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COLTEC INDUSTRIES COMPLETES DEBT REFINANCING AND REPORTS FOURTH QUARTER AND TWELVE MONTH RESULTS

 NEW YORK, Jan. 12 /PRNewswire/ -- Coltec Industries Inc (NYSE: COT) today reported earnings before extraordinary item of $23.2 million, equal to 33 cents per share, for the fourth quarter of 1993 compared with $24.2 million, or 35 cents per share, in the 1992 fourth quarter.
 For the year ended Dec. 31, 1993 earnings before extraordinary item were $80.5 million, equal to $1.16 per share, excluding the restructuring charge of $25.2 million ($15.3 million after taxes, or 22 cents per share). This compared with $64.7 million, or $1.11 per share, in 1992.
 Coltec also reported that on Jan. 11 it entered into a $415 million revolving credit facility that matures in 1999 with a syndicate of banks. This facility will result in lower interest cost to the Company. Borrowings of $324 million have been made under this new facility to prepay all indebtedness outstanding under a credit agreement entered into in 1992. If this refinancing had taken place at the beginning of 1993, earnings before extraordinary item for 1993 would have increased by $10.1 million, or 14 cents per share.
 Sales for the quarter ended Dec. 31, 1993 were $344.2 million versus $340.5 million in the comparable quarter last year. Operating income for the 1993 fourth quarter was $62.9 million, and the operating margin was 18.3%. This compared with operating income of $65.8 million and an operating margin of 19.3% in the 1992 fourth quarter.
 Sales for the year ended Dec. 31, 1993 were $1,334.8 million compared with $1,368.7 million last year. Operating income for 1993 was $236.9 million; and the operating margin was 17.7%, excluding the restructuring charge. This compared with operating income of $243.1 million and an operating margin of 17.8% in 1992.
 Excluding the restructuring charge, for the year ended Dec. 31, 1993 the Aerospace/Government segment reported a 16% decline in operating income on a 13% sales decline. Automotive segment operating income improved 25% on an 11% sales increase, and in the Industrial segment operating income and sales declined 6% and 2%, respectively.
 John W. Guffey, Jr., president and chief operating officer, said, "We maintained our operating margin at about the same level as last year which was particularly noteworthy because two of our markets did not perform as expected. The recession in the aerospace industry was more severe than anticipated, and the nation's manufacturing sector, which is the primary market for our Industrial segment, remained weak. Our Automotive segment benefited in 1993 from the strength in the automotive industry and increased applications for our components."
 Net earnings for the 1993 fourth quarter were $6.5 million compared with $22.6 million in the 1992 fourth quarter. Extraordinary charges of $16.8 million in 1993 and $1.6 million in 1992, included in net earnings, result from debt refinancings and early extinguishments of debt, including $14.7 million in the fourth quarter of 1993 with respect to the Jan. 11 refinancing.
 Net earnings for the twelve months ended Dec. 31, 1993 were $47.4 million. This compared to a net loss of $42.2 million in 1992, which included extraordinary charges of $105.3 million incurred in the second quarter of 1992 in connection with the recapitalization. Giving pro forma effect to the recapitalization as if it had occurred on Jan. 1, 1992, Coltec would have reported earnings before extraordinary item of $82.4 million, equal to $1.19 per share, for 1992.
 Looking ahead, Mr. Guffey added, "We believe that results in our Aerospace/Government segment will benefit from shipments on additional programs beginning in 1994. We expect the Automotive segment to continue benefiting from increased automobile production and new product introductions. We also believe that the long-awaited manufacturing recovery and new product innovations will begin to drive the growth of our Industrial segment."
 Coltec Industries is a New York-based manufacturing company serving aerospace, automotive and other industrial markets.
 COLTEC INDUSTRIES INC AND SUBSIDIARIES
 Summary Consolidated Statement of Earnings(A)
 (Unaudited)
 (In thousands, except per share data)
 Periods ended Three months 12 months
 Dec. 31, 1993 1992 1993 1992
 Net sales $344,227 $340,533 $1,334,829 $1,368,703
 Costs & expenses 281,325 274,721 1,097,901 1,125,581
 Restructuring charge(B) -- -- 25,219 --
