AlliedSignal record second-quarter earnings are up 16% excluding special items; Up 20% including special items.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. ) announced today that second-quarter net income excluding special items increased 16% to a record $263 million ($0.93 a share) from $227 million ($0.80 a share) in the year-earlier quarter. Including special items, net income for the 1996 second quarter was up 20% to $272 million ($0.96 a share). It was the 18th consecutive quarter of earnings growth of 14% or more. Second-quarter sales were $3.3 billion in 1996 compared with $3.6 billion in 1995, reflecting the sale of the company's braking systems business in April 1996. Excluding this business, sales in the 1996 second quarter rose 9%. Special items in the 1996 second quarter include an after-tax gain of $368 million ($1.30 a share) from the sale of the braking business, as well as after-tax charges of $359 million ($1.27 a share), primarily for repositioning repositioning Laparoscopic surgery The changing of a Pt's position during a procedure to improve access or visualization of the operative field, which may be linked to complications, as it changes anatomic planes of operation. Cf Laparoscopic surgery. and environmental charges. The repositioning charge relates to actions to improve the competitiveness and productivity of several of the company's business units, primarily in the Aerospace and Automotive sectors. The company will realign re·a·lign tr.v. re·a·ligned, re·a·lign·ing, re·a·ligns 1. To put back into proper order or alignment. 2. To make new groupings of or working arrangements between. the manufacturing operations Manufacturing operations concern the operation of a facility, as opposed to maintenance, supply and distribution, health, and safety, emergency response, human resources, security, information technology and other infrastructural support organizations. of a number of businesses to improve their cost structure and enhance their ability to retain existing customers and win new ones. The repositioning actions, which will be completed by the end of 1998, plus the reinvestment Reinvestment Using dividends, interest and capital gains earned in an investment or mutual fund to purchase additional shares or units, rather than receiving the distributions in cash. 1. In terms of stocks, it is the reinvestment of dividends to purchase additional shares. of the proceeds from the sale of the braking business, will enable the company to more than replace the earnings of the divested business. The environmental charge was required following the company's adoption of the American Institute of Certified Public Accountants With over 330,525 CPA members (in August 2006), the American Institute of Certified Public Accountants (AICPA) is the largest professional organization of Certified Public Accountants (CPAs) in the United States of America. Statement of Position, "Environmental Remediation Generally, remediation means providing a remedy, so environmental remediation deals with the removal of pollution or contaminants from environmental media such as soil, groundwater, sediment, or surface water for the general protection of human health and the environment or from a Liabilities." Excluding special items, the company's second quarter operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: was a record 11.4% compared with 9.8% for the same period last year. The effective tax rate on reported earnings increased to 37.2% from 34.4% in 1995, due to a higher tax rate on the gain on the sale of the braking business. Productivity improved 5.7% during the quarter. "Many of our businesses made excellent progress during the quarter," said Lawrence A. Bossidy, Chairman and Chief Executive Officer, "led by exceptionally strong sales and net income increases from Engines, Aerospace Equipment Systems, Safety Restraint Systems, Filters & Spark Plugs spark plug: see ignition. spark plug Device that fits into the cylinder head of an internal-combustion engine and carries two electrodes separated by an air gap, across which current from a high-tension ignition system discharges, creating a spark , Specialty Chemicals A Specialty chemical is a chemical produced for a specialized use. They are produced in lower volume than bulk chemicals, of which petrochemicals, made from oil feedstocks, are the most common. However, both are produced in a chemical plant. and Fluorine fluorine (fl  `ərēn, –rĭn), gaseous chemical element; symbol F; at. no. 9; at. wt. 18.998403; m.p. −219.6°C;; b.p. −188.14°C;; density 1. Products. Our newly reconfigured Automotive sector turned in
impressively higher operating margin, driven primarily by improved
