COLTEC INDUSTRIES ANNOUNCES THIRD QUARTER CHARGE AND LOWER EARNINGS EXPECTATIONS.NEW YORK--Sept. 12, 1995--(BUSINESS WIRE)--Coltec Industries Inc (NYSE NYSE See: New York Stock Exchange :COT) announced today that third quarter results will reflect a charge of $27 million ($17.6 million after taxes or 25 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. ), primarily covering the cost of the previously announced closing of the Walbar compressor compressor, machine that decreases the volume of air or other gas by the application of pressure. Compressor types range from the simple hand pump and the piston-equipped compressor used to inflate tires to machines that use a rotating, bladed element to achieve blade facility in Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of . John W. Guffey, Jr., chairman, president and chief executive officer, said, "Operating this facility has been a drain on profitability. In the future, we will focus our remaining Walbar Canada operations on the production of machined turbine turbine, rotary engine that uses a continuous stream of fluid (gas or liquid) to turn a shaft that can drive machinery. A water, or hydraulic, turbine is used to drive electric generators in hydroelectric power stations. blades and vanes, which has been a growing business for us." Coltec also announced that earnings per share for the third quarter, excluding the effect of the charge, are expected to decline by approximately 15% from the 1994 third quarter as a result of the adverse pricing environment in the automotive original equipment market coupled with the decline in demand from automotive original equipment customers. Fourth quarter results are expected to improve from the third quarter but not meet the year ago level, resulting in full- year 1995 earnings per share (excluding the effect of the charge) declining slightly from 1994, with disappointing Automotive segment results more than offsetting the effect of increased Aerospace/Government sales and a strong performance in the Industrial segment. Results for 1996 are anticipated to be substantially unchanged from the 1995 level with the effects of continued competitive pricing pressures and sluggish demand in the automotive original equipment market offsetting continued strength in both the Aerospace/Government and Industrial segments. Mr. Guffey said, "Looking forward, the Industrial segment is expected to continue to grow due to the strength of its markets and Coltec's continuing introduction of new products to meet customers' needs. In addition, accelerated sales and earnings growth is expected in the Aerospace/Government segment beginning in 1997 when deliveries commence for recently awarded new programs coupled with the ramp up Ramp Up To increase a company's operations in anticipation of increased demand. Notes: A company might 'ramp up' operations if they just signed a contract creating substantially more demand for their product. See also: Demand, Economies of Scale of the Boeing 777 program that has significant Coltec content." Coltec Industries Inc is a New York-based manufacturing company serving aerospace, automotive and other industrial markets. CONTACT: Michael Dunn Michael Dunn (born Gary Neil Miller, reportedly on February 7, 1934 in Shattuck, Oklahoma; died August 30, 1973 in London) was a successful "little person" American actor. (212) 940-0523 |
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