COOPER INDUSTRIES REPORTS SECOND-QUARTER SHARE EARNINGS UP 13%.HOUSTON--(BUSINESS WIRE)--July 24, 1996--Second-quarter fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share earnings from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the of Cooper Industries Cooper Industries NYSE: CBE is one of the oldest large companies in the United States, having been founded in 1833 as a partnership in Mount Vernon, Ohio. Incorporated in Ohio as The C. & G. , Inc. (NYSE-CBE) rose 13% to 77 cents from 68 cents a share in the same quarter of 1995. Revenues increased to $1.4 billion from $1.3 billion in the second quarter of 1995. Second-quarter 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 (income before interest expense and income taxes) rose to $186.4 million, up from $179.9 million in the same period of 1995. Cooper's earnings per share were affected by the Cooper Cameron Cam·er·on , Mount A peak, 4,342.6 m (14,238 ft) high, in the Rocky Mountains of central Colorado. Exchange Offer completed mid-year 1995, which reduced the company's outstanding shares by 9.5 million. During the second quarter, Cooper continued to sell some of its marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has , the gain from which was mostly offset by nonrecurring Non`re`cur´ring a. 1. Nonrecurrent; as, the costs of a layoff are considered as a nonrecurring expense s>. expenses. For the first six months ended June June: see month. 30, 1996, Cooper's revenues rose 13% to $2.7 billion, up from $2.4 billion in the same period of 1995. Operating earnings increased to $329.7 million, compared with $312.4 million in the same period last year. Fully diluted share earnings from continuing operations increased 16% to $1.33, compared with $1.15 during the first half of 1995. "Overall, we had a very solid second quarter," said H. John Riley
Riley was born and grew up in Leeds. , Jr., Chairman, President and Chief Executive Officer. "Our operations performed well despite some significant challenges, including a month-long strike at one of our major automotive facilities, the implementation of a new distribution system at our hand tools business and some weakening weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak  en·er n. in the European Europeanemanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. economy," Riley added. Revenues for the Electrical Products segment were up significantly during the quarter. The CEAG CEAG Central European Advisory Group (Prague, Czech Republic, law firm) CEAG Cost Estimating & Analysis Group electrical products operation in Germany, acquired late last year, was a major contributor to the sales increase. North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. sales of hazardous-duty electrical construction materials, electrical fuses, lighting fixtures, transformers and distribution switchgear The term switchgear, used in association with the electric power system, or grid, refers to the combination of electrical disconnects, fuses and/or circuit breakers used to isolate electrical equipment. were also up during the period. Tools & Hardware revenues were down slightly. Growth in sales of assembly systems for the automotive industry The automotive industry is the industry involved in the design, development, manufacture, marketing, and sale of motor vehicles. In 2006, more than 69 million motor vehicles, including cars and commercial vehicles were produced worldwide. was offset by slowing demand for hand tools and window treatments in Europe. In addition, distribution delays in the domestic hand tools business resulted in a somewhat higher-than-anticipated 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. level at the end of the quarter. The Automotive Products segment recorded another quarter of healthy revenue gains. The improvement reflected increased sales to automotive original equipment manufacturers worldwide. In addition, sales of domestic aftermarket Aftermarket See: Secondary market. aftermarket See secondary market. components improved across most product lines. Recent acquisitions also contributed to the revenues increase. "We are pleased with our revenues and earnings performance through the first six months of the year. Our efforts to build on the company's strong foundation are beginning to pay off. We're attracting new customers, penetrating penetrating breaching the tissues of the body. new markets and, when appropriate, making