Coltec Industries reports second quarter earnings.NEW YORK--(BUSINESS WIRE)--July 11, 1996--Coltec Industries earned $18.0 million, or 26 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. , 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 in the 1996 second quarter versus $16.9 million, or 24 cents per share, in the comparable 1995 quarter. Sales from continuing operations in the quarter ended June 30, 1996, increased 2% to $306.0 million from $299.6 million in the like quarter last year. The operating results for 1996 do not include those of the Holley Automotive, Coltec Automotive and Performance Friction Products units, which were sold to Borg-Warner Automotive on June 17 for $283.0 million in cash and an after-tax gain of $34.5 million. For comparison purposes, the 1995 reported results have been restated to exclude the results of the discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. . Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. was $47.6 million and the operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: was 15.6% in the 1996 second quarter compared with operating income of $49.4 million and the operating margin of 16.5% a year ago. Earnings from continuing operations before income taxes and extraordinary item increased 5% due to a 13% reduction in interest expense. This resulted from lower interest rates, debt repayments and a refinancing Refinancing An extension and/or increase in amount of existing debt. in the first quarter that retired high-interest debt. Operating income in the Aerospace/Government segment rose 5% as sales increased 6%. Operating income in the Industrial segment declined slightly on a small sales increase, and the Automotive segment reported a 5% decline in operating income on a 3% sales decrease. In the Aerospace/Government segment, the divisions serving the aerospace market increased operating income and sales by 8% and 12%, respectively. Walbar, Chandler Chandler, city (1990 pop. 90,533), Maricopa co., S central Ariz., in the Salt River valley; inc. 1920. It is both a residential community and a center for research and technology. Tourism is also important, and the San Marcos Golf Resort is in Chandler. Evans, Delavan Gas 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. and Lewis Engineering posted improved results. Menasco sales declined slightly compared with the 1995 second quarter because it no longer is shipping landing gears and flight controls to Fokker, which filed for bankruptcy bankruptcy, in law, settlement of the liabilities of a person or organization wholly or partially unable to meet financial obligations. The purposes are to distribute, through a court-appointed receiver, the bankrupt's assets equitably among creditors and, in most in the first quarter. In the Industrial segment, Quincy and France 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 Products had lower results, which were partially offset by Garlock Mechanical Packing and Plastomer Products, which both reported improved operating income on higher sales. The Automotive segment was affected by lower sales at Holley Performance Products Holley Performance Products is an automotive performance company based out of Bowling Green, Kentucky. They produce mostly engine modification product, and among the company's owned divisions are popular brand names such as NOS, FlowTech, and Hooker. and Stemco. John W. Guffey, Jr., chairman, president and chief executive officer, said, "The second quarter of 1996 was a significant turning point for Coltec Industries. The sale of our automotive units was the first in a series of steps we will take over the next few years to refocus Verb 1. refocus - focus once again; The physicist refocused the light beam" focus - cause to converge on or toward a central point; "Focus the light on this image" 2. and revitalize re·vi·tal·ize tr.v. re·vi·tal·ized, re·vi·tal·iz·ing, re·vi·tal·iz·es To impart new life or vigor to: plans to revitalize inner-city neighborhoods; tried to revitalize a flagging economy. our company. This initial transaction allowed us for the first time since our initial public offering to reduce debt in a meaningful way and, in addition, initiate a share repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. program. This increased financial flexibility will allow us to make further investments in capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. and marketing programs to fuel growth in our core businesses as well as step up acquisition activities." Mr. Guffey further stated that he expects the 1996 second half to strengthen from the first half in operating and net earnings as aerospace shipments increase. The effective income tax rate in the 1996 second quarter was 34% compared with 35.3% last year. For the six months of 1996, earnings from continuing operations before extraordinary item were $28.6 million, or 41 cents per share, excluding a first quarter charge of $14.2 million ($9.4 million after tax, or 13 cents per share) resulting from the Fokker bankruptcy. This compared with earnings of $31.8 million, or 46 cents per share, in 1995. Operating income for the six months was $85.0 million, excluding the Fokker charge, and sales were $599.0 million. This compared with operating income of $94.6 million and sales of $586.1 million in the first half of 1995. The extraordinary charges for both six-month periods resulted from early extinguishment The destruction or cancellation of a right, a power, a contract, or an estate. Extinguishment is sometimes confused with merger, though there is a clear distinction between them. of debt. Coltec Industries is a diversified diversified (di·verˑ·s manufacturing company serving primarily aerospace and general industrial markets. -0-
Coltec Industries Inc. and Subsidiaries
Summary Consolidated Statement of Earnings
(Unaudited)
Three Months Ended Six Months Ended
June 30, July 2, June 30, July 2,
1996 1995 1996 1995
(In thousands, except per share data)
Net sales $305,993 $299,552 $ 598,952 $ 586,115 Costs and expenses 258,352 250,105 528,187 491,517 Operating income 47,641 49,447 70,765 94,598 Interest, net 20,332 23,322 41,458 45,323 Earnings from continuing operations before income taxes and extraordinary item 27,309 26,125 29,307 49,275 Provision for income taxes 9,275 9,230 9,964 17,439 Earnings from continuing operations before extraordinary item 18,034 16,895 19,343 31,836 Discontinued operations Income from operations 7,220 7,174 13,686 15,719 Gain on sale 34,470 -- 34,470 -- Total discontinued operations 41,690 7,174 48,156 15,719 Extraordinary item -- -- (1,821) (82) Net earnings $ 59,724 $ 24,069 $ 65,678 $ 47,473 Earnings per common share Continuing operations $ .26 $ .24 $ .28 $ .46 Discontinued operations Income from operations .10 .10 .19 .22 Gain on sale .49 -- .49 -- Total discontinued operations .59 .10 .68 .22 Extraordinary item -- -- (.03) -- Net earnings $ .85 $ .34 $ .93 $ .68 Weighted average number of common and common equivalent shares 70,322 69,939 70,254 69,881
Coltec Industries Inc and Subsidiaries
Industry Segment Information
(Unaudited)
Three Months Ended Six Months Ended
June 30, July 2, June 30, July 2,
1996 1995 1996 1995
(In millions)
Sales: Aerospace/Government $ 132.8 $ 125.7 $255.4 $240.6 Industrial 112.3 110.9 225.6 220.4 Automotive 61.2 63.2 118.8 125.7 Intersegment elimination (.3) (.2) (.8) (.6) Total $ 306.0 $ 299.6 $ 599.0 $ 586.1
Operating income:
Aerospace/Government $ 17.8 $ 16.9 $ 17.8 $ 31.9
Industrial 26.8 27.1 51.1 51.9
Automotive 12.2 12.9 22.4 27.1
Total Segments 56.8 56.9 91.3 110.9
Corporate unallocated (9.2) (7.5) (20.5) (16.3)
---- ---- ----- -----
Total $ 47.6 $ 49.4 $ 70.8 $ 94.6
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 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion