CLEVELAND, May 30 /PRNewswire-FirstCall/ -- Shiloh Industries, Inc. (Nasdaq: SHLO - News), a leading manufacturer of engineered welded blanks, first operation blanks, stamped components and modular assemblies for the automotive and heavy truck industries, today reported results for the second quarter and the first six months of fiscal 2002.

For the second quarter ended April 30, 2002, net income decreased $3.5 million to a net loss of $1.8 million, or a net loss of $0.12 per basic and diluted share, from net income of $1.7 million, or net income of $0.11 per basic and diluted share, for the second quarter of fiscal 2001. Operating income for the second quarter of fiscal 2002 decreased by 57.6% to $3.4 million from $7.9 million in the second quarter of fiscal 2001. Revenues for the second quarter of fiscal 2002 decreased 8.2% to $158.7 million from $172.8 million in the comparable period of fiscal 2001.

For the first six months ended April 30, 2002, net income decreased by $9.8 million to a net loss of $7.5 million, or a net loss of $0.51 per basic and diluted share from net income of $2.3 million, or net income of $0.15 per basic and diluted share, for the first six months of fiscal 2001. Operating income for the first six months of fiscal 2002 decreased by $15.6 million to an operating loss of $1.5 million from operating income of $14.1 million for the first six months of fiscal 2001. Revenues for the first six months of fiscal 2002 decreased 10.2% to $304.7 million from $339.1 million for the first six months of fiscal 2001.

Excluding the asset impairment recovery of $10.8 million in fiscal 2001 and the restructuring charge of $1.0 million in fiscal 2002, operating income increased $7.2 million for the second quarter of fiscal 2002 compared to the second quarter of fiscal 2001. This increase is primarily the result of manufacturing cost reductions, productivity improvements and reductions in personnel and related benefit costs in selling, general and administrative expenses.

The revenue decrease for both the second quarter and first six months of fiscal 2002 is the result of the sale of Valley City Steel Division in July of 2001 and the closure of Romulus Blanking Division, Wellington Die Division and Canton Die Division during the first quarter of 2002.

Selling, general and administrative expenses decreased $4.9 million for the second quarter of fiscal 2002 and $5.4 million for the first six months of fiscal 2002 compared to the same periods in fiscal 2001. On a percentage of sales basis selling, general and administrative expenses decreased to 6.4% for the second quarter of fiscal 2002 and 7.4% for the first six months of fiscal 2002 compared to 8.7% for the second quarter of fiscal 2001 and 8.2% for the first six months of fiscal 2001.

"The elimination of certain operations and reductions in personnel were part of our strategic restructuring initiative to "right-size" our operations to reduce costs and position us for increased profitability" Theodore K. Zampetis, President and CEO, said.

Mr. Zampetis added, "Process characterization and process optimization provided through six sigma problem solving disciplines and lean manufacturing systems have helped to identify and drive down manufacturing costs helping us to increase gross margin to 9.2% for the second quarter of fiscal 2002 compared to 7.1% for the second quarter of fiscal 2001 and 5.1% for the first quarter of fiscal 2002. We have and are making significant improvements; however, opportunities to improve our operations continue to exist. As we move forward, we will continue to execute our plans, focusing on cost reductions, process optimization, improving our balance sheet and our commitment to strategically position Shiloh to differentiate ourselves by offering product and process innovation through Leadership, Technology and Process Ownership."

Headquartered in Cleveland, Ohio Shiloh Industries is a leading manufacturer of engineered welded blanks, first operation blanks, stamped components and modular assemblies for the automotive and heavy truck industries. The Company has 16 wholly owned subsidiaries at locations in Ohio, Georgia, Michigan, Tennessee and Mexico, and employs approximately 2,850.

A conference call to discuss fiscal second quarter 2002 results will be held on Thursday, May 30, 2002 at 2 p.m. (EDT). To listen to the conference call, dial (800) 374-0915 approximately 5 minutes prior to the start time and request conference code 4343111. A replay of the conference call will be available from 8 a.m. (EDT), Friday May 31, 2002, through 5 p.m. (EDT) Friday, June 7, 2002. To access the replay, call (800) 642-1687 and enter conference code 4343111.

