GSW Inc.
TSX : GSW.A
TSX : GSW.SV.B

GSW Inc.

July 28, 2005 16:10 ET

GSW Inc. Reports Second Quarter 2005 Results

OAKVILLE, ONTARIO--(CCNMatthews - July 28, 2005) - GSW Inc. (TSX:GSW.a)(TSX:GSW.sv.b) -

- Sales of $154.6 million, an increase of $6.4 million or 4.3% above Q2 2004

- Net income of $10.8 million, an increase of $6.2 million or 136.9% above the same period last year

- Earnings per share of $3.14 per share compared to $1.33 per share in Q2 2004

GSW Inc. (TSX: GSW.a, GSW.sv.b), a leading North American manufacturer of consumer durable products, released its second quarter results today for the period ending June 30, 2005.

"The efforts of our investment in and continued focus on cost reduction and operational efficiencies are being reflected in our results," says Peter Sharpe, president and chief executive officer. "We also entered the quarter with price increases related to commodity based material prices implemented in all channels. As a result, we are now achieving more reasonable rates of return on our investment."

The sales increase of $6.4 million is comprised of a $7.2 million or 5.3% increase in the Water Products segment and a $0.8 million or 7.4% decrease in the Building Products segment. The reported sales for the quarter are $7.1 million lower than what would have been reported at last year's average exchange rate for the second quarter.

Segmented profit in the Water Products segment was $15.9 million compared to $6.3 million in the same period last year. The segmented profit in the Building Products segment was $1.1 million compared to $1.2 million in the second quarter last year.

Sharpe also added, "Our employees are dedicated to pursuing operational excellence and to working with all of our material and service providers to maximize cost effectiveness and maintain the highest levels of customer service."

GSW Inc. has been a manufacturing pioneer since 1847. Today, the company is a leading manufacturer and marketer of consumer durable products, including water heaters and building products. The company employs over 1,700 people at three operating divisions in Canada and the United States. GSW Inc. is listed on the Toronto Stock Exchange under the symbol GSW.a and GSW.sv.b. For more information about the company visit www.gswinc.com.

Sales and earnings of GSW Inc. for the three month and for the six month periods ended June 30, 2005 are as follows:



(in thousands of dollars, except per share amounts, unaudited)

2005 2004
$ $
Three Months to June 30
-----------------------

Sales 154,557 148,176
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Income from operations before the undernoted 16,982 7,699
Foreign exchange gain (loss) 22 (77)
-----------------------
Income before income taxes 17,004 7,622
Income taxes expense (6,237) (3,077)
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Net income 10,767 4,545
-----------------------

Earnings per common share 3.14 1.33


Six Months to June 30
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Sales 315,928 293,076
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Income from operations before the undernoted 28,209 14,362
Foreign exchange gain (loss) (67) 140
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Income before income taxes 28,142 14,502
Income taxes expense (10,296) (5,459)
-----------------------
Net income 17,846 9,043
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Earnings per common share 5.21 2.64


All amounts referred to in this release are in Canadian dollars unless noted otherwise.

This release contains forward-looking statements, which reflect management's current views of future events and operations. These forward-looking statements are based on assumptions and external factors, including assumptions relating to product pricing, competitive market conditions, financial data, and other risks or uncertainties detailed from time to time in the Company's filings with securities regulatory authorities. These forward-looking statements represent the Company's judgment as of the date of this release and any changes in the assumptions or external factors could produce significantly different results.

Contact Information

  • GSW Inc.
    Jamie Hyde
    Chief Financial Officer
    (905) 829-1197, Ext. 227
    jhyde@gswinc.com