Eau Claire, Wisconsin (February 15, 2002) -- National Presto Industries, Inc. (NYSE: NPK) announced today 2001 sales and earnings, as shown in the table below. Net earnings per share have been computed on the basis of the weighted average number of common shares outstanding for the respective periods.
In commenting on 2001's results, Maryjo Cohen, President stated, "The year 2001 was an extremely difficult one, starting with Wal-Mart's and Target's implementation of new strategic planning which led to the loss of several key products. Continued erosion of product pricing resulted in the decision to close all U.S. production plants and move procurement to foreign sources. Although the procurement transition will not be completed until fourth quarter 2002, a large portion of the costs that flow from the decision were charged to 2001 earnings. An additional sum pertaining to plant employee termination benefits will be charged during the first quarter 2002.
"On a brighter note, both Wal-Mart and Target ultimately modified their planning. In the case of Wal-Mart, it added a deep fryer and returned to its assortment the griddle that it had dropped (albeit at a substantially reduced price). Target will add three additional Presto products in July 2002. Acquisitions were completed in February 2001 of a defense business and in November 2001 of a diaper factory which provide the potential for growth in new areas."
The Board of Directors of National Presto Industries, Inc. also announced today a dividend of $.92 per share, all of the after tax earnings for the year. The 2002 dividend is the most recent in an unbroken history of fifty-eight years. The record date for the dividend will be February 26, 2002. The full dividend will be paid on March 13, 2002.
National Presto manufactures and sells small household electric appliances and pressure cookers under the PRESTO® brand name. The Company is widely recognized as an innovator of new products.