LOS ANGELES, Aug. 30, 2005 (PRIMEZONE) -- New Century Companies, Inc. (OTCBB:NCNC), a leading manufacturer and re-manufacturer of machine tools, today announced that it has received two orders, totaling $760,000, for vertical turning centers (VTCs). Combined with a VTC order reported last week, the Company's recent string of major orders has added $1.06 million in revenue, all of which will be booked in the third (current) and fourth quarters of 2005.
The VTC, a type of large vertically-oriented lathe, is used to produce a wide range of metal components used in oil and gas production, defense and aerospace, construction and other industries. The first of the two new orders is for a VTC priced at $410,000, to be used by a Minnesota-based fabricator to manufacture pipe flanges used in commercial and industrial construction. The second order is for a $350,000 VTC that will be used by a Southern California-based manufacturer of defense/aerospace components such as missile shields. (Both customers are unnamed in this release for competitive reasons).
On August 26, 2005, New Century announced a $300,000 order for a VTC that will be used by a major Midwestern U.S.-based machine shop to make parts for compressors used in oil and gas extraction. This new customer produces components for firms including Dresser-Rand Group Inc., a leading manufacturer of oil-field products.
Growth in Machine Tools, Quilite(R) Production Noted
"These two major orders, coming just after a previously announced $300,000 order for another New Century VTC, reflect a trend of accelerating machine-tool demand," said David Duquette, CEO of New Century. "Large sectors of the economy are fueling this need for state-of-the-art metal fabrication equipment such as VTCs. One is energy, where oil and gas production is booming. Another is construction, industrial/commercial as well as residential. A third is defense and aerospace. New Century tools are used by manufacturers for all of these sectors, and we expect the surge in orders to continue as the sectors' business activity continues to rise."
Mr. Duquette continued: "The sharp rise in demand in New Century's traditional core business -- new and re-manufactured machine tools -- comes at a time when the Company is also adding a major new revenue source in its partnership with Quilite Inc., a maker of sound-absorbing blocks. New Century will shortly begin assembling Quilite(R) modules for use in freeway sound walls and similar construction. As announced previously, we expect the Quilite operation to add $0.05 cents per share in net income this year and $10 million in new revenue, with 30% gross margins, in 2006. With the company already back to profitability on an operating basis, its outlook is as bright as it has been at any time in its 10-year history."
About New Century Companies
New Century Companies, Inc. (OTCBB:NCNC) is one of the leading U.S.-based makers of machine tools, primarily vertical boring mills and large lathes such as vertical turning centers. It also assembles sound-wall modules made from Quilite(R), a lightweight, graffiti-resistant alternative to concrete. In its machine-tool business, the Company specializes in re-manufacturing, starting with existing major castings and fitting them with state-of-the-art, computer-controlled equipment. These products generally cost 40% to 60% less to make than new ones. New Century passes these savings on to its customers, which include such leading manufacturers as General Electric Co., General Dynamics Corp., Siemens AG and Goodrich Corp. New Century machines are used to manufacture jet-engine components, airplane landing gear parts, power generation equipment, oil and gas production components and construction materials, to name just a few applications. Quilite(R) is used not only in freeway noise walls but in other sound-absorbing structures, including barriers at sports stadiums and electric transformers. New Century manufactures its machine tools and Quilite(R) modules in Santa Fe Springs, Calif. Visit New Century's Web site at www.newcenturyinc.com
Forward-looking statement: Except for historical information, this press release contains forward-looking statements, which reflect the Company's current expectation regarding future events. These forward-looking statements involve risks and uncertainties, which may cause actual results to differ materially from those statements. Those risks and uncertainties include, but are not limited to, changing market conditions and other risks detailed from time to time in the Company's ongoing quarterly filings, annual information form, and annual reports. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking events in this press release might not occur.