15th
April 2008 - Hawk
Corporation to Sell Performance Racing Segment
Hawk Corporation has announced that its Board of Directors has
authorized the Company to sell its performance racing segment. The
performance racing segment, consisting of Quarter Master Industries,
Inc. and Tex Racing Enterprises, Inc., engineers, manufactures and
markets premium branded clutch, transmission and driveline systems for
the performance racing market. The segment reported net sales of $12.8
million for the year ended December 31, 2007 accounting for 5.6% of the
Company's total net sales for the year. The Company will retain its Hawk Performance(R) brake business which will remain a part of its friction
products segment.Ronald E. Weinberg stated, "This announcement is in keeping with our
strategy of focusing on our friction businesses. We are a world leader
in friction technology and we see many opportunities to which we should
direct our energies and attention."
The Company is currently evaluating the impact that the sale of the
performance racing segment will have on the Company's financial
statements as well as to its previously announced 2008 financial
guidance. Hawk will reflect the performance racing segment as a
discontinued operation in its March 31, 2008 financial results. The
Company is in discussions with several parties and, cannot, at this
time, provide the terms of a possible transaction.
The Company
Hawk Corporation is a leading worldwide supplier of highly engineered
products. Its friction products group is a leading supplier of friction
materials for brakes, clutches and transmissions used in airplanes,
trucks, construction and mining equipment, farm equipment, recreational
and performance automotive vehicles. The Company's performance racing
group manufactures clutches and gearboxes for motorsport applications
and performance automotive markets. Headquartered in Cleveland, Ohio,
Hawk has approximately 1,150 employees at 13 manufacturing, research,
sales and administrative sites in 7 countries.
Source: Hawk Corporation Press
Release