AlliedSignal Second-Quarter Net Income Is Up 16%; On 14% Increase In Sales.MORRIS TOWNSHIP There are several places named Morris Township in the United States:
See: New York Stock Exchange : ALD ALD abbr. adrenoleukodystrophy ALD, n.pr See adrenoleukodystrophy. ALD aldolase. ) today reported second-quarter net income of $227 million, or $0.80 per share, an increase of 16% over 1994 second-quarter net income of $196 million, or $0.69 per share. Second-quarter net income was the highest of any quarter in the company's history. Net income was up 21% in Engineered Materials, 18% in Aerospace and 8% in Automotive. Sales in the second quarter were a record $3.6 billion, up 14% from $3.2 billion in the second quarter last year. Sales increased 18% in Automotive, 14% in Engineered Materials and 9% in Aerospace. The effective tax rate increased to 34.4% from 32.3% a year ago. For the six months ended June 30, 1995, net income was a record $425 million, or $1.50 per share, a 16% increase compared with net income of $365 million, or $1.29 per share, in the first half of 1994. Sales for the first six months of 1995 were $7.0 billion, up 14% from sales of $6.2 billion in the first half of 1994. Productivity for the first half improved by 5.4%. "AlliedSignal's three-part growth strategy -- new products, globalization globalization Process by which the experience of everyday life, marked by the diffusion of commodities and ideas, is becoming standardized around the world. Factors that have contributed to globalization include increasingly sophisticated communications and transportation and acquisitions -- continues to drive strong revenue increases," said Lawrence A. Bossidy, Chairman and Chief Executive Officer, noting the $443 million in additional sales compared with last year's second quarter. "We are equally enthusiastic about the progress of our new productivity initiatives, which helped expand operating margins to 9.8% from 9.4% a year ago." The strong performance of Aerospace resulted from faster-than-anticipated cost synergies from the Lycoming turbine engine acquisition; increased demand for proprietary flight safety systems in the commercial, regional and business aircraft markets; and significantly higher revenues from aftermarket Aftermarket See: Secondary market. aftermarket See secondary market. parts and repair and overhaul activity. Commercial airline aftermarket parts bookings were 18% higher than in the corresponding quarter of 1994. Contributing to growth in Automotive were higher content per vehicle on popular vehicle models in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. and increased sales of turbocharged diesel passenger cars in Europe. Aftermarket sales grew in North America and particularly in Europe, where the joint venture with Sogefi yielded broader market penetration Noun 1. market penetration - the extent to which a product is recognized and bought by customers in a particular market penetration - the act of entering into or through something; "the penetration of upper management by women" . Substantial gains in Engineered Materials resulted from strength in fibers, laminates, plastics and performance materials. Growing demand for polyester cord by European tire manufacturers kept the Longlaville, France plant operating at full capacity, while globalization initiatives in Asia led to record sales for laminates. The company was able to secure higher prices in many of the sector's product lines, helping to offset raw material cost increases, which slowed during the quarter. Second-quarter results of the company's three major operating businesses were as follows: Aerospace: Net income rose to a second-quarter record $72 million from $61 million, as sales increased to $1.2 billion from $1.1 billion. Aerospace margins grew to 10.8% from 9.4% in last year's second quarter. Higher revenues for engines and commercial avionics systems reflect, respectively, the Lycoming acquisition and continued strong demand for safety-related avionics systems, such as windshear detection, ground proximity warning and collision avoidance systems (1) See adaptive cruise control. (2) A passenger car system that detects objects on the road that the driver may not be able to see. Using radar or infrared sensors, distant objects, such as a deer crossing the road at night or in a fog, are projected onto the . The company's forward looking windshear detection system received a Computerworld Smithsonian Award The Computerworld Smithsonian Award is given out annually to individuals who have used technology to produce beneficial changes for society. Nominees are proposed by a group of 100 CEOs of information technology companies. The award has been given since 1989. and Flight International magazine's 1995 Aerospace Industry Award for technical innovation. New business wins during the second quarter included contracts potentially worth: $200 million to be sole supplier of the navigation system A GPS-based electronic system in a car or truck that provides a real time map of the vehicle's current location as well as step-by-step directions to a programmed destination. See GPS and vehicle tracking. for the Northrop Grumman Northrop Grumman Corporation (NYSE: NOC) is an aerospace and defense conglomerate that is the result of the 1994 purchase of Grumman by Northrop. The company is the third largest defense contractor for the U.S. brilliant anti-armor submunition Any munition that, to perform its task, separates from a parent munition. program; and $54 million to supply wheels and brakes for Japan Air Systems' Boeing 777 aircraft. AlliedSignal also was selected to supply avionics for the Cessna single piston engine aircraft, and TFE TFE Tetrafluoroethylene TFE Travail de Fin d'Études (Belgium) TFE Totalfinaelf (Oil and Gas) TFE Trifluoroethanol TFE Thin Film Electronics TFE 2,2,2-Trifluoroethanol 731-40 engines for the Falcon 50EX