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DEXTER CORPORATION REPORTS SECOND QUARTER RESULTS

 WINDSOR LOCKS, Conn., July 15 /PRNewswire/ -- K. Grahame Walker, chairman and chief executive officer of The Dexter Corporation (NYSE: DEX), a leading specialty materials producer, stated, "On a strictly comparable basis, second quarter earnings from our ongoing operations increased 8 percent over the same quarter last year despite a 2 percent drop in sales due to price and volume." Commenting further, he said, "We are particularly pleased with this performance, which follows a 10 percent increase in earnings on the same basis in the first quarter, since it demonstrates the viability of our restructured corporation to perform in a continuing poor global economy. Further, the consolidated gross margin for the same ongoing businesses improved by 1.6 percentage points, thus demonstrating the effectiveness of our cost reduction activities."
 Reported sales for the second quarter of 1993 were $228.6 million compared with sales of $252.7 million in the second quarter of 1992. Approximately 80 percent of the decrease was due to the net effect of divested and acquired businesses together with changes in currency exchange rates translating international results into fewer U.S. dollars.
 Reported net income for the quarter was $9.8 million, or $.40 per share, compared with $11.6 million, or $.48 per share for the same period last year. Earnings from ongoing operations in the second quarter of 1993 increased $.03 per share, or 8 percent, compared with the second quarter last year. This increase was offset by a $.05 per share reduction from divestitures, net of acquisitions, and a $.03 per share decrease from the effect of changes in currency exchange rates. In addition, the 1993 second quarter earnings were reduced by a $1.0 million, or $.03 per share, provision for the estimated environmental costs related to the assessment, monitoring, and remediation of the Industry, California location and possible participation in such potential costs with respect to the surrounding San Gabriel Valley. Also included in the 1993 second quarter results were divestiture and restructuring activities which had a net $.03 per share favorable impact on earnings. There was a similar $.03 per share net impact in the second quarter last year.
 Included in the $13 million gain on divestiture of product lines in 1993 was a $9.5 million gain on the sale of the coil coatings business to Akzo Coatings International B.V. In addition, there was $3.5 million of income related to the sale of the pultrusions business resulting from the proceeds of the sale being in excess of the book value of the business which had been written down at year-end 1991. Also included in the quarter was a $12 million charge for restructuring businesses. Approximately one-half of this charge was for the consolidation, relocation, and integration of the domestic aerospace coatings business, including Akzo's U.S.-based business purchased in May 1993, into a world-class manufacturing facility on the Waukegan, Ill. site where the coil coatings business which was sold to Akzo was located. The remainder of the charge related to severance programs and asset write down resulting from the realignment of our businesses.
 Sales for the six months ended June 30, 1993 were $445.8 million compared with sales of $495.8 million for the same period last year. Earnings before the $.41 per share cumulative effect of accounting principle changes for the first six months of 1993 were $17.5 million, or $.72 per share compared to $20.5 million, or $.85 per share in 1992. There was a $.06 per share, or 9 percent, increase in earnings from ongoing operations attributable to increased margins. Offsetting this increase was a $.09 per share decrease due to the net effect of acquisitions and divestitures and a $.07 per share decrease due to the effect of weakened international currency exchange rates compared with 1992.
 The 10 percent decrease in sales for the second quarter of 1993 comprises a 6 percent decrease due to acquisitions and divestitures, a 2 percent decrease due to the effect of lower currency translation rates on international sales, a 1 percent decrease in volume, and price decreases averaging 1 percent.
 Products with strong sales performance in the second quarter and first half of 1993 include printed wiring board products, magnetic materials, and at majority-owned Life Technologies, Inc., molecular biology and cell culture products. Products with weaker performance during 1993 include aerospace coatings, acoustical materials serving the automotive market, and food and beverage can coatings.
 Gross margins from ongoing operations in the second quarter of 1993 improved 1.6 percentage points compared with last year due to improved productivity and effective cost containment. Consolidated gross margins stated as a percentage of sales, remained level with the second quarter of last year at 33.4 percent as the improvement from ongoing operations was offset by the effect of the divestiture of the high gross profit water management business.
 Marketing and administrative expenses in the second quarter of 1993 decreased $6.3 million, or 13 percent, from the same period last year mainly due to the divestiture of the water management business which had significantly higher marketing costs as a percentage of sales. Research and development expenses were $11.2 million in the second quarter of 1993, which represents a 7 percent increase over the $10.5 million for the second quarter of 1992.
 Other income doubled in both the second quarter and first half of 1993 compared with last year principally due to improved results by companies owned 50 percent or less.
