(Source: Business Wire)
SL INDUSTRIES, INC. (NYSE AMEX:SLI) announced today that its net income for the year ended December 31, 2008 was $2,334,000, or $0.39 per diluted share. Net income for the year included loss from discontinued operations, after tax, of $2,302,000, or $0.39 per diluted share. Income for the year from continuing operations was $4,636,000, or $0.78 per diluted share. Discontinued operations include legacy costs associated with businesses divested by the Company.
For the year ended December 31, 2007, net income was $8,411,000, or $1.43 per diluted share. The net income for 2007 included loss from discontinued operations, after tax, of $1,863,000, or $0.32 per diluted share. Income from continuing operations for 2007 was $10,274,000, or $1.75 per diluted share.
Net sales from continuing operations for 2008 were $185,954,000, compared with net sales from continuing operations for 2007 of $200,863,000.
The Company's operating segments largely recorded mixed results, compared to 2007. SL Power Electronics Corp. recorded net sales of $72,811,000 with income from operations of $315,000, compared with net sales of $91,072,000 and income from operations of $8,233,000 for 2007. The High Power Group recorded net sales of $60,462,000, with income from operations of $4,868,000, compared with net sales of $58,025,000 and income from operations of $7,810,000 for 2007. In 2008, SL Montevideo Technology recorded net sales of $28,647,000 with income from operations of $3,892,000, compared with net sales of $28,256,000 and income from operations of $3,469,000 for 2007. RFL Electronics recorded net sales of $24,034,000 with income from operations of $2,379,000, compared with net sales of $23,510,000 and income from operations of $2,677,000 for 2007.
For the three months ended December 31, 2008, net loss was $234,000, or $0.04 per diluted share. Loss from discontinued operations for the period was $653,000, or $0.11 per diluted share. Income from continuing operations for the period was $419,000, or $0.07 per diluted share.
For the three months ended December 31, 2007, net income was $1,775,000, or $0.30 per diluted share. Loss from discontinued operations for the period was $759,000, or $0.13 per diluted share. Income from continuing operations for the period was $2,534,000, or $0.42 per diluted share.
Net sales from continuing operations for the three months ended December 31, 2008 were $45,617,000, compared with net sales from continuing operations of $49,154,000 for the same period last year.
James Taylor, President and Chief Executive Officer of SL Industries, commented, "2008 was a difficult year. After achieving all of its principal market and operational goals the previous year, the Company was poised to take advantage of targeted growth opportunities. Instead, the unexpected reduction of two large customer programs at SL Power Electronics Corp., together with an accelerating economic downturn throughout the second half, required management to redirect its efforts towards restructuring and downsizing operations. For the year, the Company recorded charges of $677,000 associated with restructuring its operations."
"As generally reported, the economy contracted sharply in the fourth quarter of 2008 into the first quarter of this year. During this period of uncertainty, most customers of the Power Electronics Group (which consists of SL Power Electronics Corp., Teal Electronics and MTE Corporation) are reporting reduced capital spending in each of their served markets. Electronics distributors are paring inventories and equipment manufacturers are delaying orders and postponing programs. Demand in the semiconductor industry is near or at historic lows."
"This past year the Power Electronics Group accelerated plans to implement a new operations strategy. The philosophy is to realize operational efficiencies without impacting the Company's strong customer relationships. Efforts are well underway to combine administrative, finance and information technology departments and to realize savings from economies of scale through the consolidation of operations and distribution activities. At the same time, sales, engineering and prototyping will remain centered on each market. These changes will reduce costs, increase efficiencies and improve customer service, without impacting the Company's ability to respond to individual customer needs."
Taylor continued, "At this juncture, it is difficult to predict the length and breadth of the economic downturn. However, when demand does rebound, the strategic outlook for the Power Electronics Group remains excellent. The Company is the market share leader in contact medical, medical imaging and variable speed motor drives. Teal Electronics and SL Power Electronics Corp. are now entering the military market and MTE Corporation is taking action to penetrate the wind generation industry. At this time, the Power Electronics Group is working on a record number of new custom programs and applications."
Taylor further remarked, "The Company's other divisions performed well in a difficult economic environment. SL Montevideo Technology experienced sustained demand from military and commercial aerospace customers. In 2008, SL-MTI realized years of effort and was awarded its first two programs by U.K. companies. This year, we plan to establish sales representatives in Europe and South America, both of which represent large, untapped markets for the Company and its products."
"RFL Electronics recorded improved bookings and sales for the third consecutive year, although we still have not witnessed the large scale capital improvement projects necessary to upgrade the country's power transmission infrastructure. In late 2008, RFL introduced its next-generation Ethernet communications product, which we believe is the most advanced and cost-effective system of its kind.
