-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, GYU8u3hx/jjkPdfLogxPRySAHU9iGW38Xzb2xBhRiHKSgZTS3OGTHHBhybdJfHdc 4a7js+XtVid1B3a9E+M8Bg== 0000913355-98-000073.txt : 19980813 0000913355-98-000073.hdr.sgml : 19980813 ACCESSION NUMBER: 0000913355-98-000073 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980628 FILED AS OF DATE: 19980812 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: FARREL CORP CENTRAL INDEX KEY: 0000034645 STANDARD INDUSTRIAL CLASSIFICATION: SPECIAL INDUSTRY MACHINERY, NEC [3559] IRS NUMBER: 222689245 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-19703 FILM NUMBER: 98683370 BUSINESS ADDRESS: STREET 1: 25 MAIN STREET CITY: ANSONIA STATE: CT ZIP: 06401 BUSINESS PHONE: 2037365500 10-Q 1 FORM 10-Q FOR THE QUARTER ENDED JUNE 28, 1998 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 28,1998 ----------------------------- OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to ----------------------- ---------------------- Commission file number 0 -19703 -------------------- Farrel Corporation ---------------------------------------------------------- (Exact name of registrant as specified in its charter) Delaware 22-2689245 -------------------------- ---------------------------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 25 Main Street, Ansonia, Connecticut, 06401 ------------------------------------------- (Address of principal executive offices) (Zip Code) (203) 736-5500 -------------------- (Registrant's telephone number, including area code) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [ ] APPLICABLE ONLY TO CORPORATE ISSUERS: ------------------------------------- Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. CLASS OUTSTANDING AT August 5, 1998 - -------------------------------------------------------------------------------- Common Stock (Voting), $.01 par value 5,942,582 Farrel Corporation ------------------ Index ----- Page ---- Part I. Financial Information --------------------- Consolidated Balance Sheets - June 28, 1998 and December 31, 1997 3 Consolidated Statements of Operations - Three and Six Months Ended June 28, 1998 and June 29, 1997 4 Consolidated Statements of Cash Flows - Six Months ended June 28, 1998 and June 29, 1997 5 Notes to Consolidated Financial Statements 6 Management's Discussion and Analysis of Financial Condition and Results of Operations 8 Exhibit 11 - Computation of Earnings Per Share 11 Part II. Other Information 12 ----------------- Page 2 of 13 Part I - Financial Information FARREL CORPORATION CONSOLIDATED BALANCE SHEETS (In thousands, except share data)
June 28, December 31, -------- ------------ 1998 1997 ---- ---- ASSETS (Unaudited) Current Assets: Cash and cash equivalents $4,338 $1,447 Accounts receivable, net of allowance for doubtful accounts of $226 and $179, respectively 12,350 14,423 Inventory 20,442 18,277 Asset purchase agreement receivable 1,921 Other current assets 1,923 2,957 -------------- ------------------ Total current assets 40,974 37,104 Property, plant and equipment - net of accumulated depreciation of $10,802 and $9,786, respectively 12,627 12,416 Goodwill 4,204 5,295 Other Assets 1,965 1,566 -------------- ------------------ Total Assets $59,770 $56,381 ============== ================== LIABILITIES & STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable $10,063 $8,317 Accrued expenses & taxes payable 4,570 4,753 Advances from customers 8,568 6,412 Accrued installation & warranty costs 1,546 1,326 Dividend Payable 951 Short - term debt 1,537 1,527 -------------- ------------------ Total current liabilities 26,284 23,286 Long - term debt 4,985 5,283 Postretirement benefit obligation 1,190 1,213 Long-term pension obligation 592 592 Deferred income taxes 325 225 Commitments and contingencies - - -------------- ------------------ Total Liabilities 33,376 30,599 -------------- ------------------ Stockholders' Equity: Preferred stock, par value $100, 1,000,000 shares authorized, no shares issued - - Common stock, par value $.01, 10,000,000 shares authorized, 6,142,106 shares issued 61 61 Paid in capital 19,295 19,295 Treasury stock, 199,524 shares at June 28, 1998 and December 31, 1997, respectively (984) (984) Retained earnings 8,386 7,776 Accumulated other comprehensive expense (364) (366) -------------- ------------------ Total Stockholders' Equity 26,394 25,782 -------------- ------------------ Total Liabilities and Stockholders' Equity $59,770 $56,381 ============== ================== See Accompanying Notes to Consolidated Financial Statements
Page 3 of 13 FARREL CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share and share data)