productivity."We are well on our way to another record year in 1996, said Bossidy, and we expect full-year earnings to be 13 to 17% higher than in 1995." Free cash flow of $42 million was slightly higher than in the year-earlier quarter. Free cash flow does not include the $1.5 billion of proceeds from the sale of the braking business. As a result of the sale, the company's cash position at mid-year was $2.0 billion, including $300 million related to the braking business sale which is expected to be released from escrow escrow Instrument, such as a deed, money, or property, that constitutes evidence of obligations between two or more parties and is held by a third party. It is delivered by the third party only upon fulfillment of some condition. at the end of July. Bossidy noted that execution of the company's three-part growth strategy continues to build a base for future sales gains: New Products: The company continues to see results from its efforts to increase the percentage of its sales which are derived from new products. Some second-quarter new-product developments include: - AlliedSignal Engineered Materials grant of a license to manufacture its Genetron. AZ-20 refrigerant re·frig·er·ant adj. 1. Cooling or freezing; refrigerating. 2. Reducing fever. n. 1. A substance, such as air, ammonia, water, or carbon dioxide, used to provide cooling either as the working substance of , which will help to establish AZ-20 as the standard non-ozone-depleting refrigerant for new air-conditioning equipment. - Strong customer demand for Automotive's variable nozzle An orifice in an inkjet print head through which ink is sprayed onto the paper. Print heads with six thousand or more nozzles are common in today's printers. Nozzle turbochargers, which dramatically increase engine boost and reduce "turbolag" during acceleration. - Indications of strong customer interest in Aerospace's exclusive enhanced ground proximity warning system Ground proximity warning system (GPWS) is a system designed in 1967 by Don Bateman Chief Engineer, Flight Safety Avionics, Honeywell to alert pilots if their aircraft is in immediate danger of flying into the ground. , as the product nears certification by the Federal Aviation Administration Federal Aviation Administration (FAA), component of the U.S. Department of Transportation that sets standards for the air-worthiness of all civilian aircraft, inspects and licenses them, and regulates civilian and military air traffic through its air traffic control (FAA). Acquisitions: Since 1991, the company has made 22 niche acquisitions to broaden the geographic reach, product offering and technology portfolio of its existing businesses. Shortly after the end of the quarter, AlliedSignal announced plans for two small acquisitions which will enable the company to better serve the semiconductor industry: - Advanced Chemical Systems International, a producer of high-value processing chemicals used in the manufacture of semiconductors; and - Electron Vision Corp., which holds patented technology for electron beam machines used to cure semiconductor coatings. 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 : The company has broadened its participation in markets outside 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. in order to benefit from faster growing world markets, to reduce its susceptibility susceptibility the state of being susceptible. Refers usually to infectious disease but may be to physical factors such as wetting or to psychological factors such as harassment. to economic downturns in any one market and to better serve customers who are doing business in these markets: - The company completed the acquisition of a 70% stake in a joint venture for industrial 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 and weaving weaving, the art of forming a fabric by interlacing at right angles two or more sets of yarn or other material. It is one of the most ancient fundamental arts, as indicated by archaeological evidence. in Kaiping, China. - Aerospace began operations in Shanghai of its aircraft wheel and brake repair and overhaul joint venture with China Eastern Airlines China Eastern Airlines Corporation Limited (Simplified Chinese: 中国东方航空股份有限公司) (SSE: B>600115 . - Engineered Materials announced plans to build a facility in Suzhou, China to manufacture laminate laminate, n a thin slice of porcelain or plastic fabricated in a dental lab, which is cemented to the front of the teeth to cover gaps, whiten stained teeth, or reshape chipped or broken teeth. materials used in the production of printed circuit boards. For the six months ended June 30, 1996, net income excluding special items was a record $488 million ($1.73 a share), a 15% increase compared with net income of $425 million ($1.50 a share) in the first half of 1995. Including special items, net income in the first half of 1996 was $497 million ($1.76 a share), up 17%. Sales for the first six months of 1996 were $7.1 billion, up 1% from sales of $7.0 billion in the first half of 1995. Excluding the divested braking business, sales in the first half rose 9%. Sector results for the second quarter excluding special items were as follows: Aerospace net income increased 25% to a record $90 million from $72 million in the corresponding year-earlier quarter. Sales rose 12% to a record $1.4 billion. Operating margin grew to 11.6% from 10.8%. Strength in Engines sales reflected substantially higher aftermarket Aftermarket See: Secondary market. aftermarket See secondary market. parts and repair and overhaul activity, as well as strong shipments of propulsion Propulsion The process of causing a body to move by exerting a force against it. Propulsion is based on the reaction principle, stated qualitatively in Newton's third law, that for every action there is an equal and opposite reaction. engines for regional aircraft, particularly in Europe and China. Aerospace Equipment Systems sales were substantially higher across