Crompton & Knowles reports higher fourth quarter results.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)--Jan. 30, 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
The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , in the fourth quarter of 1996, compared with a loss of $3.4 million, or six cents per share, reported for the fourth quarter of 1995. Sales for the 1996 final period were $405.5 million compared with sales of $374.3 million reported for the fourth quarter of 1995. "We are pleased with the results of the fourth quarter," stated Vincent A. Calarco, chairman, president and chief executive officer of Crompton Cromp·ton , Samuel 1753-1827. British inventor of the spinning mule (1779). & Knowles. "Sales and earnings grew in line with expectations and we're we're Contraction of we are. we're we are on course with our cost reduction and de-leveraging programs for the combined entity. We are confident that 1997 will be a good year for the NEW Crompton & Knowles," Calarco said. For the year, earnings were $64.6 million, or 90 cents per share, before 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. merger and related costs of $68.1 million, a special charge for environmental costs of $18.5 million, and an extraordinary charge of $.5 million compared with earnings of $56.6 million, or 85 cents per share, in 1995. The 1995 results exclude $78.9 million of special tax credits, an extraordinary charge of $8.3 million and other special income, net of $4.4 million. After special items in both years, the Years, The the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109] See : Time net loss for 1996 was $22.5 million, or 31 cents per share, compared to earnings of $131.6 million, or $1.99 per share, in 1995. Sales were $1,804.0 million in 1996, compared with sales of $1,744.8 million in 1995. The weighted average number of common shares outstanding in 1996 was 72.0 million compared with 66.3 million for 1995. Crompton & Knowles Corp. and Uniroyal Chemical Corp. merged in August 1996 and the merger is being accounted for on a pooling-of-interests basis. Accordingly, the results of Uniroyal for 1995 and prior fiscal years ending in September are being combined with Crompton & Knowles' results for its fiscal years ending in December. Therefore, the reported results for 1995 include Uniroyal's results for the fourth quarter of calendar 1994 rather than calendar 1995. If the fourth quarter of calendar 1995 for Uniroyal Chemical Corp. had been included in the comparative 1995 results, the earnings statement for the fourth quarter of 1995, on a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma basis, would have been as follows (in millions, except earnings per share):
Fourth Quarter
Pro Forma
1996 1995
Net Sales $ 405.5 $ 394.1
Cost of products sold 276.5 271.8
Selling, general and
administrative 67.6 64.5
Depreciation and amortization 19.1 20.2
Research and development 12.3 11.9
Operating profit 30.0 25.7
Interest expense 27.4 28.9
Other expense (income) (.5) (.1)
Earnings (loss) before income
taxes 3.1 (3.1)
Income taxes 1.1 (1.9)
Net earnings (loss) $ 2.0 $ (1.2)
Weighted avg. shares
outstanding 75.4 71.5
Earnings per share $ .03 $ (.02)
Following are Crompton & Knowles' fourth quarter operating
results by segment reflecting 1995 comparative data that includes,
on a pro forma basis, the fourth quarter of 1995 for Uniroyal
Chemical Corp. consistent with the pro forma earnings summary
immediately above.
Specialty Chemicals
Specialty chemicals sales in the 1996 quarter rose four percent
to $332.7 million from $320.8 million (pro forma) for 1995.
Operating profit for the segment was $29.0 million, compared with
$20.8 million (pro forma) for 1995. The improvement relates
primarily to higher sales volume and lower costs including raw
materials, manufacturing and overhead.
The company's chemicals and polymers business increased sales by
three percent to $119.6 million from $115.8 million (pro forma) for
1995. Rubber chemicals pricing remained steady in the period while
unit volume increased. EPDM unit volume was unchanged but lower
pricing reduced total sales, while nitrile rubber posted a solid
sales gain.
Sales of the company's crop protection business, which are
seasonally low in the fourth quarter, increased slightly to $48.8
million from $48.3 million (pro forma) for 1995 with higher seed
treatment sales offsetting lower insecticide sales in the
Asia/Pacific region.
The company's specialties business, consisting primarily of
urethane prepolymers and additives for plastics and lubricants,
increased sales by 10 percent to $74.0 million from $67.3 million
(pro forma) for 1995. The increase was primarily attributable to
strong demand for lubricant additives and continued international
growth for urethane prepolymers.
Worldwide dyes sales of $64.9 million were slightly above the
$64.1 million reported for 1995 primarily as a result of higher unit
volume.
Sales of the company's specialty ingredients for the food and
pharmaceutical industries remained virtually unchanged in the
quarter at $25.4 million versus $25.3 million for 1995.
Specialty Process Equipment & Controls
The specialty process equipment and controls segment reported
sales of $72.8 million in the fourth quarter, a slight decrease from
$73.3 million for 1995. Incremental sales from acquisitions
(primarily ER-WE-PA) of $11.7 million were more than offset by
lower unit volume reflecting reduced domestic demand for extrusion
systems and lower pricing. Operating profit was $5.3 million,
compared with $9.4 million for 1995. The reduction in operating
profit reflects primarily the decline in domestic unit volume and
pricing. The company's equipment backlog at the end of the fourth
quarter was $92 million compared with $95 million at the end of the
third quarter.
Crompton & Knowles Corp. is a producer and marketer of specialty
chemicals and equipment.
