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GENCORP REPORTS IMPROVED FIRST QUARTER RESULTS

 GENCORP REPORTS IMPROVED FIRST QUARTER RESULTS
 FAIRLAWN, Ohio, March 16 /PRNewswire/ -- GenCorp (NYSE: GY) today


reported net income of $2.2 million for the first quarter of fiscal year 1992, amounting to $0.07 per share. Last year's first quarter resulted in a net loss of $1.5 million, or $0.05 per share. The increase in 1992 was due to higher segment operating profit and slightly lower interest expense.
 Sales increased to $461 million in the first quarter of 1992 compared to $433 million in the first quarter of 1991. Both GenCorp Automotive and GenCorp Polymer Products generated higher sales while sales at Aerojet, the company's aerospace/defense segment, were virtually even with sales in the first quarter of 1991.
 Operating profit of GenCorp's three business segments totalled $21 million in the first quarter of 1992, compared to $15 million in the first quarter of 1991. This increase was due to improvements at GenCorp Automotive and GenCorp Polymer Products partially offset by a small decline in operating profit at Aerojet.
 Commenting on GenCorp's performance in the first quarter of 1992 and the outlook for the remainder of the year, chairman and chief executive officer A. William Reynolds said:
 "We are encouraged by GenCorp's performance in the first quarter of 1992. The improvements at GenCorp Polymer Products were broadly based across all business units. New programs at GenCorp Automotive led to higher sales and lower losses for that segment in the quarter, while Aerojet's performance remained steady with last year.
 "GenCorp Polymer Products performance in the quarter was paced by strong results in the wallcovering business, due to higher sales of residential lines and two recently acquired commercial brands. Also in the first quarter, GenCorp Automotive was in full production on the body sealing systems for the General Motors Grand Am, Skylark and Achieva cars and Suburban truck, and successfully launched a new vibration control program for the Toyota Camry.
 "During the quarter, two defense propulsion programs were identified by the U.S. Government for cancellation - the Small ICBM missile system, which has been officially terminated, and the Peacekeeper program. In response to these cancellations, Aerojet will be taking the actions necessary to control its cost structure. These actions include the regrettable need to lay off approximately 600 employees in Sacramento.
 "Although there is still uncertainty relative to funding for Aerojet programs and to recovery in automotive markets, the outlook for the remainder of 1992 is positive for GenCorp. The trend established in the first quarter should continue throughout the year, with GenCorp Polymer Products benefitting from modest growth and GenCorp Automotive recovering from its recessionary performance of 1991. We expect Aerojet to show a small reduction in sales and earnings due to recent program cancellations.
 "We are continuing to strengthen the business through our capital expenditures program. For the first quarter of 1992 capital expenditures were $16 million, up $4 million over the first quarter of 1991 due primarily to construction of the latex plant near Green Bay, Wisconsin.
 "In anticipation of significant 1993 debt maturities, we are currently renegotiating our bank agreement and are considering both public and private debt issues. These refinancing activities will diversify our sources of funds, lengthen and stagger our maturities and lower our borrowing costs."
 Sales for GenCorp Automotive in the first quarter of 1992 were $92 million, an increase of $19 million from the first quarter of 1991. The increase was largely due to higher shipments in key programs in the vehicle sealing and reinforced plastics businesses. The sales improvement reduced the operating loss to $4 million in the first quarter of 1992, compared to an operating loss of $8 million in the first quarter of 1991.
 Sales for Aerojet in the first quarter of 1992 totalled $256 million compared to $257 million in the first quarter of 1991. Increased deliveries of propulsion systems were offset by lower shipments of air dispensed munition systems.
 Aerojet's segment operating profit was $17 million in the first quarter of 1992, compared to $18 million in the first quarter of 1991.
 At GenCorp Polymer Products, sales in the first quarter of 1992 were $113 million compared to $103 million in 1991. This increase in sales was due to strong growth in wallcovering, in fabricated plastics and at Penn.
 Segment operating profit at GenCorp Polymer Products in the first quarter of 1992 was $8 million compared with $5 million in 1991. This increase was due to the higher sales and to margin improvements in all business units.
 At the end of the first quarter of 1992, total debt was $405 million, compared to $402 at the end of the first quarter in 1991. As a result of normal first quarter working capital increases, total debt was $49 million higher than at year end 1991.
 GenCorp is a technology-based company with strong positions in aerospace, automotive and related polymer products.
 Business Segment Information (Unaudited)
 GenCorp Inc.
 Three Months Ended
 (Dollars in millions, Feb. 29, Feb. 28,
 except per-share data) 1992 1991
 Net Sales
 Aerojet $ 256 $ 257
 GenCorp Automotive 92 73
 GenCorp Polymer Products 113 103
 Total $ 461 $ 433
 Income (Loss)
 Aerojet $ 17 $ 18
 GenCorp Automotive (4) (8)
 GenCorp Polymer Products 8 5
 Segment Operating Profit 21 15
 Interest expense (13) (14)
 Corporate interest income and other - -
 Corporate expenses (4) (4)
 Provision for income taxes (2) 1
 Net Income (Loss) $ 2 $ (2)
 Net Income (Loss) Per Share of Common Stock $ .07 $(.05)
 Average shares of common stock outstanding
 (in thousands) 31,730 31,731
 Capital expenditures $ 16 $ 12
 Depreciation $ 20 $ 20
 Condensed Consolidated Balance Sheet (Unaudited)
 GenCorp Inc.
 Feb. 29, Nov. 30,
 (Dollars in millions) 1992 1991
 Assets
 Cash and marketable securities $35 $41
 Accounts receivable 189 169
 Inventories 177 167
 Prepaid expenses 53 59
 Total Current Assets 454 436
 Investments and other assets 145 143
 Property, plant and equipment, less
 accumulated depreciation 528 534
 Total $1,127 $1,113
 Liabilities and Shareholders' Equity
 Notes payable $10 $1
 Accounts payable-trade 94 113
 Income taxes 46 51
 Other current liabilities 212 214
 Total Current Liabilities 362 379
 Long-term debt 395 355
 Other liabilities 161 166
 Shareholders' equity 209 213
 Total $1,127 $1,113
 The uncertainties involving environmental matters described in Note L of the company's 1991 annual report continue.
 -0- 3/16/92
 /CONTACT: Cynthia Riddle (communications), 216-869-4494; or Richard A. Nelson (investor relations), 216-869-4411; both of GenCorp/
 (GY) CO: GenCorp ST: Ohio IN: AUT ARO SU: ERN


KK -- CL002 -- 8107 03/16/92 08:25 EST
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Date:Mar 16, 1992
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