Crompton & Knowles' Earnings From Operations Increase 45%.STAMFORD Stamford, town, England Stamford, town (1991 pop. 18,127), in the Parts of Kesteven, Lincolnshire, E central England, on the Welland River. It is a market town. Products include diesel engines, electrical equipment, bricks, and tiles. , Conn.--(BUSINESS WIRE)--Oct. 23, 1997--Crompton & Knowles Knowles is a surname, and may refer to many people. : Top - 0–9 A B C D E F G H I J K L M N O P Q R S T U V W X Y Z A
Extinguishment is sometimes confused with merger, though there is a clear distinction between them. of debt increased 45% in the third quarter to a record $24.8 million, or 32 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. . This compares with $17.0 million, or 24 cents per share, in the prior year before special charges. Final net earnings were $22.9 million, or 30 cents per share, compared to a loss of $69.6 million, or 97 cents per share, in the prior year. Sales for the quarter ended September September: see month. 27, 1997, of $455.1 million were three percent lower than the prior year, primarily due to lower pricing and foreign currency translation. The weighted average number of shares outstanding in this year's third quarter were 76.5 million compared to 72.1 million last year. Included in other income in this year's third quarter is a $28 million gain relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc a settlement with the U.S. Department of the Army. Also, the statement of operations See Income statement. includes special charges totaling $28 million relating to environmental, severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when and other costs. "We are very pleased with our earnings performance in the third quarter" said Vincent A. Calarco, the company's Chairman, President and Chief Executive Officer. "In addition, the strong cash flow during the quarter enabled us to reduce debt by $70 million, bringing the total debt reduction to $138 million for nine months. We are also pleased with the Army settlement even though there is no immediate cash benefit," he said. The U.S. Department of the Army recently funded certain costs related to postretirement medical and life insurance benefits of retirees of the company's Uniroyal Chemical subsidiary who worked at the Joliet Army Ammunition Plant Joliet Army Ammunition Plant formerly known as the Joliet Arsenal was a United States Army arsenal located in Will County, Illinois, near Elwood, Illinois, south of Joliet, Illinois. in Joliet, Illinois The city of Joliet is located 40 miles southwest of Chicago. It holds the county seat of Will County and is also incorporated in Kendall County. As of the 2000 census, the city had a total population of 106,221. . Uniroyal Chemical operated the plant for the Army on a cost reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. basis from the 1940's until 1993. The funds are held in trust in satisfaction of the government's liability to reimburse re·im·burse tr.v. re·im·bursed, re·im·burs·ing, re·im·burs·es 1. To repay (money spent); refund. 2. To pay back or compensate (another party) for money spent or losses incurred. Uniroyal Chemical for these costs. At the same time, the government waived its claim to certain funds held in pension trusts for the benefit of these Joliet Joliet (jō`lēĕt'), city (1990 pop. 76,836), seat of Will co., NE Ill., on the Des Plaines River; inc. 1857. It is a river port and an industrial shipping center, with limestone quarries and coal mines in the area, but riverboat casino retirees. The resulting pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern gain to the company amounted to $28 million. Special charges during the third quarter totaled $28 million. The environmental charge of $15 million reflects the company's current estimate of its requirements for future remediation costs. The charge for severance and other costs of $13 million includes severance costs of $6.9 million relating to planned workforce reductions and other costs of $6.1 million relating primarily to certain product liability claims and costs associated with the implementation of SAP sap, fluid in plants consisting of water and dissolved substances. Cell sap refers to this fluid present in the large vacuole, or cell cavity, that occupies most of the central portion of mature plant cells. software. For the first nine months of 1997, the company's earnings before extraordinary losses on early extinguishment of debt increased 33 percent to $83.2 million, or $1.09 per share, compared with $62.6 million, or 87 cents per share, in 1996 before special charges. Net earnings were $80.1 million, or $1.05 per share, compared to a net loss of $24.5 million, or 34 cents per share, in the prior year. Sales for the first nine months of 1997 were $1.42 billion compared with $1.40 billion in the prior year. Crompton Cromp·ton , Samuel 1753-1827. British inventor of the spinning mule (1779). & Knowles' third quarter operating results from its two segments were as follows: Specialty Chemicals