RNHDA Reinhold Industries CL A (MM)

SANTA FE SPRINGS, Calif., Aug. 10 /PRNewswire-FirstCall/ -- Reinhold Industries, Inc. (NASDAQ:RNHDA) of Santa Fe Springs, California, today announced financial results for the second quarter 2006. Comparative 2005 results have been adjusted to remove NP Aerospace Ltd. from continuing operations. NP Aerospace was sold in November 2005. Second quarter 2006 revenues were $9.1 million, up $1.6 million (21%) from second quarter 2005. Sales in the Aerospace business unit increased by $0.5 million (10%) due primarily to additional sales of rocket nozzles related to the Ballistic Missile Defense System. Sales in the Seating Products business unit increased by $0.9 million (65%) compared with the second quarter of 2005 due to a surge in aircraft seating demand from our largest customer and production quantity sales to a new customer. Sales in the Commercial business unit increased by $0.1 million (12%) due primarily to additional shipments of sheet molding compound. In the first six months of 2006, revenues were $18.7 million, up $4.1 million (28%) compared to 2005. Sales in the Aerospace business unit increased by $1.2 million (12%) to $11.4 million due primarily to additional sales of components related to the Minuteman III Propulsion Replacement Program. Sales in the Seating Products business unit increased by $2.8 million (104%) to $5.5 million due to the reasons stated above. Sales in the Commercial business unit increased by $0.1 million (4%) to $1.9 million due primarily to increased selling prices. Income from continuing operations for the first six months of 2006 was $2.2 million, up $2.3 million compared to 2005. The effective tax rate for the first six months of 2006 was 40% compared to 106% in 2005 due primarily to the impact of repatriated foreign income in 2005. Income from discontinued operations for the first six months of 2006 was zero compared to $3.5 million in 2005. Income from discontinued operations in the first six months of 2005 includes financial results from NP Aerospace Ltd., which was sold in November 2005. Net income for the first six months of 2006 was $2.2 million, or $0.67 per diluted share, compared to net income of $3.4 million, or $1.04 per diluted share in 2005. Net income in 2005 includes the operating results for NP Aerospace. NP Aerospace was sold in November 2005. "For both the second quarter and year to date, all product lines improved their profitability compared to 2005," said Michael T. Furry, President and CEO of Reinhold. This news release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve risks and uncertainties, and Reinhold's actual experience may differ materially from that anticipated in such statements. Factors that might cause such a difference include those discussed in Reinhold's filings with the Securities and Exchange Commission, including but not limited to its most recent proxy statement, Form 10-K and Form 10-Q. Reinhold Industries, Inc. is a manufacturer of advanced custom composite components and sheet molding compounds for a variety of applications in the United States and Europe. Reinhold Industries, Inc. (NASDAQ:RNHDA) (Amounts in Thousands, Except Per Share Data) (Unaudited) Three Months Ended Six Months Ended 6/30/06 6/30/05 6/30/06 6/30/05 Sales $9,067 $7,496 $18,746 $14,677 Income from continuing operations before income taxes 1,690 892 3,696 1,724 Income (loss) from continuing operations 1,010 (52) 2,217 (106) Income from discontinued operations -- 1,790 -- 3,539 Net income $1,010 $1,738 $2,217 $3,433 Diluted EPS - continuing operations $0.31 ($0.02) $0.67 ($0.03) Diluted EPS $0.31 $0.53 $0.67 $1.04 DATASOURCE: Reinhold Industries, Inc. CONTACT: Wanda Morrison of Reinhold Industries, Inc., +1-562-944-3281

Copyright