Crompton & Knowles Earnings Per Share Increase 12 Percent Before Special Items.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)--April 27, 1999-- Crompton Cromp·ton , Samuel 1753-1827. British inventor of the spinning mule (1779). & 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
See: New York Stock Exchange : CNK CNK Crash Nitro Kart (Playstation 2 video game) CNK Coated Natural Kraft (MeadWestvaco paperboard) CNK Compute Node Kernel CNK Cryptonet Key ) reported today that first quarter 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 before special items increased 12 percent to 47 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. ($32.4 million) from 42 cents per share ($31.9 million) in last year's first quarter. Special items included an after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. gain of 39 cents per share 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. ($26.8 million) relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the sale of the 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 business in 1999 and an extraordinary loss on 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 of three cents per share diluted ($2.0 million) in 1998. Net earnings per diluted share in the first quarter of 1999 more than doubled to 86 cents per share ($59.2 million) from 39 cents per share ($30.0 million) in the first quarter of 1998. Earnings per share benefitted by the company's stock buyback Stock buyback A corporation's purchase of its own outstanding stock, usually in order to raise the company's earnings per share. stock buyback See buyback. program as weighted average shares outstanding decreased to 69.2 million diluted from 76.4 million diluted in the first quarter of 1998. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the first quarter of 1999 were down one percent to $396.3 million from $402.2 million in the first quarter of 1998 as adjusted to exclude $75 million resulting from deconsolidated joint ventures and the sale of the specialty ingredients business. The sales decline was primarily attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to lower first quarter sales in the Colors business. "We are pleased to report another quarter of double-digit dou·ble-dig·it adj. Being between 10 and 99 percent: double-digit inflation. earnings per share growth" said Vincent A. Calarco, the company's chairman, president and chief executive officer. "In addition, we repurchased 3.7 million common shares during the quarter and from September September: see month. 1998 to date we have repurchased 9.5 million shares at an average price of $17.85 per share." The company's Board of Directors declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. an annual dividend of five cents per share payable on May 28, 1999 to shareholders of record on May 7, 1999. Crompton & Knowles first quarter operating results from its reporting segments are summarized below. 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. Performance Chemicals sales of $113.5 million increased slightly from the first quarter of 1998. Rubber chemical sales were lower by two percent primarily due to lower pricing, while specialty additive additive In foods, any of various chemical substances added to produce desirable effects. Additives include such substances as artificial or natural colourings and flavourings; stabilizers, emulsifiers, and thickeners; preservatives and humectants (moisture-retainers); and sales were higher by three percent. 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. was $13 million or nine percent lower than the prior year, primarily as a result of lower pricing in rubber chemicals. Crop Protection sales of $65.7 million decreased from the prior year primarily as a result of the deconsolidation of the seed treatment joint venture announced in November November: see month. 1998. Excluding the $39.7 million impact of the joint venture deconsolidation, Crop Protection sales decreased four percent from the prior year as certain export sales were delayed into the second quarter because of letter-of-credit issues. Operating profit of $22.1 million also decreased from the prior year primarily as a result of the seed treatment joint venture. Excluding the $6.6 million impact of the joint venture deconsolidation, operating profit was two percent higher than 1998 primarily as a result of slightly higher pricing and improved product mix. Colors sales of $50.2 million decreased 18 percent from the first quarter of 1998 primarily as a result of weakness in the US and European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. textile textile Any filament, fibre, or yarn that can be made into fabric or cloth, and the resulting material itself. The word originally referred only to woven fabrics but now includes knitted, bonded, felted, and tufted fabrics as well. dye markets caused by low-cost Asian imports of dyes and apparel and particularly aggressive selling tactics by certain European competitors COMPETITORS, French law. Persons who compete or aspire to the same office, rank or employment. As an English word in common use, it has a much wider application. Ferriere, Dict. de Dr. h.t. . Lower selling prices in the quarter accounted for five percent of the sales decline. Operating profit of $4.7 million was 32 percent lower than the first quarter of 1998 primarily as a result of lower sales volume and pricing. Other sales and operating profit decreased $24.8 million and $2.5 million, respectively, as a result of the sale of the specialty ingredients business effective the first day of fiscal 1999. Polymers and Polymer polymer (pŏl`əmər), chemical compound with high molecular weight consisting of a number of structural units linked together by covalent bonds (see chemical bond). Processing Equipment Polymer sales of $78.7 million decreased from the prior year as a result of the deconsolidation of the 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. joint venture announced in November 1998. Excluding the $10.5 million impact of the joint venture deconsolidation, polymer sales were four percent higher than the first quarter of 1998. 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 sales were higher by seven percent with five percent resulting from higher selling prices. Urethane urethane (yoor´ithān´), n ethyl carbamate used as an anesthetic agent for laboratory animals, formerly used as a hypnotic in humans. sales were essentially unchanged from the prior year, but reflect a significant improvement from the six percent decline in the fourth quarter of 1998. Operating profit of $21.4 million increased 17 percent over the prior year primarily as a result of higher sales volume, improved pricing and lower raw material costs. Polymer Processing Equipment sales of $88.2 million were five percent higher than the first quarter of 1998. Operating profit of $10.8 million was four percent higher than 1998 as lower selling prices and an unfavorable product mix restrained operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: growth during the quarter. The 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 first quarter was $118 million, unchanged from year end 1998. Crompton & Knowles Corporation is a global producer and marketer of specialty chemicals, and polymers and polymer processing equipment.
