GENERAL SIGNAL EARNINGS RISE 12.3 PERCENT IN SECOND QUARTER.STAMFORD Stamford, town, England Stamford, town (1991 pop. 18,127), in the Parts of Kesteven, Lincolnshire, E central England, on the Welland River. It is a market town. Products include diesel engines, electrical equipment, bricks, and tiles. , CT, July July: see month. 24--(BUSINESS WIRE)--General Signal today announced second quarter earnings, excluding acquisition-related one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. charges for Best Power Technology, Inc., of $28.4 million, up 12.3 percent from the $25.3 million recorded a year ago. Earnings per share on the same basis rose 13.2 percent to 60 cents from 53 cents last year. Record second quarter sales of $421.4 million were up 11.3 percent from $378.7 million last year. During the quarter, the company recorded a $7.4 million ($4.8 million net of taxes), or 10 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. charge, primarily for severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when and other consolidation costs relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the combination of existing General Signal locations with Best Power Technology, Inc. After these charges, the company's second-quarter earnings per share from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the amounted to 50 cents. Earnings from continuing operations declined 7.5 percent to $23.4 million. The company also took a $49.6 million net of tax charge for additional expected losses relating to the disposal of its Leeds Leeds, city (1991 pop. 445,242) and metropolitan district, N central England, on the Aire River. It lies between one of England's leading manufacturing regions on the west and south and an agricultural region on the north and east. & Northrup unit, accounted for in discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. since year end. The losses resulted from anticipated lower net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). from selling the operation in its several component pieces, additional severance, and other potential costs of closing portions of any remaining operations. After these charges, the net loss for the quarter was $26.2 million or 55 cents per share. For the six months ended June June: see month. 30, earnings per share from continuing operations, excluding one-time charges, amounted to a first-half record of $1.17, up 17 percent from $1.00 a year ago. Earnings from continuing operations gained 17.3 percent to a record $55.7 million compared with $47.5 million a year ago. Sales for the first half rose 15.4 percent to $832.4 million. Incoming Incoming is a 3-D shooter developed by Rage Software and published by Interplay. The PC version was released in late 1998, and the Dreamcast version, a launch title for the console, was released in 1998 in Japan and in 1999 in the rest of the world. order rates for the quarter expanded by 5 percent to $410.2 million for the company's seventh consecutive quarter of improved orders. Orders for the Process Controls sector increased 16.2 percent to $183.5 million, Electrical Controls orders rose 3.3 percent to $167.0 million, and Industrial Technology orders declined 15.9 percent to $59.7 million. For the six-month period, orders rose 10.5 percent to a record $842.5 million, with Process Controls gaining by 20 percent to $378.3 million, Electrical Controls gaining by 8.4 percent to $333.0 million, and Industrial Technology declining by 6.5 percent to $131.1 million. Sales and earnings improved for two of the company's three sectors, and all three saw good margin improvement. The Process Controls sector saw margins increase to 14 percent compared with 13 percent a year ago, as operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before rose 36.1 percent to $26.0 million from $19.1 million in the 1994 quarter. Sales rose 27.3 percent to $186.3 million. All units of the sector -- pumps, valves, mixing and laboratory equipment -- improved their performance during the quarter. Sales for the Electrical Controls sector rose 11.6 percent to $169.9 million, with operating earnings gaining 39.4 percent to $15.2 million, before acquisition and integration charges relating to the acquisition of Best Power Technology, from $10.9 million a year ago. Margins improved to 8.9 percent from 7.0 percent. All units of this sector also reported improved results for the quarter. At 19.6 percent, Industrial Technology sector margins were strong compared with 18.6 percent a year ago. Overall, however, the sector had a difficult quarter as all three units recorded lower sales, although telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. operations saw improved earnings. Operating earnings declined by 14.1 percent to $12.8 million on an 18.6 percent decline in sales to $65.2 million -- the latter due entirely to lower automotive/bicycle and post office vending machine vending machine, coin-operated, automatic device for selling goods. Many vending machines are capable of making change, and some of the more sophisticated ones accept paper money or credit cards. volume. "We