Three Months Ended Six Months Ended ------------------ ---------------- June 28, June 29, June 28, June 29, 1998 1997 1998 1997 ---- ---- ---- ---- (unaudited) (unaudited) Net Sales $24,954 $26,183 $40,930 $42,306 Cost of sales 18,854 20,839 30,594 33,624 ---------------- ----------------- ---------------- ---------------- Gross margin 6,100 5,344 10,336 8,682 Operating expenses: Selling 1,946 1,898 3,678 3,555 General & administrative 2,306 1,873 4,075 3,636 Research & development 366 383 684 773 ---------------- ----------------- ---------------- ---------------- Total operating expenses 4,618 4,154 8,437 7,964 ---------------- ----------------- ---------------- ---------------- Operating income 1,482 1,190 1,899 718 Interest income 6 92 58 146 Interest expense (191) (60) (401) (70) Other income/(expense), net (70) 135 (146) 391 ---------------- ----------------- ---------------- ---------------- Income before income taxes 1,227 1,357 1,410 1,185 Provision for income taxes 490 487 563 421 ---------------- ----------------- ---------------- ---------------- Net income $737 $870 $847 $764 ================ ================= ================ ================ Per share data: Basic and Diluted income per common share $0.12 $0.15 $0.14 $0.13 ================ ================= ================ ================ Average shares outstanding: Basic 5,942,582 5,941,935 5,942,582 5,942,582 ================ ================= ================ ================ Diluted 5,947,388 5,943,207 5,966,836 5,983,841 ================ ================= ================ ================ Dividends per share $0.04 $0.16 $0.04 $0.16 ================ ================= ================ ================ See Accompanying Notes to Consolidated Financial Statements
Page 4 of 13 FARREL CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)
Six Months Ended ---------------- June 28, June 29, -------- -------- 1998 1997 ---- ---- (Unaudited) (Unaudited) Cash flows from operating activities: Net Income $847 $764 Adjustments to reconcile net income to net cash provided by/(used in) operating activities: Gain on disposal of fixed assets (137) (299) Depreciation and amortization 1,175 811 Decrease in accounts receivable 2,110 7,751 Increase in inventory (4,367) (2,277) Increase(decrease) in accounts payable 1,669 (2,002) Increase in customer advances 2,133 822 Increase in accrued expenses & taxes (189) 79 Increase(decrease) in accrued installation and warranty costs 215 (533) Increase in deferred income taxes 100 168 Other (953) 349 -------------------- ----------------- Total adjustments 1,756 4,869 -------------------- ----------------- Net cash provided by operating activities 2,603 5,633 -------------------- ----------------- Cash flows from investing activities: Refund of Shaw asset purchase price 2,701 Proceeds from disposal of fixed assets 160 547 Purchases of property, plant and equipment (1,073) (262) -------------------- ----------------- Net cash (used in) provided by investing activities 1,788 285 Cash flows from financing activities: Repayment of long-term borrowings (331) (102) Used for dividends paid (1,188) (953) -------------------- ----------------- Net cash used by financing activities (1,519) (1,055) Effect of foreign currency exchange rate changes on cash 19 16 -------------------- ----------------- Net increase in cash and cash equivalents 2,891 4,879 Cash and cash equivalents - Beginning of period 1,447 3,832 -------------------- ----------------- Cash and cash equivalents - End of period $4,338 $8,711 ==================== ================= Income taxes paid $139 $58 ==================== ================= Interest paid $311 $1 ==================== ================= See Accompanying Notes to Consolidated Financial Statements
Page 5 of 13 FARREL CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) NOTE 1 - BASIS OF PRESENTATION In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments, consisting only of normal recurring adjustments, necessary to present fairly in accordance with generally accepted accounting principles, the consolidated financial position of Farrel Corporation ("Farrel" or "the Company") as of June 28, 1998, the consolidated results of its operations for the three and six-month periods ended June 28, 1998 and June 29, 1997, and its consolidated cash flows for the six-month periods ended June 28, 1998 and June 29, 1997. These results are not necessarily indicative of results to be expected for the full fiscal year. The statements should be read in conjunction with the financial statements and notes thereto, included in the Company's Annual Report and Form 10-K for the year ended December 31, 1997. NOTE 2 - INVENTORY Inventory is comprised of the following: June 28, December 31, -------- ------------ 1998 1997 ---- ---- (In thousands) Stock and raw materials............ $11,849 $9,459 Work-in process.................... 8,593 8,818 --------- -------- Total.............................. $20,442 $18,277 ======= ======= NOTE 3 - ASSET PURCHASE On December 19, 1997, the Company acquired certain assets of the Francis Shaw Rubber Machinery operations ("Shaw") from EIS Group PLC ("EIS") for approximately $10.9 million. The Asset Purchase Agreement ("Agreement") provided for a reduction in the purchase price to the extent that the value of the closing date inventory was less than the contract amount. During June 1998, the Company and EIS agreed to a revised inventory valuation as of December 19, 1997. The inventory value, as per the Agreement, was reduced by approximately $2.7 million and a payment in that amount was received from EIS. Subsequent to recording the inventory valuation in the preliminary purchase accounting an additional inventory reduction of approximately $.9 million was recorded with a corresponding increase in goodwill. In addition, if the acquired assets do not generate at least (pound)1.0 million (approximately $1.67 million) of pre-tax profit, as defined, the Agreement provides for a reduction in the purchase price. Included in total assets, with a corresponding reduction in goodwill, is an amount due from the seller calculated under the terms of the Agreement based upon the year to date results. The results of operations of Shaw are included in the consolidated results of operations of the Company for the 1998 periods. The seller did not maintain and the Company was not provided historical financial information for the Shaw operations. Therefore, the proforma results for the six months ending June 29, 1997 are not avaliable. Based on the limited information available, the Company estimates that the pro forma revenues and net income for the six months ended June 29, 1997, would not vary materially from the historical amounts recorded in the consolidated statements of operations. NOTE 4 - COMPREHENSIVE INCOME As of January 1, 1998, the Company adopted Financial Accounting Standard No. 130, "Reporting Comprehensive Income". Standard No. 130 establishes new rules for the reporting and display of comprehensive income and its components; however, the adoption of the statement had no impact on the Company's net income or stockholders equity. Page 6 of 13 The components of other comprehensive income, for the six-month periods ended are as follows: June 28, June 29, 1998 1997 ---- ---- (In thousands) Net income $847 $764 Foreign currency translation adjustments 2 ( 268) ------- ------ Other comprehensive income $849 $496 ===== ==== The components of accumulated other comprehensive expense, net of related tax, are as follows: June 28, December 31, 1998 1997 ---- ---- (In thousands) Minimum pension liability $ (303) $(303) Foreign currency translation adjustments (61) (63) ------- ------- Accumulated other comprehensive expense $(364) $(366) ====== ====== Page 7 of 13 PART I - ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION & RESULTS OF OPERATIONS SAFE HARBOR STATEMENTS UNDER PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 Certain statements contained in the Company's public documents, including in this report and in particular in this "Management's Discussion and Analysis of Financial Condition and Results of Operations" may be forward looking and may be subject to a variety of risks and uncertainties. Various factors could cause actual results to differ materially from these statements. These factors include, but are not limited to pricing pressures from competitors and/or customers; continued economic and political uncertainty in certain of the Company's markets; the Company's ability to maintain and increase gross margin levels; the Company's ability to generate positive cash; changes in business conditions, in general, and, in particular, in the businesses of the Company's customers and competitors; and other factors which might be described from time to time in the Company's filings with the Securities and Exchange Commission. RESULTS OF OPERATIONS SIX MONTHS ENDED JUNE 28, 1998 COMPARED TO THE SIX MONTHS ENDED JUNE 29, 1997 Year to date net sales in 1998 and 1997 were $40.9 million and $42.3 million, respectively. The 1998 amount includes net sales of approximately $5.4 million by Farrel Shaw Limited ("Shaw") which was acquired