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DURACELL INTERNATIONAL REPORTS HIGHER SECOND QUARTER SALES AND NET INCOME

 DURACELL INTERNATIONAL REPORTS
 HIGHER SECOND QUARTER SALES AND NET INCOME
 BETHEL, Conn., Jan. 30 /PRNewswire/ -- Duracell International Inc. (NYSE: DUR) today reported that net income for the quarter ended Dec. 28, 1991, rose 78 percent to $99 million, on a 5 percent sales increase.
 Earnings per share were $.85 versus $.83 before an $.08 per share extraordinary charge in last year's second quarter, which reduced net earnings to $.75 per share. The charge related to refinancing of foreign debt. Second quarter earnings per share reflect 117 million weighted average shares outstanding in the quarter, up sharply from the 74 million shares in the prior year period, principally due to stock offerings in May and October 1991.
 The sales increase for the quarter resulted from a 7 percent alkaline volume gain driven by Europe, Latin America, and the Pacific Rim, combined with price increases in the United States and Europe. This more than offset the $14 million negative impact from changes in foreign exchange rates for the quarter. Operating income improved 9 percent, as gross margin increases more than offset higher operating expenses, primarily advertising and promotion. A $31 million reduction in interest expense also contributed to the increase in net income. Changes in foreign exchange rates reduced net income by $1 million.
 For the six month period ended Dec. 28, 1991, Duracell reported a 7 percent sales increase to $987 million. Operating income rose 13 percent to $220 million. Net income for the period was up 63 percent to $100 million, or $.87 per share, from $61 million, or $.83 per share. Earnings per share before extraordinary items for the six months were $1.21 versus $.91 in the prior year. The impact of extraordinary items was $.34 per share in the current year, the result of a first quarter charge for costs related to the repurchase of subordinated debt and $.08 per share related to the prior year's refinancing. Year-to-date, weighted average shares outstanding were 115 million versus 74 million last year.
 Commenting on the second quarter, C. Robert Kidder, Duracell's chairman and chief executive officer, said, "Seven percent alkaline volume growth at a time of recession in the U.S., Canada, the U.K. and Australia is encouraging. Growth from our operations in Europe, Latin America, and the Pacific Rim was particularly strong. We would have preferred stronger volume growth in the U.S., but slower volume growth is not surprising given the economic conditions in the U.S. retail market. We continue to believe we will deliver results for the year that are in line with expectations."
 Duracell International Inc., headquartered in Bethel, Conn., is the world's leading manufacturer and marketer of high-performance alkaline batteries. Duracell's batteries are sold throughout the world, primarily under the DURACELL\ trademark.
 DURACELL INTERNATIONAL INC.
 Statements of Consolidated Operations
 (Units/$ in millions, except per share amounts)
 (Unaudited)
 Quarter Ended Six Months Ended
 12/28/91 12/29/90 Pct. 12/28/91 12/29/90 Pct.
 Chg. Chg.
 Alkaline unit volume 713.0 663.5 7 1,203.3 1,102.3 9
 Sales $588.5 $558.2 5 $987.2 $921.9 7
 Cost of sales 199.4 204.8 (3) 349.7 350.0 --
 Gross profit 389.1 353.4 10 637.5 571.9 11
 Gross margin (pct.) 66.1 63.3 2.8pp 64.6 62.0 2.6pp
 Sell., gen. & admin.
 exps.:
 Adv. & promotion 133.1 120.6 10 213.7 192.3 11
 Other 110.6 98.9 12 204.1 185.8 10
 Total 243.7 219.5 11 417.8 378.1 10
 Operating income 145.4 133.9 9 219.7 193.8 13
 Operating margin(pct) 24.7 24.0 .7pp 22.3 21.0 1.3pp
 Interest expense 20.4 51.2 (60) 47.0 101.1 (54)
 Other income (exp.) 1.0 (3.1) -- 1.1 (3.9) --
 Inc. bef. extraord.
 items & inc. taxes 126.0 79.6 58 173.8 88.8 96
 Effective tax rate
 (percent) 21.3 23.1 (1.8pp) 19.9 24.8(4.9pp)
 Provision for inc.
 taxes 26.9 18.4 46 34.6 22.0 57
 Inc. bef. extraord.
 items 99.1 61.2 62 139.2 66.8 108
 Extraord. items -- (5.5) -- (39.0) (5.5) 609
 Net income 99.1 55.7 78 100.2 61.3 63
 Per share amounts:
 Inc. bef. extraord.
 items $.85 $.83 $1.21 $.91
 Extraord. items -- (.08) (.34) (.08)
 Net income .85 .75 .87 .83
 Weighted avg. shrs.
 & shr. equivalents
 outstanding 117.2 74.0 115.2 73.8
 Geographic segments:
 Sales:
 North America(A) $302.2 $280.9 8 $528.2 $483.4 9
 Europe 226.3 226.1 -- 353.4 350.5 1
 Other intl. mkts. 60.0 51.2 17 105.6 88.0 20
 Total 588.5 558.2 5 987.2 921.9 7


