GenCorp reports third-quarter earnings

SACRAMENTO, Calif. (Sept. 25)—Vehicle sealing and defense products manufacturer GenCorp today reported net income of $5 million on sales of $356 million, which compares to net income of $19 million on sales of $260 million during the third quarter of 2000. For the nine-month period, GenCorp posted net income of $25 million on sales of $1.1 billion, compared to net earnings of $122 million on sales of $770 million during the first three quarters of last year. Poor performance in the fine chemicals business and slower than anticipated recovery in the vehicle sealing segment were the culprits, the company said. Net sales at GDX Automotive increased 65 percent to $190 million for the third quarter compared to the year earlier period, primarily due to the acquisition of Draftex. However, the segment took a third-quarter operating loss of $2 million, vs. operating profit of $4 million during the same quarter of 2000. The loss was due to continued consolidation, launch costs associated with the new Ford Explorer, a "negative influence" from the Volkswagen strike in Mexico, and increases in employees health care costs, the manufacturer said. The previously-announced closure of GenCorp´s Ballina, Ireland, plant is complete, and the manufacturer said it expects to finish the closure of the Marion, Ind., sealing factory by year-end rather than into the first quarter of next year.