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BF GOODRICH ANNOUNCES 1992 NET INCOME OF $2.5 MILLION, EXCLUDING NON-RECURRING ITEMS

 AKRON, Ohio, Feb. 9 /PRNewswire/ -- The BFGoodrich Company (NYSE: GR) today reported for 1992 a net loss of $295.9 million, or $11.90 per share, including non-recurring items primarily relating to the adoption of a new accounting standard (SFAS 106) for retiree health care benefits and to workforce reductions. These one-time items reduced net income of $298.4 million, or $11.68 per share. Excluding these non- recurring items, net income in 1992 would have been $2.5 million. Sales were $2.5 billion.
 For 1991, the company had a net loss of $80.6 million, or $3.50 per share, including one-time items that reduced net income by $85.4 million, or $3.36 per share. Excluding these non-recurring charges, net income in 1991 would have been $4.8 million. Sales were $2.5 billion.
 Adverse economic conditions in major markets worldwide hurt the company's businesses during 1992.
 "Our aerospace businesses achieved record earnings for the ninth consecutive year despite generally weak conditions in the aircraft and general aviation markets," John D. Ong, BFGoodrich chairman and chief executive officer, said. "Our specialty chemicals and vinyl businesses faced extremely difficult market conditions throughout the year, and results were constrained by the recession.
 "We remain cautious about economic conditions this year. While there are an increasing number of signs that the economy is gaining strength, we believe it is best to continue to keep our costs, working capital and capital spending under tight control," Ong said. "Our businesses are positioned very well to benefit from a recovery. In the meantime, it is vital that we maintain our strong financial position and focus on our most important long-term goals."
 For 1992, the Aerospace business segment reported record operating income of $83.2 million, an increase from $80.1 million in 1991. Excluding an incremental charge of $4.8 million for adopting SFAS 106, operating income was nearly 10 percent higher in 1992 than in the previous year.
 The Specialty Chemicals business segment had operating income of $40.i?llion in 1992, compared with $42.5 million in 1991. Results included one-time charges of $5.5 million (pre-tax) in 1992 and $11.5 million (pre-tax) in 1991. Excluding these one-time charges, segment operating income in 1992 would have been $46.4 million, compared with $54.0 million in 1991.
 The Geon Vinyl Products business segment had a loss of $13.3 million in 1992, compared with a loss of $130.8 million in 1991. Results for 1992 include three non-recurring pre-tax items: a charge of $16.0 million for streamlining operations and workforce reductions, a settlement gain of $3.1 million relating to a foreign pension fund and a benefit of $2.9 million from insurance adjustments. Results in 1991 include charges of $111.4 million (pre-tax) for the phase-out of vinyl resin operations at three locations and a voluntary retirement program. Excluding special items from both years, Geon had a loss of $3.3 million in 1992, compared with a loss of $26.5 million in 1991.
 Fourth-Quarter 1992 Results
 For the fourth quarter of 1992, BFGoodrich reported a net loss of $21.7 million, or 93 cents per share. Special non-recurring items primarily associated with previously announced workforce reductions reduced net income by $14.7 million, or 58 cents per share. For the fourth quarter of 1991, the company reported a net loss of $106.7 million, or $4.28 per share. Special one-time charges during this period associated primarily with phasing out high-cost vinyl resin capacity reduced net income by $89.8 million, or $3.53 per share. Excluding these non-recurring items, Goodrich would have had a net loss of $7.0 million, or 35 cents per share, in the 1992 fourth quarter, compared with a net loss of $16.9 million, or 75 cents per share, in the fourth quarter of 1991.
 Sales in the 1992 fourth quarter were $614.1 million, compared with $607.4 million a year earlier.
 During the fourth quarter, the Aerospace business segment had operating income of $17.9 million, compared with $22.0 million in 1991. The decrease in operating income results primarily from the adoption in 1992 of a new accounting standard (SFAS 106) relating to retiree health care benefits and from weak market conditions that hurt the segment's instruments and avionics businesses.
 The Specialty Chemicals business segment had operating income of $3.8 million, compared with a loss of $3.4 million in the 1991 fourth quarter. Special one-time charges reduced operating income by $5.5 million (pre-tax) in the 1992 quarter and by $11.5 million (pre-tax) in 1991. Excluding these charges, the segment had operating income of $9.3 million in 1992, compared with operating income of $8.1 million in 1991.
 The Geon Vinyl Products business segment had a loss in the fourth quarter of $24.3 million, compared with a loss of $141.0 million in 1991. Included in 1992 results are two non-recurring pre-tax items: a charge of $16.0 million for streamlining operations and workforce reductions and a gain of $3.1 million relating to a settlement of a foreign pension fund. Included in 1991 results are one-time charges of $111.4 million (pre-tax) for the phase-out of vinyl resin manufacturing operations at three locations and a voluntary retirement program. Excluding special items for the fourth quarters of 1992 and 1991, Geon had a loss of $11.4 million in 1992, compared with a loss of $29.6 million in 1991.
 BFGoodrich supplies components and services to the aerospace industry and produces specialty chemicals, vinyl resins and compounds.
 Following is a summary of fourth quarter and full year results for both 1992 and 1991:
 THE BFGOODRICH COMPANY
 ($ in millions, except per share amounts)
 Three Months Ended Year Ended
 December 31, December 31,
 1992 1991 1992 1991
 Sales $614.1 $607.4 $2,525.8 $2,471.6
 Pretax (Loss) $(34.7) $(151.8) $ (16.3) $ (109.5)
 Income Tax Benefit 13.0 45.1 6.9 28.9
 (Loss) Before
 Cumulative Effect of
 Accounting Change $(21.7) $(106.7) $ (9.4) $ (80.6)
 Cumulative Effect to
 Jan. 1, 1992 of
 Change in Method of
 Accounting for Post
 Retirement Benefits
 Other Than Pensions $ -- $ -- $ (286.5) $ --
 Net (Loss) $(21.7) $(106.7) $ (295.9) $ (80.6)
 (Loss) Per Share:
 Before Cumulative Effect
 of Accounting Change $(.93) $(4.28) $ (.69) $(3.50)
 Net (Loss) $(.93) $(4.28) $(11.90) $(3.50)
 SEGMENT REPORTING
 Sales:
 Aerospace Products
 and Services $180.3 $188.8 $750.0 $693.7
 Specialty Chemicals 201.4 195.0 825.1 796.8
 Geon Vinyl Products 232.4 223.6 950.7 981.1
 Totals $614.1 $607.4 $2,525.8 $2,471.6
 Segment Operating
 Income (Loss):
 Aerospace Products
 and Services $17.9 $22.0 $83.2 $80.1
 Specialty Chemicals 3.8 (3.4) 40.9 42.5
 Geon Vinyl Products (24.3) (141.0) (13.3) (130.8)
 Totals ($2.6) ($122.4) $110.8 ($8.2)
 Weighted Average Number
 of Shares Outstanding
 (in millions) 25.6 25.4 25.6 25.4
 -0- 2/9/93
 /CONTACT: Rob Jewell (media), 216-374-2999; or Tom Waltermire (investor), 216-374-2556, both of The BFGoodrich Company/
 (GR)


CO: The BFGoodrich Company ST: Ohio IN: CHM SU: ERN

KK -- CL014 -- 4828 02/09/93 16:34 EST
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Date:Feb 9, 1993
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