are pleased by the margin performance of each of our business sectors," said Edmund Edmund, 921–46, king of Wessex (939–46), half brother and successor of Athelstan. Immediately after his accession he had to face an invasion of Irish vikings led by Olaf Guthfrithson. M. Carpenter, chairman and chief executive officer. "Operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: at the sector level improved nearly one full percentage point to 12.7 percent from 11.9 percent a year ago. Second quarter results were modestly below earlier expectations and analysts' consensus, primarily as a result of volume declines in our two consumer- driven businesses, automotive/bicycle components and small motor operations, as well as higher interest and corporate expense. "The results of our restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). , cost reduction and `bolt-on' acquisition efforts are continuing to pay off, and while order gains moderated during the quarter compared with last year's robust levels, these efforts bode bode 1 v. bod·ed, bod·ing, bodes v.tr. 1. To be an omen of: heavy seas that boded trouble for small craft. 2. well for market share gains and significant earnings improvement. The acquisitions of Best Power Technology, a leading uninterruptible power supply See UPS. (hardware) Uninterruptible Power Supply - (UPS) A battery powered power supply unit that is guaranteed to provide power to a computer in the event of interruptions in the incoming mains electrical power. manufacturer (completed June 14, 1995), Magnetek Inc.'s medium power transformer transformer, electrical device used to transfer an alternating current or voltage from one electric circuit to another by means of electromagnetic induction. business (expected to close by the end of July), and Data Switch, a leading supplier of telecommunications switch equipment (expected to close during the third quarter) will broaden our positions in these markets and will enhance shareholder value. Combined, they should add approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $350 million to 1996 sales and be nicely accretive to earnings next year. "Notwithstanding some signs of a slowing economy, we expect to benefit from our continued emphasis on unit operating efficiencies and margin improvement as we move through the balance of 1995. While it is still too early to anticipate 1996 performance because of uncertain economic issues at this time, actions we have taken to address existing operations issues, coupled with customer and employee enthusiasm related to our recently announced acquisitions, present excellent potential for the year ahead," Mr. Carpenter concluded. General Signal Corporation, with 1995 estimated sales of $1.89 billion, is a leading equipment manufacturer for the process controls, electrical, and industrial technology industries. -0-
GENERAL SIGNAL CORPORATION
CONSOLIDATED STATEMENT OF EARNINGS
(Unaudited) (In millions except per-share data)
Three Months Ended
June 30,
1995 1994
Net sales $421.4 $378.7
Cost of sales 297.4 269.1
Selling, general and
administrative expenses 75.8 69.1
Acquisition of businesses
and related special items 7.4 - -
380.6 338.2
Operating earnings 40.8 40.5
Interest expense, net (4.8) (2.9)
Earnings before income taxes 36.0 37.6
Income taxes 12.6 12.3
Earnings from continuing operations 23.4 25.3
Earnings (loss) from discontinued operations,
net of income taxes:
Operations - - (0.3)
Disposal (49.6)(b) - -
Net earnings (loss) ($26.2) $25.0
Earnings (loss) per share of common stock
Continuing operations $0.50 (a) $0.53
Discontinued operations (1.05)(b) - -
Net earnings (loss) ($0.55) $0.53
Average common shares outstanding 47.3 47.3
(a) Includes $0.10 per share of charges for acquisition
integration and consolidation of operations that were
accounted for as a one-time charge ($7.4 million before
tax) and as period costs ($0.4 million before tax).
(b) Represents additional anticipated losses ($75.0 million before
taxes) related to the disposal of Leeds & Northrup which was
accounted for as a discontinued operation in the fourth
quarter.
GENERAL SIGNAL CORPORATION
CONSOLIDATED STATEMENT OF EARNINGS
(Unaudited) (In millions except per-share data)
Six Months Ended
June 30,
1995 1994
Net sales $832.4 $721.1
Cost of sales 590.7 512.1
Selling, general and
administrative expenses 147.4 131.4
Acquisition of businesses
and related items 7.4 - -
745.5 643.5
Operating earnings 86.9 77.6
Interest expense, net (8.9) (5.7)
Earnings before income taxes 78.0 71.9
Income taxes 27.3 24.4
Earnings from continuing operations 50.7 47.5
Earnings (loss) from discontinued
operations, net of income taxes:
Operations - - 2.1
Disposal (49.6)(b) - -
Net earnings $1.1 $49.6
Earnings (loss) per share of common stock
Continuing operations $1.07 (a) $1.00
Discontinued operations (1.05)(b) 0.05
Net earnings $0.02 $1.05
Average common shares outstanding 47.3 47.4
(a) Includes $0.10 per share of charges for acquisition
integration and consolidation of operations that were
accounted for as a one-time charge ($7.4 million before
tax) and as period costs ($0.4 million before tax).
