Arvin Industries Reports Record 1999 Fourth Quarter and Year-End Results.Business Editors COLUMBUS Columbus. 1 City (1990 pop. 178,681), seat of Muscogee co., W Ga., at the head of navigation on the Chattahoochee River; settled and inc. 1828 on the site of a Creek village. , Ind IND Investigational new drug Therapeutics A status assigned by the FDA to a drug before allowing its use in humans, exempting it from premarketing approval requirements so that experimental clinical trials may be conducted. See Phase 1.2, 3 studies, Sponsorship. .--(BUSINESS WIRE)--Feb. 2, 2000 - Third Consecutive Year of Record Earnings - - Sixteenth Consecutive Quarter over Quarter Increase in E.p.S. - Arvin ARVIN abbr. Army of the Republic of Vietnam Industries, Inc. (NYSE NYSE See: New York Stock Exchange :ARV ARV abbr. Bible American Revised Version ARV n abbr (= American Revised Version) → traducción americana de la Biblia ARV n abbr (= ), today reported record financial results for the fourth quarter and year ended January January: see month. 2, 2000. Net earnings for the 1999 fourth quarter, excluding one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. items, increased to $21.3 million, or $0.87 per share, from $20.4 million, or $0.83 per share, in the year-ago period. Fourth quarter net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight increased 13 percent to $778 million from $688 million a year ago. For the year, net earnings before one-time items rose 18 percent to $91.1 million, or $3.72 per share, from $77.4 million, or $3.19 per share, in 1998. Net sales for 1999 increased 24 percent to $3.1 billion compared to $2.5 billion in the prior year, reflecting market volume gains and the benefit of acquisitions. V. William Hunt This could refer to
In mathematics:
&uot;Operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: excluding one-time items for 1999 was comparable to levels a year ago, evidencing that our strategy -- based on product, market and geographical ge·o·graph·ic also ge·o·graph·i·cal adj. 1. Of or relating to geography. 2. Concerning the topography of a specific region. ge balance -- and our operational excellence initiatives are serving us well. Continuously changing global market conditions ensure some fluctuations in our results by sector; however, we believe our current balance of business greatly enhances our ability to withstand the effects of a downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. in any one sector in the future, like that experienced in the replacement market in the second half of 1999. &uot;In spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite the overall downturn in the replacement market, our fourth quarter sales in this channel increased 33 percent to $221 million from a year ago, including the February February: see month. , 1999 acquisition of Purolator Purolator may refer to:
&uot;Arvin Roll Coater's performance continues to improve as the integration of its recent acquisition of WorldSource is fully implemented. Sales for the year were up approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 50 percent, while operating profits Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. approximately doubled from a year ago. &uot;For the year 2000, our OE segment will benefit from several recently launched platforms which Arvin is a major Exhaust supplier for, including the new Ford Taurus/Sable; General Motors new Suburban/Tahoe and Monte Carlo Monte Carlo (môNtā` kärlō`), town (1982 pop. 13,150), principality of Monaco, on the Mediterranean Sea and the French Riviera. ; the new Peugeot For the bicycle manufacturer, see . Peugeot is a major French car brand, part of PSA Peugeot Citroën. It is the second largest automaker in Europe, behind Volkswagen. Peugeot's roots go back to bicycle manufacturing at the end of the 19th century. Xsara Picasso Citrix's original name for its MetaFrame software for Windows NT. See MetaFrame. See also Picasa. and the new Renault Clio The Renault Clio is a supermini/subcompact produced by the French automaker Renault. Originally launched in 1990, it is currently in its third generation. The Clio has seen substantial critical and commercial success, being consistently one of Europe's top-selling cars since its II. Our Replacement segment will benefit from the full year effect of the previously announced expanded agreement with Midas and as a supplier of exhaust, shocks and struts A framework for writing Web-based applications in Java that supports the Model-View-Controller (MVC) architecture. Struts is deployed as JSP pages using special tags from the Struts tag library, which includes routines for building forms, HTML rendering, storing and retrieving data and to CARQUEST CARQUEST Auto Parts is a chain of auto-supply stores. There are over 3,400 CARQUEST Auto Parts locations in North America. The company is a supplier to National Account customers like Goodyear, Firestone, CARMAX, Meineke, Midas, American Tire Dealers. which has grown significantly as a result of its acquisitions of Republic and APS. &uot;Looking ahead,&uot; Hunt added, &uot;Arvin remains committed to achieving our previously announced growth targets. With respect to growth initiatives, Arvin plans to further leverage its product offerings to key wholesale and retail customers. Market gains and new or extended products will be our primary growth drivers. In addition, strategic acquisitions are expected to extend Arvin's presence in the auto-supply sector. We remain confident that Arvin will attain the previously stated revenue goal of $5 billion by 2003 and a corresponding doubling of net earnings from 1998 levels, as a result of internal growth and targeted acquisitions. While we anticipate that the current replacement market weakness in exhaust and ride control will continue in the initial months of this year, the market should strengthen as the year unfolds. While it may prove difficult to match the OE production levels attained at·tain