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ARVIN REPORTS THIRD QUARTER PERFORMANCE AS FORECASTED

 COLUMBUS, Ind., Oct. 20 /PRNewswire/ -- Arvin Industries, Inc., (NYSE: ARV), today reported sales for the third quarter of $474 million compared to $476 million for the same period last year. Net earnings for the quarter were $7.4 million or $0.33 per share compared to $12.0 million or $0.51 per share in 1992.
 For the first nine months of 1993, sales were $1.471 billion compared to $1.435 billion in 1992. Net earnings for the nine months were $30.0 million or $1.35 per primary share compared to $30.5 million or $1.27 per primary share for the comparable period last year, before the cumulative effect of accounting changes.
 The company's third quarter performance was as expected and consistent with the company's forecast announced on Sept. 1, 1993.
 Arvin Chief Executive Officer Byron O. Pond said, "An increasing vehicle build and greater market penetration by Arvin in North America is being offset by weak European O.E.M. sales. Recent O.E.M. contract awards, such as exhaust systems for all Cadillac cars, and shock absorbers for Isuzu Troopers built in Japan, should keep our O.E.M. business in North America on an upward trend. The replacement market continues to be weak in both the U.S. and Europe. Additionally the stronger U.S. dollar has adversely affected operating results. Third quarter exchange rates cost Arvin approximately $30 million in sales.
 "As we experience tremendous leverage in our North American Automotive division because of the increase in O.E. car and light truck build rates, our European operations will have a similar experience as the car build strengthens in the European Community late next year. Currently we have strong and growing market share in the European O.E. exhaust and ride control markets," Pond explained.
 "The technology segment performance reflects the merger of Calspan and Space Industries into a company owned 70 percent by Arvin which is doing business as Space Industries International, Inc. Sales revenues of the new company were in line with projections while Arvin profits were impacted by higher bid and proposal costs, and expenses associated with the merger. It is expected that these higher costs will moderate in the fourth quarter. Merger benefits have begun to accrue and we expect Space Industries International to set the standard of excellence in the industry.
 "Our current outlook indicates full year 1993 earnings should be up slightly from 1992 before the cumulative effect of 1992 accounting changes. A strong finish by the North American O.E.M.s and further improvement in U.S. replacement sales will add to any increase in 1993. Looking forward, Arvin believes the U.S. O.E.M. build will continue at or above the present level into 1994 with a rebound in European O.E.M. production starting in late 1994. Aftermarket business in North America and Europe should begin to show year-over-year improvements, and the Industrial segment is expected to continue on its upward trend," Pond concluded.
 Arvin Industries, Inc., is a Fortune 250 company supplying automotive parts and related products and services throughout the world.
 ARVIN INDUSTRIES, INC.
 CONSOLIDATED RESULTS FOR THIRD QUARTER ENDED OCT. 3, 1993
 (In Thousands Except Per Share Amounts)
 (UNAUDITED)
 THIRD QUARTER
 1993 1992
 CONDENSED STATEMENT OF OPERATIONS
 Net Sales:
 Automotive Original Equipment $223,729 $215,077
 Automotive Replacement 165,703 178,616
 Technology 54,241 51,138
 Industrial 30,482 30,679
 Total Net Sales $474,155 $475,510
 Income From Operations
 Automotive Original Equipment $ 9,025 $ 10,654
 Automotive Replacement 14,391 19,393
 Technology (732) 2,555
 Industrial 4,609 3,090
 Total Income From Operations $ 27,293 $ 35,692
 Earnings Before Cumulative Effect of
 Change in Accounting Method $ 7,375 $ 11,983
 Effect of change in accounting for
 postretirement benefits other
 than pensions --- ---
 Effect of change in accounting for
 postemployment benefits --- ---
 Net Earnings $ 7,375 $ 11,983
 Earnings Per Common Share
 From continuing operations
 Primary $0.33 $0.51
 Fully Diluted $0.33 $0.51
 Effect of change in accounting
 for postretirement benefits
 other than pensions --- ---
 Effect of change in accounting
 for postemployment benefits --- ---
 Net
 Primary $0.33 $0.51
 Fully Diluted $0.33 $0.51
 Average Common Shares Outstanding
 Primary 22,357 19,760
 Fully Diluted 25,779 23,339
 (UNAUDITED)
 FIRST NINE MONTHS
 1993 1992
 CONDENSED STATEMENT OF OPERATIONS
 Net Sales:
 Automotive Original Equipment $746,098 $652,801
 Automotive Replacement 477,672 538,531
 Technology 159,835 156,509
 Industrial 87,109 87,258
 Total Net Sales $1,470,714 $1,435,099
 Income From Operations
 Automotive Original Equipment $ 37,090 $ 30,187
 Automotive Replacement 42,305 52,855
 Technology 2,319 6,535
 Industrial 11,836 6,982
 Total Income From Operations $ 93,550 $ 96,559
 Earnings Before Cumulative Effect of
 Change in Accounting Method $ 30,038 $ 30,500
 Effect of change in accounting for
 postretirement benefits other
 than pensions --- (27,627)
 Effect of change in accounting for
 postemployment benefits --- (5,887)
 Net Earnings $ 30,038 $ (3,014)
 Earnings Per Common Share
 From continuing operations
 Primary $1.35 $1.27
 Fully Diluted $1.30 $1.27
 Effect of change in accounting
 for postretirement benefits
 other than pensions --- ($1.42)
 Effect of change in accounting
 for postemployment benefits --- ($0.30)
 Net
 Primary $1.35 ($0.45)
 Fully Diluted $1.30 ($0.45)
 Average Common Shares Outstanding
 Primary 22,300 19,463
 Fully Diluted 25,750 23,083
 ARVIN INDUSTRIES, INC.
 CONSOLIDATED RESULTS FOR THIRD QUARTER ENDED OCT. 3, 1993
 (In Thousands)
 THIRD QUARTER END YEAR-END
 (UNAUDITED) (AUDITED)
 1993 1992 1992
 CONDENSED STATEMENT OF
 FINANCIAL CONDITION
 Cash and Temporary Investments $ 15,203 $ 19,370 $ 14,631
 Other Current Assets 472,121 470,194 453,920
 Total Current Assets 487,324 489,564 468,551
 Long-Term Assets 748,879 679,991 683,895
 Total $1,236,203 $1,169,555 $1,152,446
 Short-Term Debt $ 47,950 $ 23,676 $ 20,837
 Other Current Liabilities 261,870 260,746 263,619
 Total Current Liabilities 309,820 284,422 284,456
 Accrued Employee Benefits 54,153 52,701 53,581
 Deferred Taxes and Other 5,751 20,970 20,272
 Long-Term Debt 387,336 391,838 390,183
 Minority Interest 60,251 6,386 5,527
 Shareholders' Equity 440,568 401,480 410,844
 Cumulative Translation Adjustment (21,676) 11,758 (12,417)
 Total Shareholders' Equity 418,892 413,238 398,427
 Total $1,236,203 $1,169,555 $1,152,446
 -0- 10/20/93
 /CONTACT: John W. Brown, of Arvin Industries, 812-379-3389/
 (ARV)


CO: Arvin Industries, Inc. ST: Indiana IN: AUT SU: ERN

AR-KL -- CL020 -- 4526 10/20/93 11:27 EDT
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Publication:PR Newswire
Date:Oct 20, 1993
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