Printer Friendly

CHARTER POWER SYSTEMS ANNOUNCES SECOND QUARTER RESULTS

 CHARTER POWER SYSTEMS ANNOUNCES SECOND QUARTER RESULTS
 PLYMOUTH MEETING, Pa., Sept. 4 /PRNewswire/ -- Charter Power


Systems, Inc. (AMEX: CHP) announced today that in the 1993 fiscal second quarter, ended July 31, 1992, net income declined to $800,000, or $.14 per share from $1,627,000 or $.27 per share, in the prior year period.
 For the six months, net income was $1,516,000 or $.26 per share, compared with $3,204,000 or $.54 per share last year.
 Sales for the quarter and six months were $32,154,000 and $63,474,000 respectively, compared with $39,676,000 and $80,138,000 for the comparable fiscal 1992 periods. As anticipated, more than half of the sales decrease was due to reduced sales to AT&T, reflecting the restructured Round Cell contract and no 1993 sales under the expired valve-regulated battery contract, both previously reported. The remaining sales decline was due to weak standby power sales to customers other than AT&T, resulting from the ongoing effects of the recession on two of the company's key markets -- telecommunications and UPS in North America -- and the accelerated shift of customer demand in these markets to valve-regulated, or sealed batteries, rather than flooded batteries, which still account for a significant majority of the company's sales. However, motive power segment sales increased moderately as a result of new marketing programs and an increase in industry demand.
 "Despite this anticipated sales decline in several of our key markets, strong management efforts enabled us to slightly improve gross profit margins to 22.6 percent in the latest quarter compared with 22.3 percent in last year's second quarter," stated Robert Alvine, the company's chairman and chief executive officer, "and we continue to benefit from reduced interest expense due to lower outstanding debt and effective interest rates. The industry-wide outlook for the last six months of the year remains somewhat uncertain," he said, "but indications are that Charter Power's motive power sales will continue to improve and, given the slow pace of recovery of the economy, sales of our standby power systems will show weak year-to-year comparisons until about the fourth quarter, where performance should rise above first half levels as new products such as Liberty 1000 and Liberty 2000 take hold and we deliver the previously announced spinning reserve battery system to the Puerto Rico Electric Power Authority."
 Cash flows from operations decreased for the quarter by 0.8 percent to $2,487,000 and increased year to date by 25.2 percent to $7,039,000 over the prior year like periods.
 Separately, Charter Power also announced it has made significant progress in its due diligence and its negotiations to complete a definitive agreement to purchase Seattle-based Ratelco's power electronics business and that it has terminated its previously announced letter of intent to acquire PECO II, another producer of power electronics based in Galion, Ohio.
 Charter Power Systems is a producer and marketer of batteries and integrated power systems for the standby and motive power markets.
 CHARTER POWER SYSTEMS, INC.
 Summary of Earnings
 (Unaudited; in thousands, except earnings per-share data)
 Pct.
 Three months ended July 31 1992 1991 Change
 Sales $32,154 $39,676 (19.0)
 Operating income 1,737 3,253 (46.6)
 Income before income taxes 1,333 2,622 (49.2)
 Net income 800 1,627 (50.8)
 Earnings per common and common
 equivalent share $.14 $.27 (48.1)
 Weighted average common and common
 equivalent shares 5,878 5,969 ---
 Net cash flows provided by
 operating activities $2,487 $2,506 (0.8)
 Pct.
 Six months ended July 31 1992 1991 Change
 Sales $63,474 $80,138 (20.8)
 Operating income 3,261 6,718 (51.5)
 Income before income taxes 2,526 5,340 (52.7)
 Net income 1,516 3,204 (52.7)
 Earnings per common and common
 equivalent share $.26 $.54 (51.9)
 Weighted average common and common
 equivalent shares 5,883 5,927 ---
 Net cash flows provided by
 operating activities $7,039 $5,623 25.2
 /delval/
 -0- 9/4/92
 /CONTACT: Donald L. Nevins Jr. (financial), 215-834-7334, or Yanis Bibelnieks (shareholders), 212-949-2295, both of Charter Power Systems/
 (CHP) CO: Charter Power Systems, Inc. ST: Pennsylvania IN: SU: ERN


JS-CC -- PH031 -- 7045 09/04/92 16:02 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Sep 4, 1992
Words:713
Previous Article:RECEPTECH UNDER NASD LISTING REVIEW
Next Article:GREG BARNUM RESIGNS AS OFFICER OF CRAY COMPUTER
Topics:


Related Articles
CHARTER POWER SYSTEMS ANNOUNCES THIRD QUARTER INCOME RISES 22 PERCENT
CHARTER POWER SYSTEMS REPORTS FIRST QUARTER EARNINGS
CHARTER POWER SYSTEMS SALES AND EARNINGS RISE
CHARTER POWER SYSTEMS SALES AND EARNINGS APPROACH RECORD LEVELS
CHARTER POWER SYSTEMS NET INCOME UP 100% ON MODEST SALES RISE IN FIRST QUARTER
CHARTER POWER SYSTEMS NET INCOME RISES 81% ON 33% SALES GAIN IN SECOND QUARTER
CHARTER POWER SYSTEMS NET INCOME RISES 42% ON 13% SALES GAIN IN THIRD QUARTER
CHARTER POWER SYSTEMS FOURTH QUARTER NET INCOME UP 24%; YEAR ROSE 50%
CHARTER POWER SYSTEMS EXPECTS SECOND QUARTER RESULTS TO TRAIL PRIOR YEAR; SEES RESUMED GROWTH FOR SECOND HALF
Charter Power Systems Posts Record Sales and Earnings in Third Quarter

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters