Printer Friendly

HARRIS REPORTS INCREASED EARNINGS FOR FISCAL 1992

 HARRIS REPORTS INCREASED EARNINGS FOR FISCAL 1992
 MELBOURNE, Fla., Aug. 4 /PRNewswire/ -- Harris Corporation


(NYSE: HRS) reported a strong increase in earnings for fiscal 1992, rebounding sharply from the previous year when profits were depressed by a major charge in the company's semiconductor business.
 Income from continuing operations for the year ended June 30 was $87.5 million or $2.24 per share, compared with $19.5 million or 50 cents per share in fiscal 1991. Sales were $3.004 billion vs. $3.040 billion. New orders exceeded shipments and were level with the previous year. Cash flow from operations was $153 million, compared with $54 million the year before.
 Net income for the year was $75.2 million or $1.92 per share. It included an extraordinary after-tax charge in the third quarter of $3.0 million or 8 cents per share related to the early redemption of debentures, and a fourth-quarter, after-tax charge against discontinued operations of $9.3 million or 24 cents per share related to the write- off of the company's holdings in Syntrex, Inc. Syntrex, which purchased one of Harris' discontinued businesses in January 1990, had been operating under Chapter 11 protection since June 1991 and was acquired by another company in May. Net income for the previous year included an after-tax charge of $72.9 million or $1.86 per share in connection with restructuring the Harris Semiconductor Sector.
 Fourth-quarter income, highlighted by a return to profitability in Harris Semiconductor, was $34.0 million or 87 cents per share before the charge against discontinued operations, compared with net income of $30.7 million or 79 cents per share the previous year. Net income for the quarter, after the charge, was $24.8 million or 63 cents per share. Sales increased to $827.7 million from $805.1 million, and orders were also higher than the year-ago quarter.
 Commenting on the year's results for the company's four business sectors, John T. Hartley, Harris chairman and chief executive, said the Electronic Systems Sector reported a good increase in sales and earnings. "Sales were at a record level, exceeding $1 billion for the first time. New orders also passed the billion-dollar mark, which was particularly encouraging given the downward pressures on defense spending," he said.
 The Communications Sector posted a strong increase in earnings on record sales and orders. Hartley said, "Our communications business continues to benefit from expanding international sales, which now account for 44 percent of the sector's total compared with 30 percent two years ago."
 Lanier Worldwide had good growth in earnings on level sales and orders. Earnings were up both for domestic and international operations. "Lanier did an excellent job of managing costs and expenses and increasing profit margins in a year marked by soft economic conditions in this country and overseas," he said.
 "The Semiconductor Sector posted a profit in the fourth quarter and recorded a good increase in orders compared with the previous and year- ago quarters," Hartley continued. "Fiscal 1992 was a rebuilding year for Harris Semiconductor, and while sales and orders were off sharply and the sector reported a substantial loss for the year, we believe we've turned the corner in this business. Harris Semiconductor is now a leaner, stronger organization with a significantly lower breakeven point. We look to profitable growth in fiscal 1993."
 Research and development expenditures amounted to $531 million in fiscal 1992, compared with $506 million the previous year. They included $122 million in company-funded R&D and $409 million in customer funding.
 For the current year, Hartley said, "We feel confident about our prospects for earnings improvement in fiscal 1993. Last year's losses in the Semiconductor Sector overshadowed the earnings strength of our other three sectors. Harris Semiconductor is now operating in the black and we expect it to contribute increasingly to company earnings during fiscal 1993. As a result, we anticipate a significant increase in earnings for the company as a whole in fiscal 1993."
 HARRIS CORPORATION
 1992 Fiscal Year and Fourth Quarter Summary
 Condensed Consolidated Statement of Income
 (In thousands except per share amounts)
 Years Ended June 30 Quarters Ended June 30
 1992 1991 1992 1991
 Revenue
 Revenue from
 sales, rentals
 and services $3,003,971 $3,040,126 $827,742 $805,083
 Interest 37,923 41,372 8,591 10,927
 3,041,894 3,081,498 836,333 816,010
 Costs and Expenses
 Cost of sales, rentals
 and services 2,037,394 2,050,460 544,270 540,411
 Engineering, selling
 and administrative
 expenses 817,338 842,482 231,175 214,171
 Interest 66,006 77,395 15,590 20,806
 Restructuring
 expenses -- 115,000 -- --
 Other - net (3,834) (13,597) (3,343) 1,486
 2,916,904 3,071,740 787,692 776,874
 Income from continuing
 operations before
 income taxes 124,990 9,758 48,641 39,136
 Income taxes 37,501 (9,697) 14,598 8,444
 Income from continuing
 operations before
 extraordinary item 87,489 19,455 34,043 30,692
 Discontinued operations
 net of income taxes (9,300) -- (9,300) --
 Income before
 extraordinary item 78,189 19,455 24,753 30,692
 Extraordinary loss from
 early retirement of debt
 net of income taxes (3,020) -- -- --
 Net income $ 75,169 $ 19,455 $ 24,753 $ 30,692
 Income per share:
 Continuing operations
 before extraordinary
 item $2.24 $.50 $.87 $.79
 Discontinued
 operations (.24) -- (.24) --
 Extraordinary loss (.08) -- -- --
 Net income per share $1.92 $.50 $.63 $.79
 Cash dividends paid
 per common share $1.04 $1.04 $.26 $.26
 Average shares
 outstanding 39,057 39,177 39,144 38,886
 HARRIS CORPORATION
 Condensed Consolidated Balance Sheet
 (In thousands)
 June 30 June 30
 1992 1991
 Assets
 Cash and short-term securities $ 124,153 $ 58,547
 Trade receivables 621,178 661,043
 Unbilled costs and accrued earnings 281,216 267,467
 Inventories 422,237 418,288
 Deferred income taxes 84,535 90,827
 Plant and equipment - net 573,056 610,669
 Non-current notes receivable - net 135,811 131,856
 Intangibles resulting
 from acquisitions 148,354 150,322
 Other assets 93,265 96,760
 $2,483,805 $2,485,779
 Liabilities and Shareholders' Equity
 Short-term debt $ 43,043 $ 118,365
 Trade payables and accrued expenses 503,035 567,111
 Advance payments and
 unearned income 168,325 147,099
 Income taxes 45,260 14,811
 Current portion of long-term debt 4,712 5,780
 Non-current deferred income taxes 38,436 40,915
 Long-term debt 612,500 563,336
 Shareholders' equity 1,068,494 1,028,362
 $2,483,805 $2,485,779
 -0- 8/4/92
 /CONTACT: Jim Burke, director of media relations of Harris Corporation, 407-727-9126/
 (HRS) CO: Harris Corporation ST: Florida IN: ARO CPR SU: ERN


