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EARNINGS
Hawk Corp. reports sharp drop in third-quarter sales, earnings
8:57 am, November 9, 2009
Hawk Corp. (NYSE: HWK) has reported sharp drops in sales and earnings for the third quarter compared to the like period last year, and has narrowed its range of expected profits for the year. The producer of friction products for brakes and clutches said its net income in the quarter fell 63%, to $3.8 million from $10.3 million in the third quarter of 2008. Diluted per-share profits did not decline quite as much, dropping 59% to 45 cents from $1.09, because of fewer shares outstanding this year. Sales at Hawk were down 41%, to $43.5 million from $74.2 million.
Hawk said it “remains vigilant in controlling its operating expenses in response to economic conditions while at the same time investing globally in its technology and sales efforts.”
“A slight improvement in demand is being experienced, and a portion of the direct work force has been recalled,” Hawk stated. “Management believes the earnings benefit of this in the fourth quarter will be tempered by expected product mix changes and the possibility that customers will push shipments into the first quarter of 2010 in order to control their own inventory levels.
“ As a result of this combination of factors, the company is refining its range for operating income for the year to between $15 million and $17 million from its previously issued range of $14 million and $18 million,” Hawk said.
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