on December 19, 1997. Excluding Shaw sales, net sales would have declined $6.8 million during the six months ended June 28, 1998 compared to June 29, 1997. This decrease is largely due to the timing of when customer orders shipped in each period were received. A substantial portion of the 1997 shipments reflect several individually large orders received in 1996. Management believes the Company operates in markets which are extremely competitive. Many of our customers and markets operate at less than full capacity and certain markets, in particular, the Far East, remain particularly competitive and difficult to penetrate. The Company received $50.3 million in orders including approximately $7.6 million from the newly acquired Shaw operations and several individually large orders during the first six months of 1998 compared to $35.0 million during the same period of 1997. In the case of major equipment orders, up to 12 months are required to complete the manufacturing process. Accordingly, revenues reported in the statement of operations may represent orders received in the current or previous fiscal quarters. In addition, the cyclical nature of industry demand and, therefore, order intake, may affect the Company's quarterly results of operations. The Company's ability to maintain and increase net sales depends upon a strengthening and stability in the Company's traditional markets. There can be no assurance that any such improvement will lead to increased orders for the Company's products. Firm backlog at June 28, 1998 was $56.3 million, including $8.2 million at Shaw, compared to $46.5 million at December 31, 1997 and $42.9 million at the end of the second quarter of 1997. Backlog at August 5, 1997 was $51.8 million. Year to date gross margin in 1998 and 1997 was $10.3 million and $8.7 million, respectively. the margin percentage increased to 25.2% from 20.5% largely due to the mix of products sold in the two periods. The 1998 shipments include a higher relative proportion of spare parts, rebuild and repair sales than in 1997 which generate higher margins than the new machine sales. In addition, 1997 included several large new machine shipments with relatively lower gross margins. Year to date operating expenses increased $.4 million to $8.4 million in 1998 compared to 1997. The 1998 amount includes selling expenses of $.3 million and general and administrative expenses of $.6 million at the newly acquired Shaw operations. Excluding the impact of the Shaw operations, operating expenses decreased by $.5 million to $7.5 million in the six month period ended June 28, 1998. The decrease is largely attributed to reductions in marketing programs, professional fees, insurance and continuing effects to steadily control expenses. The Company intends to consolidate the operations of Shaw into manufacturing and administrative facilities in Rochdale, England. The Company expects the consolidation to be accomplished in the first half of 1999. The Company has reduced headcount at Shaw to 110 at June 28, 1998 compared to 218 at December 31, 1997. Research and development costs declined primarily as a result of reduced headcount. Page 8 of 13 Year to date interest expense at June 28, 1998, was $.4 million, an increase of $.3 million from 1997. The increase is due to borrowings associated with the acquisition of the Shaw operations. Interest income was $.1 million for the six month period ended June 28, 1998 and June 29, 1997. Other income, net of other expense, includes approximately $.2 million for the six month period ended June 28, 1998 from the disposal of machinery and equipment the Company will no longer use and $.5 million for the same period in 1997. The impact of foreign currency on the consolidated results of operations for 1998 compared to 1997 was not significant. The effective income tax rate in 1998 and 1997 was 39.9% and 35.5%, respectively. The Company provides for income taxes in the jurisdictions in which it pays income taxes at the statutory rates in effect in each jurisdiction adjusted for differences in providing for income taxes for financial reporting and income tax purposes. THREE MONTHS ENDED JUNE 28, 1998 COMPARED TO THREE MONTHS ENDED JUNE 29, 1997. Net sales for the second quarter of 1998 were $24.9 million, compared to the $26.2 million for the second quarter of 1997. Order intake in the second quarter of 1998 was $20.1 million including approximately $1.6 million from the Shaw operations, compared to $19.4 million in the second quarter of 1997. Sales, orders and backlog levels varied when comparing the two quarters due to