AW-JB -- FL002 -- 6575 08/04/92 10:41 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Aug 4, 1992
Words:1124
Previous Article:2.2 MILLION THE PEAK TECHNOLOGIES GROUP COMMON SHARES OFFERED AT $8.50 PER SHARE
Next Article:LOCAL HOUSING VALUES CONTINUED TO IMPROVE IN LAST QUARTER, ACCORDING TO 100-CITY SURVEY OF HOME APPRAISERS
Topics:


Related Articles
HARRIS CORPORATION LOOKS TO INTERNATIONAL EXPANSION AND NEW PRODUCTS FOR FUTURE GROWTH
HARRIS REPORTS LOWER EARNINGS IN THIRD QUARTER
MHI GROUP REPORTS PRELIMINARY RECORD RESULTS FOR FOURTH QUARTER/YEAR END
FOXMEYER REPORTS RECORD EARNINGS FOR YEAR, FOURTH QUARTER NET INCOME UP 42.4 PERCENT FOR FISCAL 1992
HARRIS EARNINGS UP 32 PERCENT IN SECOND QUARTER
HARRIS EARNINGS UP 49 PERCENT IN THIRD QUARTER
HARRIS NET INCOME UP 48 PERCENT FOR FISCAL 1993
HARRIS REPORTS 16% INCREASE IN EARNINGS PER SHARE FOR THIRD QUARTER
HARRIS REPORTS RECORD ORDERS, SALES, AND EARNINGS FOR FISCAL 1996
Harris Reports Record Orders, Sales, And Earnings For Fiscal 1997

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters