Arvin first quarter EPS exceeds analysts' expectations; reports record first quarter sales.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)--April 16, 1997--Arvin 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 net earnings, before non-recurring items, increased to $.45 per common share compared to 1996 first quarter earnings of $.26 per common share. Net earnings for the first quarter of 1997 were $13.0 million, or $.57 per common share, versus $5.9 million or $.26 per common share for the comparable period in 1996. Sales in the first quarter grew 10 percent to a record $564 million. The non-recurring "Net gain on capital transactions" includes a $3.7 million gain on the sale of capital assets capital assets n. equipment, property, and funds owned by a business. (See: capital, capital account) and a downward adjustment of $1.5 million in the carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. of a non- non- word element [L.]not . non- pref. Not: noninvasive. controlled venture in the South American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of exhaust Exhaust may refer to: In mathematics:
Arvin's original equipment sales grew approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 10 percent during the first quarter, driven by good performance in our O.E. exhaust business in the U.S. and the consolidation of our recent Italian ride control acquisitions. Our replacement segment sales grew in excess of 9 percent with our European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. exhaust and North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. ride control businesses leading the gains. Byron O. Pond POND. A body of stagnant water; a pool. 2. Any one has a right to erect a fish pond; the fish in ii are considered as real estate, and pass to the heir and not to the executor. Ow. 20. See Pool; River; Water. , Chairman and Chief Executive Officer, commented, "As we expected, the trend in earnings improvement is continuing into 1997. Overall, our financial performance in the first quarter reflects a continuation of strong sales volume. Increasing sales and profit margins, largely as a result of the on-going Adj. 1. on-going - currently happening; "an ongoing economic crisis" ongoing current - occurring in or belonging to the present time; "current events"; "the current topic"; "current negotiations"; "current psychoanalytic theories"; "the ship's current position" implementation of the Arvin ARVIN abbr. Army of the Republic of Vietnam Total Quality Production System and other programs to reduce costs throughout the Company's global operations Global Operations is a first-person shooter computer game developed by Barking Dog Studios and published by both Crave Entertainment and Electronic Arts. It was released in March of 2002, following its public multiplayer beta version which contained only the Quebec map. , are major drivers of our improved performance. "Profits for the quarter grew faster than sales. In the O.E. segment, profits improved in both the exhaust and European ride control businesses. The replacement segment profits for the quarter, up 67 percent, grew faster than the O.E. segment profits for the quarter which were up 41 percent. North American replacement exhaust, Gabriel Ride Control 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 Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). , and our share of the European
replacement exhaust business, TESH, contributed significantly to the
overall improvement," Pond said.
"Looking ahead, the demand environment is difficult to forecast. We are, however, predicting that our earnings will rise faster than sales throughout the year. "Our optimism Optimism See also Hope. Bontemps, Roger personification of cheery contentment. [Fr. Lit.: “Roger Bontemps” in Walsh Modern, 66] Candide beset by inconceivable misfortunes, hero indifferently shrugs them off. [Fr. is based on the current strong mix of business where Arvin is sourced on seven of the top 10 selling cars and light trucks in North America and in Europe. Arvin has also been awarded 100 percent of the exhaust business for the Chrysler Chrys·ler , Walter Percy 1875-1940. American automobile manufacturer who founded the Chrysler Corporation (1925). mini-van. "Our market share continues to grow. Arvin's superior engineering capability, service and focus on continuous improvement are instrumental in being awarded new business by the global OEM's," Pond concluded. Arvin previously announced its intent to purchase the remaining 50 percent of a 50/50 joint venture involving its European replacement exhaust business from Sogefi, S.p.A. Closing of this transaction is expected in the second quarter. Certain information and statements included for the second quarter of 1997 and the full year are forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. and involve certain risks and uncertainties that could cause actual results to differ materially from those expressed 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. by these statements. Information about potential factors identified by the Company which could affect the actual financial results are included in the Company's Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. , filed on January January: see month. 3, 1997, with the SEC. Arvin Industries, Inc., is a global manufacturer of automotive components with over 50 manufacturing facilities and eight technical centers located in 16 countries. 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.htm . For information via fax, please call our News On Demand service at 888-622-1161. -0-
Arvin Industries, Inc.