UNAUDITED
CROMPTON & KNOWLES CORPORATION AND SUBSIDIARIES
Consolidated Statements of Earnings
First quarter ended 1999 and 1998
(In thousands, except per share data)
1999 1998
----------- --------
Net sales $ 396,292 $ 477,219
Cost of products sold 247,295 302,465
Selling, general and administrative 60,590 67,273
Depreciation and amortization 18,837 20,093
Research and development 11,308 13,163
Equity income (7,055) -
----------- --------
Operating profit 65,317 74,225
Interest expense 13,154 23,613
Other income (a) (40,706) (289)
----------- --------
Earnings before income taxes
and extraordinary loss 92,869 50,901
Income taxes 33,666 18,958
----------- --------
Earnings before extraordinary loss 59,203 31,943
Extraordinary loss on early
extinguishment of debt - (1,951)
----------- --------
Net earnings $ 59,203 $ 29,992
----------- --------
Basic earnings per common share
Earnings before extraordinary loss $ 0.87 $ 0.43
----------- --------
Net earnings $ 0.87 $ 0.40
----------- --------
Weighted avg. shares outstanding 67,717 74,103
----------- --------
Diluted earnings per common share
Earnings before extraordinary loss $ 0.86 $ 0.42
----------- --------
Net earnings $ 0.86 $ 0.39
----------- --------
Weighted avg. shares outstanding 69,219 76,414
----------- --------
(a)Includes a gain of $42,060 ($26,813 after-tax) from the sale of the
Specialty Ingredients business.
UNAUDITED
CROMPTON & KNOWLES CORPORATION AND SUBSIDIARIES
Segment Sales and Operating Profit
First quarter ended 1999 and 1998
(In thousands of dollars)
1999 1998
------------ ---------
Net Sales
Specialty Chemicals
Performance Chemicals $ 113,514 $ 113,272
Crop Protection 65,718 107,843
Colors 50,178 61,100
Other -- 24,805
--------- ---------
229,410 307,020
--------- ---------
Polymers & Polymer Processing Equipment
Polymers 78,735 86,590
Polymer Processing Equipment 88,147 83,609
--------- ---------
166,882 170,199
--------- ---------
Total net sales $ 396,292 $ 477,219
--------- ---------
Operating Profit
Specialty Chemicals
Performance Chemicals $ 13,002 $ 14,227
Crop Protection 22,114 28,279
Colors 4,702 6,874
Other -- 2,488
--------- ---------
39,818 51,868
--------- ---------
Polymers & Polymer Processing Equipment
Polymers 21,407 18,350
Polymer Processing Equipment 10,812 10,366
--------- ---------
32,219 28,716
--------- ---------
General corporate expense (6,720) (6,359)
--------- ---------
Total operating profit $ 65,317 $ 74,225
--------- ---------
March 27, 1999 UNAUDITED
CROMPTON & KNOWLES CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets March 27, 1999
and December 26, 1998
(In thousands of dollars)
March 27, December 26,
1999 1998
------------- --------
ASSETS
CURRENT ASSETS
Cash 18,238 $ 12,104
Accounts receivable 207,942 173,668
Inventories 323,779 334,562
Other current assets 82,309 77,422
----------- -------
Total current assets 632,268 597,756
NON-CURRENT ASSETS
Property, plant and equipment 445,171 473,403
Cost in excess of acquired net assets 147,892 166,184
Other assets 171,472 171,550
------------ -----------
$ 1,396,803 $ 1,408,893
------------ -----------
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Notes payable 11,569 $ 17,305
Accounts payable 118,173 117,338
Accrued expenses 135,493 139,401
Income taxes payable 84,791 103,179
Other current liabilities 18,551 17,149
------------ -----------
Total current liabilities 368,577 394,372
------------ -----------
NON-CURRENT LIABILITIES
Long-term debt 686,700 646,857
Postretirement health care liability 141,300 142,727
Other liabilities 149,646 158,234
STOCKHOLDERS' EQUITY
Common stock 7,733 7,733
Additional paid-in capital 240,885 238,615
Retained earnings (deficit) 43,218 (15,985)
Accumulated other comprehensive income (49,475) (37,571)
Treasury stock at cost (190,973) (125,246)
Deferred compensation (808) (843)
------------ -----------
Total stockholders' equity 50,580 66,703
------------ -----------
$ 1,396,803 $ 1,408,893
------------ --------------
UNAUDITED
CROMPTON & KNOWLES CORPORATION AND SUBSIDIARIES
Consolidated Statements of Cash Flows
First Quarter ended 1999 and 1998
(In thousands of dollars)
Increase (decrease) to cash 1999 1998
--------------------------- --------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES
Net earnings $ 59,203 $ 29,992
Adjustments to reconcile net earnings
to net cash provided by operations:
Gain on sale of specialty ingredients (42,060) --
Extraordinary loss on early
debt extinguishment -- 1,951
Depreciation and amortization 18,837 20,093
Equity income (7,055) --
Changes in assets and
liabilities, net (a) (82,102) (27,964)
--------- ---------
Net cash provided (used) by
operations (a) (53,177) 24,072
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of
specialty ingredients 103,000 --
Capital expenditures (12,471) (8,662)
Other investing activities 1,862 298
--------- ---------
Net cash provided (used) by
investing activities 92,391 (8,364)
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds (payments) on
long-term borrowings 39,843 (24,016)
Proceeds (payments) on
short-term borrowings (5,736) 1,639
Premium paid on early
extinguishment of debt -- (2,662)
Treasury stock acquired (67,516) --
Other financing activities 169 8,928
--------- ---------
Net cash used by financing
activities (33,240) (16,111)
--------- ---------
CASH
Effect of exchange rates on cash 160 (219)
--------- ---------
Change in cash 6,134 (622)
Cash at beginning of period 12,104 10,607
--------- ---------
Cash at end of period $ 18,238 $ 9,985
(a) 1999 includes tax payment of $48,190 relating to fourth quarter
1998 Gustafson gain.
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