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DRAVO CORPORATION ISSUES EARNINGS

 DRAVO CORPORATION ISSUES EARNINGS
 PITTSBURGH, April 23 /PRNewswire/ -- Dravo Corporation (NYSE: DRV)


today reported first-quarter earnings of $954,000, or 2 cents per share, on revenue of $61.5 million.
 During the same period a year ago Dravo lost $718,000, or 9 cents per share, on revenue of $62.9 million. First-quarter earnings include a 1-cent-per-share extraordinary gain resulting from the use of tax loss carryforwards which reduce tax liabilities.
 Cautioning that the company's lime and construction aggregates operations continue to confront recessionary conditions in their respective markets, Dravo President and Chief Executive Officer Carl A. Torbert Jr. said, "In light of both the challenging economic conditions we expect for the balance of the year, and the extent to which our first-quarter results have always been pressured by the effects of late-winter weather on construction activity, we're especially pleased to see a positive first-quarter outcome."
 Torbert noted that this year's first-quarter results include a one-time gain of approximately $700,000 resulting from the sale of Dravo's asphaltic concrete business in Mobile, Ala. Torbert reported no new developments on the company's discontinued operations other than the settlement of the pipe fabrication-related class action suit in Texas reported in Dravo's 1991 annual report.
 Commenting on results from continuing operations, Torbert pointed out that Dravo Lime's tonnage, revenue and income levels were all higher than a year ago because the effects of last year's major positive developments -- deliveries to a new utility lime customer, and shipments from a new kiln at Dravo Lime's Longview plant -- were not realized until the second quarter of 1991. Characterizing conditions in the construction industry as being essentially unchanged compared to a year ago, Torbert explained that while Dravo Basic Materials Company continues to successfully shift its strategic product emphasis toward crushed limestone, revenue and gross profits totals reflect lackluster levels of product demand in most market areas.
 "Although we've seen few signs of recovery in the general economy, we continue to believe that a number of factors could result in a substantial increase later this year in infrastructure-related construction activity. Chief among these, of course, is the additional federal highway funding authorized under last year's Intermodal Surface Transportation Efficiency Act. It is difficult to predict when the new federally funded projects will actually advance, but we regard the actions being taken by state governments to generate the required state matching funds as an important step in that direction."
 On a longer term basis, Torbert reported good progress on Dravo's pending utility lime expansions. "The two largest sulfur-dioxide control systems awarded to date as a result of the 1990 Clean Air Act Amendments are both lime-based systems, and during the first quarter we submitted a firm proposal to supply one of these systems. The second should be bid by mid-year. Permitting, preliminary engineering and financing activities related to our utility lime production expansion projects are proceeding on schedule. Assuming contract awards by year-end, field construction should begin by the middle of next year," Torbert estimated.
 Convening prior to the annual meeting of shareholders, Dravo's board of directors declared a dividend of 61-7/8 cents per share on the $2.475 cumulative Series B preference stock, and a dividend of $3.0875 per share on the Series D cumulative convertible exchangeable preference stock, both payable July 1, 1992, to shareholders of record June 19, 1992.
 DRAVO CORPORATION AND SUBSIDIARIES
 Condensed Statements of Operations
 (Unaudited: $ in 000's, except per share data)
 Quarters Ended March 31 1992 1991
 Revenue $61,450 $62,918
 Earns. (loss) bef. taxes & extraord. item 1,044 (718)
 Provision for income taxes 282 0
 Earnings (loss) before extraordinary item 762 (718)
 Extraordinary item 192 0
 Net earnings (loss) 954 (718)
 Shares used in computation
 of earnings per share 14,822 14,799
 Earnings (loss) per common shares:
 Continuing operations $0.01 $(0.09)
 Extraordinary item $0.01 $0.00
 Total $0.02 $(0.09)
 -0- 4/23/92
 /CONTACT: Ron Sommer of Dravo, 412-566-5597/
 (DRV) CO: Dravo Corporation ST: Pennsylvania IN: CST SU: ERN


DM-JT -- PG017 -- 1969 04/23/92 14:05 EDT
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Publication:PR Newswire
Date:Apr 23, 1992
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