Printer Friendly

FEDERAL SIGNAL CORP. ANNOUNCES 12 PERCENT INCREASE IN 1992 THIRD QUARTER NET INCOME

 FEDERAL SIGNAL CORP. ANNOUNCES 12 PERCENT INCREASE
 IN 1992 THIRD QUARTER NET INCOME
 OAK BROOK, Ill., Oct. 15 /PRNewswire/ -- Federal Signal Corp. (NYSE: FSS) continued to achieve record quarterly earnings as it earned $.27 per share in the third quarter, 12 percent higher than the $.24 per share reported in last year's third quarter. The company has now achieved 24 consecutive quarters of earnings increases over prior year quarters. Incoming orders and sales increased over last year's third quarter with both reaching record third quarter highs.
 Net income of $9.3 million rose 12 percent over the $8.3 million reported in the prior year's third quarter. Sales increased to a record $135.5 million, 16 percent higher than the $116.6 million achieved in 1991's third quarter. New business also increased 16 percent over last year's third quarter resulting in a backlog of $193.3 million.
 Sales for the first nine months were $387.2 million, 12 percent higher than the same period a year ago. Net income of $24.8 million was 10 percent higher than last year's first nine months. Earnings per share increased to $.72, 11 percent above the $.65 reported in the same period last year.
 All four groups reported improvements in operating income in 1992's third quarter compared to a year ago. The Tool and Signal Groups reported substantial increases while the Sign and Vehicle Groups achieved modest improvements.
 Tool Group earnings increased 18 percent on a 19 percent increase in sales. These increases reflect substantial sales and earnings improvements in our die components and precision parts business as well as some strengthening in a portion of our carbide cutting tool business. While we believe our domestic markets to be essentially flat, we feel that this sales improvement results, in part, from an increase in our share of these markets. International sales were up sharply as we benefited from greater penetration of the Far East and European markets, the latter increase having been brought about largely by the acquisition of Schneider, a German tool company, in the second quarter.
 The Signal Group's sales increase of 28 percent resulted in a 24 percent increase in the group's earnings compared to last year's third quarter. Sales gains were posted at both Signal Products and Federal APD reflecting the recent healthy new business trends that carried into the third quarter. A 10 percent increase over the prior year's incoming order level in the third quarter continued the group's positive trend in orders as each business within the group contributed to this increase.
 The Sign Group again continued to realize the benefits of its ongoing strategic cost reduction programs. Despite a 1 percent sales decline from last year's third quarter, Sign posted a loss slightly lower than the $.3 million loss in the third quarter of 1991. Sign has posted steadily improving results in each of the last three quarters as a result of its reducing its breakeven point by nearly 20 percent since 1991. We still anticipate that Sign's results in the fourth quarter will approximate a near breakeven level.
 Vehicle Group earnings were up 2 percent over last year's third quarter while sales increased 16 percent. Each of the businesses in the Vehicle Group contributed to the sales increase. The small increase in earnings relative to the rise in sales is primarily attributable to two areas. First, the anticipated short-term effects of the Canadian recession continued to adversely affect Superior Emergency Vehicle's results. Secondly, substantial costs were incurred related to both product development and operational/organizational changes in the group's recently acquired businesses. Our optimism for increasing order levels for the Vehicle Group noted in our last report continues as the group's third quarter new business (excluding the effect of the companies acquired in late 1991) increased by 16 percent over prior year levels, similar to the 14 percent rise reported for the second quarter.
 Joseph J. Ross, chairman, president and chief executive officer, stated, "Our outlook remains unchanged from three months ago, as our prospects for the balance of 1992 are for continued increases in sales and earnings. While the economy still has not shown any meaningful improvement, we continue to experience solid increases in orders in three of our operating groups. Also, despite the continued softness in the Sign Group's markets, actions have been taken to improve its long- term as well as short-term profitability. The actions taken by the Sign Group and the improving order patterns in the other groups provide the basis for our expectations of record sales and earnings in 1992 and into 1993."
 Federal Signal Corp., listed on the New York Stock Exchange, is a manufacturer and worldwide supplier of public safety, signaling and communications equipment, fire trucks, ambulances, street sweeping vehicles, parking control equipment, custom on-premise signage, carbide cutting tools, precision punches and related die components.
 FEDERAL SIGNAL CORP.
 Consolidated Income Data
 For the Third Quarter and First Nine Months of 1992 and 1991
 Quarter Sept. 30: 1992 1991
 Revenues $135,513,000 $116,617,000
 Net income 9,275,000 8,315,000
 Share earns: Net income .27 .24
 Nine months:
 Revenues $387,239,000 $346,559,000
 Net income 24,782,000 22,571,000
 Share earns: Net income .72 .65
 -0- 10/15/92
 /CONTACT: Charles Campbell, 708-954-2020, for Federal Signal/
 (FSS) CO: Federal Signal Corp. ST: Illinois IN: TRN SU: ERN


LR -- NY068 -- 0452 10/15/92 12:55 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 15, 1992
Words:905
Previous Article:APPLE USA ROLLS OUT 'THE EASY WAY' PROMOTION
Next Article:LEADING FROZEN YOGURT MANUFACTURER TO RESTRUCTURE
Topics:


Related Articles
EXAR ANNOUNCES THIRD QUARTER RESULTS -- REVENUES INCREASE 23 PERCENT, NET INCOME UP 55 PERCENT, EPS GAIN 8 PERCENT
FEDERAL SIGNAL ANNOUNCES AN 11 PERCENT INCREASE IN CONTINUING OPERATIONS E.P.S. FOR 1991
EXAR ANNOUNCES YEAR END RESULTS -- REVENUES INCREASE 24 PERCENT, NET INCOME UP 51 PERCENT, EPS GAIN 23 PERCENT
COSTCO WHOLESALE ANNOUNCES THIRD-QUARTER, YEAR-TO-DATE THIRD-QUARTER OPERATING RESULTS FOR FISCAL 1992
RS FINANCIAL CORP. ANNOUNCES INCREASE IN EARNINGS FOR THIRD QUARTER AND NINE MONTHS
EXAR ANNOUNCES THIRD QUARTER RESULTS; NET INCOME UP 33 PERCENT; EPS GAIN 28 PERCENT
FEDERAL SIGNAL CORP. ANNOUNCES AN 11 PERCENT INCREASE IN NET INCOME FOR 1992 WITH FOURTH QUARTER; NET INCOME UP 14 PERCENT
FEDERAL SIGNAL CORP. ANNOUNCES A 15 PERCENT INCREASE IN NET INCOME IN 1993 FIRST QUARTER
JOHNSON PRODUCTS REPORTS HIGHER THIRD QUARTER INCOME FROM OPERATIONS, DECLARES QUARTERLY DIVIDEND
FEDERAL SIGNAL CORPORATION ANNOUNCES A 15 PERCENT INCREASE IN NET INCOME IN 1993 THIRD QUARTER

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