Printer Friendly

CYCLOPS INDUSTRIES, INC., REPORTS FOURTH QUARTER, FULL-YEAR 1991 RESULTS

 CYCLOPS INDUSTRIES, INC., REPORTS FOURTH QUARTER,
 FULL-YEAR 1991 RESULTS
 PITTSBURGH, Feb. 11 /PRNewswire/ -- Cyclops Industries, Inc. (NYSE: CYC), headquartered here, today reported a net loss of $33.0 million for the fourth quarter of 1991, or $4.64 per share of common stock, compared to net income of $3.1 million in the fourth quarter of 1990, or $0.43 per share.
 The fourth quarter net loss includes $25.5 million or $3.58 per share for restructuring charges, principally for Cyclops' high performance alloy products segment.
 Sales for the quarter were $256.5 million compared to $294.6 million in the fourth quarter of 1990.
 For the full year 1991, Cyclops posted a net loss of $41.2 million, or $5.79 per share including the aforementioned $3.58 per share restructuring charge. This compares to a net loss in the previous year of $3.0 million or $0.42 per share. The previous year results included after-tax restructuring charges of $9.7 million ($1.36 per share).
 Sales in 1991 of $1.06 billion were $142.8 million lower than in 1990. The decrease in revenues was principally caused by lower overall demand for Cyclops' products, particularly its flat-rolled steel products and high performance alloys. This, combined with generally lower selling prices for most steel mill products, adversely impacted Cyclops' operating performance.
 The current recessionary environment particularly impacted Cyclops' flat-rolled steel products operations, its largest business segment. Significantly lower shipments as well as lower prices for steel utilized in automobile production, commercial construction and appliances plagued this segment throughout the year.
 While overall shipments from Cyclops' tubular steel products segment were nearly the same as those in the prior year, selling prices were lower than those of last year's comparable period, adversely impacting operating profit.
 Cyclops' nonresidential construction segment revenues increased significantly, but operating profit did not increase proportionately due to marketplace competition for a smaller number of available construction projects. The relocation of this segment's fabrication operations from Minneapolis to Johnson City, Tenn., will be completed by mid-1992, and Cyclops anticipates it will result in significantly lower operating costs.
 The high performance alloy market has declined dramatically during the past two years, especially for commercial and military aerospace products. Continued losses and uncertain future demand require further restructuring and downsizing of Cyclops' Cytemp Specialty Steel facility in Titusville, Pa., and the closure of its Bridgeville, Pa., Stainless and Alloy Products plant.
 The closure of the Bridgeville facility, expected to be completed in the first quarter of 1992, was previously announced. Following the announcement, the United Steelworkers of America expressed a willingness to discuss a concessionary labor agreement, including a possible merger-related combination with the Baltimore Specialty Steel operations of Armco, Inc., in an effort to reverse the company's decision. A pre-tax charge of $26.0 million was recorded in 1991 to accomplish the contemplated restructurings of this segment. Since there is no assurance that an agreement with the union can be reached, the charge includes a provision for the permanent closure of the Bridgeville plant. These actions should restore the profitability of Cyclops' high performance alloy products segment.
 "We continue to suffer from the prolonged recession and an extremely competitive marketplace," Cyclops President and Chief Executive Officer, James F. Will, said, adding that Cyclops is "stepping up efforts to further improve productivity and contain costs across the board." Cyclops said that the outlook for 1992 depends largely upon an economic recovery from the recession and its impact on the demand and selling prices for Cyclops' products.
 Will said that progress continues toward completion of a proposed merger between Cyclops and Armco Inc. The merger provides "significant synergistic benefits which would markedly improve the competitive position of the combined companies domestically and worldwide," Will noted.
 Cyclops is a producer of flat-rolled stainless and carbon steel, high performance alloy products and tubular steel products. It also manufactures and erects metal panels and curtain wall for commercial buildings.
 CYCLOPS INDUSTRIES, INC.
 Summary of Operations
 (Unaudited)
 (Dollars in Thousands, Except Per Share Amounts)
 Period ended Three Months 12 Months
 Dec. 31., 1991 1990 1991 1990
 Net sales:
 Flat-rolled steel
 products $134,938 $161,499 $554,214 $691,529
 Tubular steel
 products 63,560 73,771 261,861 276,200
 High performance alloy
 products 23,059 32,370 127,123 150,157
 Nonresidential
 construction 36,229 26,562 116,865 87,739
 Eliminations and other
 business (1,276) 403 (3,604) (6,384)
 256,510 294,605 1,056,459 1,199,241
 Operating profit (loss):
 Flat-rolled steel
 products (1,695) 5,766 (1,746) 29,518
 Tubular steel products 4,375 6,760 13,419 18,668
 High performance alloy
 products (6,745) (2,993) (11,483) (12,009)
 Nonresidential
 construction 2,969 2,634 7,505 6,685
 Corporate and other
 business (2,845) (3,642) (10,130) (12,189)
 Restructuring
 charges(A) (27,000) -- (27,000) (15,000)
 (30,941)(B) 8,525(B) (29,435)(B) 15,673(B)
 Interest expense 2,480 2,476 10,249 10,863
 Dividends of
 subsidiaries 1,276 1,273 4,953 5,068
 Other financial
 charges(C) 1,039 1,003 4,153 3,709
 Income (loss) before
 income taxes (35,736) 3,773 (48,790) (3,967)
 Income tax benefit (2,737) 700 (7,600) (1,000)
 Net income (loss) (32,999) 3,073 (41,190) (2,967)
 Earnings (loss)
 per share $(4.64) $0.43 $(5.79) $(0.42)
 (A) $26.0 million of 1991 restructuring charges relate the High Performance Alloy Products segment, while charges of $1.0 million relate to the Nonresidential Construction segment. 1990 charges relate to the following business segments: Flat-rolled Steel Products $5.0 million; High Performance Alloy Products $9.5 million; and corporate and other businesses $0.5 million.
 (B) LIFO inventory liquidations improved operating results in the fourth quarters of 1991 and 1990 by $1.0 million and $0.9 million, respectively. For the 12 month periods, LIFO inventory liquidations improved operating results by $5.2 million and $1.1 million, respectively. Essentially all of the LIFO liquidation income recognized in 1991 relates to the High Performance Alloy Products segment.
 (C) Relates principally to the interest expense component on the unfunded pension obligations of previously shutdown operations.
 -0- 2/11/92
 /CONTACT: Edward M. Romanoff of Cyclops, 412-571-6331/
 (CYC) CO: Cyclops Industries, Inc. ST: Pennsylvania IN: MNG SU: ERN