business jet aircraft. Automotive: Net income advanced to a record $65 million from $60 million, as sales rose to $1.5 billion from $1.2 billion. Operating margin contracted to 8.1% from 8.8%, primarily as a result of the integration of recent acquisitions and a larger percentage increase in sales to the original equipment market than to the aftermarket. Although North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. auto production was down 5% during the quarter, the company's original equipment sales were up significantly due to higher content per vehicle on better selling vehicles, including sport utility vehicles This page lists sports utility vehicles currently in production (as of April 2007), as well as past models. The list includes crossover SUVs, Mini SUVs, Compact SUVs and other similar vehicles. , minivans, the Ford Taurus Not to be confused with Ford Taunus. The Ford Taurus is currently a full-size, front-wheel drive or all wheel drive automobile manufactured by the Ford Motor Company in North America. and F-150 pickup trucks, as well as medium and heavy trucks. Worldwide sales of turbochargers, safety restraints and truck brakes experienced double-digit percentage increases. Engineered Materials: Net income increased to a record $105 million from $87 million, as sales increased to $929 million from $813 million. Operating margin expanded to 14.6% from 14.3% in the second quarter of 1994. Significant unit volume growth as well as pricing improvements contributed to the sector's revenue increase. Sales were strong for industrial polyester and products of the nylon system. Plastics benefited from an improved product mix in the automotive, packaging, and lawn and power market segments. Among the stronger performing products in performance materials were specialty chemicals, food packaging films and advanced microelectronics. Global economic growth and market penetration contributed to higher sales of laminates to the semiconductor industry, which continues to have a strong book-to-bill ratio Book-to-Bill Ratio The technology industry's demand-to-supply ratio for orders on a "firm's book" to number of orders filled. Notes: This ratio tells whether the company has more orders than it can deliver (if greater than 1), has the same amount of orders that it can . The income contribution from joint ventures was higher. During the quarter, the company announced plans to acquire Bridgestone/Firestone's polyester fiber Noun 1. polyester fiber - a quick-drying resilient synthetic fiber consisting primarily of polyester polyester - any of numerous synthetic resins; they are light and strong and weather resistant plant in Hopewell, Virginia Hopewell is an independent city in the Commonwealth of Virginia. The population was 22,354 at the 2000 census. It is in Tri-Cities area of the Richmond-Petersburg region and is a portion of the Richmond Metropolitan Statistical Area (MSA). , and Polymer und Filament filament, in astronomy: see chromosphere. Rudolstadt, a producer of nylon and plastics in Germany. Today, AlliedSignal announced separately that it has agreed to purchase Hoechst AG's 95.8% interest in Riedel-de Haen haen v. Scots Past participle of hae. AG, a leading European specialty chemicals manufacturer, also located in Germany. Other steps the company is taking to sharpen its focus on value-added businesses include a $45 million investment to increase capacity at its Longlaville, France plant; the divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). of its non-strategic Fluorglas business; and the formation of a glass weaving joint venture with Asahi-Schwebel in Taiwan. AlliedSignal is an advanced technology and manufacturing company serving customers worldwide with aerospace and automotive products, chemicals, fibers, plastics and advanced materials Advanced Materials is a leading peer-reviewed materials science journal published every two weeks. Advanced Materials includes Communications, Reviews, and Feature Articles from the cutting edge of materials science, including topics in chemistry, physics, . CONTACT: Mark Greenberg (201) 455-5445 -0-
AlliedSignal Inc.
Consolidated Statement of Income (Unaudited)
(Dollars in millions except per share amounts)
THREE MONTHS SIX MONTHS
ENDED JUNE 30 ENDED JUNE 30
1995 1994 1995 1994
Net sales $3,630 $3,187 $7,049 $6,173 Cost of goods sold 2,902 2,541 5,649 4,943 Selling, general and administrative expenses 374 346 732 660
Total costs and
expenses 3,276 2,887 6,381 5,603
Income from operations 354 300 668 570
Equity in income of
affiliated companies 36 30 85 60
Other income (expense) 1 (3) (18) (16)
Interest and other
financial charges (46) (38) (87) (75)
Income before taxes on income 345 289 648 539 Taxes on income 118 93 223 174 Net income $ 227 $ 196 $ 425 $ 365 Earnings per share of common stock (A) $ .80 $ .69 $ 1.50 $ 1.29 (A) Based on weighted average number of shares outstanding during each period: three months ended June 30, 1995, 283,946,463 shares, and 1994, 283,264,305 shares; and six months ended June 30, 1995, 283,856,301 shares, and 1994, 283,856,928 shares. No dilution results from outstanding common stock equivalents. -0-
AlliedSignal Inc.
Segment Data
(Dollars in Millions)
THREE MONTHS ENDED JUNE 30
Net Sales Net Income
1995 1994 1995 1994 (A)
Aerospace $1,224 $1,125 $ 72 $ 61 Automotive 1,477 1,249 65 60 Engineered Materials 929 813 105 87
Total Businesses 3,630 3,187 242 208
Corporate & Unallocated - - (15) (12)
Total $3,630 $3,187 $227 $196
SIX MONTHS ENDED JUNE 30
Net Sales Net Income
1995 1994 1995 1994 (A)
Aerospace $2,366 $2,217 $128 $113 Automotive 2,863 2,385 127 106 Engineered Materials 1,820 1,571 199 165
Total Businesses 7,049 6,173 454 384
Corporate & Unallocated - - (29) (19)
Total $7,049 $6,173 $425 $365
(A) Reclassified for comparative purposes. CONTACT: Mark Greenberg (201) 455-5445 |
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