all product lines, including landing systems, engine systems and accessories, and repair and overhaul. Sales of Electronic Systems (formerly Government Electronic Systems) were higher. Sales of Commercial Avionics Systems declined due to lower demand and delayed shipments of new products. Strong sales growth and improvements in productivity resulted in significantly higher net income for Engines and Aerospace Equipment Systems. Net income was slightly higher for Electronic Systems and lower for Commercial Avionics Systems. On July 2, 1996, Lockheed Martin For the former company, see . Lockheed Martin (NYSE: LMT) is a leading multinational aerospace manufacturer and advanced technology company formed in 1995 by the merger of Lockheed Corporation with Martin Marietta. Corp. was selected to develop the next-generation space shuttle space shuttle, reusable U.S. space vehicle. Developed by the National Aeronautics and Space Administration (NASA), it consists of a winged orbiter, two solid-rocket boosters, and an external tank. . AlliedSignal will manufacture and integrate the VentureStar X-33's sophisticated electronic and other systems under a contract which is expected to generate about $150 million in revenue. Automotive net income declined 23% to $50 million from $65 million, as sales decreased to $955 million from $1.5 billion. Sales and net income figures reflect the disposition of the company's braking systems business. Excluding this business, net income rose 47% on a 4% increase in sales, and operating margin widened to 9.9% from 7.2%. Safety Restraint Systems had significant sales growth in European airbags and North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. seat belts. Turbocharger tur·bo·charg·er n. See turbosupercharger. tur  bo·charged adj. sales were higher,
reflecting the popularity of turbodiesel-powered cars in Europe and
turbodiesel-powered pickup trucks in North America, partially offset by
lower sales in Japan and lower sales of heavy-duty trucks in North
America. Aftermarket sales were lower because of weak economic
conditions in Europe. Friction Materials and Filters & Spark Plugs
had higher sales in North America, partially offset by lower sales in
Europe. Sales of Truck Brake Systems were lower, but the decline was
significantly smaller than the magnitude of the cyclical cyclicalOf or relating to a variable, such as housing starts, car sales, or the price of a certain stock, that is subject to regular or irregular up-and-down movements. downturn in North American heavy-duty truck production. Net income for Safety Restraint Systems, Filters & Spark Plugs and the Aftermarket was significantly higher. Net income for Friction Materials was flat. Net income for Turbochargers and Truck Brake Systems was lower. Engineered Materials net income advanced 12% to a record $118 million from $105 million, as sales increased 10% to a record $1.0 billion from $929 million. Operating margin declined to 14.2% from 14.6%, as lower margins in Polymers nylon and polyester fiber products and the net effect of acquisitions and divestitures more than offset gains in Fluorine Products. Specialty Chemicals sales increased significantly, reflecting the acquisition of Riedel-de Hakn in October 1995 and higher sales of performance additives. Sales of Polymers were higher, reflecting in part the acquisitions of an industrial polyester polyester, synthetic fiber, produced by the polymerization of the product formed when an alcohol and organic acid react. The outstanding characteristic of polyesters is their ability to resist wrinkling and to spring back into shape when creased. 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 an engineered plastics facility in Rudolstadt, Germany. Sales also improved for Fluorine Products, due to strong demand for CFC-free refrigerants Chemical refrigerants are assigned an R number(sometimes the label replaces it with the word Freon) which is determined systematically according to molecular structure. The following is a list of refrigerants with their R numbers, IUPAC chemical name, molecular formula, and CAS number. and fluorine specialties. Sales of Electronic Materials were lower due to a global slowdown in integrated circuit integrated circuit (IC), electronic circuit built on a semiconductor substrate, usually one of single-crystal silicon. The circuit, often called a chip, is packaged in a hermetically sealed case or a nonhermetic plastic capsule, with leads extending from it for production. Net income increased for Specialty Chemicals, reflecting higher sales and a strong contribution from UOP (micro OPeration) The "u" is the substitute letter for the µ symbol. See microinstruction. , the company's 50%-owned joint venture in process technology. UOP had exceptional sales and earnings during the quarter, led by higher sales of equipment and catalyst products in Asia. Net income was higher for Fluorine Products, which benefited from higher sales and the success of Operational Excellence productivity initiatives at the Geismar, Louisiana plant. Net income for Polymers was lower, reflecting a weak pricing environment in carpet fibers and lower demand for industrial polyester. Net income of Electronic Materials declined, reflecting lower sales. 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, . -0-
AlliedSignal Inc.
