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COMPX REPORTS SECOND QUARTER 2018 RESULTS

DALLAS, TEXAS .August 6, 2018 . CompX International Inc. (NYSE American: CIX) announced today sales of $32.4 million for the second quarter of 2018 compared to $30.0 million in the same period of 2017.  Operating income was $6.0 million in the second quarter of 2018 compared to $4.6 million in the same period in 2017.  Net income for the second quarter of 2018 was $5.0 million, or $0.40 per diluted share, compared to $3.3 million, or $0.27 per diluted share, in the second quarter of 2017.    

For the six months ended June 30, 2018, sales were $60.8 million compared to $60.0 million in the previous year.  Operating income was $10.3 million for the first six months of 2018 compared to $9.1 million for 2017.  Net income for the six months ended June 30, 2018 was $8.7 million or $0.70 per diluted share, compared to $6.4 million, or $0.52 per diluted share, in 2017. 

Second quarter 2018 net sales increased over the comparable 2017 period primarily due to higher sales of security products across the majority of our markets and continued strong growth in sales of marine components to various marine and industrial markets. Net sales increased for the first six months of 2018 compared to the same period in 2017 due to higher Marine Components sales volumes, partially offset by lower Security Products sales volumes to existing government security customers.  Operating income increased for both comparative periods principally as a result of favorable changes in customer and product mix in Security Products and improved manufacturing efficiencies facilitated by increased production volumes and cost reductions in each of our business segments.   

CompX is a leading manufacturer of security products and recreational marine components.  It operates from four locations in the U.S. and employs approximately 500 people.

Forward-Looking Statements

The statements in this press release relating to matters that are not historical facts are forward-looking statements that represent management's belief and assumptions based on currently available information.  Although CompX believes the expectations reflected in such forward-looking statements are reasonable, it cannot give any assurances that these expectations will be correct.  Such statements, by their nature, involve substantial risks and uncertainties that could significantly impact expected results, and actual future results could differ materially from those predicted.  While it is not possible to identify all factors, CompX continues to face many risks and uncertainties.  The factors that could cause our actual future results to differ materially include, but are not limited to, the following:

  • Future demand for our products,
  • Changes in our raw material and other operating costs (such as zinc, brass, aluminum, steel and energy costs) and our ability to pass those costs on to our customers or offset them with reductions in other operating costs,
  • Price and product competition from low-cost manufacturing sources (such as China),
  • The impact of pricing and production decisions,
  • Customer and competitor strategies including substitute products,
  • Uncertainties associated with the development of new product features,
  • Future litigation,
  • Potential difficulties in integrating future acquisitions,
  • Decisions to sell operating assets other than in the ordinary course of business,
  • Environmental matters (such as those requiring emission and discharge standards for existing and new facilities),
  • The ultimate outcome of income tax audits, tax settlement initiatives or other tax matters, including tax reform,
  • The impact of current or future government regulations (including employee healthcare benefit related regulations),
  • General global economic and political conditions that introduce instability into the U.S. economy (such as changes in the level of gross domestic product in various regions of the world),
  • Operating interruptions (including, but not limited to labor disputes, hazardous chemical leaks, natural disasters, fires, explosions, unscheduled or unplanned downtime, transportation interruptions and cyber attacks); and
  • Possible disruption of our business or increases in the cost of doing business resulting from terrorist activities or global conflicts.

Should one or more of these risks materialize (or the consequences of such development worsen), or should the underlying assumptions prove incorrect, actual results could differ materially from those currently forecasted or expected.  CompX disclaims any intention or obligation to update or revise any forward-looking statement whether as a result of changes in information, future events or otherwise. 

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COMPX INTERNATIONAL INC.
SUMMARY OF CONSOLIDATED OPERATIONS
(In millions, except per share amounts)
(Unaudited)

       


COMPX INTERNATIONAL INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)

           
           

 SOURCE:  CompX International Inc.
CONTACT:  Janet G. Keckeisen, Investor Relations, 972.233.1700





This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Compx International Inc via Globenewswire

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding CompX International's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.