Hawk To Sell Performance Racing Segment

Hawk Corporation 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 US$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 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.
Hawk Corporation is a supplier of highly engineered products.
The Company’s performance racing group manufactures clutches and gearboxes for motorsport applications and performance automotive markets.