A Specialty chemical is a chemical produced for a specialized use. They are produced in lower volume than bulk chemicals, of which petrochemicals, made from oil feedstocks, are the most common. However, both are produced in a chemical plant. Specialty Chemicals sales declined five percent in the quarter to $375.3 million, down from $395.7 million last year. Despite the sales decrease, operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. increased six percent to $61.4 million from $57.9 million last year, primarily as a result of lower costs and improved product mix. Chemicals and Polymers sales of $120.3 million decreased by three percent from the prior year. The decrease was primarily attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the impact of lower pricing on rubber chemical sales. EPDM EPDM Ethylene-Propylene-Diene-Monomer EPDM Enterprise Product Data Management EPDM Ethylene Propylene Dimonomer (industrial/commercial piping/plumbing components) EPDM Engineering Product Data Management and nitrile rubber Nitrile rubber, or Buna-N,is a synthetic rubber copolymer of acrylonitrile (ACN) and butadiene. Some trade names are: Nipol, Krynac and Europrene. sales were higher in the quarter. Crop Protection sales of $91.4 million were 11 percent lower than the prior year's third quarter, due largely to timing. Early season strength in fungicides This page aims to list well-known chemical compounds, to stimulate the creation of Wikipedia articles. This list is not necessarily complete or up to date – if you see an article that should be here but isn't (or one that shouldn't be here but is), please update the page and insecticides insecticides, chemical, biological, or other agents used to destroy insect pests; the term commonly refers to chemical agents only. Chemical Insecticides detracted from third quarter sales. In addition, customer deferral deferral - Waiting for quiet on the Ethernet. to the fourth quarter of certain international sales and plant growth regulants in the U.S. lowered third quarter sales. Specialties sales of $77.6 million increased slightly from the prior year, but are up six percent on a year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. basis. During the quarter, strong castable urethane urethane (yoor´ithān´), n ethyl carbamate used as an anesthetic agent for laboratory animals, formerly used as a hypnotic in humans. sales more than offset a decline in lower margin intermediate sales of DPA DPA - Data Protection Act and aniline aniline (ăn`əlĭn), C6H5NH2, colorless, oily, basic liquid organic compound; chemically, a primary aromatic amine whose molecule is formed by replacing one hydrogen atom of a benzene molecule with an amino . Excluding such intermediates, sales were up five percent in the quarter. Colors operations reported sales of $62.4 million, five percent below the prior year. Lower pricing and foreign currency translation accounted for most of the decline. Specialty A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. Ingredients sales of $23.6 million decreased 11 percent from last year. Product line rationalization rationalization, in psychology: see defense mechanism. accounted for much of the decline, while facility consolidations improved operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: . Specialty Process Equipment and Controls Specialty Process Equipment and Controls sales of $79.8 million were 10 percent higher than the prior year. Sales growth was particularly strong in the automotive, construction and packaging materials markets. Operating profit increased 121 percent to $10.2 million from $4.6 million last year, primarily as a result of higher pricing, lower costs and improved product mix. The equipment order 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. at the end of the third quarter increased to $109 million from $103 million at the end of the second quarter. Crompton & Knowles Corporation is a producer and marketer of specialty chemicals and equipment. -0-
UNAUDITED
CROMPTON & KNOWLES CORPORATION AND SUBSIDIARIES
Consolidated Statements of Operations
Third quarter and nine months ended 1997 and 1996
(In thousands of dollars, except per share data)
Third Quarter Nine Months
----------------------- ---------------------
1997 1996 1997 1996
---------- --------- -------- -----------
Net sales
Chemicals and Polymers $ 120,313 $ 124,080 $ 374,172 $ 374,150
Crop Protection 91,381 102,171 311,071 304,528
Specialties 77,589 77,324 235,236 222,588
Colors 62,438 65,637 196,396 206,155
Ingredients 23,607 26,472 75,462 78,972
---------- --------- ---------- ----------
Specialty Chemicals 375,328 395,684 1,192,337 1,186,393
Specialty Equipment
and Controls 79,748 72,707 230,754 212,099
---------- --------- ---------- ----------
Total 455,076 468,391 1,423,091 1,398,492
Costs and expenses
Cost of products sold 287,626 303,834 904,636 894,041
Selling, general and
administrative 67,713 72,524 204,152 212,241
Depreciation and
amortization 20,092 21,129 60,245 63,477
Research and