 Operating income 62,902 65,812 211,709 243,122
 Interest, net 26,741 28,564 110,190 135,862
 Earns. before
 income taxes
 and extraord. item 36,161 37,248 101,519 107,260
 Provision for
 income taxes 12,928 13,037 36,293 42,577
 Earns. before
 extrarod. item(C) 23,233 24,211 65,226 64,683
 Extraord. item(D) (16,775) (1,583) (17,792) (106,930)
 Net earns. (loss) $ 6,458 $ 22,628 $ 47,434 $ (42,247)
 Earns. (loss) per common share
 Bef. extraord. item(C) $ .33 $ .35 $ .94 $1.11
 Extraord. item(D) (.24) (.02) (.26) (1.83)
 Net earnings(loss) $ .09 $ .33 $ .68 $ (.72)
 Avg. no. of common
 and common
 equivalent shares 69,625 69,545 69,591 58,413
 Notes:
 (A) The unaudited summary consolidated statement of earnings for the first quarter of 1992 reflects the interest and finance cost related to the outstanding 14-3/4% senior discount debentures of Coltec Holdings Inc. because the net proceeds of the issuance and sale of senior notes and senior subordinated notes by the Company in April 1992, together with bank borrowings, were used to repay such indebtedness.
 (B) In the second quarter 1993, Coltec recorded a restructuring charge of $25.2 million, ($15.3 million after taxes, or $.22 per share) to cover the cost of consolidation and rearrangement of certain manufacturing facilities and related reductions in work force primarily in the Aerospace/Government segment, as well as at the Central Moloney Transformer Division.
 (C) Giving pro forma effect to the April 1992 recapitalization as if it had occurred at Jan. 1, 1992, the Company would have reported earnings before extraordinary item for the twelve months ended Dec. 31, 1992 as follows (in millions, except per share data):
 Operating income $243.1
 Interest, net 116.7
 Earnings before income taxes and
 extraordinary item 126.4
 Provision for income taxes 44.0
 Earns. bef. extraordinary item $ 82.4
 Earnings per common share
 Before extraordinary item $ 1.19
 (D) The extraordinary charges for the three months and twelve months ended Dec. 31, 1993, and for the three months ended Dec. 31, 1992 result from debt refinancings and early extinguishment of debt. In addition, the twelve months ended Dec. 31, 1992 included an extraordinary charge incurred in the second quarter in connection with the April 1992 recapitalization, primarily premiums, expenses and write-offs of deferred financing costs from early extinguishment of debt.
 INDUSTRY SEGMENT INFORMATION
 (unaudited)
 (in millions)
 Periods ended Three Months 12 Months
 Dec. 31 1993 1992 1993 1992
 Sales:
 Aerospace/government $126.8 $129.2 $453.3 $523.7
 Automotive 114.6 102.8 445.7 402.6
 Industrial 102.8 108.6 436.7 443.8
 Intersegment elimination --- (.1) (.9) (1.4)
 Total 344.2 340.5 1,334.8 1,368.7
 Operating income:
 Aerospace/government 28.4 27.1 67.8 102.1
 Automotive 24.4 24.6 102.4 85.1
 Industrial 18.5 22.0 75.9 84.4
 Total segments 71.3 73.7 246.1 271.6
 Corporate unallocated (8.4) (7.9) (34.4) (28.5)
 Operating income 62.9 65.8 211.7 243.1
 Operating income for the 12 months ended Dec. 31, 1993 includes a restructuring charge of $25.2 million. This charge included $17.7 million in the Aerospace/Government segment, $3.8 million in the Automotive segment and $3.7 million in the Industrial segment. Excluding the restructuring charge, operating income for the 12 months ended Dec. 31, 1993 by segment would have been (in millions):
 Aerospace/government $85.5
 Automotive 106.2
 Industrial 79.6
 Total segments 271.3
 For the year ended Dec. 31, 1993 the decline in sales and operating income for the Aerospace/Government segment reflects lower demand for new commercial aircraft and the resultant cutback in production schedules, as well as continued declines in defense spending. The improved performance in the Automotive segment reflects higher new car and truck production and the introduction of new automotive products. In the Industrial segment, higher sales and earnings were reported by Quincy Compressor, Garlock Bearings and the Sterling Die and Haber Tool Operations, while Central Moloney Transformer, Garlock Mechanical Packing, France Compressor Products and FMD Electronics reported lower results. Corporate unallocated for 1992 reflected a $3.5 million nonrecurring reduction in insurance cost realized during the year.
 -0- 1/12/93
 /CONTACT: Michael Dunn of Coltec Industries, 212-940-0523/
 (COT)


CO: Coltec Industries Inc ST: New York IN: ARO AUT SU: ERN

LG-SH -- NY025 -- 1400 01/12/94 11:58 EST
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