Fourth Quarter and 1997 Earnings are Best Ever.MEMPHIS Memphis, city, ancient Egypt Memphis (mĕm`fĭs), ancient city of Egypt, capital of the Old Kingdom (c.3100–c.2258 B.C.), at the apex of the Nile delta and 12 mi (18 km) from Cairo. , Tenn.--(BUSINESS WIRE)--Feb. 5, 1998--Thomas & Betts Corporation (NYSE NYSE See: New York Stock Exchange :TNB TNB Tenaga Nasional Berhad (electric power utility in Malaysia) TNB Tacoma Narrows Bridge TNB Thomas and Betts TNB Trinitrobenzene TNB Télévision Nationale du Burkina (Burkina Faso) ) today reported its highest ever quarterly and annual earnings. Fourth-quarter 1997 net earnings of $45.9 million rose 32% over results for the prior-year period, excluding special charges of $65.6 million after taxes in 1996's quarter. Annual net earnings climbed to $154.9 million, 23% over 1996 net earnings excluding special charges. The discussion of earnings per share in this release focuses on basic earnings per share (EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. ), consistent with the company's past presentation of simple EPS and its belief that analysts' earnings estimates for Thomas (language) Thomas - A language compatible with the language Dylan(TM). Thomas is NOT Dylan(TM). The first public release of a translator to Scheme by Matt Birkholz, Jim Miller, and Ron Weiss, written at Digital Equipment Corporation's Cambridge Research Laboratory runs & Betts were made on that same basis. Basic EPS is more comparable to the previously reported simple EPS for Thomas & Betts. Basic EPS for the fourth quarter 1997 was $0.84, an increase of 27% from fourth-quarter 1996 basic EPS of $0.66, if 1996 special charges of $1.23 per share are excluded. Basic EPS for full-year 1997 rose 20%, to $2.83, from 1996 basic EPS of $2.36 excluding special charges. Sales for the fourth quarter increased 6% to $532.6 million from $504.0 million in the prior-year quarter, before special charges. Thomas & Betts had record sales of $2,114.7 million for 1997, topping 1996's $1,987.6 million (excluding special charges) by 6%. Excluding $10.6 million and $26.9 million of negative impacts of currency translations in the fourth quarter and year, respectively, sales would have been 8% higher than the same periods of 1996. Fourth-quarter operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. as a percentage of sales rose to 13.9%, versus an operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: of 12.1% in 1996's quarter if special charges are excluded from that quarter's operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. . The full-year operating margin was 12.3%, compared with an operating margin of 11.1% in 1996 (excluding special charges). "Clearly 1997 was a successful year for Thomas & Betts. Earnings each quarter set records," said Clyde Clyde, principal river of SW Scotland, 106 mi (171 km) long, rising in the Southern Uplands and flowing generally NW through Glasgow to the Firth of Clyde. It drains c.1,480 sq mi (3,830 sq km). R. Moore Moore, city (1990 pop. 40,761), Cleveland co., central Okla., a suburb of Oklahoma City; inc. 1887. Its manufactures include lightning- and surge-protection equipment, packaging for foods, and auto parts. , president and chief executive officer. "The sales growth of our Electrical segment not only exceeded that of the markets into which we sell, but our own aggressive targets," Moore continued. "We took a number of steps last year to position the company for continued margin improvement, including the quick integration of Augat's operations into our company, and the realignment re·a·lign tr.v. re·a·ligned, re·a·lign·ing, re·a·ligns 1. To put back into proper order or alignment. 2. To make new groupings of or working arrangements between. of the combined European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. operations of the two companies. The results of those programs were apparent in the two-percentage-point improvement in our gross margin in 1997's fourth quarter versus the quarter a year ago." "We also addressed our strategies in cable television and automotive electronics, two markets in which Augat enhanced our presence, and put plans in place during 1997 that should enable Thomas & Betts to improve its share in those markets going forward. Those actions, together with our continued efforts to lower costs, place us in position for even greater success in 1998 and beyond." Following similar strong performances in the first three quarters of 1997, sales of the Electrical Construction and Maintenance Components segment grew 20% in the fourth quarter versus last year's quarter. Full-year sales of that segment were 19% higher than the prior year. Solid economic conditions in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. and greater market penetration