Butler Manufacturing Reports Third Quarter And Nine Month Results.KANSAS CITY Kansas City, two adjacent cities of the same name, one (1990 pop. 149,767), seat of Wyandotte co., NE Kansas (inc. 1859), the other (1990 pop. 435,146), Clay, Jackson, and Platte counties, NW Mo. (inc. 1850). , Mo.--(BUSINESS WIRE)--Oct. 14, 1997--Butler Manufacturing Company today announced sales for the third quarter ended September September: see month. 30, 1997 of $241 million, up 5% compared to the previous year. Quarterly net earnings of $6.8 million, or $.86 per share, were 22% lower than third quarter earnings a year ago. Third quarter 1996 results include $15 million in sales and $.18 in earnings per share from the Grain Systems business, which was sold in June June: see month. of 1997. For the nine months, sales were 12% higher than for the same period last year, and net earnings from operations were 19% lower. 1997 year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. reported earnings include a gain of $13.3 million, or $1.72 per share, from the sale of Grain Systems. Commenting on the results, Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. H. West, chairman and chief executive officer, said, "A very strong third quarter performance was achieved by most of Butler's U.S. operating units operating unit A type of operating company that engages in transactions with outsiders and that is owned by another business. For example, in 1995 the stockholders of Capital Cities/ABC approved a $19 billion merger with the Walt Disney Company, whereupon . Gaining particular momentum was our metal building systems business, which recorded a 17% increase in sales and 24% increase in earnings compared with very positive results in the third quarter of 1996. The Lester Les´ter n. 1. (Meteor.) A dry sirocco in the Madeira Islands. wood frame buildings business continued to operate at lower profitability, primarily because of backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. not adequately priced to reflect the current cost of lumber lumber, term for timber that has been cut into boards for use as a building material. The major steps in producing lumber involve logging (the felling and preparation of timber for shipment to sawmills), sawing the logs into boards, grading the boards according to . Price increases have been implemented to address this situation. Butler Real Estate has made significant profit contributions both this year and last. "Our metal buildings business 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). is suffering because
of the strength of the British pound against the German mark. While
that relationship has improved somewhat recently, it has had the effect
for most of the year of severely depressing margins and reducing sales
for products fabricated fab·ri·cate tr.v. fab·ri·cat·ed, fab·ri·cat·ing, fab·ri·cates 1. To make; create. 2. To construct by combining or assembling diverse, typically standardized parts: in our plant in Scotland Scotland, political division of Great Britain (1991 pop. 4,957,000), 30,414 sq mi (78,772 sq km), comprising the northern portion of the island of Great Britain and many surrounding islands. and those shipped to the continent. We are pleased with the operational progress being made in our new businesses in China and Brazil Brazil (brəzĭl`), Port. Brasil, officially Federative Republic of Brazil, republic (2005 est. pop. 186,113,000), 3,286,470 sq mi (8,511,965 sq km), E South America. , but start-up Start-up The earliest stage of a new business venture. losses are greater than anticipated because of competitive conditions in both of those markets. We are encouraged by the recent financial improvements at Butler Shanghai Shanghai (shăng`hī`, shäng`hī`), city (1994 est. pop. 12,980,000), in, but independent of, Jiangsu prov., E China, on the Huangpu (Whangpoo) River where it flows into the Chang (Yangtze) estuary. , Inc., which achieved modest profitability for the third quarter. "Butler's Construction Services group had lower sales but increased earnings in the third quarter and for the year-to-date, compared with their results in 1996. Actions to reduce costs and improve project execution are having a positive effect on their overall performance. "The Architectural Products group is having an outstanding year. Nine month sales, including Modu-Line Windows, Inc. acquired in June, were up 27% from a year ago, and earnings rose 25%. All product lines in the group are doing well, benefiting from good activity in the commercial and community segments of the construction market. "As we announced in a mid-September n. 1. the middle part of September. Noun 1. mid-September - the middle part of September period, period of time, time period - an amount of time; "a time period of 30 years"; "hastened the period of time of his recovery"; "Picasso's blue press release, Butler's combined annual losses for our three international subsidiaries will total about $.70 per share for 1997. We are addressing all three situations aggressively - reducing expenses selectively and 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. product costs and intensifying in·ten·si·fy v. in·ten·si·fied, in·ten·si·fy·ing, in·ten·si·fies v.tr. 1. To make intense or more intense: marketing efforts in all three businesses. As a result of these actions, we look for substantial improvement in their 1998 financial results. "In that same announcement, we indicated that for all of 1997, we expect Butler's operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before per share to be about 20% below the level of last year. Part of that decline is attributable to our international difficulties