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DEXTER REPORTS SECOND QUARTER EARNINGS INCREASE ON RECORD SALES

 DEXTER REPORTS SECOND QUARTER EARNINGS INCREASE ON RECORD SALES
 WINDSOR LOCKS, Conn., July 15 /PRNewswire/ -- The Dexter Corporation (NYSE: DEX), a leading specialty materials producer, reported that sales for the second quarter of 1992 were a record $252.7 million, a 6 percent increase over sales of $238.0 million in the second quarter of last year.
 Earnings for the quarter were $11.6 million, or 48 cents per share, more than doubling the 20 cents per share reported in the same period last year. Included in the 1992 second quarter results were divestiture and restructuring activities, which taken together, had a 3 cents per share positive impact on earnings per share. Second quarter 1991 pretax results were reduced by $3.9 million, or 15 cents per share for the "provision for environmental settlement costs and related legal fees" and by $1.1 million or 3 cents per share for restructuring activities. Earnings from operations exclusive of these transactions were 45 cents per share for the three month period ended June 30, 1992, or 18 percent higher than the 38 cents per share for the 1991 period excluding such transactions.
 Sales for the first half of 1992 were $495.8 million a 5 percent increase over sales of $473.0 million for the first half of 1991. Earnings for the first six months of 1992 excluding divestiture and restructuring activities were 82 cents per share yielding a 19 percent increase over the 69 cents per share in the first half of 1991 excluding the "provision for environmental settlement costs" and restructuring activities.
 On June 30 1992, Dexter completed the sale of The Mogul Corporation to Diversey Corporation. This transaction produced an $11.5 million pretax gain, or 28 cents per share, A $9.6 million, or 25 cents per share, charge for restructuring businesses in the second quarter of 1992 substantially offset the earnings per share impact of this gain. Approximately one-third of this charge was provided for costs associated with severance and early retirement programs in the United States and Europe with an additional one-third relating to the consolidation of facilities as the company continues to realign its operations to improve profitability and shareholder value. Also effective June 30, 1992, the composites business was sold. There was not net gain or loss on that sale as the business had been written down to net realizable value during the fourth quarter of 1991.
 Commenting on the quarter, K. Grahame Walker, president and chief executive officer said, "We are particularly encouraged by the second quarter results as they confirm our ability to continue to improve our operating profitability without any significant improvement in the economy. Further benefits from our restructuring program are expected to have a continued positive impact on 1992 results."
 The 6 percent increase in sales for the second quarter of 1992 comprised a 3 percent increase in unit volume, a 2 percent increase due to the effect of higher currency translation rates on international sales and price increases averaging 1 percent.
 Products with strong sales performance in the second quarter of 1992 compared with last year include aerospace adhesives, acoustic materials serving the automotive market, electronic encapsulation materials, beverage container coatings serving the international markets and at majority-owned Life Technologies, Inc., molecular biology and cell culture products.
 Consolidated gross margins of 33.4 percent for the second quarter of 1992 was slightly lower than 33.7 percent in the same period last year almost entirely due to the impact of lower gross margins at Life Technologies, Inc. This decrease in margin resulted from lower margins on fetal bovine serum due to higher sales of that product line to industrial customers.
 Marketing and administrative expense increased at a rate substantially lower than sales as a result of restructuring and cost containment programs. Research and development expenses were 4 percent lower than in the second quarter of 1991 principally due to lower spending at Life Technologies.
 Interest expense increased $.9 million, or 25 percent in the second quarter of 1992 compared with the same period in 1991 due to a higher level of long-term borrowings.
 The consolidated effective tax rate was 38.8 percent in the second quarter of 1992 compared with a 47.1 percent rate for the 1991 period. An effective tax rate of 37 percent was applied to results other than the 1992 gain on divestiture, which was subject to a higher tax rate, and the provision for environmental settlement costs in the 1991 second quarter, most of which was not tax deductible.
 The increase in cash and short-term investments at June 30, 1992, is principally related to the proceeds from the sale of The Mogul Corporation.
 The Dexter Corporation is a Fortune 500 company producing specialty materials and supporting services to customers in five strategic 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)
 Periods ended: Three months Percent Six months Percent
 June 30 1992 1991 change 1992 1991 change
 Aerospace $12,610 $11,242 12 $25,463 $23,298 9
 Automotive 17,844 13,992 28 32,878 25,728 28
 Electronics 35,608 29,005 23 69,432 57,706 20
 Food Packaging 58,945 57,019 3 115,666 114,889 1
 Medical 69,126 61,628 12 133,289 124,692 7
 Other 58,554 65,064 (10) 119,112 126,690 (6)
 Consolidated $252,687 $237,950 6 $495,840 $473,003 5
 The net effect of businesses acquired or divested increased net sales of the Aerospace market by $1.1 million for the quarter and $1.5 million year-to-date. The effect of acquired businesses increased net sales of the Electronics market by $2.8 million for the quarter and $5.5 million year-to-date. Business divestitures caused a decrease in net sales of $3.2 million in the quarter and $5.8 million year-to-date in the "Other" category.
 THE DEXTER CORPORATION
 Consolidated Statement of Financial Position
 (In thousands of dollars, except per-share amounts)
 6/30/92 12/31/91 6/30/91
 Assets:
 Cash and short-term investments $66,232 $39,734 $27,526
 Accounts receivable, net 169,305 152,169 155,963
 Inventories:
 Materials and supplies 62,779 63,324 59,386
 In process and finished 94,575 97,652 89,217
 LIFO reserve (23,409) (23,617) (25,041)
 Total 133,945 137,359 123,562
 Prepaid and deferred expenses 31,775 33,165 20,491
 Total current assets 401,257 362,427 327,542
 Property, plant & equip., at cost, net 299,774 299,342 274,350
 Excess of cost over net assets of
 businesses acquired 52,642 54,021 56,385
 Other assets 66,303 68,681 64,718
 Total 819,976 784,471 722,995
 Liabilities and shareholders' equity:
 Short-term debt -- -- 7,550
 Current installments of long-term debt 2,349 2,590 7,577
 Accounts payable 81,608 78,399 71,916
 Accrued liabilities and taxes 92,071 82,252 58,159
 Dividends payable 5,328 5,313 5,313
 Total current liabilities 181,356 168,554 150,515
 Long-term debt 188,038 188,702 139,826
 Deferred items 77,639 69,595 62,440
 Minority interests 46,732 43,838 39,216
 Shareholders' equity:
 Common stock and paid-in capital 34,172 33,320 33,303
 Retained earnings 302,136 292,278 321,752
 Currency translation effects 2,914 1,845 (10,373)
 Treasury stock (13,011) (13,661) (13,684)
 Total shareholders' equity 326,211 313,782 330,998
 Total 819,976 784,471 722,995
 Equity per share $13.46 $12.99 $13.71
 THE DEXTER CORPORATION
 Statement of Income
 (In thousands of dollars, except per-share amounts)
 Three Months Ended Six Months Ended
 Pct. Pct.
 June 30 1992 1992 Change 1992 1991 Change
 Revenues:
 Net sales $252,687 $237,950 6 $495,840 $473,003 5
 Other income 1,184 1,275 (7) 2,144 3,691 (42)
 Total 253,871 239,225 6 497,984 476,694 4
 Expenses:
 Cost of sales 168,323 157,815 7 328,929 315,982 4
 Marketing & admin. 50,200 49,837 1 100,868 99,294 2
 Research & devel. 10,504 10,943 (4) 21,485 21,518 --
 Interest 4,722 3,783 25 9,484 7,904 20
 Prov. for enviro.
 settlement costs &
 related legal fees -- 3,863 -- -- 4,727 --
 Divest. & restruct.
 activities
 Gain on divest. of
 product lines (11,476) -- -- (11,476) -- --
 Charge for restruct.
 businesses, net 9,618 1,135 -- 9,618 1,135 --
 Income bef. taxes 21,980 11,849 +86 39,076 26,134 +50
 Income taxes 8,534 5,586 +53 14,860 10,872 +37
 Inc. bef. minority
 interests 13,446 6,263 +115 24,216 15,262 +59
 Minority interests 1,882 1,466 +28 3,711 3,533 +5
 Net income 11,564 4,797 +141 20,505 11,729 +75
 Net income per share $.48 $.20 +140 $.85 $.49 +73
 Dividends declared
 per share .22 .22 -- .44 .44 --
 Average shares
 outstanding (000) 24,200 24,146 -- 24,178 24,142 --
 -0- 7/15/92
 /CONTACT: Robert E. McGill, III, Kathleen Burdett or John D. Thompson, 203-627-9051, or Kevin Costello, 203-644-9560, all of Dexter/
 (DEX) CO: Dexter Corporation ST: Connecticut IN: ARO SU: ERN


PS-TK -- NY048 -- 9578 07/15/92 13:16 EDT
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Date:Jul 15, 1992
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