Matthews International Announces Earnings for the Fourth Quarter and Fiscal Year Ended September 30, 2009

Matthews International Announces Earnings for the Fourth Quarter and Fiscal
Year Ended September 30, 2009

PITTSBURGH, Nov. 12 /PRNewswire-FirstCall/ -- Matthews International
Corporation (Nasdaq: MATW) today announced earnings for the quarter and fiscal
year ended September 30, 2009. Net income for the Company's fiscal 2009
fourth quarter was $15,633,000, representing earnings per share of $0.52. The
fiscal 2009 fourth quarter results included net unusual charges of
approximately $3,300,000 (pre-tax), or $0.07 per share. Unusual items for the
current quarter primarily consisted of charges related to operational and
systems improvements in several of the Company's businesses. Net income for
the quarter ended September 30, 2008 was $20,392,000, or $0.65 per share.

Sales for the quarter ended September 30, 2009 were $200,213,000, compared to
$219,178,000 in the same quarter a year ago. The reduction in consolidated
sales reflected the impact of the current recession on unit volumes and
selling prices, and a decline in the casketed death rate compared to a year
ago. Fourth quarter operating profit for the current fiscal year was
$27,683,000. Operating profit was $35,048,000 for the same period last year.

Net income for the year ended September 30, 2009 was $57,732,000, representing
earnings per share of $1.90. The fiscal 2009 results included unusual charges
of approximately $16,500,000 (pre-tax), or $0.35 per share. Unusual charges
primarily consisted of severance and other costs related to the consolidation
of certain production operations within the Bronze segment, costs related to
operational and systems improvements in several of the Company's other
businesses, and asset adjustments resulting from current market conditions.
In addition, fiscal 2009 earnings included the favorable effect of adjustments
of $0.04 per share to income tax expense. These adjustments primarily related
to the Company's ability to utilize a European tax loss carryover generated in
prior years.

Net income for the year ended September 30, 2008 was $79,484,000, or $2.55 per
share. Fiscal 2008 earnings included the favorable effect of a one-time
adjustment of $0.06 per share to income tax expense recorded in the Company's
fiscal 2008 first quarter. This adjustment represented the impact on deferred
income taxes resulting from certain income tax rate reductions in Europe.

Sales for the year ended September 30, 2009 were $780,908,000, compared to
$818,623,000 last year. The reduction in consolidated sales reflected the
impact of the current recession on unit volumes and selling prices, a decline
in the casketed death rate compared to a year ago, and unfavorable changes in
foreign currency values against the U.S. dollar for most of the fiscal year.
These declines were partially offset by the impact of the acquisition of
Saueressig GmbH & Co. KG. Saueressig reported fiscal 2009 sales of
approximately $106,500,000, compared to $48,900,000 for the period from the
acquisition date (May 2008) through September 30, 2008. Operating profit for
the year ended September 30, 2009 was $101,011,000. Fiscal 2009 operating
profit included approximately $16,500,000 of the unusual charges noted above.
Operating profit was $132,952,000 for fiscal 2008. Changes in foreign
currency values against the U.S. dollar were estimated to have an unfavorable
impact of approximately $24,600,000 and $3,100,000, respectively, on the
Company's sales and operating profit compared to the fiscal year ended
September 30, 2008.

In discussing the Company's operating results for the fiscal 2009 fourth
quarter, Joseph C. Bartolacci, President and Chief Executive Officer, stated:

"The global economic environment continued to impact the operating results of
all of our businesses in the fiscal 2009 fourth quarter. Compared to a year
ago, revenues were lower in almost all of our segments, reflecting a decline
in unit volumes and an unfavorable change in product mix as many customers
were choosing lower-priced products. In addition, our Bronze and Casket
segments were impacted by another decline in the U.S. casketed death rates
compared to the fourth fiscal quarter last year.

"Our Brand Solutions businesses continued to be affected by lower spending and
pricing pressure by retailers and consumer products companies. The current
recession has caused reductions in industrial capital spending, which has
unfavorably impacted our Marking Products business. In addition, project
delays or cancellations have continued to affect the revenues in our
Merchandising Solutions segment. However, I am pleased to report that
Saueressig, one of our German graphics subsidiaries, reported an improvement
in operating profit compared to the fourth quarter a year ago, reflecting the
benefit of its recent cost structure initiatives. As a result, the Graphics
Imaging segment reported an increase in profitability compared to the same
quarter last year despite lower sales."

Mr. Bartolacci further stated: "While the Company's operating results for the
fiscal 2009 fourth quarter were lower than a year ago, we began to see
stability relative to our previous quarters. For the year, on a comparative
basis, we were not satisfied with our operating results in fiscal 2009;
however, the recent activity in some of our markets is encouraging. As
evidenced by this year's unusual charges, our managers continue to work on
strategies for near-term improvement, while remaining focused on our long-term
growth objectives.

"With respect to fiscal 2010, we remain cautious in our outlook. Based on our
view of the markets that we serve, we expect continued challenges particularly
in the next several quarters. Although we see signs that our markets may be
beginning to stabilize, we are not yet in a position to project a definitive
trend toward improvement. In addition, we expect a significant increase in
our pension costs next year as a result of the market's impact on plan assets
and the valuation of the pension obligation compared to a year ago. On this
basis, we currently estimate overall earnings for fiscal 2010 at a level
relatively consistent with fiscal 2009 (excluding unusual charges from both
years), with results relative to the comparable periods in fiscal 2009
improving as fiscal 2010 progresses. We continue to believe that, as the
economy improves, we are well positioned to improve as well."

Matthews International Corporation, headquartered in Pittsburgh, Pennsylvania,
is a designer, manufacturer and marketer principally of memorialization
products and brand solutions. Memorialization products consist primarily of
bronze memorials and other memorialization products, caskets and cremation
equipment for the cemetery and funeral home industries. Brand solutions
include graphics imaging products and services, marking products, and
merchandising solutions. The Company's products and services include cast
bronze memorials and other memorialization products; caskets; cast and etched
architectural products; cremation equipment and cremation-related products;
mausoleums; brand management; printing plates and cylinders, pre-press
services and imaging services for the primary packaging and corrugated
industries; marking and coding equipment and consumables, and industrial
automation products for identifying, tracking and conveying various consumer
and industrial products, components and packaging containers; and
merchandising display systems and marketing and design services.

Any forward-looking statements contained in this release are included pursuant
to the "safe harbor" provisions of the Private Securities Litigation Reform
Act of 1995. Such forward-looking statements involve known and unknown risks
and uncertainties that may cause the Company's actual results in future
periods to be materially different from management's expectations. Although
the Company believes that the expectations reflected in such forward-looking
statements are reasonable, no assurance can be given that such expectations
will prove correct. Factors that could cause the Company's results to differ
materially from the results discussed in such forward-looking statements
principally include changes in economic conditions, competitive environment,
death rate, foreign currency exchange rates, and technological factors beyond
the Company's control.

MATTHEWS INTERNATIONAL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In Thousands, except Share Data)
=================================

Three Months Ended Fiscal Year Ended
9/30/09 9/30/08 9/30/09 9/30/08
-------- -------- -------- --------
Sales $200,213 $219,178 $780,908 $818,623
----- -------- -------- -------- --------
Operating Profit 27,683 35,048 101,011 132,952
---------------- ------ ------ ------- -------
Income before Taxes 24,555 30,760 88,543 121,571
------------------- ------ ------ ------ -------
Income Taxes 8,922 10,368 30,811 42,087
============ ===== ====== ====== ======
Net Income $15,633 $20,392 $57,732 $79,484
---------- ------- ------- ------- -------
Earnings per Share $0.52 $0.65 $1.90 $2.55
------------ ----- ----- ----- -----
Weighted Average
Shares 30,166,198 31,003,437 30,435,070 31,158,303
================ ========== ========== ========== ==========

Notes: Earnings for the fourth quarter and fiscal year ended September
30, 2009 included net pre-tax unusual charges of approximately
$3,300,000 ($0.07 per share) and $16,500,000 ($0.35 per
share), respectively, which primarily consisted of severance
and other costs related to the consolidation of certain
production operations within the Company's Bronze segment,
costs related to operational and systems improvements in
several of the Company's other businesses, and asset
adjustments resulting from current market conditions. In
addition, fiscal 2009 earnings included the favorable effect
of an adjustment of $0.04 per share to income tax expense.

Fiscal 2008 earnings included the favorable effect of a
one-time adjustment of $0.06 per share to income tax expense.
This adjustment represented the impact on deferred income
taxes resulting from certain income tax rate reductions in
Europe.

SOURCE Matthews International Corporation

Steven F. Nicola, Chief Financial Officer, Secretary & Treasurer of Matthews
International Corporation, +1-412-442-8262