U.S. Automotive Manufacturing, Inc. Reports Results
19 May 1998
U.S. Automotive Manufacturing, Inc. Results for 3 Months Ended March 31, 1998NEW YORK, May 19 -- U.S. Automotive Manufacturing, Inc. reported that for the three months ended March 31, 1998, it sustained a loss of $(974,240) or $(0.06) per share on net sales of $3,419,873 compared to a loss of $(1,635,073) or $(0.19) per share and net sales of $66O,846 for the three months ended March 31, 1997. According to Martin Chevalier, the Company's President, "the financial results were in keeping with management's previously stated expectations that losses would continue through the first quarter of 1998." Mr. Chevalier stated that, "the loss was slightly better than had been internally projected and that there continued to be progress in improving the Company's financial performance." He added that, "the Company has begun the process of hiring and training new personnel as a result of the previously reported recent increase in business." He continued, "The Company however, must service its customers appropriately and to do that expects to incur increased labor costs (through heavy overtime) until such new personnel have been fully integrated." Mr. Chevalier further states that during the quarter ended March 31, 1998, "the Company secured additional sources of short term funding sufficient to deal with the recent increase in business. The Company continues to arrange for long term funding." He noted that, "management continues to be fully committed to returning the Company to profitability in the near term and that recent corporate performance indicates progress toward achieving such goal." U.S. Automotive Manufacturing, Inc., through its wholly-owned subsidiaries, Quality Automotive Company and U.S. Automotive Friction, Inc., manufactures, assembles and distributes new and rebuilt automotive friction products (brake pads, linings and remanufactured brake shoes) to other automotive manufactures and to the automotive after-market. The Company intends to position itself to compete more formidably in the manufacture and sale of friction materials as well as other "under car" automotive parts through both acquisition and internal growth. "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: The statements which are not historical facts contained herein are forward-looking statements that relate to plans for future activities. Such forward-looking information involves a number of important known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements of the Company expressed or implied by such forward-looking statements. Such risks, uncertainties and factors, include, but are not limited to, those relating to the integration of recently acquired companies, industry competition, possible need for future financing and possible obsolescence of equipment and other risks detailed in the Company's filings with the Securities and Exchange Commission. The words "believe", "except", "intend", "plan" and similar expressions identify forward-looking statements. Reader's are cautioned not to place undue reliance on these forward-looking statements, which only speak as of the date the statement was made.