the same reasons previously discussed. Gross margin in the second quarter of the current year was $6.1 million compared to $5.3 million in the second quarter of 1997 and the margin percentage increased to 24.4% from 20.4%, respectively. These variations in margin dollars and percentages are also attributed to the same reasons previously discussed. Total operating expenses increased $.4 million from the second quarter of 1997 to $4.6 million in the second quarter of 1998. The second quarter includes selling expenses of $.2 million and administrative expenses of $.4 million at the newly acquired Shaw facilities. Excluding the impact of the Shaw operations, operating expenses would have declined approximately $.2 million during the second quarter of 1998. The changes in operating expenses are due to the reasons previously discussed. Interest expense, for the second quarter of 1998, was $.2 million an increase of $.2 million from the second quarter of 1997. The increase is due to borrowings associated with the acquisition of the Shaw operations. Other income, net of other expense in the second quarter of 1998 and 1997 includes approximately $.2 million for the disposal of excess machinery and equipment. The impact of foreign currency on the consolidated results of operations for the second quarter of 1998 compared to 1997 was not significant. The tax rate in the second quarter of 1998 and 1997 was 39.9% and 35.9%, respectively. The Company provides for income taxes in the jurisdictions in which it pays for income taxes at the statutory rates in effect in each jurisdiction adjusted for differences in providing for income taxes for financial reporting and income tax purposes. MATERIAL CONTINGENCIES The Company and The Black & Decker Corporation entered into a Settlement Agreement pursuant to which Black & Decker agreed to assume full responsibility for the investigation and remediation of any pre-May, 1986 environmental contamination at the Company's Ansonia and Derby facilities as required by the Connecticut Department of Environmental Protection (DEP). A preliminary environmental assessment of the Company's properties in Ansonia and Derby, Connecticut has been conducted by Black & Decker. On the basis of the preliminary data now available there is no reason to believe that any remediation activities which might be required as a result of the findings of the assessment will have a material effect upon the capital expenditures, earnings or the competitive position of the Company. This forward looking statement could, however, be influenced by the results of any further investigation which the DEP might require, by DEP's conclusions and requirements based upon its review of complete information when such is available, unanticipated discoveries, the possibility that new or different environmental laws might be adopted and the possibility that further regulatory review or litigation might become necessary or appropriate. Page 9 of 13 LIQUIDITY AND CAPITAL RESOURCES; CAPITAL EXPENDITURES Working capital and the working capital ratio at June 28, 1998 were $14.7 million and 1.5 to 1, respectively, compared to $13.8 million and 1.6 to 1 at December 31, 1997, respectively. During the first six months of 1998, the Company paid a dividend of $.04 per share. The Company has also declared a dividend of $.04 per share to be paid in the third quarter of 1998. The Company's ability to pay dividends in the future is generally limited under its credit facility described below to the aggregate of (a) 25% of net income during the most recently completed four fiscal quarters after deducting distributions previously made and (b) purchases by the Company of its common stock during the same period, without the consent of and/or waiver by the Company's bank. The Company received a waiver from its bank with respect to dividends paid between April 23, 1997 through June 30, 1998. Due to the nature of the Company's business, many sales are of a large dollar amount. Consequently, the timing of recording such sales may cause the balances in accounts receivable and/or inventory to fluctuate dramatically between quarters and may result in significant fluctuations in cash provided by operations. Historically, the Company has not experienced significant problems regarding the collection of accounts receivable. The Company has also generally financed its operations with cash generated by operations, with progress payments from customers and with borrowings under its bank credit facilities. The Company made capital expenditures of $1.1 and $.3 million during the first six months of 