Mead Reports Fourth Quarter And Full-Year Earnings
Friday, January 26, 2001
DAYTON, Ohio, Jan. 26 - Fourth Quarter & Full-Year 2000 Highlights: * Net earnings were 17 cents per share in the fourth quarter of 2000 compared to 86 cents per share for the same period in 1999. * Excluding the impact of special items, earnings were 19 cents per share in the fourth quarter of 2000 and 38 cents per share for the same period the previous year. The special items included a 2 cents per share charge in 2000 related to the previously announced closure of two facilities and a 48 cents per share gain in 1999 primarily due to the sale of Mead's share of Northwood, Inc. * Fourth quarter 2000 sales were $1.04 billion compared to $1 billion in 1999. * Full-year sales were $4.4 billion in 2000, up from $4 billion for 1999. Net earnings were $1.58 per share in 2000, down from $1.99 for 1999. Excluding the impact of special items, earnings were $1.66 per share in 2000 compared to $1.58 the previous year. * Sales and cost of sales have been restated to comply with new accounting rules for the classification of shipping costs. The change had no effect on net earnings. (In millions, except per share amounts) Quarter Ended Year Ended Dec. 31 Dec. 31 Dec. 31 Dec. 31 2000 1999 2000 1999 Net Sales $1,044.9 $998.6 $4,368.1 $3,996.1 Net Earnings $16.7 $89.6 $161.2 $208.1 Earnings Per Share (diluted) Net $.17 $.86 $1.58 $1.99 Net Excluding Amortization Of Goodwill (Cash EPS) $.20 $.86 $1.68 $1.99 Earnings Excluding Special Items $18.7 $39.0 $169.7 $165.6 EPS (Diluted) Excluding Special Items $.19 $.38 $1.66 $1.58 The Mead Corporation (NYSE: MEA) today announced net earnings of $16.7 million or 17 cents per share in the fourth quarter of 2000 compared to $89.6 million or 86 cents per share in the same period in 1999. Excluding special items, earnings were $18.7 million or 19 cents per share in the fourth quarter of 2000 and $39.0 million or 38 cents per share in the prior year. Net earnings in 2000 included the impact of special items, primarily related to the closure of two facilities. Net earnings in 1999 included a gain on the sale of Mead's share of Northwood, Inc. Net sales for the fourth quarter of 2000 were $1.04 billion, up from $1 billion a year ago. For the full year, net earnings were $161.2 million or $1.58 per share in 2000, down from $208.1 million or $1.99 per share in 1999. Excluding the impact of special items, earnings were $169.7 million or $1.66 per share in 2000 versus $165.6 million or $1.58 per share in 1999. Sales increased to $4.4 billion in 2000, up from $4 billion in 1999. The acquisition of AT-A- GLANCE contributed to both sales and earnings for the fourth quarter and full- year of 2000. "In 2000, earnings excluding special items improved due to the favorable market conditions we enjoyed through mid-year," said Jerry Tatar, Mead chairman, president and chief executive officer. "However, we worked through declines in the second half of the year that were due to the slowing economy, rising energy costs and the impact of the strong U.S. dollar. As a result, we experienced a disappointing finish to the year 2000." Tatar added, "Challenging market conditions are likely to continue during the first half of 2001. To meet this challenge, we continue to focus on improving our productivity, customer relationships and other controllable factors. We will also align our production more closely to meet demand and cut discretionary spending company-wide through implementation of a hiring freeze and other cost controls. We are aggressively dealing with the realities of the present economic situation without compromising our future."