Operating income:
 North America(A) $ 95.7 $ 83.4 15 $158.6 $133.0 19
 Europe 56.5 55.6 2 77.6 75.2 3
 Other intl. mkts. 9.9 8.8 13 15.0 12.1 24
 Total 162.1 147.8 10 251.2 220.3 14
 Corporate (16.7) (13.9) (20) (31.5) (26.5)(19)
 Total 145.4 133.9 9 219.7 193.8 13
 (A) -- Consists of the United States and Canada.
 DURACELL INTERNATIONAL INC.
 Consolidated Balance Sheets
 (In millions, except per share amounts)
 12/28/91 6/30/91
 (Unaudited)
 ASSETS
 Current assets:
 Cash and cash equivalents $ 10.2 $ 5.5
 Accounts receivable, less allowance
 of $22.5 and $15.6 425.7 227.2
 Inventories 166.1 179.8
 Prepaid and other current assets 27.2 23.8
 Total current assets 629.2 436.3
 Property, plant & equipment, net of
 accumulated depreciation of $118.2
 & $99.0 331.4 312.0
 Intangibles, net of accumulated
 amortization of $176.2 and $142.3 1,310.8 1,285.9
 Deferred financing costs 8.6 18.3
 Other assets 1.8 1.6
 Total assets 2,281.8 2,054.1
 LIABILITIES & EQUITY
 Current liabilities:
 Accounts payable $ 97.5 $ 101.6
 Short-term borrowings & current
 portion of long-term debt 65.4 26.2
 Accrued liabilities 242.9 160.1
 Total current liabilities 405.8 287.9
 Long-term debt 731.3 897.1
 Deferred income taxes 75.4 64.2
 Other non-current liabilities 92.0 88.8
 Total liabilities 1,304.5 1,338.0
 Commitments and contingencies
 Equity:
 Common stock & capital surplus 986.6 846.3
 Accumulated deficit (34.1) (134.3)
 Accumulated translation adjustment 24.8 4.1
 Total equity 977.3 716.1
 Total liabilities and equity 2,281.8 2,054.1
 Book value per share $8.76 $6.76
 Shares of common stock outstanding 111.6 106.0
 Total debt to capital ratio (pct.) 45 56
 DURACELL INTERNATIONAL INC.
 Statements of Consolidated Cash Flows
 (Unaudited--In millions)
 For the Six Fiscal Months Ended 12/28/91 12/29/90
 Operating activities:
 Income before extraordinary items $139.2 $ 66.8
 Adjustments to reconcile income before
 extraordinary items to cash provided by
 operating activities:
 Depreciation 17.6 17.5
 Amortization 24.1 24.3
 Non-cash interest 5.7 33.6
 Other non-cash items (1.8) 5.0
 (Increase) decrease in:
 Accounts receivable (177.9) (156.6)
 Inventories 26.5 46.9
 Other working capital 62.3 59.7
 Cash provided by operating activities 95.7 97.2
 Investing activities:
 Purchase of property, plant & equipment (25.1) (10.5)
 Proceeds from sales of assets 3.7 .2
 Acquisition of business -- (10.3)
 Other .4 (.7)
 Cash used by investing activities (21.0) (21.3)
 Financing activities:
 Issuance of common stock 137.4 --
 Repurchase of subordinated debt (370.2) --
 Issuance of revolving credit
 borrowings, net 160.3 67.6
 Issuance (repayment) of commercial
 paper, net 16.6 (135.4)
 Premium on purchase of subordinated debt (32.0) --
 Net change in other borrowings & other 16.2 (2.4)
 Cash used by financing activities (71.7) (70.2)
 Effect of change rate changes on cash 1.7 .3
 Increase in cash and cash equivalents 4.7 6.0
 Cash & cash equivalents, beginning of period 5.5 8.9
 Cash & cash equivalents, end of period $ 10.2 $ 14.9
 Cash paid during the period for:
 Interest $ 48.9 $ 66.1
 -0- 1/30/92
 /CONTACT: Jim Donahue of Duracell International, 203-796-4654/
 (DUR) CO: Duracell International Inc. ST: Connecticut IN: HOU SU: ERN


TS-PS -- NY007 -- 5030 01/30/92 06:49 EST
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