development 13,543 14,043 39,481 40,116
Severance and
other costs 13,000 - 13,000 -
Special environmental
provision 15,000 30,000 15,000 30,000
Merger and related
costs - 85,000 - 85,000
---------------------- ---------- ----------
Operating profit 38,102 (58,139) 186,577 73,617
Interest expense 25,641 28,792 79,175 86,818
Other income (27,910) (483) (27,129) (762)
---------- --------- ---------- ----------
Earnings before
income taxes
and extraordinary
loss 40,371 (86,448) 134,531 (12,439)
Provision for income
taxes 15,549 (16,876) 51,330 11,603
---------- --------- ---------- ----------
Earnings before
extraordinary
loss 24,822 (69,572) 83,201 (24,042)
Extraordinary
loss on early
extinguishment
of debt (1,882) - (3,109) (441)
---------- --------- ---------- ----------
Net earnings $ 22,940 $ (69,572) $ 80,092 $ (24,483)
---------- --------- ---------- ----------
Per common share
Earnings before
extraordinary
loss $ 0.32 $ (0.97) $ 1.09 $ (0.34)
Extraordinary loss (0.02) - (0.04) -
---------- --------------------- ----------
Net earnings $ 0.30 $ (0.97) $ 1.05 $ (0.34)
---------- --------- ---------- ----------
Weighted average
shares outstanding 76,491 72,140 76,505 71,747
---------- --------- --------- ---------
Operating profit
Specialty Chemicals $ 61,407 $ 57,939 $ 206,039 $ 187,354
Specialty Equipment
and Controls 10,165 4,605 25,913 18,106
Severance and
other costs (13,000) - (13,000) -
Special environmental
provision (15,000) (30,000) (15,000) (30,000)
Merger and
related costs - (85,000) - (85,000)
General corporate
expense (5,470) (5,683) (17,375) (16,843)
---------- --------- ---------- ----------
Total operating
profit $ 38,102 $ (58,139) $ 186,577 $ 73,617
---------- --------- ---------- ----------
-0-
September 27, 1997 UNAUDITED
CROMPTON & KNOWLES CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets
September 27, 1997 and December 28, 1996
(In thousands of dollars)
September 27, December 28,
1997 1996
---------- ----------
ASSETS
CURRENT ASSETS
Cash $ 15,154 $ 21,120
Accounts receivable 281,595 267,871
Inventories 350,491 362,349
Other current assets 85,537 90,897
---------- ----------
Total current assets 732,777 742,237
NON-CURRENT ASSETS
Property, plant and equipment 471,437 497,979
Cost in excess of acquired net assets 182,427 189,012
Other assets 186,140 227,962
---------- ----------
$ 1,572,781 $ 1,657,190
---------- ----------
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Current installments of long-term debt $ -- $ 731
Notes payable 2,113 8,595
Accounts payable 129,576 151,270
Accrued expenses 162,855 143,133
Income taxes payable 39,507 33,214
Other current liabilities 25,815 20,536
---------- ----------
Total current liabilities 359,866 357,479
---------- ----------
NON-CURRENT LIABILITIES
Long-term debt 924,549 1,054,982
Accrued postretirement liability 152,722 181,980
Other liabilities 163,532 159,167
STOCKHOLDERS' EQUITY (DEFICIT)
Common stock 7,733 7,724
Additional paid-in capital 228,985 232,010
Accumulated deficit (180,756) (257,177)
Accumulated translation adjustment (38,702) (25,592)
Treasury stock at cost (41,254) (48,083)
Deferred compensation (1,134) (1,587)
Pension liability adjustment (2,760) (3,713)
---------- ----------
Total stockholders' deficit (27,888) (96,418)
---------- ----------
$ 1,572,781 $ 1,657,190
---------- ----------
-0-
UNAUDITED
CROMPTON & KNOWLES CORPORATION AND SUBSIDIARIES
Consolidated Statements of Cash Flows
Nine months ended September 27, 1997 and September 28, 1996
(In thousands of dollars)
Sept. 27, Sept. 28,
Increase (decrease) to cash 1997 1996
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES
Net earnings (loss) $ 80,092 $ (24,483)
Adjustments to reconcile net earnings (loss)
to net cash provided by operations:
Depreciation and amortization 60,245 63,477
Noncash interest 10,541 12,515
Deferred taxes 21,689 (10,598)
Changes in assets and liabilities, net (6,183) 52,443
---------- ----------
Net cash provided by operations 166,384 93,354
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisitions - (15,713)
Capital expenditures (27,900) (29,107)
Other investing activities 3,008 (3,429)
---------- ----------
Net cash used by investing activities (24,892) (48,249)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds (payments) on long-term borrowings (141,098) 47,748
Payments on short-term borrowings (5,901) (96,889)
Proceeds from sale of common stock, net - 14,150
Dividends paid (3,671) (12,967)
Other financing activities 3,612 2,122
---------- ----------
Net cash used by financing activities (147,058) (45,836)
---------- ----------
CASH
Effect of exchange rates on cash (400) 603
---------- ----------
Change in cash (5,966) (128)
Cash at beginning of period 21,120 16,961
---------- ----------
Cash at end of period $ 15,154 $ 16,833
CONTACT: Peter Barna "Barna" is also used to refer to Barcelona. Barna (Irish: Bearna) is a village west of Galway city in County Galway, Ireland on the R336 regional road. Vice President-Finance 203/353-5432 |
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