from customers as may be impacted by the current global economic climate, including the selective extension of payment terms, and (iii) the relative timing of payments to suppliers and tax authorities.
Capital expenditures, all of which were from continuing operations, were $1.0 million in the first quarter of fiscal 2009 compared to $0.5 million in the comparable fiscal 2008 period. Fiscal 2009 capital expenditures consist of $0.8 million by the ACM Group and $0.2 million by the Repair Group. The Company anticipates that total fiscal 2009 capital expenditures to be within the range of $3.0 to $4.0 million, of which $0.7 million has been committed as of December 31, 2008.
Read the The complete Report
