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DRAVO CORPORATION ISSUES EARNINGS

 PITTSBURGH, Jan. 29 /PRNewswire/ -- Dravo Corporation (NYSE: DRV) today announced earnings for the fourth quarter of 1992 of $2.0 million, or 9 cents per share, on revenue of $67.5 million.
 Dravo reported a loss for the fourth quarter of 1991 of $7.9 million, or 58 cents per share, on revenue of $73.9 million because of a $10.5 million provision for discontinued operations.
 Results for the fourth quarter of 1992 include an extraordinary gain of $374,000, or 3 cents per share, from the use of tax loss carryforwards which offset current tax expense. Fourth-quarter results from continuing operations totaled $1.6 million, or 6 cents per share, compared with $2.6 million, or 13 cents per share, for the same period a year ago.
 For 1992 as a whole, Dravo earned $11.9 million, or 63 cents per share, on revenue of $273 million. Dravo reported a loss for 1991 of $26.3 million on revenue of $295.7 million because of discontinued operations provisions during the second and fourth quarters. Profit totals for 1992 include an extraordinary gain of $1.6 million, or 11 cents per share, from the use of tax loss carryforwards. Dravo earned $10.3 million, or 52 cents per share, from continuing operations during 1992; during 1991 continuing operations earned $12.3 million, or 65 cents per share.
 "Our earnings picture for the fourth quarter reflects the market conditions we encountered during most of 1992," commented Carl A. Torbert Jr., Dravo's president and chief executive officer. "Poor construction weather at year's end exacerbated already difficult business conditions in a number of our contruction aggregates market areas.
 "Strong levels of demand during the quarter in several key merchant lime markets enabled our lime operations to maintain the improvement over the previous year's results we've seen since the beginning of 1992. However, the strength of this segment of our business was not sufficient to offset the decreases we experienced in basic materials sales tonnage, revenue and income.
 "Current market conditions give us reason to be optimistic regarding a return to stronger levels of sales volume in our basic materials business. Cost-reduction measures implemented late last year, coupled with improved economic conditions and continued success in our efforts to increase Dravo's share of non-construction markets for our basic materials products, are expected to improve the performance of our aggregates operations during 1993.
 "This is likely to be an extremely eventful year for the lime segment of our business, with final decisions expected by mid-year on two major lime supply contracts in our utility lime market area. Notwithstanding the extraordinarily high level of competition for this business within the U.S. lime industry, we are confident that our competitive advantages in this market will enable us to secure a substantial portion of this new business. Accordingly, we are proceeding with our planning, permitting, preliminary engineering, and financing activities in preparation for the plant expansions which will be required to support the anticipated expansion of our utility lime business."
 Commenting on Dravo's discontinued operations, Torbert reported that officials from the City of Long Beach, Calif., and Dravo are meeting in a cooperative effort to resolve their long-standing differences over the waste-to-energy plant built by Dravo for the Southeast Resource Recovery Facility in Long Beach. These meetings are part of the mediation process begun in December. "The parties expect this effort to take several months and if successful, may resolve the litigation," Torbert added.
 At their regular January meeting, Dravo's board of directors authorized a dividend of 61-7/8 cents per share on the $2.475 cumulative convertible Series B preference stock, and a dividend of $3.0875 per share on the Series D cumulative convertible exchangeable preference stock, both payable April 1, 1993, to shareholders of record March 22,1993.
 DRAVO CORPORATION AND SUBSIDIARIES
 Consolidated Statements of Operations
 (Unaudited; $ in 000's, except per share data)
 Periods Ended Quarters Years
 Dec. 31 1992 1991 1992 1991
 Revenue $67,530 $73,917 $272,979 $295,684
 Earnings before taxes from
 continuing operations 1,817 3,199 12,719 16,118
 Provision for income taxes 221 609 2,401 3,868
 Earns. from cont. opers. 1,596 2,590 10,318 12,250
 Loss on disposal of
 discontinued operations, net 0 (10,476) 0 (38,537)
 Earnings (loss) before
 extraordinary item 1,596 (7,886) 10,318 (26,287)
 Extraordinary item 374 0 1,573 0
 Net earnings (loss) 1,970 (7,886) 11,891 (26,287)
 Shares used in the computation
 of earnings per share 14,842 14,809 14,833 14,803
 Earnings (loss) per share:
 Continuing operations $0.06 $0.13 $0.52 $0.65
 Discontinued operations $0.00 $(0.71) $0.00 $(2.60)
 Extraordinary item $0.03 $0.00 $0.11 $0.00
 Total $0.09 $(0.58) $0.63 $(1.95)
 -0- 1/29/93
 /CONTACT: Ron Sommer of Dravo, 412-566-5597/
 (DRV)


CO: Dravo Corporation ST: Pennsylvania IN: CST SU: ERN

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Date:Jan 29, 1993
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