Printer Friendly

ELCOR EXPECTS SECOND & THIRD QUARTER EARNINGS FROM CONTINUING OPERATIONS TO SUBSTANTIALLY EXCEED EARLIER SECURITY ANALYSTS' EXPECTATIONS

 DALLAS, Jan. 6 /PRNewswire/ -- Elcor Corporation (NYSE: ELK) today announced it expects that both the fiscal 1993 second and third quarters will generate about $.35 per share in earnings from continuing operations. Earnings totaling $.70 per share for both periods would be substantially higher than current security analyst expectations ranging from $.30 to $.41 per share for the two quarters combined. Elcor also believes earnings for its fiscal year ending June 30, 1993 could exceed $1.60 per share, a figure substantially better than current analyst estimates calling for $1.10 to $1.25 per share.
 The company cited continuing strong demand and improved prices for its core roofing products business and growing demand and profitability for its industrial products business as the primary reasons for substantially higher earnings for its second quarter ending Dec. 31, 1992 and its third quarter ending March 31, 1993.
 In addition, the company said it entered into a new loan agreement effective Dec. 31, 1992, which should cut its borrowing costs by about one-third and also contribute to higher earnings.
 According to Roy E. Campbell, chairman, president and chief executive officer, "At this point, it is not unreasonable to assume that Elcor can achieve earnings per share from continuing operations of about $.35 per share for the second quarter, compared to security analysts' estimates of $.20 to $.27 per share. Earnings from continuing operations in the second quarter last year were $.05 per share.
 "For the third quarter ending March 31, 1993, it appears that Elcor's earnings from continuing operations should match or exceed expected earnings of about $.35 per share for this year's second quarter, as compared to a loss of $.05 per share last year in this seasonally slowest quarter. Security analysts have been estimating about $.10 to $.14 per share for the third quarter.
 "This year's third quarter sales and operating income for both the Roofing Products and Industrial Products Groups should benefit from higher shipments and improved prices. In addition, we believe the Industrial Products Group should make a significant contribution to operating income during the third quarter after operating at about break-even levels during the first two quarters.
 "At this time, it appears that earnings in the fourth quarter should be somewhat better than $.35 per share, compared to analysts' estimates of $.28 to $.32 per share. In the year-ago quarter Elcor earned $.27r? share.
 "While adverse winter and spring weather conditions in some parts of the country can always delay or slow down roofing consumption, and thereby affect quarterly results, we now expect earnings per share from continuing operations for fiscal year 1993 should be more than $1.60 per share, compared to fiscal year 1992 earnings of $.59 per share. Accordingly, security analysts' estimates of $1.10 to $1.25 per share for fiscal 1993 are now believed to be too conservative," Campbell said.
 Elcor vice president and chief financial officer, Richard J. Rosebery, said, "Continuing strong cash flow during the second quarter ending Dec. 31, 1992 allowed Elcor to further reduce total debt by about $5.2 million, or 22 percent, to $18,486,000 from $23,680,000 at Sept. 30, 1992. For the six months ending Dec. 31, 1992, Elcor reduced total debt by about $12 million, or 39 percent, from $30,457,000 at fiscal year ending June 30, 1992.
 "Elcor's financial position continues to show dramatic improvement. At December 31, 1992 Elcor's ratio of total debt to total capital should be less than 40 percent, as compared to about 60 percent at June 30, 1992.
 "Continuing strong cash flow should further strengthen Elcor's balance sheet while providing financial resources to take advantage of internal growth opportunities.
 "On Dec. 31, 1992, Elcor entered into a new loan agreement providing up to $36,755,000 of credit facilities at substantially lower interest rates. Under the new agreement, interest rates will vary, based on the company's ratio of total debt to total capital. With the significantly improved balance sheet at Dec. 31, 1992, the present level of interest rates should be reduced by about one-third from the prior loan agreement. The sharply reduced interest rates, along with the significantly reduced level of debt during the second half of the fiscal year ending June 30, 1993, should also contribute to higher earnings," he concluded.
 Elcor manufactures roofing products and industrial products. Each of Elcor's principal operating subsidiaries is the leader or one of the leaders within its particular market. Its common stock is listed on the New York Stock Exchange (ticker symbol: ELK).
 Elcor's roofing products facilities are located in Tuscaloosa, Alabama; Dallas and Ennis, Texas. Its industrial products facilities are located in Cleveland; Dallas, Lufkin, Midland and Waco, Texas.
 For more information on Elcor Corporation, simply dial 800-PRO-INFO and enter the number 055.
 -0- 1/6/93
 /CONTACT: Richard J. Rosebery, vice president, treasurer and chief financial officer of Elcor Corporation, 214-851-0500/
 (ELK)


CO: Elcor Corporation ST: Texas IN: SU: ERP

TS -- NY042 -- 2225 01/06/93 13:12 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jan 6, 1993
Words:835
Previous Article:TRIBUNE BROADCASTING BUYS RADIO STATIONS KOSI-FM AND KEZW-AM IN DENVER
Next Article:WILLIAM C. FLOERSCH RE-ELECTED AS CBOE VICE CHAIRMAN OF THE BOARD; TWO PUBLIC DIRECTORS REAPPOINTED
Topics:


Related Articles
ELCOR ACHIEVES FAVORABLE DEBT REFINANCING; FISCAL 1992 NET INCOME TO BENEFIT BY $1.9 MILLION, OR $.25 PER SHARE
ELCOR REPORTS HIGHER THAN ANTICIPATED FOURTH QUARTER AND FISCAL 1992 RESULTS; FISCAL 1993 NOW EXPECTED TO SURPASS EARLIER PROJECTIONS
ELCOR OUTLOOK FOR SHARPLY HIGHER EARNINGS CONTINUES TO BE EXCELLENT
ELCOR REPORTS HIGHER SALES AND OPERATING EARNINGS FOR FIRST QUARTER OF FISCAL 1994
ELCOR REPORTS BETTER EPS THAN EXPECTED FOR SECOND QUARTER ON LOWER SALES AND EARNINGS THAN LAST YEAR; CORE ROOFING PRODUCTS PERFORMED WELL
ELCOR PROVIDES MID-YEAR UPDATE; EXPECTS ADJUSTMENT IN FISCAL YEAR PROFIT OUTLOOK DUE TO MARKET CONDITIONS
DESPITE LOWER THIRD QUARTER RESULTS, ELCOR SEES STRONG ROOFING PRODUCTS DEMAND SETTING THE STAGE FOR A FISCAL 1996 SALES AND EARNINGS TURNAROUND
ELCOR EXPECTS FISCAL 1996 SALES AND EARNINGS WILL BE HIGHER THAN LAST YEAR, BUT EARNINGS WILL BE LOWER THAN EXPECTED
Elcor Reports Higher Fiscal 1997 Third Quarter Sales and Earnings; Also Expects Higher Fourth Quarter Results
Elcor Reports Sharply Higher Sales and Earnings For Its Fourth Quarter and Fiscal 1997;

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters