Harmon Industries, Inc.
NASDAQ: HRMN
For Immediate Release
Charles M. Foudree
(816) 229-3345
[email protected]
Harmon Announces Record Sales, Earnings and Backlog
BLUE SPRINGS, Mo. (Tuesday, July 29, 1997) -- Harmon Industries, Inc. announced record results for the second quarter ended June 30, 1997.
Sales in the second quarter were an all-time record $47.6 million, an increase of 22 percent from $39.1 million in the second quarter of 1996. Year-to-date sales were $83.6 million, up 8 percent from last year's $77.5 million.
For the three months ended June 30, net earnings were an all-time record $3 million, exceeding last year's second quarter earnings of $2.7 million. Quarterly earnings per share were also at an all-time record of $.43, compared to $.39 last year. Year-to-date earnings were $4.4 million, compared to $4.7 million in 1996, and earnings per common share were $.64 compared with $.69 for the first half of 1996.
Harmon broke its all-time bookings record for a quarter with orders of $57.3 million, 58 percent more than the second quarter of 1996. Year-to-date bookings were $103.9 million, 46 percent more than mid-year 1996. Harmon's backlog reached $78.4 million, a 126 percent increase from the second quarter of 1996, and a 32 percent increase from year-end.
Harmon's record orders are driven by the North American freight railroad market, which is experiencing good market conditions and increases in car loadings and intermodal traffic. Additionally, the North American railroads are vigorously involved in consolidating systems that are merging.
The company invested $3.4 million in research and development during the first half of 1997, comprising 4.1% of sales. Technological leadership has contributed heavily to the expansion of Harmon's market position.
Harmon continues to grow in the international market. Global bidding activities, led by the United Kingdom, have been exceptionally brisk. Vaughan Harmon Systems, Ltd. posted another strong performance for the second quarter. The business in the United Kingdom is being driven by Railtrack's commitment to improve the British rail system, an effort requiring significant capital expenditures.
To meet increased demands, Harmon expanded its work force by 180 people in the second quarter. The company opened a new manufacturing operation in Warrensburg, Mo. during the second quarter and expansion at three other manufacturing locations will be completed before the end of 1997 in response to rapidly growing needs for additional manufacturing and engineering capabilities.
"We are very pleased with our second quarter results. Volume and profitability have increased as expected," said Björn E. Olsson, president and chief executive officer. "Our backlog and booking trends along with our brisk quotation activity continue to provide optimism for the future. Employment levels and production facilities have been significantly expanded to meet increased demand."
Harmon Industries, Inc., a leading supplier of signal and train control products to railroads and rail transit systems throughout North America and the world, is traded on the Nasdaq Stock Market under the symbol "HRMN." For further information, please contact Charles M. Foudree, executive vice president-finance and chief financial officer, Harmon Industries, Inc., 1300 Jefferson Court, Blue Springs, MO 64015. The telephone number is (816) 229-3345.
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