The forward-looking statements in this press release involve a number of risks and uncertainties. Among the factors that could cause actual results to differ materially are the following: the Company's dependence on the automotive and light truck and heavy truck industries, which are highly cyclical; the dependence of the automotive and light truck industry on consumer spending, which is subject to the impact of domestic and international economic conditions and regulations and policies regarding international trade; the ability of the Company to accomplish its strategic objectives with respect to external expansion through selective acquisitions and internal expansion; increases in the price of, or limitations on the availability of steel, the Company's primary raw material, or decreases in the price of scrap steel; risks associated with integrating operations of acquired companies; the ability of the Company to implement its cost savings initiatives; potential disruptions or inefficiencies in operations due to or during facility expansions or start-up facilities; risks related to conducting operations in a foreign country; risks related to labor relations, labor expenses or work stoppages involving the Company, its customers or suppliers; changes in the estimated fair value of assets held for sale; the ability of the Company to sell unwanted operations and other risks and uncertainties that may be identified from time to time in the Company's reports to the Securities and Exchange Commission.
 

                        (Financial Statements Follow)

                           SHILOH INDUSTRIES, INC.
                 CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                                 (Unaudited)
                            (Amounts in thousands)

                            Three months ended          Six months ended
                                 April 30,                   April 30,
                            2002         2001           2002          2001
                                       Restated(A)                Restated(A)

    Revenues              $158,698      $172,836     $304,665      $339,078
    Cost of sales          144,150       160,648      282,697       307,893
    Gross profit            14,548        12,188       21,968        31,185
    Selling, general and
      administrative
      expenses              10,167        15,028       22,444        27,821
    Asset impairment recovery  ---       (10,756)         ---       (10,756)
    Restructuring charge     1,027           ---        1,027           ---
    Operating income (loss)  3,354         7,916       (1,503)       14,120
    Interest expense         5,193         5,476        9,532        11,090
    Interest income             15            35           68            61
    Other income (expense),
      net                     (163)           28          157           310
     Income (loss) before
       equity in net losses of
       affiliated company and
       income taxes         (1,987)        2,503      (10,810)        3,401
    Equity in net losses of
      affiliated company      (304)          ---         (460)          ---
    Income (loss) before
      taxes                 (2,291)        2,503      (11,270)        3,401
    Provision (benefit) for
      income taxes            (498)          826       (3,730)        1,122
      Net income (loss)    $(1,793)       $1,677      $(7,540)       $2,279

    Earnings (loss) per share:
    Basic earnings (loss)
      per share              $(.12)         $.11        $(.51)         $.15
    Basic weighted average
      number of common
      shares                14,798        14,798       14,798        14,798
    Diluted earnings (loss)
      per share              $(.12)         $.11        $(.51)         $.15
    Diluted weighted average
      number of common
      shares                14,798        14,839       14,798        14,827

                           SHILOH INDUSTRIES, INC.
                    CONDENSED CONSOLIDATED BALANCE SHEETS
                            (amounts in thousands)

                                                     April 30,     October 31,
                                                       2002           2001
                                                   (Unaudited)
    Assets
    Cash and cash equivalents                           $887         $4,715
    Accounts receivable, net                          81,903         95,172
    Income tax receivable                              2,676          2,714
    Inventories, net                                  57,158         58,350
    Net assets held for sale                          17,180          7,500
    Deferred income taxes                             11,535         11,535
    Prepaid expenses                                   2,277          3,239
      Total current assets                           173,616        183,225

    Property, plant and equipment, net               297,062        315,285
    Goodwill, net                                      3,082          3,144
    Investment and advances to affiliate              12,116         12,274
    Other assets                                      16,329         15,532
      Total assets                                  $502,205       $529,460

    Liabilities and Stockholders' Equity
    Accounts payable                                $ 64,144        $78,754
    Advanced billings                                    769            382
    Other accrued expenses                            22,067         17,060
      Total current liabilities                       86,980         96,196

    Long-term debt                                   240,100        268,545
    Deferred income taxes                             12,229            126
    Long-term benefit liabilities                     32,764         31,096
    Other liabilities                                  1,812          1,810
      Total liabilities                              373,885        397,773

    Commitments and contingencies

    Stockholders' equity:
    Preferred stock                                        1            ---
    Paid-in-capital preferred stock                    4,044            ---
    Common stock                                         148            148
    Paid-in capital common stock                      55,454         53,924
    Retained earnings                                 82,244         89,783
    Unearned compensation                             (1,403)           ---
    Other comprehensive loss                         (12,168)       (12,168)

      Total stockholders' equity                     128,320        131,687
      Total liabilities and stockholders' equity    $502,205       $529,460