Printer Friendly

FMC INCOME FROM CONTINUING OPERATIONS UP 11 PERCENT FROM 1991

 CHICAGO, Jan. 26 /PRNewswire/ -- FMC Corp. (NYSE: FMC) today reported full year 1992 income from continuing operations of $193 million before special charges, or $5.23 per share, compared with $173 million, or $4.77 per share in 1991. Sales rose 2 percent for the year to $4.0 billion.
 Earnings of $362 million before interest, taxes and special charges decreased slightly compared with the prior year. Performance Chemicals posted record sales and profits, resulting from continuing strong agricultural chemical results, and solid growth in food and pharmaceutical ingredients. Precious Metals reported higher profits on improved operating efficiencies and increased gold production at the Paradise Peak mine. Profits rose at Defense Systems, reflecting lower discretionary spending and favorable cost performance.
 Profits for Industrial Chemicals decreased as improved phosphorus chemical pricing was more than offset by recessionary market conditions in Europe, and lower lithium profitability due to increased spending associated with exploration and development of mineral resources in South America. Earnings for Machinery and Equipment fell, reflecting weaker markets for several of the food machinery businesses and domestic petroleum markets, partially offset by stronger international energy equipment results. Corporate expenses increased, driven by costs associated with the new regional organizations in Europe and Asia/Pacific.
 As previously announced, special charges recorded in 1992 include an after-tax charge of $184 million, or $4.99 per share, resulting from the early adoption of Financial Accounting Standard 106 (post-retirement benefits other than pensions), an after-tax charge to previously discontinued operations of $73 million, or $1.99 per share, for additional environmental and product liability requirements, and an after-tax extraordinary charge of $11 million, or $0.31 per share, related to the restructuring of debt.
 After special charges, the company reported a net loss for 1992 of $76 million, or $2.06 per share, compared with net income of $164 million, or $4.52 per share, in 1991. The 1991 results also included an after-tax extraordinary charge of $9 million, or $0.25 per share, related to the early retirement of high-coupon subordinated debt.
 Strong cash flows in 1992 allowed the company to fund strategic initiatives while further reducing debt. The company funded $220 million in capital spending during the year, plus the acquisition of Ciba-Geigy's worldwide flame retardant and water treatment chemicals businesses. Research and development expenditures rose 8 percent to $145 million, primarily due to higher spending in Performance Chemicals. At the same time, year-end debt was reduced $85 million to $907 million.
 Net interest expense in 1992 declined 23 percent to $83 million, due to the benefits of refinancing debt at favorable interest rates and lower outstanding debt.
 FOURTH QUARTER RESULTS
 For the fourth quarter, FMC reported sales of $1 billion, a slight decrease compared with the year-ago quarter. Income from continuing operations increased 4 percent to $31 million, or $0.85 per share, compared with $30 million, or $0.83 per share, last year.
 Earnings of $75 million before interest and taxes increased 4 percent compared with the prior-year quarter. Defense Systems profits improved in the quarter, while Food Machinery profits fell compared with the strong results recorded last year. Net interest expense declined $4 million, or 17 percent, to $19 million.
 After the charge to previously discontinued operations of $73 million, or $1.99 per share, the company reported a 1992 fourth quarter net loss of $42 million or $1.14 per share.
 QUARTERLY REVIEW OF OPERATIONS
 Industrial Chemicals sales decreased slightly to $270 million, but profits rose, due to improved domestic prices for phosphorus chemicals and strong growth in North America for hydrogen peroxide. Alkali Chemical results were comparable with the prior year as increased demand for soda ash offset lower export prices resulting from increased worldwide competition. The recessionary economy in Europe continued to affect the overseas chemical business. In the United States, the expected phaseout of phosphates in home laundry detergents is occurring more rapidly due to competitive pressures in the retail markets. The faster decline will limit the profit improvement potential for Phosphorus Chemicals in 1993.
 Performance Chemical sales of $154 million increased 24 percent, but profits fell primarily due to intensified competition in food ingredients. Fourth quarter sales benefited from the acquisition of Ciba-Geigy's worldwide flame retardant and water treatment chemicals businesses, which occurred in the first quarter of 1992. Stronger international agricultural chemical sales and the absence of shutdown expenses recorded in the prior-year quarter positively affected fourth quarter profits.
 Precious Metals sales fell 9 percent to $40 million, and profits decreased as lower realized gold prices and reduced silver production were partially offset by improved operating efficiencies. Average cash production costs decreased to $193 per gold equivalent ounce compared with $207 per ounce last year. Gold production increased slightly in the quarter to 101 thousand ounces compared with 100 thousand ounces last year.