1998 and 1997, respectively. The Company has a worldwide multi-currency credit facility with a major U.S. bank in an amount of $25.0 million consisting of an $18.5 million revolving credit facility for direct borrowings and letters of credit and up to (pound)3.0 million for foreign exchange contracts and a five year term loan. The facility contains limitations on direct borrowings and letters of credit combined based upon stipulated levels of accounts receivable, inventory and backlog. The facility also contains covenants specifying minimum and maximum thresholds for operating results and selected financial ratios. There were $6.5 million and $7.1 million in direct borrowings under this facility at June 28, 1998, and December 31, 1997, respectively. There were $ 5.3 million and $6.0 million of letters of credit outstanding at June 28, 1998 and December 31, 1997, respectively. The revolving credit facility expires on December 31, 1999, the term note matures on December 31, 2002. RECENT ACCOUNTING PRONOUNCEMENTS As of January 1, 1998, the Company adopted Financial Accounting Standard No. 130, "Reporting Comprehensive Income". Standard No. 130 establishes new rules for the reporting and display of comprehensive income and its components; however, the adoption of this Statement had no impact on the Company's net income or stockholder's equity. Statement 130 requires the Company's foreign currency translation and minimum pension liability which, prior to adoption, were reported separately in stockholders' equity to be included in other comprehensive income. Prior year financial statements have been reclassified to conform to the requirements of Standard No. 130. For the six months ended June 28, 1998 and June 29, 1997, total comprehensive income amounted to $.8 million and $.5 million, respectively. ITEM 2 - QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK - Not applicable. Page 10 of 13 EXHIBIT 11 FARREL CORPORATION ------------------ STATEMENT RE COMPUTATION OF PER SHARE EARNINGS ---------------------------------------------- (In thousands, except per share and share data) -----------------------------------------------
Three Months Ended Six Months Ended ------------------------------------------------------------------- June 28, June 29, June 28, June 29, 1998 1997 1998 1997 ---- ---- ---- ---- Net income applicable to common stock $737 $870 $847 $764 ============== =============== =============== ============== Weighted average number of common shares outstanding - Basic earnings per share 5,942,582 5,941,935 5,942,582 5,942,582 Effect of dilutive stock and purchase options 4,806 1,272 24,254 41,259 -------------- --------------- --------------- -------------- Weighted average number of common shares outstanding - Diluted earnings per share 5,947,388 5,943,207 5,966,836 5,983,841 ============== =============== =============== ============== Net income per common share - Basic $0.12 $0.15 $0.14 $0.13 ============== =============== =============== ============== share - Fully diluted $0.12 $0.15 $0.14 $0.13 ============== =============== =============== ==============
Page 11 of 13 PART II - OTHER INFORMATION ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K Exhibit 11 (Regulation S-K) Computation of Earnings Per Share. Exhibit 27 Financial Data Schedule Reports on Form 8-K No Reports on Form 8-K were filed by the registrant during the periods covered by this report. Page 12 of 13 SIGNATURES ---------- PURSUANT TO THE REQUIREMENTS OF THE SECURITIES EXCHANGE ACT OF 1934, THE REGISTRANT HAS DULY CAUSED THIS REPORT TO BE SIGNED ON ITS BEHALF BY THE UNDERSIGNED THEREUNTO DULY AUTHORIZED. FARREL CORPORATION ------------------ REGISTRANT DATE: 8/3/98 /s/ Rolf K. Liebergesell ------------------ ------------------------------------ ROLF K. LIEBERGESELL CHIEF EXECUTIVE OFFICER, PRESIDENT AND CHAIRMAN OF THE BOARD DATE: 8/3/98 /s/ Catherine M. Boisvert ------------------ ------------------------------------ CATHERINE M. BOISVERT VICE PRESIDENT AND CONTROLLER (CHIEF ACCOUNTING OFFICER) Page 13 of 13 EX-27 2 FINANCIAL DATA SCHEDULE FOR THE 2ND QUARTER 1998
5 This schedule contains summary financial information extracted from the financial statements of Farrel Corporation as of June 28, 1998 and for the 6 months then ended and is qualified in its entirety by reference to such statements 1,000 US$ 6-MOS DEC-31-1998 JAN-1-1998 JUN-28-1998 1 4,338 0 12,576 226 20,442 40,974 23,429 10,802 59,770 26,284 0 0 0 61 26,333 59,770 40,930 40,930 30,594 30,594 8,525 0 401 1,410 563 847 0 0 0 847 .14 .14
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