Noun 1. market penetration - the extent to which a product is recognized and bought by customers in a particular market penetration - the act of entering into or through something; "the penetration of upper management by women" of the company's product offering resulted in a strong volume increase in that segment. Higher volume of existing businesses accounted for well over one-half of sales growth for 1997 and an even greater portion of the fourth-quarter improvement. Several product line acquisitions and more favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. pricing also contributed to the 1997 sales improvement. Fourth-quarter sales of the Electronic/OEM Components segment declined 3% from the prior-year period. Unfavorable foreign currency exchange shifts and a planned automotive model phase-out Noun 1. phase-out - the act or instance of a planned discontinuation discontinuance, discontinuation - the act of discontinuing or breaking off; an interruption (temporary or permanent) reversed what would have been a 3% sales increase for the quarter versus the prior-year period. For the quarter and year, professional electronics sales growth of 4% mirrored the general market growth rate. That gain was dampened by the previously mentioned model phase-out in automotive electronics, reduced sales of cable TV components caused by delays in cable installation projects and the impact of the discontinuation dis·con·tin·u·a·tion n. A cessation; a discontinuance. Noun 1. discontinuation - the act of discontinuing or breaking off; an interruption (temporary or permanent) discontinuance of certain product lines in late 1996. Full-year 1997 sales for the segment decreased 1% from 1996's level in U.S. dollar terms. Fourth-quarter sales of core utility and mechanical products were up 6% over the 1996 quarter as a result of solid gains in the heating business, as well as in utility and telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. components. Those gains more than offset decreased sales of steel structures that resulted from lower demand for cellular communications towers and the absence of sales in the 1997 quarter of low-margin contract-manufacturing volumes related to divested product lines. Including the impact from the planned phase-outs of low-margin contract-manufacturing volumes, total sales of the Other Products and Components segment rose 2% compared with the prior-year quarter and 4% versus full-year 1996. In compliance with the newly effective Statement of Financial Accounting Standards No. 128 (SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System 128), "Earnings Per Share," the company disclosed dis·close tr.v. dis·closed, dis·clos·ing, dis·clos·es 1. To expose to view, as by removing a cover; uncover. 2. To make known (something heretofore kept secret). earnings per share on both basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. bases. Diluted EPS was $0.83 for the fourth quarter, compared with $0.65 for the 1996 period, excluding special charges. Diluted EPS was $2.81 for 1997, versus $2.34 for 1996, excluding special charges. Under the earlier accounting standard, Thomas & Betts reported simple EPS, defined as net income divided by the average number of shares outstanding during the quarter. The diluted EPS calculation under SFAS 128 requires inclusion of employee options, which reduced the company's fourth-quarter EPS by one cent and 1997 EPS by two cents. On a schedule that follows, Thomas & Betts presents 1997 EPS by quarter as reported on the simple basis and also under the primary and fully diluted bases of the earlier accounting standard and the basic and diluted bases of SFAS 128. Thomas & Betts is a leading producer of connectors and components for worldwide electrical and electronics markets. Visit Thomas & Betts on the World Wide Web at www.tnb.com. -0-
THOMAS & BETTS CORPORATION
Consolidated Statement of Earnings
(In thousands except per share amounts)
Quarter Ended Dec 29, 1996
Quarter Ended Before Including
Dec 28, Special Special Special
1997 Charges Charges Charges
-------- -------- -------- --------
NET SALES $532,557 $503,998 $ (2,412) $501,586
Costs and expenses:
Cost of sales 354,493 346,118 13,822 359,940
Marketing, general
and administrative 87,017 81,192 19,675 100,867
Research and development 12,338 11,764 - 11,764
Amortization of intangibles 4,448 3,911 - 3,911
Merger expenses - - 30,558 30,558
Provision for restructured
operations - - 24,501 24,501
-------- -------- -------- --------
Total expenses 458,296 442,985 88,556 531,541
Earnings (loss) from
operations 74,261 61,013 (90,968) (29,955)
Other expense-net 8,711 9,494 6,099 15,593
-------- -------- -------- --------
Earnings (loss) before income
taxes 65,550 51,519 (97,067) (45,548)
Income taxes 19,620 16,677 (31,426) (14,749)
