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BRIDGEPORT MACHINES INC.
(OTC: BPTM)
500 Lindley Street
Bridgeport 06606
Chairman: Joseph E. Clancy
President and CEO:
Dan L. Griffith
Revenues (FY 1998): $213,770,000
Earnings (FY 1998): $3,915,000
Employees: 1,252
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Business New Haven
7/13/1998
By: BNH
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There may have been a more auspicious year in which to found a business than 1929 (see: Black Friday), but that is the year to which the Bridgeport-based manufacturing company known as Bridgeport Machines Inc. traces its roots.
After becoming a part of Textron in 1968, the company experienced a leveraged buyout in 1986, followed by an initial public offering in 1994. Today the company has worldwide connections with operations in England and Germany, and has undertaken joint venture agreements in Indonesia and China.
Most recently the company entered into an agreement with Industrias Romi, located in Brazil, whereby Bridgeport Machine will become the sole distributor in Southeast Asia and Europe for Romi products.
Today the company produces a range of machine tools including milling machines, lathes, surface grinders and machining centers, along with computer aided manufacturing (CAM) and other software for machine control. It sells its products to job shops both domestically and internationally under brand names including Bridgeport, Harig and EZ-CAM through its own direct sales group and independent distributors.
Fourth quarter 1998 results were impacted by price discounting to European customers due to the strong British pound against European currencies. Also contributing were some softness in U.S. orders during the fourth quarter and delay in shipments of EZ-Path lathes.
Looking at the fourth quarter 1998 results (FY ending March 28, 1998), there is room for some optimism. Quarterly sales were $55.6 million, a three-percent increase compared to fourth quarter 1997's revenues of $54.1 million. However, net income did not share the same upward trend: For the fourth quarter, net income was $1.45 million (26 cents per share) compared to the fourth quarter 1997 net income of $1.7 million (30 cents per share).
Profit margins for the 1998 fiscal year as a whole were strained. Sales for the year were $213.8 million, down six percent from $227.5 million the year before. Net income fell 51 percent to $3.9 million from $8.0 million for 1997 - resulting in a profit margin of a scant two percent for the year. Resultant earnings per share (fully diluted) dropped from $1.40 a share for 1997 down to 69 cents a share for the most recent year.
Still, the outlook appears somewhat positive since European orders were strong in April with indications of an upward trend over recent months. Tempering this, however, was the fact that U.S. orders remained soft during this period - and the situation is unlikely to improve in the near future.
The company's stock has traded at between $9.75 to $13.87 for the 52-week range. The stock presently is trading in the $10.75 range, still below the 52-week high of $13.87. Bridgeport Machines' recent price/earnings ratio is 15.6.
Its recent ills notwithstanding, the company has a good product base, strong balance sheet and a worldwide presence. European orders are strong and the weakening of the British pound is a positive for the company. However, weakness in domestic sales and lingering questions about whether they will strengthen over the next few months may make it difficult for the Bridgeport Machines to make impressive gains in the short term.
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