Hawk boosts sales but Q2 income only flutters

Second quarter sales at Hawk Corporation of Cleveland, Ohio, rose 11.8 per cent to $70.9 million. Income from operations gained only 1.6 per cent to $6.2 million.

For the first 6 months of 2005 net sales increased 15.5 per cent or $19.2 million to $142.9 million. Income from operations increased 8.5 per cent to $12.8 million.

PM parts sales for the 2nd quarter rose $1.4 million, or 7.1 per cent, to $21.2 million. For the 6 months ended June 30, net sales increased 8.6 per cent to $44 million. Income for the 2nd quarter was flat at $1.2 million. Income for the first 6 months dipped slightly to $2.2 million.

Hawk said the increase in net sales was primarily attributable to improving conditions in domestic industry generally, as well as new product introductions. Sales increases were notable in both the automotive and fluid power markets.

The company's best performance came from its Friction Products segment where net sales were $45.7 million in the second quarter, an increase of $6.1 million, or 15.4 per cent, compared to $39.6 million in the comparable quarter of 2004. Net sales increased as a result of new product introductions, continued market share gains in the construction and mining markets, improving conditions in industrial markets and increased aftermarket sales. Reduced sales in the agricultural sector reflected soft conditions in European agriculture.

International operations showed very positive signs, with shipments from Hawk's Chinese friction products facility up nearly 74 per cent against the Q2 performance in 2004.
In the company's third operational segment, Performance Racing, sales remained flat at around $4 million.
The company remains optimistic for the balance of the year and is projecting total sales exceeding $270 million, an 11.9 percent gain from 2004.

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