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GENCORP ANNUAL MEETING REMARKS

 GENCORP ANNUAL MEETING REMARKS
 FAIRLAWN, Ohio, March 25 /PRNewswire/ -- Today at the company's


annual meeting, GenCorp (NYSE: GY) chairman and chief executive officer, A. William Reynolds, characterized 1991 as, "a good year," and the outlook for 1992 as positive. Reynolds also announced that the company expects to complete an agreement on March 27, 1992, to refinance $450 million of revolving credit with its bank group.
 In his remarks, Reynolds stated that, in 1991, GenCorp benefitted from the strength inherent in its diversified structure and that the company improved its competitive position in several of its businesses.
 GenCorp's net income for 1991 of $32 million, or $1.00 per share, was below net income for 1990, due to an operating loss incurred at GenCorp Automotive. For 1990, net income included a one-time gain of $29 million related to an environmental settlement.
 Net sales were roughly $2.0 billion in 1991 compared to $1.8 billion in 1990. "Increases in profit and net sales from continuing operations were achieved at Aerojet and GenCorp Polymer Products while GenCorp Automotive, though incurring a loss, made competitive gains in two of its three product lines," Reynolds said.
 Aerojet's sales and earnings improved for a variety of reasons. Increased deliveries of both the Combined Effects Munition system and medium caliber ammunition helped to improve sales and earnings in the ordnance business.
 Higher sales were generated in the Advanced Solid Rocket Motor program, which contributed to improved margins in the propulsion business. Additionally, several new contracts were received during the year, most notably, the prime contract award for a new smart munitions program known as Sense and Destroy Armor, or SADARM.
 Reynolds also identified several specific steps the company took toward building its market position in its commercial businesses. "At GenCorp Polymer Products, wallcovering sales were higher primarily due to the acquisition of the Tower and Lanark commercial brands and an excellent market reception of our new residential product collections. Penn enhanced its position as the leading manufacturer of tennis balls and racquetballs in the U.S. and as a major supplier in Europe. During 1991, we expanded our tennis ball plant in Phoenix to accommodate the growing market demand for tennis balls and we improved our distribution capability in Europe.
 "The latex business also grew last year despite the fact that our plant near Akron has been operating at capacity for nearly three years. In May of 1991, construction began on a new latex manufacturing plant to accommodate the growth in demand for our paper coatings. The plant is targeted for completion by the end of this year.
 "As noted before, GenCorp Automotive lost money last year. However, we took several steps to move back into the black. The large portion of our automotive losses occurred in the reinforced plastics business. We are pursuing several new vehicle programs which could generate the volume we need to make that business profitable.
 "Our vehicle sealing business made significant market gains during this recessionary period. Specifically, we benefitted from the market acceptance of the Ford Explorer, where we supply the entire body sealing system, and the introduction of the body sealing system for GM's Grand Am, Skylark and Achieva cars and the Suburban light truck.
 "In the vibration control business, we improved our market position by completing a full year's production of new components for the Toyota Corolla, Geo Prizm and Saturn automobiles. We also continued the modernization of our manufacturing capability for vibration control products to make us competitive with the best in the world."
 Commenting on the company's performance in the first quarter of 1992, Reynolds indicated that the results were encouraging. The company earned $2.2 million in the first quarter of 1992, or $0.07 per share.
 GenCorp Automotive's performance was an improvement over last year - its operating losses were cut in half. The outlook for the remainder of 1992 is cautiously optimistic and based on the belief that the domestic automotive industry will improve its performance as the year progresses.
 Aerojet's sales were virtually even with sales in the first quarter of 1991. Recent propulsion program cancellations forced Aerojet to lay off approximately 600 employees in Sacramento in order to control costs. However, Aerojet should experience only a small reduction in sales and earnings this year as a result of these cancellations.
 Each of GenCorp Polymer Products' operating units generated higher sales and improved margins in the first quarter of 1992. The outlook for 1992 is positive for GenCorp Polymer Products and the expectation is the trend established in the first quarter should continue throughout the year.
 GenCorp is a technology-based company with strong positions in aerospace, automotive and related polymer products.
 -0- 3/25/92
 /CONTACT: Cynthia Riddle of GenCorp, 216-869-4494/
 (GY) CO: GenCorp ST: Ohio IN: ARO AUT SU:


KK -- CL008 -- 1465 03/25/92 11:06 EST
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Publication:PR Newswire
Date:Mar 25, 1992
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