-------- -------- -------- --------
Net Earnings (loss) $ 45,930 $ 34,842 $(65,641) $(30,799)
======== ======== ======== ========
Net earnings (loss) per share
Basic $ 0.84 $ 0.66 $ (1.23) $ (0.57)
======== ======== ======== ========
Diluted $ 0.83 $ 0.65 $ (1.22) $ (0.57)
======== ======== ======== ========
Average shares outstanding
Basic 55,000 53,268 53,268
Diluted 55,342 53,864 53,268
THOMAS & BETTS CORPORATION
Consolidated Statement of Earnings
(In thousands except per share amounts)
Year Ended Dec 29, 1996
Year Ended Before Including
Dec 28, Special Special Special
1997 Charges Charges Charges
---------- ---------- -------- ----------
NET SALES $2,114,718 $1,987,557 $ (2,412) $1,985,145
Costs and expenses:
Cost of sales 1,440,303 1,384,209 13,822 1,398,031
Marketing, general
and administrative 346,046 319,449 19,675 339,124
Research and development 51,896 47,229 - 47,229
Amortization of intangibles 17,355 15,323 - 15,323
Merger expenses - - 30,558 30,558
Provision for restructured
operations - - 24,501 24,501
---------- ---------- -------- ----------
Total expenses 1,855,600 1,766,210 88,556 1,854,766
Earnings from operations 259,118 221,347 (90,968) 130,379
Other expense-net 34,682 33,402 6,099 39,501
---------- ---------- -------- ----------
Earnings before
income taxes 224,436 187,945 (97,067) 90,878
Income taxes 69,575 62,436 (31,426) 31,010
---------- ---------- -------- ----------
Net Earnings $ 154,861 $ 125,509 $(65,641) $ 59,868
========== ========== ======== ==========
Net earnings per share
Basic $ 2.83 $ 2.36 $ (1.23) $ 1.13
========== ========== ======== ==========
Diluted $ 2.81 $ 2.34 $ (1.22) $ 1.12
========== ========== ======== ==========
Average shares outstanding
Basic 54,717 53,059 53,059
Diluted 55,090 53,512 53,512
THOMAS & BETTS CORPORATION
Consolidated Balance Sheet
(In thousands)
December 28, December 29,
1997 1996
ASSETS ---------- ----------
Cash and marketable securities $ 96,254 $ 162,295
Receivables - net 273,565 361,511
Inventories 373,977 363,306
Deferred income taxes 43,452 62,121
Prepaid expenses 8,902 7,818
---------- ----------
Total current assets 796,150 957,051
Property, plant and equipment - net 569,762 539,944
Intangible assets - net 505,225 519,276
Investments in unconsolidated
companies 127,703 76,368
Other assets 39,835 38,598
---------- ----------
TOTAL ASSETS $2,038,675 $2,131,237
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Short-term borrowings and current
maturities of long-term debt $ 31,253 $ 65,055
Accounts payable 208,056 190,184
Accrued liabilities 140,584 189,961
Income taxes 44,514 35,372
Dividends payable 15,401 11,328
---------- ----------
Total current liabilities 439,808 491,900
Long-term debt 502,813 645,096
Other long-term liabilities 92,206 100,676
Deferred income taxes 26,467 25,183
Shareholders' equity 977,381 868,382
---------- ----------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $2,038,675 $2,131,237
========== ==========
THOMAS & BETTS CORPORATION
Earnings per Share Comparisons
Prior Basis New Basis
------------------------------ ---------------
Pro Forma
------------------
1997 Fully
Period Simple Primary Diluted Basic Diluted
------ ------ ------- ------- ----- -------
Q1 $0.56 $0.56 $0.56 $0.56 $0.56
Q2 0.70 0.69 0.69 0.70 0.69
Q3 0.73 0.73 0.73 0.73 0.73
Q4 0.84 0.83 0.83 0.84 0.83
YEAR $2.83 $2.81 $2.81 $2.83 $2.81
DEFINITIONS:
SIMPLE EPS = Net income divided by weighted average common shares.
PRIMARY EPS = Net income divided by the sum of weighted average
common shares plus dilution from weighted average common equivalent
shares.
FULLY DILUTED EPS = Net income divided by the sum of weighted
average common shares plus dilution from weighted average common
equivalent shares plus dilution from all other securities.
BASIC EPS = Net income divided by weighted average common shares.
DILUTED EPS = Net income divided by weighted average common shares
plus dilution from weighted average common equivalent shares plus
dilution from all other securities.
NOTE: Thomas & Betts previously reported only Simple EPS because the
dilution from employee stock options was less than the
GAAP-specified 3% dilution level requiring the potential reporting
of Primary EPS or Fully Diluted EPS.
CONTACT: Thomas & Betts Corp., Memphis Renee Renee is a common female name in the United States and male name in Europe. Pronunciation: rε-'nei The word Renee can mean the following: reborn, born again. There is often an accent over the middle e, as in Renée. Johansen Johansen is a surname, and may refer to:
or Randy The name Randy generally derives from the names Randall or Randolph (meaning wolf with a shield). Randy is used as a given name primarily in the US and Canada. Men known as Randy
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