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ATHLONE REPORTS FIRST QUARTER EARNINGS

 PARSIPPANY, N.J., April 30 /PRNewswire/ -- Athlone Industries, Inc. (NYSE: ATH) today issued the following:
 The company reported net sales of $54,160,000 and net earnings of $871,000, or 14 cents per common share for the first quarter of 1993, compared to net sales of $54 million and net earnings of $1,930,000 or 32 cents per common share in 1992.
 The reduction in earnings for the first quarter of 1993 resulted largely from lower selling prices for stainless steel plate and from increased costs of postretirement benefits in accordance with FAS 106.
 The company had previously announced a price increase in stainless steel plate effective May 3, 1993. This price increase together with the increase in demand for stainless plate and a firm market for tool steel should result in an improvement in earnings.
 On March 12, 1993, the company announced the signing of a letter of intent for Allegheny Ludlam Corporation to acquire the company. A copy of the announcement follows.
 On April 16, 1993, the board of directors declared the regular quarterly dividend of 25 cents per common share, payable May 14, 1993, to shareholders of record April 30 1993.
 A comparison of net sales and net earnings follows:
 ATHLONE INDUSTRIES, INC.
 Consolidated Earnings
 (In thousands, except per share data)
 Three months ended March 31 1993 1992
 Net sales $54,160 $54,000
 Earnings before provision
 for income taxes 1,543 3,382
 Provision for income taxes 672 1,452
 Net earnings 871 1,930
 Earnings per common share
 Net earnings per common share $.14 $.32
 NOTE: Earnings per common share are computed by dividing net earnings by the average common shares outstanding during each period or 6,044,000 in 1993 and 6,042,000 in 1992.
 ATHLONE INDUSTRIES SIGNS LETTER OF INTENT FOR ACQUISITION
 PARSIPPANY, N.J., March 12 -- Allegheny Ludlum Corporation (NYSE: ALS) and Athlone Industries, Inc. (NYSE: ATH) today announced the signing of a letter of intent for Allegheny Ludlum to acquire Athlone for the equivalent of $17.50 per share.
 In this proposed transaction, which is valued at approximately $107 million, Allegheny Ludlum will exchange shares of its common stock for all outstanding shares of Athlone. The final exchange ratio will be determined by dividing $17.50 by the average of the closing prices of Allegheny Ludlum stock for the 15 trading day period ending two trading days prior to closing. Assuming a $38 per share price for its stock, which was the closing price for Allegheny Ludlum stock on the New York Stock Exchange yesterday, Allegheny Ludlum would issue 0.46053 of a share of its stock for each share of Athlone stock, or a total of approximately 2.8 million shares, representing approximately 8.5 percent of its currently outstanding shares. In any case Allegheny Ludlum will issue not more than 0.57302 nor less than 0.42363 of an Allegheny Ludlum share for each Athlone share. Neither party will have the right to terminate the proposed transaction due solely to a change in the per share price of Allegheny Ludlum stock.
 The proposed transaction is intended to qualify as a tax-free exchange for Athlone's shareholders. Allegheny Ludlum will account for the proposed acquisition as a purchase, if consummated.
 The proposed transaction is subject to a number of conditions, including the execution of a definitive agreement, approval by the boards of directors of both companies, approval by the shareholders of Athlone and clearance by governmental regulatory authorities.
 "We believe that this proposed acquisition will provide Allegheny Ludlum with an opportunity to increase operating income and earnings per share beginning in the first year by allowing us to strengthen our profitability in stainless steel plate and other high-value specialty steel plate products, and providing operating and other synergies," said Robert P. Bozzone, president and chief executive officer of Allegheny Ludlum.
 Bozzone said, "The proposed transaction will transform Allegheny Ludlum from a marketer to a cost-competitive producer of stainless steel plate, with a stronger focus on specialized applications. In addition, furthering our long-standing corporate goals, we will be positioned to serve more `niches' in specialty steel markets for tool steels, heat resistant nickel alloys and other high-technology materials."
 Harold J. Miller, chairman of the board and president of Athlone, said, "The proposed deal would be in the best interest of the Athlone shareholders and would allow the Athlone shareholders to participate in the near-term and long-term favorable prospects of the merged company."
 Athlone is represented in the transaction by Morgan Stanley & Co. Incorporated.
 Allegheny Ludlum is a major producer of stainless steels, silicon electrical steels and other high-technology alloys. The company reported 1992 sales of $1.04 billion.
 Athlone, primarily a manufacturer of specialty steels in plate form, reported 1992 sales of $207 million. Athlone has approximately 6,008,000 shares of common stock outstanding.
 Allegheny Ludlum Corporation (ALS) and Athlone (ATH) stocks are traded on the New York Stock Exchange.
 -0- 4/30/93
 /CONTACT: Fred Engelhardt, vice president, treasurer and chief financial officer of Athlone Industries, Inc., 201-887-9100 or 212-425-6550/
 (ATH)


CO: Athlone Industries, Inc. ST: New Jersey IN: CST SU: ERN

PS-TS -- NY021 -- 3111 04/30/93 10:15 EDT
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Date:Apr 30, 1993
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