FUQUA INDUSTRIES, INC. REPORTS 1991 RESULTS
FUQUA INDUSTRIES, INC. REPORTS 1991 RESULTS ATLANTA, Feb. 24 /PRNewswire/ -- Fuqua Industries, Inc.
(NYSE: FQA) today announced results for 1991. These results are consistent with preliminary results announced on Jan. 29.
During 1991, Fuqua established reserves of $10.9 million after-tax and minority interest, of which $5.0 million was recorded in the fourth quarter, primarily for photofinishing plant consolidations related to fourth quarter acquisitions at Qualex and for costs anticipated in reducing the size of Fuqua's corporate staff. In addition to those reserves, the company incurred restructuring charges at Snapper in the fourth quarter for obsolete and excess inventory plus increased promotional costs. As a result, Fuqua reported a net loss of $50.8 million or $3.08 per share for the year ended Dec. 31, compared with a net loss of $235,000 or $.01 per share in 1990. The 1990 results also included reserves of $17.0 million after-tax and minority interest primarily for the costs associated with plant consolidations and relocations at Snapper and Qualex. Sales for 1991 were $925 million compared to $972 million for 1990. The primary reason for the sales decrease was the curtailment of production at Snapper in order to reduce inventory levels at distributors and dealers to enable future production to better match anticipated retail sales. Fuqua's fourth quarter net loss of $26.8 million, or $1.62 per share, compares to a loss of $14.6 million, or $.89 per share, for the same period of 1990. Sales for the quarter were $242 million in 1991 and $236 million in 1990. "This was a transitional year for Fuqua as we repositioned our major businesses for improved and more consistent performance for 1992 and beyond," said Fuqua's President and Chief Executive Officer Charles "Red" Scott. Scott predicted a net loss for 1991 in the earnings release for 1990 as he discussed at that time the necessity of reducing 1991 production and shipments to distributors in order to reduce inflated Snapper inventories at the retail level. Scott commented: "Snapper accomplished its goals of reduced inventory by year-end 1991. At retail, our inventories are at an eight-year low, down 40 percent from year-end 1990. We are now poised to match production and shipment with retail sales." Turning to Qualex, Fuqua's largest company which is jointly owned with Eastman Kodak Company (NYSE: EK), Scott said: "Qualex made several significant acquisitions in the fourth quarter of 1991. In addition to adding to our revenue base, these acquisitions enable Qualex to consolidate a number of photofinishing labs, thus helping us achieve our eventual goal of becoming the low-cost producer in the photofinishing business." The costs associated with these lab consolidations were provided for in 1991. Scott added: "Unfortunately, 1991 was a necessary restructuring year for Fuqua. Now that we have this behind us, we are looking forward to operating in the marketplace with companies which have now been re-engineered for profit and growth." In other news, Fuqua announced the declaration of a quarterly dividend of $.09 per share on its common stock. The dividend is payable April 2 to shareholders of record on March 13. Fuqua Industries, Inc. is a $900 million consumer products and services company with three principal areas of business: Lawn & Garden, Photofinishing and Sporting Goods. FUQUA INDUSTRIES, INC. Summary of Earnings (In thousands except per share data) 3 mos. ended 12/31/91 12/31/90 Sales $ 242,088 $ 236,203 Net loss (26,756) (14,642) Loss per common share $ (1.62) $ (0.89) Avg. common and common equiv. shares 16,544 16,515 12 mos. ended 12/31/91 12/31/90 Sales $ 924,635 $ 972,278 Net loss (50,821) (235) Loss per common share $ (3.08) $ (0.01) Avg. common and common equiv. shares 16,527 17,862 NOTE: The fourth quarters of 1991 and 1990 included provisions after tax benefit and minority interest of $5.0 million ($0.30 per share) and $16.6 million ($1.01 per share) respectively, primarily for the costs associated with the consolidation or relocation of plant facilities at Snapper Power Equipment and Qualex, Inc. In addition to the above noted fourth quarter provisions, 1991 included a provision after tax benefit of $5.9 million for costs expected in reducing the size of the company's corporate staff, relocating its corporate offices and consolidating the operating facilities at Hutch Sporting Goods and 1990 included provisions after tax benefit and minority interest of $0.4 million for plant consolidations at Qualex. For the full year, 1991 and 1990 included provisions after tax benefit and minority interest for anticipated costs of $10.9 million ($0.66 per share) and $17.0 million ($0.96 per share), respectively. -0- 2/24/92 /CONTACT: Fred Beilstein, senior vice president - treasurer and CFO, or Page S. Turner, vice president-Investor Relations of Fuqua Industries, 404-658-9000/ (FQA EK) CO: Fuqua Industries ST: Georgia IN: HOU SU: ERN DIV
BR-BN -- AT009 -- 1997 02/24/92 15:09 EST
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|Date:||Feb 24, 1992|
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