complementary acquisitions," Riley said. "Just as important are the actions we're taking to improve the company's financial flexibility. During the second quarter, we continued to sell our Belden securities, and a shelf registration was filed to facilitate a sale of our Cooper Cameron shares. These and other actions to reduce working capital will generate cash for debt reduction, additional complementary acquisitions and investments in productivity improvements. "While we have some concerns about the domestic economy and lackluster lack·lus·ter adj. Lacking brightness, luster, or vitality; dull. See Synonyms at dull. Adj. 1. lackluster - lacking brilliance or vitality; "a dull lackluster life"; "a lusterless performance" growth in Europe, we expect to see solid double-digit earnings per share growth in 1996," Riley concluded. Comparisons of 1996 and 1995 second-quarter and first-half results appear on the following pages. Cooper Industries, with 1995 revenues of $4.9 billion, is a diversified diversified (di·verˑ·s , worldwide manufacturer of electrical products, tools and hardware, and automotive products. -0-
CONSOLIDATED RESULTS OF OPERATIONS
Three Months Ended June 30,
---------------------------
1996 1995
-------- -------
(millions except shares)
Revenues:
Electrical Products $ 611.3 $ 535.5
Tools & Hardware 245.1 248.0
Automotive Products 506.2 476.0
Other 17.5 8.6
-------- --------
1,380.1 1,268.1
-------- --------
Costs and Expenses:
Cost of sales 907.3 834.7
Depreciation and amortization 58.9 54.6
Selling and administrative 227.5 198.9
-------- --------
1,193.7 1,088.2
-------- --------
Operating Earnings 186.4 179.9
Interest Expense 36.8 39.5
Income Taxes 61.3 57.6
-------- --------
Income from Continuing 88.3 82.8
Operations
Charge for Discontinued -- (186.6)
Operations -------- --------
Net Income (Loss) $ 88.3 $ (103.8)
======== ========
Income (Loss) Per Common Share:
Primary -
Continuing Operations $ .82 $ .71
Net Income (Loss) $ .82 $ (.89)
Fully Diluted (1) -
Continuing Operations $ .77 $ .68
Net Income (Loss) $ .77 $ (.89)
Shares Utilized in Computation of
Income (Loss) Per Common Share:
Primary 107,669,000 116,496,000
Fully Diluted 124,418,000 133,256,000
(1) The calculations assume conversion of the 7.05% Convertible Subordinated Debentures subordinated debenture An unsecured bond with a claim to assets that is subordinate to all existing and future debt. Thus, in the event that the issuer encounters financial difficulties and must be liquidated, all other claims must be satisfied before to Common stock. As a result, interest on the debentures ($7.3 million, net of tax) was added back to net income in the computation Computation is a general term for any type of information processing that can be represented mathematically. This includes phenomena ranging from simple calculations to human thinking. of fully diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of .
CONSOLIDATED RESULTS OF OPERATIONS
Six Months Ended June 30,
---------------------------
1996 1995
-------- -------
(millions except shares)
Revenues:
Electrical Products $ 1,185.8 $ 1,016.1
Tools & Hardware 481.4 472.0
Automotive Products 994.6 891.6
Other 32.4 11.6
-------- --------
2,694.2 2,391.3
-------- --------
Costs and Expenses:
Cost of sales 1,783.1 1,583.0
Depreciation and amortization 118.0 106.1
Selling and administrative 463.4 389.8
-------- --------
2,364.5 2,078.9
-------- --------
Operating Earnings 329.7 312.4
Interest Expense 74.4 77.8
Income Taxes 104.9 96.5
-------- --------
Income from Continuing 150.4 138.1
Operations
Charge for Discontinued -- (186.6)
Operations -------- --------
Net Income (Loss) $ 150.4 $ (48.5)
======== ========
Income (Loss) Per Common Share:
Primary -
Continuing Operations $ 1.40 $ 1.19
Net Income (Loss) $ 1.40 $ (.42)
Fully Diluted (1) -
Continuing Operations $ 1.33 $ 1.15
Net Income (Loss) $ 1.33 $ (.42)
Shares Utilized in Computation of
Income (Loss) Per Common Share:
Primary 107,475,000 116,434,000
Fully Diluted 124,355,000 133,192,000
(1) The calculations assume conversion of the 7.05% Convertible Subordinated Debentures to Common stock. As a result, interest on the debentures ($14.6 million, net of tax) was added back to net income in the computation of fully diluted earnings per share. CONTACTS: Cooper Industries, Inc. Sharon Newquist, 713/739-5578 or Phyllis Piano, 713/739-5415, |
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