Consolidated Statement of Income (Unaudited)
(Dollars in millions except per share amounts)
THREE MONTHS ENDED JUNE 30
1996 1996
As Reported Adjusted (D) 1995
Net sales $3,347 $3,347 $3,630 Cost of goods sold 3,235 (A) 2,598 2,902 Selling, general and administrative expenses 366 366 374 Gain on sale of business (655) (B) - - Total costs and expenses 2,946 2,964 3,276 Income from operations 401 383 354 Equity in income of affiliated companies 46 46 36 Other income (expense) 33 (A) 18 1 Interest and other financial charges (47) (47) (46) Income before taxes on income 433 400 345 Taxes on income 161 137 118 Net income $ 272 $ 263 $ 227 Earnings per share of common stock $ .96 (C) $ .93 (C) $ .80 (C) (A) Cost of goods sold includes a second quarter 1996 provision of $637 million for repositioning and other charges. An offsetting credit of $15 million representing the minority interest share of repositioning and other charges is included in other income (expense). Total pretax repositioning and other charges were $622 million (after-tax $359 million, or $1.27 a share). (B) Represents the gain (after-tax $368 million, or $1.30 a share) on the sale of the hydraulic braking and anti-lock braking systems businesses effective April 1, 1996. (C) Based on weighted average number of shares outstanding during each period: three months ended June 30, 1996, 282,769,698 shares, and 1995, 283,946,463 shares. No dilution results from outstanding common stock equivalents. (D) Excludes the one-time impact from the sale of the hydraulic braking and anti-lock braking systems businesses as well as from the repositioning and other charges. -0-
AlliedSignal Inc.
Consolidated Statement of Income (Unaudited)
(Dollars in millions except per share amounts)
SIX MONTHS ENDED JUNE 30
1996 1996
As Reported Adjusted (D) 1995
Net sales $7,125 $7,125 $7,049
Cost of goods sold 6,247 (A) 5,610 5,649
Selling, general
and administrative
expenses 767 767 732
Gain on sale of business
(655) (B) - -
Total costs and
expenses 6,359 6,377 6,381
Income from
operations 766 748 668
Equity in income of
affiliated companies 73 73 85
Other income (expense) 33 (A) 18 (18)
Interest and other financial
charges (97) (97) (87)
Income before taxes on
income 775 742 648
Taxes on income 278 254 223
Net income $ 497 $ 488 $ 425
Earnings per share
of common stock $ 1.76 (C) $ 1.73 (C) $ 1.50 (C)
(A) Cost of goods sold includes a second quarter 1996 provision of $637 million for repositioning and other charges. An offsetting credit of $15 million representing the minority interest share of repositioning and other charges is included in other income (expense). Total pretax repositioning and other charges were $622 million (after-tax $359 million, or $1.27 a share). (B) Represents the gain (after-tax $368 million, or $1.30 a share) on the sale of the hydraulic braking and anti-lock braking systems businesses effective April 1, 1996. (C) Based on weighted average number of shares outstanding during each period: six months ended June 30, 1996, 282,810,076 shares, and 1995, 283,856,301 shares. No dilution results from outstanding common stock equivalents. (D) Excludes the one-time impact from the sale of the hydraulic braking and anti-lock braking systems businesses as well as from the repositioning and other charges. -0-
AlliedSignal Inc.
Segment Data
(Dollars in Millions)
THREE MONTHS ENDED JUNE 30
Net Sales Net Income
Adjusted
1996 1995 1996 (A) 1996 (B) 1995
Aerospace $1,370 $1,224 $(89) $ 90 $ 72 Automotive 955 1,477 369 50 65 Engineered Materials 1,020 929 47 118 105 Total Businesses 3,345 3,630 327 258 242 Corporate & Unallocated 2 - (55) 5 (15) Total $3,347 $ 3,630 $272 $263 $227
SIX MONTHS ENDED JUNE 30
Net Sales Net Income
Adjusted
1996 1995 1996 (A) 1996 (B) 1995
Aerospace $2,670 $2,366 $(18) $161 $128 Automotive 2,431 2,863 441 122 127 Engineered Materials 2,022 1,820 156 227 199 Total Businesses 7,123 7,049 579 510 454 Corporate & Unallocated 2 - (82) (22) (29) Total $7,125 $7,049 $497 $488 $425 (A) Includes a net after-tax gain of $9 million, consisting of an after-tax gain of $368 million on the sale of the hydraulic braking and anti-lock braking systems businesses by Automotive; offset by an after-tax provision of $359 million to cover repositioning and other charges as follows: Aerospace $179 million; Automotive $49 million; Engineered Materials $71 million; and Corporate and Unallocated $60 million. (B) Excludes the one-time impact from the sale of the hydraulic braking and anti-lock braking systems businesses as well as from the repositioning and other charges. CONTACT: AlliedSignal Mark Greenberg, 201/455-5445 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion