In the first quarter of fiscal 2000, The Fairchild Corporation reported earnings of $0.72 per share (diluted) compared with $0.05 per share in the same period last year.
This is the first full quarter in which we are including results from Kaynar Technologies, which was acquired in April 1999. Net sales were $164.5 million for the period, versus $148.5 million
last year, while net earnings from continuing operations were $18.1 million, compared with $1.2 million one year ago. Our first quarter results include one-time gains from the disposition of
Fairchild's interest in Nacanco, the Turkish beverage can maker, and the Camloc Gas Springs Division, which were partially offset by a charge of $3.0 million for restructuring costs related to the
integration of Kaynar.
We can already see the benefits of the acquisition of Kaynar. Fairchild Fasteners revenues increased to $134.4 million from
last year's $96.6 million. Gross margin as a percentage of sales increased by 10.0% year-over-year, from 23.9% to 26.3%, reflecting efficiencies achieved from our merger integration
process and cost improvement initiatives. These gains were achieved despite somewhat lower prices and the continuing sluggishness of the aircraft manufacturing industry in the United States.
Revenues of the Aerospace Distribution Division were $29.4 million, compared with the $50.5 million reported last year, prior to the disposition of Solair, Inc. Operating income improved to
$2.3 million from $1.7 million.
We believe it is important to look toward the mid-term horizon. We are steadily improving our position in our sector, with a
global market share now exceeding 35%. This will produce major benefits when the cyclical upturn comes to the aerospace industry. The integration of Kaynar has been very successful and
has been completed faster than anticipated.
We have created considerable enterprise value in The Fairchild Corporation by making Fairchild Fasteners the world leader in
its sector. When market conditions improve, we expect the loyalty of our shareholders will be fully justified.
JEFFREY J. STEINER
Chairman & Chief Executive Officer
