Arvin reports first quarter results.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 17, 1996--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 sales of $511.6 million for the first quarter of 1996, compared with $494.2 million for the first quarter of 1995, a four percent increase. Earnings from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the were $5.9 million, or $.26 per common share, versus $2.6 million, or $.12 per common share in the first quarter of 1995. Net earnings for the first quarter of 1996 were $5.9 million, or $.26 per common share, compared to $5.1 million, or $.23 per common share for the same period last year. 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, said, "Arvin's original equipment sales increased more than $20 million during the first quarter, despite the General Motors' strike. We estimate there was $12 million in lost revenues associated with the General Motors' work stoppage stoppage - /sto'p*j/ Extreme lossage that renders something (usually something vital) completely unusable. "The recent system stoppage was caused by a fried transformer." . Operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. from the original equipment segment was $1.8 million lower than last year. Absent the impact of the General Motors' strike and its related costs, the Company believes that operating profit of the original equipment segment would have increased over that of the prior year. "Original equipment sales benefited from higher sales volumes in 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). reflecting increased market penetration Noun 1. market penetration - the extent to which a product is recognized and bought by customers in a particular marketpenetration - the act of entering into or through something; "the penetration of upper management by women" . North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. exhaust Exhaust may refer to: In mathematics:
"In our replacement business, operating profits rebounded on relatively flat sales as our North American replacement exhaust businesses started to recover from 1995's poor results by dramatically reducing new business and overhead costs overhead costs see fixed costs. ," Pond said. "Arvin's balance sheet strengthened as lower capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. and better working capital management contributed to better performance. Debt to total capital was 48.5 percent compared to 50.0 percent at the end of the first quarter of 1995," Pond continued. In a forward-looking statement 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. , Pond concluded that "Arvin's performance is improving and we believe the trend will continue. Our plan focuses on increasing profitability and calls for Arvin's income to rise more rapidly than sales. This will create margin improvement through cost-reduction initiatives, the benefits of implementing the Arvin ARVIN abbr. Army of the Republic of Vietnam Total Quality Production System, and over-due increases in selling prices. Second quarter earnings should continue to show improvement. We believe that published analyst estimates for 1996, which are in the $1.50 per share range, are achievable. This range is consistent with Arvin's plans given the present economic environment and vehicle build forecasts." Arvin Industries, Inc., is a global manufacturer of automotive components with 50 manufacturing facilities and eight technical centers located in 16 countries. -0-
Arvin Industries, Inc.
Consolidated Results
For the Quarter Ended March 31, 1996 and April 2, 1995
(Dollars in millions, except per share amounts)
Unaudited
Three Months Ended
___________________
March 31, April 2,
1996 1995
________ ________
Net Sales from Continuing Operations:
Automotive Original Equipment $ 367.4 $ 345.4
Automotive Replacement 144.2 148.8
________ ________
Net Sales from Continuing Operations $ 511.6 $ 494.2
________ ________
________ ________
Income from Continuing Operations:
Automotive Original Equipment $ 16.4 $ 18.2
Automotive Replacement 7.9 1.8
________ ________
Income from Continuing Operations (1) $ 24.3 $ 20.0
________ ________
________ ________
Net Sales $ 511.6 $ 494.2
Costs and Expenses:
Cost of goods sold 450.0 433.6
Selling, operating general
and administrative 36.4 38.6
Corporate general and administrative 3.5 2.1
Restructuring charges -- 2.1
Interest expense 9.9 11.1
Interest income (.4) (.3)
Other expense, net 3.5 1.9
________ ________
502.9 489.1
________ ________
Earnings from Continuing
Operations Before Income Taxes 8.7 5.1
Income taxes (3.2) (1.9)
Minority share of income (.8) (.7)
Equity income of affiliates 1.2 .1
________ ________
Earnings from Continuing Operations 5.9 2.6
________ ________
Income from discontinued operations,
net of income taxes of $.0 and $1.1,
respectively -- 1.8
Income from disposal of discontinued
operations, net of income taxes of
$.0 and $.2, respectively -- .7
________ ________
Net Earnings $ 5.9 $ 5.1
________ ________
________ ________
Earnings Per Common Share
Primary:
Continuing Operations $ .26 $ .12
Discontinued Operations .00 .11
________ ________
Total - primary $ .26 $ .23
________ ________
________ ________
Fully Diluted:
Continuing Operations $ .26 $ .12
Discontinued Operations .00 .11
________ ________
Total - fully diluted $ .26 $ .23
________ ________
________ ________
Average Common Shares Outstanding (000's)
Primary 22,333 22,348
Fully Diluted 24,578 25,371
(1) Reflects income from continuing 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 3/31/96 12/31/95
______ ________ ________
Current Assets:
Cash and cash equivalents $ 4.1 $ 15.2
Receivables, net of allowances 301.6 276.0
Inventories 113.3 111.8
Other current assets 77.3 80.5
________ ________
Total current assets 496.3 483.5
________ ________
Non-Current Assets:
Property, plant and equipment:
Land, buildings, machinery
and equipment 944.3 937.0
Less: Allowance for depreciation 497.9 487.6
________ ________
446.4 449.4
Goodwill,net 144.8 146.0
Investment in affiliates 92.6 92.4
Assets of business transferred
under contractual arrangements 72.4 72.4
Other assets 54.5 47.3
________ ________
Total non-current assets 810.7 807.5
________ ________
$1,307.0 $ 1,291.0
________ ________
________ ________
Liabilities and Shareholders' Equity
___________________________________
Current Liabilities:
Short-term debt $ 42.6 $ 41.6
Accounts payable 235.4 216.7
Accrued expenses 99.1 97.3
Income taxes payable 6.5 9.4
________ ________
Total current liabilities 383.6 365.0
________ ________
Long-term employee benefits 53.0 52.7 Other long-term liabilities 15.1 13.6 Long-term debt 358.0 360.7 Liabilities and deferred credit of business transferred 72.4 72.4 Minority interest 31.8 31.5
Shareholders' Equity:
Common shares ($2.50 par value) 60.6 60.6
Capital in excess of par value 207.4 207.4
Retained earnings 197.8 196.2
Cumulative translation adjustment (28.9) (24.6)
Common shares held in
treasury (at cost) (43.8) (44.5)
________ ________
Total shareholders' equity 393.1 395.1
________ ________
$1,307.0 $ 1,291.0
________ ________
________ ________
CONTACT: Arvin Industries, Inc., Columbus John W. Brown, 812/379-3389 |
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