Cooper reports net income up 12 percent.HOUSTON--(BUSINESS WIRE)--April 23, 1996--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 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) for the first quarter of 1996 rose 19 percent to 56 cents from 47 cents in 1995. Revenues rose 17 percent to $1.3 billion in 1996 from $1.1 billion during the first quarter of 1995. First-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 $143.3 million, up 8 percent from $132.5 million in the same period of 1995. Net income increased 12 percent to $62.1 million in the first quarter of 1996 from $55.3 million in the comparable 1995 period. 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 first quarter, Cooper also continued to sell 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 offset by nonrecurring Non`re`cur´ring a. 1. Nonrecurrent; as, the costs of a layoff are considered as a nonrecurring expense s>. expenses. "We're we're Contraction of we are. we're we are off to an excellent start for 1996, with very encouraging first- quarter results," said H. John Riley
Riley was born and grew up in Leeds. , Jr., President and Chief Executive Officer. "All three of our business segments performed well, with solid increases in revenues and earnings. Our businesses benefited from acquisitions, new marketing initiatives and modest growth in the economy. We were especially pleased with the improved performance of our automotive segment," Riley reported. The Electrical Products segment recorded strong revenue increases. Significant gains came from 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, 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. . Another major contributor to higher sales was the CEAG CEAG Central European Advisory Group (Prague, Czech Republic, law firm) CEAG Cost Estimating & Analysis Group electrical products operation in Germany, acquired in December 1995. Tools & Hardware revenues were up moderately, led by strong international demand for power tool products, particularly from customers in 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. . Revenues in the Automotive Products segment exceeded expectations. Demand was up for almost all products, particularly for those weather-related, such as wiper blades and ignition ignition, apparatus for igniting a combustible mixture. The German engineer Nikolaus A. Otto, in his first gas engine, used flame ignition; another method was heating a metal tube to incandescence. products. New customer contracts, penetration of overseas markets and recent acquisitions added to the year-over-year gain. "In addition to revenue gains, our businesses continued to focus on ongoing operational improvements," Riley said. "For example, we announced initiatives to implement a new business system in our automotive segment and to construct a new, more efficient distribution center for our lighting operations. Projects like these should help us respond more quickly and effectively to meet customer needs. "During the quarter, we also invested over $200 million in complementary acquisitions and signed two joint venture agreements in the growing Asian market. Nevertheless, we were able to maintain our debt to total capitalization Total capitalization The total long-term debt and all types of equity of a company that constitutes its capital structure. total capitalization See capitalization. ratio at the 1995 year-end level. "In summary, we had a good, solid quarter, positioning us for a successful year. Assuming modest economic growth, we expect to meet our 1996 goal of double-digit earnings increases," Riley concluded. Comparisons of 1996 and 1995 first-quarter results appear on the following page. Cooper Industries, with 1995 revenues of $4.9 billion, is a diversified diversified (di·verˑ·s , worldwide manufacturer of electrical products, tools, hardware, and automotive products.
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CONSOLIDATED RESULTS OF OPERATIONS
Three Months Ended March 31,
----------------------------
1996 1995
-------- --------
(millions except shares)
Revenues:
Electrical Products $ 574.5 $ 480.6
Tools & Hardware 236.3 224.0
Automotive Products 488.4 415.6
Other 14.9 3.0
-------- --------
1,314.1 1,123.2
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Costs and Expenses:
Cost of sales 875.8 748.3
Depreciation and amortization 59.1 51.5
Selling and administrative 235.9 190.9
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1,170.8 990.7
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Operating Earnings 143.3 132.5
Interest Expense 37.6 38.3
Income Taxes 43.6 38.9
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Net Income Applicable
to Common Stock $ 62.1 $ 55.3
======== ========
Income Per Common Share:
Primary $ .58 $ .48
Fully Diluted (1) .56 .47
Shares Utilized in Computation of
Net Income Per Common Share:
Primary 107,389,000 116,187,000
Fully Diluted 124,166,000 132,934,000
(1) The calculations for 1996 and 1995 assume conversion of the
7.05 percent Convertible Subordinated Debentures to Common stock. As
a result, interest on the debentures ($7.3 million, net of tax) was
added back to income in the computation of fully diluted earnings per
share.
CONTACT: Cooper Industries, Houston Phyllis Piano, 713/739-5415; Sharon Newquist, 713/739-5578 |
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