SIFCO Industries (NYSEAM) Q4 2008 earnings summary

Executive summary

• FY08 net sales rose 16.2% to $101.4M; operating income was $9.0M and net income $5.8M, down from $6.7M YoY.

• Operating income, adjusted for the LIFO accounting effect, was the second highest in 95 years; ACM volume gains and continued operational initiatives supported performance.

Financial highlights

• Continuing-operations income before tax was $8.8M vs. $10.3M in FY07; continuing-operations income was $5.5M vs. $8.8M.

• Basic/diluted EPS was $1.10/$1.09; continuing-operations EPS was $1.05/$1.04.

• Cash from continuing operating activities was $9.8M vs. $1.1M used in FY07; cash and equivalents ended FY08 at $10.4M vs. $5.5M.

Outlook and guidance

• FY09 capital spending expected at $3.0M–$4.0M to support projected business growth; cash, operating flows and credit availability expected to cover liquidity needs through FY09.

• ACM backlog entering FY09 was slightly lower; management expected aerospace and defense demand to remain steady near term, while noting customer delivery extensions.

• Repair Group is focused on operational improvements to offset launch costs and restore acceptable performance.