and part to the absence of the Grain Systems business sold earlier this year. "Market conditions in the U.S. remain positive for Butler's business. Backlog on September 30 was $318 million compared to $329 million a year ago. Product backlog was up 11% and construction backlog was down 41%, the latter due primarily to delays in project closings and greater project selectivity selectivity /se·lec·tiv·i·ty/ (se-lek-tiv´i-te) in pharmacology, the degree to which a dose of a drug produces the desired effect in relation to adverse effects. selectivity 1. . With a favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. economic outlook and major improvements anticipated in our non-U non-U adj. Chiefly British Not characteristic of the upper class, especially in language usage. [non- + U2. .S. operations, we are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about the outlook for the foreseeable fore·see tr.v. fore·saw , fore·seen , fore·see·ing, fore·sees To see or know beforehand: foresaw the rapid increase in unemployment. future," Mr. West concluded. Butler Manufacturing Company is the world's leading producer of pre-engineered building systems, and is a supplier of specialty components and construction services for the nonresidential Adj. 1. nonresidential - not residential; "the commercial or nonresidential areas of a town"; "community colleges are typically nonresidential" residential - used or designed for residence or limited to residences; "a residential hotel"; "a residential quarter"; "a construction market. Following is a summary of unaudited comparative results. -0-
CONSOLIDATED STATEMENTS OF OPERATIONS
--------------------------------------------------------------------
Three months ended Nine months ended
September 30, September 30,
(Dollars in thousands
except per share amounts) 1997 1996 1997 1996
--------------------------------------------------------------------
Net sales $ 241,031 $ 229,019 $ 670,211 $ 598,157
Cost of sales 197,149 187,492 552,926 488,486
--------- ---------- ---------- ----------
Gross profit 43,882 41,527 117,285 109,671
Selling, general and
administrative expenses
30,513 26,350 88,166 76,410
--------- ---------- ---------- ----------
Operating income 13,369 15,177 29,119 33,261
International joint
venture income (loss),
net 68 108 222 408
Other income (expense),
net - 1,269 75 860
Gain on sale of Grain
operation - - 22,000 -
--------- ---------- ---------- ----------
Earnings before
interest and taxes 13,437 16,554 51,416 34,529
Interest expense 950 1,059 3,860 3,224
--------- ---------- ---------- ----------
Pretax earnings 12,487 15,495 47,556 31,305
Income tax expense 5,681 6,717 19,862 13,460
--------- ---------- ---------- ----------
========= ========== ========== ==========
Net earnings $ 6,806 $ 8,778 $ 27,694 $ 17,845
========= ========== ========== ==========
Earnings per common
share $ 0.86 $ 1.14 $ 3.57 $ 2.32
========= ========== ========== ==========
Common share equivalents
- average outstanding 7,871,803 7,702,801 7,753,125 7,707,803
Common shares - actual
outstanding at
September 30 7,762,302 7,564,115
Net earnings from operations, excluding the gain on the sale of
the Grain Systems Division, was $14,395 or $1.85 per share, for the
nine months ended September 30, 1997.
CONSOLIDATED BALANCE SHEETS
--------------------------------------------------------------------
At September 30, 1997 1996
--------------------------------------------------------------------
(Dollars in thousands)
ASSETS:
Cash and equivalents $ 1,412 $ 143
Receivables, net 118,402 109,646
Inventories 74,499 55,132
Real estate developments in progress 33,211 41,419
Prepaid income taxes 8,878 8,347
Other current assets 10,922 6,773
------------ -----------
Total current assets 247,324 221,460
Investments and other assets 35,180 23,248
Assets held for sale 9,423 13,260
Plant and equipment, net 89,326 71,666
============ ===========
$ 381,253 $ 329,634
LIABILITIES &
SHAREHOLDERS' EQUITY:
Notes payable $ 4,965 $ 5,437
Current maturities of long-term debt 5,862 4,320
Accounts payable 87,252 78,946
Dividends payable 1,087 909
Accrued liabilities 59,848 59,434
Taxes on income 11,602 7,753
------------ ------------
170,616 156,799
Deferred income taxes 3,837 2,581
Other non-current liabilities 12,157 9,897
Long-term debt 39,211 43,046
Shareholders' equity 155,432 117,311
============ ==============
$ 381,253 $ 329,634
============ ==============
CONSOLIDATED STATEMENTS OF CASH FLOWS
--------------------------------------------------------------------
Nine Months Ended September 30, 1997 1996
--------------------------------------------------------------------
(Dollars in thousands)
CASH FROM OPERATING ACTIVITIES:
Net earnings $ 27,694 $ 17,845
Gain on sale of Grain operation (13,299) -
Depreciation and amortization 9,127 7,151
Change in assets and liabilities (23,197) (13,506)
Other, net (207) 770
------------ -----------
Total 118 12,260
CASH FROM INVESTING ACTIVITIES:
Capital expenditures (20,140) (16,073)
Acquisition of new businesses (7,697) -
Sale of Grain operation 33,748 -
Other, net (1,611) (4,457)
------------ ------------
Total 4,300 (20,530)
CASH FROM FINANCING ACTIVITIES:
------------ -----------
Dividends (2,751) (2,277)
Net increase (decrease) in
short-term debt (4,031) 2,753
Net increase in long-term debt 257 429
Purchase and sale of treasury
stock, net (252) (678)
Other, net 1,758 933
------------ ------------
Total (5,019) 1,160
------------ ------------
DECREASE IN
CASH AND EQUIVALENTS $ (601) $ (7,110)
============ ============
CONTACT: Butler Manufacturing Co., Kansas City John Holland, 816/968-3255 |
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