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CROMPTON & KNOWLES CORP. Consolidated Statements of Earnings Fourth quarter and year ended 1996 and 1995 (In thousands, except per share data) Fourth Quarter Year 1996 1995 1996 1995 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 Chemicals and Polymers $ 119,584 $110,981 $493,734 $ 476,588 Crop Protection 48,760 36,354 353,288 325,977 Specialties 73,994 64,306 296,582 276,756 Dyes 64,950 64,095 271,105 284,026 Specialty ingredients 25,412 25,295 104,384 101,621 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. net sales 332,700 301,031 1,519,093 1,464,968 Specialty Equipment and controls 72,777 73,248 284,876 279,866 Total net sales 405,477 374,279 1,803,969 1,744,834 Operating costs operating costs npl → gastos mpl operacionales and expenses Cost of products sold 276,545 252,234 1,170,586 1,126,166 Selling, general and administrative 67,571 60,955 279,812 270,338 Depreciation and amortization 19,120 18,996 82,597 80,118 Research and development 12,243 11,272 52,359 50,090 Merger and related costs -- -- 85,000 -- Special environmental provision -- -- 30,000 -- 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. 29,998 30,822 103,615 218,122 Interest expense 27,426 33,216 114,244 122,398 Other expense (income) (523) 1,288 (1,285) (2,736) Earnings (loss) before income taxes and extraordinary loss 3,095 (3,682) (9,344) 98,460 Provision (benefit) for income taxes 1,107 (308) 12,710 (41,462) Earnings (loss) before extraordinary charge 1,988 (3,374) (22,054) 139,922 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 -- -- (441) (8,279) Net earnings (loss) $ 1,988 $(3,374) $(22,495) $ 131,643 Per Common Share Earnings (loss) before extraordinary charge $ 0.03 $ (0.06) $ (0.31) $ 2.11 Extraordinary loss -- -- -- (0.12) Net earnings (loss) $ 0.03 $ (0.06) $ (0.31) $ 1.99 Weighted average shares outstanding 75,421 58,303 72,026 66,289 Operating profit Specialty chemicals $ 28,995 $ 26,422 $ 216,349 $ 200,069 Specialty equipment and controls 5,266 9,357 23,372 40,154 Merger and related costs -- -- (85,000) -- Special environmental provision -- -- (30,000) -- General corporate expense (4,263) (4,957) (21,106) (22,101) Total operating profit $ 29,998 $30,822 $ 103,615 $218,122 -0- CROMPTON & KNOWLES CORPORATION AND SUBSIDIARIES Consolidated Balance Sheets consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. December 28, 1996 and Year End 1995 (In thousands of dollars) December 28, Year End 1996 1995(a) ASSETS CURRENT ASSETS Current Assets Appearing on a company's balance sheet, it represents cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that can be converted to cash within one year. Cash $ 21,120 $ 30,437 Accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying 267,871 271,947 Inventories 362,349 332,493 Other current assets Other Current Assets A balance sheet item that includes the value of non-cash assets due within one year. Notes: Examples are things like prepaid expenses and accounts receivable. 90,897 62,152 Total current assets 742,237 697,029 NON-CURRENT ASSETS Property, plant and equipment 497,979 524,463 Cost in excess of acquired net assets Net assets The difference between total assets on the one hand and current liabilities and noncapitalized long-term liabilities on the other hand. net assets See owners' equity. 189,012 185,648 Other assets other assets Assets of relatively small value. For financial reporting purposes, firms frequently combine small assets into a single category rather than listing each item separately. 227,962 248,705 $1,657,190 $1,655,845 LIABILITIES AND STOCKHOLDERS' EQUITY Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. CURRENT LIABILITIES Current Liabilities Usually appearing on a company's balance sheet, it represents the amount owed for interest, accounts payable, short-term loans, expenses incurred but unpaid, and other debts due within one year. Current installments of long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. $ 731 $ 11,434 Notes payable 8,595 93,744 Accounts payable 151,270 144,241 Accrued expenses Accrued Expense An accounting expense recognized in the books before it is paid for. It is a liability, usually current. These expenses are typically periodic and documented upon a company's balance sheet due to the high probability of collection. 143,133 125,063 Income taxes payable 33,214 32,897 Other current liabilities Other Current Liabilities A balance sheet entry used by companies to group together current liabilities that are not assigned to common liabilities such as debt obligations or accounts payable. 20,536 13,274 Total current liabilities 357,479 420,653 NON-CURRENT LIABILITIES Long-term debt 1,054,982 974,156 Accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. postretirement liability 181,980 184,209 Other liabilities other liabilities Small and relatively insignificant liabilities. For financial reporting purposes, firms often combine small liabilities into this single category rather than listing each liability separately. 159,167 136,012 STOCKHOLDERS' EQUITY (DEFICIT) Common stock 7,724 7,708 Additional paid-in capital additional paid-in capital Stockholder contributions that are in excess of a stock's stated or par value. For example, if a firm issues stock with a par value of $1 per share but sells the stock to investors at $10 per share, the firm's financial statements 232,010 227,401 Accumulated ac·cu·mu·late v. ac·cu·mu·lat·ed, ac·cu·mu·lat·ing, ac·cu·mu·lates v.tr. To gather or pile up; amass. See Synonyms at gather. v.intr. To mount up; increase. deficit (257,177) (213,347) Accumulated translation adjustment (25,592) (12,168) Treasury stock at cost (48,083) (62,972) Deferred compensation (1,587) (2,190) Pension liability adjustment (3,713) (3,617) Total stockholders' deficit (96,418) (59,185) $1,657,190 $1,655,845 (a) The balance sheet for year end 1995 includes Crompton & Knowles Corporation as of December 30, 1995 and Uniroyal Chemical Corporation as of October 1, 1995. CONTACT: Crompton & Knowles Corp. Peter Barna, 203/353-5432 or Bibelnieks Associates Inc. Yanis Bibelnieks, 212/949-2295 |
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