v. at·tained, at·tain·ing, at·tains v.tr. 1. To gain as an objective; achieve: attain a diploma by hard work. 2. in North America in 1999, any decline is expected to be moderate and manageable. Based on this market outlook, we believe the current analyst estimates of approximately $4.00 for 2000 E.p.S. are reasonable and anticipate a fourth consecutive record year for sales and earnings,&uot; Hunt concluded. One-time items decreased the fourth quarter results by $0.02 per share. They consisted of a net $5.0 million gain for legal and environmental matters and a charge of $4.4 million for European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. OE realignment 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. expenses. For the year 1999, one-time items also include a first quarter gain of $7.3 million on the sale of an investment and a $7.0 million charge for the cost of an early retirement program. For the year 1999, one-time items resulted in a net gain of $0.02 per share, compared to a net gain of $0.04 per share in 1998. All per share amounts are reported on a diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. common share basis. Certain information and statements included or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. are forward looking and involve certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied by these statements. These forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. are identified by their use of terms and phrases such as &uot;expected,&uot; &uot;expect,&uot; &uot;should,&uot; &uot;estimated earnings,&uot; &uot;anticipate,&uot; &uot;confident,&uot; &uot;comfortable&uot; and &uot;believe.&uot; Information about potential factors identified by the Company, which would affect the actual financial results, is included in the Company's Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. , filed March 4, 1999, with the SEC. Arvin Industries, Inc., is a global manufacturer of automotive components with over 60 manufacturing facilities and 6 technical centers located in 22 countries. Arvin is a leading manufacturer of automotive exhaust systems Noun 1. exhaust system - system consisting of the parts of an engine through which burned gases or steam are discharged exhaust automobile engine - the engine that propels an automobile ; ride control products; air, oil and fuel filters; and gas charged lift supports. Our replacement products are sold under various trademarks including Arvin, Maremont, Timax, ANSA ANSA - Advanced Network Systems Architecture and ROSI ROSI Return on Security Investment ROSI Repository of Student Information ROSI Rollergirls of Southern Indiana (Evansville, IN) ROSI Raytheon Optical Systems Incorporated ROSI Romanian Open Source and Free Software Initiative exhaust systems; Gabriel and RydeFX shock absorbers Shock absorbers See: Circuit breakers ; Purolator filters; and StrongArm A family of high-performance RISC-based microprocessors from Intel. StrongARM chips have been used in handheld devices from PDAs to palmtops. Jointly developed by Digital Equipment Corporation and Advanced RISC Machines (ARM), Intel acquired Digital's chip manufacturing facilities in 1997 gas charged lift supports. For more information on Arvin Industries via the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the , visit our Corporate Home Page at http://www.arvin.com or our Corporate News on the Net site at http://www.businesswire.com/cnn/arv.shtml. For information via fax, please call our News On Demand service at 888-622-1161.
Arvin Industries, Inc.
Consolidated Results of Operations
(Dollars in millions, except per share amounts)
Unaudited
Three Months Ended Year Ended
------------------ ----------
1/2/00 1/3/99 1/2/00 1/3/99
------ ------ ------ ------
Net Sales:
Automotive Original Equipment $ 514.6 $ 488.9 $ 1,983.9 $ 1,693.0
Automotive Replacement 221.3 166.3 937.2 685.7
Other 42.5 33.0 179.4 120.0
---- ---- ----- -----
Net Sales $ 778.4 $ 688.2 $ 3,100.5 $ 2,498.7
------- ------- --------- ---------
------- ------- --------- ---------
Operating Income:
Automotive Original Equipment $ 25.2 $ 28.6 $ 112.1 $ 93.8
Automotive Replacement 15.6 15.6 80.3 72.3
Other 4.0 2.6 16.8 4.6
--- --- ---- ---
Operating Income $ 44.8 $ 46.8 $ 209.2 $ 170.7
------- ------- --------- ---------
------- ------- --------- ---------
Net Sales $ 778.4 $ 688.2 $ 3,100.5 $ 2,498.7
Costs and Expenses:
Cost of goods sold 680.6 587.1 2,676.3 2,128.5
Selling, operating general and
administrative 50.4 54.2 217.1 191.5
Corporate general and
administrative 8.0 8.3 29.4 24.3
Interest expense 13.7 8.5 51.2 35.8
Other expense/(income), net 2.0 .4 10.6 5.9
--- -- ---- ---
754.7 658.5 2,984.6 2,386.0
----- ----- ------- -------
Earnings Before Income Taxes 23.7 29.7 115.9 112.7
Income taxes (9.1) (10.7) (41.1) (38.3)
Minority share of (income)/loss 3.0 (.3) 5.9 (1.1)
Equity income of affiliates 3.1 1.7 10.9 5.1
--- --- ---- ---
Earnings before Cumulative Effect
of Accounting Change 20.7 20.4 91.6 78.4
Cumulative effect of accounting
change, net of income tax
benefits of $.3 - - (.5) -
--- --- ---- ---
Net Earnings $ 20.7 $ 20.4 $ 91.1 $ 78.4
------- ------- --------- ---------
------- ------- --------- ---------
Earnings Per Common Share
Basic:
Before cumulative effect of
accounting change $ .85 $ .85 $ 3.77 $ 3.29
Cumulative effect of
accounting change - - (.02) -
--- --- ---- ---
Total Basic $ .85 $ .85 $ 3.75 $ 3.29
------- ------- --------- ---------
------- ------- --------- ---------
Diluted:
Before cumulative effect of
accounting change $ .85 $ .83 $ 3.74 $ 3.23
Cumulative effect of
accounting change - - (.02) -
--- --- ---- ---
Total Diluted $ .85 $ .83 $ 3.72 $ 3.23
------- ------- --------- ---------
------- ------- --------- ---------
Average Common Shares Outstanding (000's)
Basic 24,359 24,081 24,267 23,835
Diluted 24,421 24,464 24,498 24,249
Dividends Declared per
Common Share $ .22 $ .21 $ .85 $ .81
EBITDA $ 70.6 $ 62.8 $ 296.3 $ 243.4
Arvin Industries, Inc.
Consolidated Statement of Financial Condition
(Dollars in millions, except per share amounts)
Unaudited
As of As of
Assets 1/2/00 1/3/99
------ ------ ------
Current Assets:
Cash and cash equivalents $ 19.8 $ 107.0
Receivables, net of allowances 441.1 319.0
Inventories 224.2 151.3
Other current assets 125.2 103.7
----- -----
Total current assets 810.3 681.0
----- -----
Non-Current Assets:
Property, plant and equipment 1,443.7 1,289.8
Less: Accumulated depreciation 748.2 704.0
----- -----
695.5 585.8
Goodwill, net 270.4 170.2
Investment in affiliates 156.0 148.2
Other assets 67.8 61.3
---- ----
Total non-current assets 1,189.7 965.5
------- -----
$ 2,000.0 $ 1,646.5
----------- ----------
----------- ----------
Liabilities and Shareholders' Equity
------------------------------------
Current Liabilities:
Short-term debt $ 126.1 $ 10.1
Accounts payable 414.2 337.9
Employee related costs 65.5 63.3
Accrued expenses 106.8 105.6
----- -----
Total current liabilities 712.6 516.9
----- -----
Long-term debt 411.6 307.7
Long-term employee benefits 81.6 70.4
Other long-term liabilities 60.2 41.6
Minority interest 50.6 57.1
Capital securities 89.1 89.1
Shareholders' Equity:
Common shares ($2.50 par value) 68.8 68.8
Capital in excess of par value 307.4 305.2
Retained earnings 404.7 334.3
Cumulative translation adjustment (89.6) (41.3)
Employee stock benefit trust (58.5) (64.7)
Common shares held in
treasury (at cost) (38.5) (38.6)
----- -----
Total shareholders' equity 594.3 563.7
----- -----
$ 2,000.0 $ 1,646.5
----------- ----------
----------- ----------
Arvin Industries, Inc.
Consolidated Statement of Cash Flows
(Dollars in millions)
Unaudited
Year Ended
----------
Jan 2, Jan 3,
2000 1999 (1)
---- --------
Operating Activities:
Net earnings $ 91.1 $ 78.4
Adjustments to reconcile net earnings to
net cash provided by operating activities:
Depreciation 104.0 84.8
Amortization 8.4 6.1
Minority interest (5.9) 1.1
Gain on sale of investment (7.3) (5.5)
Other (5.8) (6.1)
Changes in operating assets and liabilities:
Receivables (76.5) (3.7)
Inventories and other current assets (44.8) (31.7)
Accounts payable and other accrued expenses 49.9 37.3
Income taxes payable (4.4) 3.7
---- ---
Net Cash Provided by Operating Activities 108.7 164.4
----- -----
Investing Activities:
Purchase of property, plant and equipment, net (134.9) (117.9)
Proceeds from sale of investment 12.4 9.6
Investments in affiliates (4.6) (85.6)
Business acquisitions, net of cash acquired (272.2) (29.3)
Other 8.1 6.5
--- ---
Net Cash Used for Investing Activities (391.2) (216.7)
------ ------
Financing Activities:
Change in short-term debt, net 68.7 6.5
Proceeds from long-term financings 158.0 101.2
Principal payments on long-term financings (11.8) (78.2)
Change in discounted receivables (.7) 33.9
Dividends paid (20.8) (24.1)
Other 3.3 12.5
--- ----
Net Cash Provided by Financing Activities 196.7 51.8
----- ----
Cash and Cash Equivalents:
Effect of exchange rate changes on cash (1.4) (1.4)
---- ----
Net decrease (87.2) (1.9)
Beginning of the year 107.0 108.9
----- -----
End of the period $ 19.8 $ 107.0
--------- ----------
--------- ----------
(1) Certain amounts have been reclassified to conform with current
year presentation.
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