Consolidated Results for the Quarters Ended
March 30, 1997 and March 31, 1996
(Dollars in millions, except per share amounts)
Unaudited
Three Months Ended
--------------------------
March 30, March 31,
1997 1996
-------- --------
Net Sales:
Automotive Original Equipment $ 406.1 $ 367.4
Automotive Replacement 157.9 144.2
-------- --------
Net Sales $ 564.0 $ 511.6
-------- --------
-------- --------
Operating Income:
Automotive Original Equipment $ 23.1 $ 16.4
Automotive Replacement 13.2 7.9
-------- --------
Operating Income (1) $ 36.3 $ 24.3
-------- --------
-------- --------
Net Sales $ 564.0 $ 511.6
Costs and Expenses:
Cost of goods sold 491.3 450.0
Selling, operating general
and administrative 36.6 36.4
Corporate general and administrative 5.8 3.5
Net gain on capital transactions (2.2) .0
Interest expense 9.6 9.9
Interest income (.9) (.4)
Other expense, net 4.8 3.5
-------- --------
545.0 502.9
-------- --------
Earnings Before Income Taxes 19.0 8.7
Income taxes (5.7) (3.2)
Minority share of income (1.7) (.8)
Equity income of affiliates 1.4 1.2
-------- --------
Net Earnings 13.0 5.9
-------- --------
-------- --------
Earnings Per Common Share $ .57 $ .26
Average Common Shares Outstanding (000's) 22,835 22,333
(1) Reflects income from operations prior to Corporate
allocated expenses.
Arvin Industries, Inc.
Consolidated Statement of Financial Condition
(Dollars in millions, except per share amounts)
Unaudited
As of As of
Assets 3/30/97 12/29/96
-------- --------
Current Assets:
Cash and cash equivalents $ 71.2 $ 39.4
Receivables, net of allowances 354.4 304.7
Inventories 109.8 115.9
Other current assets 81.5 78.9
-------- --------
Total current assets 616.9 538.9
-------- --------
Non-Current Assets:
Property, plant and equipment:
Land, buildings, machinery & equipment 1,014.2 1,011.0
Less accumulated depreciation 554.7 547.1
-------- --------
459.5 463.9
Goodwill, net 149.7 158.0
Investment in affiliates 86.9 85.7
Assets of business transferred under
contractual arrangements 72.4 72.4
Other assets 54.5 61.3
-------- --------
Total non-current assets 823.0 841.3
-------- --------
$ 1,439.9 $ 1,380.2
-------- --------
-------- --------
Liabilities and Shareholders' Equity
Current Liabilities:
Short-term debt $ 8.3 $ 52.6
Accounts payable 268.0 257.7
Accrued expenses 128.5 124.8
Income taxes payable 7.5 17.7
-------- --------
Total current liabilities 412.3 452.8
-------- --------
Long-term employee benefits 68.0 67.0
Other long-term liabilities 18.4 22.4
Long-term debt 300.3 294.0
Liabilities and deferred credit of
business transferred 72.4 72.4
Minority interest 34.8 34.2
Capital securities 98.9 --
Shareholders' Equity:
Common shares ($2.50 par value) 65.6 65.4
Capital in excess of par value 248.5 247.3
Retained earnings 234.9 226.2
Cumulative translation adjustment (35.9) (19.9)
Employee stock benefit trust (42.2) (42.2)
Common shares held in treasury (at cost) (36.1) (39.4)
-------- --------
Total shareholders' equity 434.8 437.4
-------- --------
$ 1,439.9 $ 1,380.2
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CONTACT: Arvin Industries, Inc. John W. Brown, 812/379-3389 |
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