 Subsequent to the close of the second quarter, an explosion and fire occurred at the Sumitomo Chemical Company epoxy resin plant in Niihama, Japan, which is the key source of a raw material for a large segment of our electronic materials products. At the present time, Sumitomo is endeavoring to determine the extent of damage to production and inventory. We now have sufficient inventory for approximately eight to ten weeks of production, and are exploring alternative sources.
 The Dexter Corporation is a Fortune 500 company producing specialty materials for customers in five strategic global markets: aerospace, automotive, electronics, food packaging and medical. Founded in 1767, Dexter is the oldest company listed on the New York Stock Exchange.
 THE DEXTER CORPORATION
 Net Sales by Market
 (In thousands of dollars)
 Period ended Three months Pct. Six months Pct.
 June 30 1993 1992 Change 1993 1992 Change
 Aerospace(A) $10,435 $12,610 -17 $21,499 $25,463 -16
 Automotive(B) 10,514 17,844 -41 20,210 32,878 -39
 Electronics(C) 36,039 35,608 + 1 71,157 69,432 + 2
 Food Packaging(D) 58,439 58,945 - 1 110,898 115,666 - 4
 Medical(E) 73,572 74,105 - 1 143,315 143,532
 Other(F) 39,566 53,575 -26 78,717 108,869 -28
 Consolidated(G) $228,565 $252,687 -10 $445,796 $495,840 -10
 (A) The net effect of businesses acquired or divested increased net sales to the aerospace market by $0.2 million, or 2 percent for the quarter and $0.2 million, or 1 percent year-to-date.
 (B) Business divestitures caused a 27 percent decrease in net sales to the automotive market of $4.8 million for the quarter and a 28 percent decrease, or $9.2 million year-to-date.
 (C) Business divestitures caused a 3 percent decrease in net sales to the electronics market of $1.0 million for the quarter and a 3 percent decrease, or $1.9 million year-to-date.
 (D) The net effect of businesses acquired or divested increased net sales to the food packaging market by $5.1 million, or 9 percent for the quarter and $10.2 million, or 9 percent year-to-date.
 (E) The effect of businesses divested decreased net sales to the medical market by $0.9 million, or 1 percent for the quarter and $1.8 million, or 1 percent year-to-date.
 (F) The effect of businesses divested decreased net sales in the "other" category by $13.3 million, or 25 percent for the quarter, and $25.0 million, or 23 percent year-to-date.
 THE DEXTER CORPORATION
 Statement of Income
 (In thousands of dollars, except per share amounts)
 Periods ended Three months Pct. Six months Pct.
 June 30 1993 1992 Change 1993 1992 Change
 Revenues
 Net sales $228,565 $252,687 -10 $445,796 $495,840 -10
 Other income 2,300 1,184 +94 4,371 2,144 +104
 230,865 253,871 - 9 450,167 497,984 -10
 Expenses
 Cost of sales 152,112 168,323 -10 296,440 328,929 -10
 Marketing and
 administrative 43,878 50,200 -13 87,961 100,868 -13
 Research and
 development 11,199 10,504 + 7 21,975 21,485 + 2
 Interest 4,713 4,722 -- 9,213 9,484 - 3
 Provision for
 environmental costs 1,000 -- -- 1,000 -- --
 Divestiture and
 restructuring activities
 Gain on divestiture
 of product lines (13,016) (11,476) +13 (13,016) (11,476) +13
 Charge for restructuring
 businesses, net 11,968 9,618 +24 11,968 9,618 +24
 Income before taxes 19,011 21,980 -14 34,626 39,076 -11
 Income taxes 7,034 8,534 -18 12,812 14,860 -14
 Income before
 minority interests 11,977 13,446 -11 21,814 24,216 -10
 Minority interests 2,191 1,882 +16 4,310 3,711 +16
 Income before
 cumulative effect of
 change in accounting
 principles 9,786 11,564 -15 17,504 20,505 -15
 Cumulative effect of
 change in accounting
 principles -- -- -- (9,875) -- --
 Net income 9,786 11,564 -15 7,629 20,505 -63
 Income (loss) per share:
 Income before cumulative
 effect of change
 in accounting
 principles $.40 $.48 -17 $.72 $.85 -15
 Cumulative effect
 of change in
 accounting
 principles -- -- -- (.41) -- --
 Net income per share .40 .48 -17 (.31) .85 -64
 Dividends declared
 per share .22 .22 -- .44 .44 --
 Average shares
 outstanding 24,326 24,200 + 1 24,319 24,178 + 1
 THE DEXTER CORPORATION
 Condensed Statement of Fiancial Position
 (In thousand of dollars, except per share amounts)
 Periods Ended 6/30/93 12/31/92 6/30/93
 Assets
 Cash and short-term investments $29,645 $65,028 $66,232
 Accounts receivable, net 150,484 131,818 169,305
 Inventories
 Materials and supplies 55,657 54,693 62,779
 In process and finished 94,564 94,065 94,575
 LIFO reserve (21,631) (24,151) (23,409)
 128,590 124,607 133,945
 Prepaid and deferred expenses 38,600 40,014 31,775
 Total current assets 347,319 361,467 401,257
 Property, plant and equipment,
 at cost, net 308,733 298,869 299,774
 Excess of cost over
 net assets of business
 acquired 69,557 49,683 52,642
 Other assets 84,215 72,006 66,303
 $809,824 $782,025 $819,976
 Liabilities & Shareholders' Equity:
 Current installments
 of long-term debt, $ 2,962 $ 2,768 $ 2,349
 Accounts payable 70,787 70,954 81,608
 Accrued liabilities and taxes 77,730 72,105 70,237
 Current environmental reserves 2,459 3,155 21,834
 Dividends payable 5,353 5,339 5,328
 Total current liabilities 159,291 154,321 181,356
 Long-term debt 197,719 179,024 188,038
 Deferred items 79,037 72,202 69,039
 Long-term environmental reserves 14,986 14,045 8,600
 Minority interests 50,019 46,819 46,732
 Shareholders' equity:
 Common stock and paid-in capital 36,883 36,434 34,172
 Retained earnings 306,085 309,157 302,136
 Currency translation effects (20,580) (16,361) 2,914
 Treasury stock (13,616) (13,616) (13,011)
 Total shareholders' equity 308,772 315,614 326,211
 Total $809,824 $782,025 $819,976
 Equity per share $ 12.69 $ 12.98 $ 13.46
 -0- 7/15/93
 /CONTACT: Kathleen Burdett or John D. Thompson, 203-627-9051, or Kevin Costello, 212-644-9560, all for Dexter Corporation/
 (DEX)


CO: Dexter Corporation ST: Connecticut IN: SU: ERN

LD-MP -- NY091 -- 2270 07/15/93 18:28 EDT
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Date:Jul 15, 1993
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