CD -- PG014 -- 8973 02/11/92 17:09 EST
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:Feb 11, 1992
Words:1076
Previous Article:SEATTLE SITE OF REGIONAL AMERICA 2000 LEADERSHIP CONFERENCE
Next Article:SEARS DECLARES DIVIDEND ON COMMON
Topics:


Related Articles
BLISS & LAUGHLIN INDUSTRIES REPORTS RESULTS FOR FOURTH QUARTER AND YEAR
ARMCO ENTERS NEW BANK AGREEMENT
CSC INDUSTRIES REPORTS THIRD QUARTER RESULTS
ARMCO/CYCLOPS SHAREHOLDERS' MEETINGS TO BE RESCHEDULED
CYCLOPS INDUSTRIES TO SHUT DOWN BRIDGEVILLE STAINLESS AND ALLOY PRODUCTS DIVISION OPERATIONS
CSC INDUSTRIES REPORTS FOURTH QUARTER RESULTS, MANAGEMENT CHANGE AND REFINANCING ARRANGEMENTS
ARMCO REPORTS FIRST QUARTERLY PROFIT IN TWO YEARS
ARMCO REPORTS THIRD QUARTER LOSS OF $25.2 MILLION
NATIONAL STEEL'S REPORTED NET LOSSES FOR FOURTH QUARTER AND FULL YEAR 1992 INCLUDE LARGE UNUSUAL AND EXTRAORDINARY CHARGES
ARMCO REPORTS FOURTH QUARTER, FULL YEAR 1992 RESULTS

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