(b) Represents additional anticipated losses ($75.0 million
before taxes) related to the disposal of Leeds & Northrup
which was accounted for as a discontinued operation
in the fourth quarter.
GENERAL SIGNAL CORPORATION
SECTOR PERFORMANCE
(Unaudited) (In millions)
Three Months Ended June 30
1995 1994
NET SALES:
Process Controls $186.3 $146.3
Electrical Controls 169.9 152.3
Industrial Technology 65.2 80.1
$421.4 $378.7
OPERATING EARNINGS: Process Controls $26.0 $19.1 Electrical Controls 7.6 (a) 10.9 Industrial Technology 12.6 (a) 14.9 Total operating earnings before unallocated expenses, equity income and interest $46.2 $44.9
Six Months Ended June 30
1995 1994
NET SALES:
Process Controls $361.9 $288.0
Electrical Controls 330.0 286.8
Industrial Technology 140.5 146.3
$832.4 $721.1
OPERATING EARNINGS: Process Controls $48.1 $37.2 Electrical Controls 20.1 (a) 20.5 Industrial Technology 27.5 (a) 26.4 Total operating earnings before unallocated expenses, equity income and interest $95.7 $84.1
(a) Includes $7.6 million in Electrical Controls and $0.2 million
in Industrial Technology of charges and costs related to
acquisition integration and consolidation of operations.
GENERAL SIGNAL CORPORATION
CONSOLIDATED BALANCE SHEET
(Unaudited) (In millions)
June 30, December 31,
1995 1994
ASSETS:
Current assets:
Cash and cash equivalents $2.6 $0.3
Accounts receivable 284.4 258.3
Inventories 232.4 213.3
Prepaid expenses and other
current assets 38.7 44.5
Assets held for sale at estimated
realizable value 105.1 153.6
Deferred income taxes 80.8 47.2
744.0 717.2
Property, plant and equipment 298.8 280.5
Intangibles 339.6 194.3
Other assets 148.7 134.5
Deferred income taxes 16.7 16.1
$1,547.8 $1,342.6
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term borrowings and current
maturities of long-term debt $5.6 $2.2
Accounts payable 137.6 152.9
Accrued expenses 172.0 183.1
Income taxes 40.8 18.9
356.0 357.1
Long-term debt, less current
maturities 487.2 269.1
Accrued postretirement and post-
employment obligations 153.1 161.2
Other liabilities 17.9 7.3
Shareholders' equity 533.6 547.9
$1,547.8 $1,342.6
GENERAL SIGNAL CORPORATION
ANALYTICAL FINANCIAL INFORMATION (1)
(Unaudited) (In millions except per-share data)
Quarter Quarter Six Months Six Months
Ended Ended Ended Ended
June 30, June 30, June 30, June 30,
1995 1994 1995 1994
Analytical net sales $421.4 $378.7 $832.4 $721.1
Analytical gross
margin $124.0 $109.6 $241.7 $209.0
Analytical operating
earnings $48.6 $40.5 $94.7 $77.6
Analytical earnings
from continuing
operations $28.4 $25.3 $55.7 $47.5
Analytical earnings per
share from continuing
operations $0.60 (2) $0.53 (2) $1.17 $1.00
Analytical Sector Operating
Earnings:
Process Controls $26.0 $19.1 $48.1 $37.2
Electrical Control 15.2 10.9 27.7 20.5
Industrial
Technology 12.8 14.9 27.7 26.4
$54.0 $44.9 $103.5 $84.1
(1) Excludes from the quarter and six months ended June 30, 1995
the impact of charges and period costs related to
acquisition integration and consolidation of operations.
See Statements of Earnings and Sector Performance for
comparable financial information presented in accordance with
generally accepted accounting principles. The above information
is provided to the reader of this press release as additional
analytical information to give the reader a sense of the results
of operations on a continuing business basis without the special
charges and credits.
(2) The second quarter 1995 effective tax rate was 35 percent
compared with 32.7 percent in 1994.
CONTACT: Nino Fernandez General Signal (203) 329-4320 |
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