 Defense Systems sales of $306 million declined 4 percent in the quarter, but profits improved primarily due to better cost performance. Defense Systems ended the year with a backlog of $1.3 billion compared with $1.9 billion at the end of 1991. During the quarter, FMC announced plans to combine its Defense Systems Group with Harsco's BMY Combat Systems Division. The proposed combination is expected to be finalized late in the second quarter, and will provide strategic value to both parties and significantly lower costs for our principal customer, the U.S. Army.
 Machinery and Equipment sales fell 6 percent in the quarter, and profits declined significantly compared with the strong results recorded last year. Weak demand in the U.S. petroleum industry and depressed markets across several of the food machinery product lines were partially offset by stronger transportation equipment shipments. Year- end backlog for Machinery and Equipment stood at $341 million compared with $343 million at the end of last year.
 OUTLOOK
 According to Robert N. Burt, FMC chairman, president and chief executive officer: "We are pleased with our 1992 performance and the actions that we completed that position us for growth. We made a major European acquisition, established our new global organization, paid down our debt by $85 million and refinanced $268 million of debt at lower interest rates."
 Burt noted that: "The next several years will be a transition period for the company as our defense business adapts to lower defense budgets and our gold mine at Paradise Peak ends production. The poor economic environment in Europe and Japan, and the accelerated trend to eliminate phosphates in the United States, will heighten our near-term challenges. We are well positioned in many strong markets, have an excellent organization and will continue to make the investments required for growth. I am confident we will meet our objective to grow the company profitably over the next five years."
 FMC CORP. AND CONSOLIDATED SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF INCOME
 (In millions, except per share amounts)
 (unaudited)
 THREE MONTHS YEAR
 ENDED DEC. 31, ENDED DEC. 31,
 1992 1991 1992 1991
 Sales $1,002.4 $1,007.9 $3,973.7 $3,899.4
 Other revenue 6.7 7.7 29.8 24.1
 Total revenue 1,009.1 1,015.6 4,003.5 3,923.5
 Operating costs 952.1 962.4 3,670.5 3,577.8
 Other (income) and
 expense, net (17.7) (18.7) (29.3) (17.6)
 Total costs and expenses 934.4 943.7 3,641.2 3,560.2
 Income from continuing operations
 before interest and taxes 74.7 71.9 362.3 363.3
 Interest expense (net) 19.3 23.4 82.7 107.4
 Income from continuing operations
 before income taxes 55.4 48.5 279.6 255.9
 Provision for income taxes 24.0 18.3 87.0 82.8
 Income from continuing
 operations 31.4 30.2 192.6 173.1
 Provision for discontinued
 operations, net of taxes 73.2 -- 73.2 --
 Income (loss) before extraordinary
 item and cumulative effect of
 change in accounting
 method (41.8) 30.2 119.4 173.1
 Extraordinary item,
 net of taxes -- -- 11.4 9.2
 Cumulative effect of change in
 accounting method,
 net of taxes -- -- 183.7 --
 Net income (loss) $ (41.8) $ 30.2 $ (75.7) $ 163.9
 Earnings per common share:
 Primary:
 Income from continuing
 operations $ 0.85 $ 0.83 $ 5.23 $ 4.77
 Provision for discontinued
 operations (1.99) -- (1.99) --
 Extraordinary item -- -- (0.31) (0.25)
 Cumulative effect of change in
 accounting method -- -- (4.99) --
 Net income (loss) $(1.14) $ 0.83 $ (2.06) $ 4.52
 Fully diluted:
 Income from continuing
 operations $ 0.84 $ 0.81 $ 5.04 $ 4.68
 Provision for discontinued
 operations (a) -- (a) --
 Extraordinary item -- -- (a) (0.24)
 Cumulative effect of change in
 accounting method -- -- (a) --
 Net income (loss) $ (a) $ 0.81 $ (a) $ 4.44
 Average number of shares used in
 earnings per share computations:
 Primary 36.9 36.4 36.8 36.3
 Fully diluted 39.7 39.6 39.7 37.6
 (A) Per share amounts are antidilutive.
 FMC CORP. AND CONSOLIDATED SUBSIDIARIES
 SUMMARIES OF SALES AND EARNINGS BY INDUSTRY SEGMENT (In millions)
 (unaudited)
 THREE MONTHS YEAR
 ENDED DEC. 31, ENDED DEC. 31,
 1992 1991 1992 1991
 SALES:
 Industrial Chemicals $ 270.4 $ 270.9 $1,029.0 $1,035.4
 Performance Chemicals 154.2 124.6 790.1 648.7
 Precious Metals 39.8 44.0 170.6 157.5
 Defense Systems 306.3 318.7 1,111.8 1,171.6
 Machinery and Equipment 235.7 250.5 882.3 891.5
 Eliminations (4.0) (0.8) (10.1) (5.3)
 $1,002.4 $1,007.9 $3,973.7 $3,899.4
 INCOME FROM CONTINUING OPERATIONS
 BEFORE INTEREST AND TAXES:
 YEAR ENDED
 DEC. 31,
 1992 1991
 Industrial Chemicals $ 91.9 $ 102.1
 Performance Chemicals 121.3 101.1
 Precious Metals 36.4 28.7
 Defense Systems 167.2 160.2
 Machinery and Equipment 32.1 46.2
 Corporate (115.9) (92.6)
 Other income and (expense), net 29.3 17.6
 $ 362.3 $ 363.3
 -0- 1/26/93
 /CONTACT: Pat Brozowski, media relations, 312-861-6104; or Chuck Thomas, investor relations, 312-861-6678, both of FMC Corp./
 (FMC)


CO: FMC Corp. ST: Illinois IN: CHM SU: ERN

PS -- NY057 -- 9084 01/26/93 12:39 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 26, 1993
Words:1691
Previous Article:FEDERAL SIGNAL CORP. ANNOUNCES AN 11 PERCENT INCREASE IN NET INCOME FOR 1992 WITH FOURTH QUARTER; NET INCOME UP 14 PERCENT
Next Article:FMC GOLD REPORTS FOURTH QUARTER RESULTS
Topics:


Related Articles
FMC REPORTS 1991 RESULTS
FMC REPORTS SECOND QUARTER EARNINGS
FMC INCOME FROM CONTINUING OPERATIONS UP 11 PERCENT FROM 1991
FMC REPORTS SECOND QUARTER RESULTS
FMC REPORTS SECOND QUARTER RESULTS
FMC REPORTS 1993 RESULTS
FMC REPORTS THIRD QUARTER RESULTS
FMC REPORTS FIRST QUARTER RESULTS, NET INCOME UP 14 PERCENT
FMC Reports Fourth Quarter, 1996 Year-End Results
FMC Reports Fourth Quarter, 1997 Year-End Results

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