IMO INDUSTRIES REPORTS FIRST QUARTER 1992 RESULTS
IMO INDUSTRIES REPORTS FIRST QUARTER 1992 RESULTS LAWRENCEVILLE, N.J., April 21 /PRNewswire/ -- Imo Industries Inc.
(NYSE: IMD) today reported net income of $1.3 million, or $0.08 per share, for the first quarter ended March 31, 1992, compared with $3.8 million, or $0.23 per share, reported for the same period a year ago.
At $229.2 million, revenue for the first quarter of 1992 was down as expected when compared with revenue of $261.2 million for the first quarter of 1991. Bookings in the first quarter of 1992 amounted to $272 million, 16 percent more than in the fourth quarter of 1991 but down 14 percent from the first quarter of 1991. Excluding major turbomachinery orders and defense contracts, neither of which are evenly spread throughout any year, first quarter bookings were 14 percent ahead of those in the fourth quarter of last year and down 10 percent from the year-ago first quarter. Backlog at the end of the quarter was 8 percent greater than at the start of the period due to the lower shipments resulting largely from backlog schedules and reduced bookings during December and the fourth quarter of 1991. "Overall, IMO's first quarter performance was disappointing, but generally in line with our expectations," said W.J. Holcombe, IMO chairman and CEO. "First period bookings were at a level confirming that this year's revenue will be roughly flat with last year's. We anticipate that second quarter bookings will be substantially improved compared with those of the second quarter of last year. "The effects of the general economic malaise that has persisted remained evident in this year's first quarter. Economic conditions in Europe remain less than favorable, our aerospace markets -- both commercial and military -- remain weak, and some of our industrial markets have yet to evidence any strong signs of recovery. However, there are signs that make us cautiously optimistic the United States economy has seen the bottom and is on the verge of turning up." Instruments Group operating income was down 11 percent in the first quarter this year compared with a year ago, mainly as the result of a 17 percent decline in revenue. Revenue comparisons were negative primarily because last year's quarter still contained shipments of night vision equipment on Omnibus I contracts that were being wound down at Optic- Electronic Corp. after its acquisition. Last year's period also contained a substantial amount of contract electronic assembly work that has been lost in the downturn. Group sales are expected to rebound, and show more favorable comparisons starting with the second quarter. Mechanical Controls Group sales were flat in the first quarter, compared with year-ago sales. Operating income was up 23 percent, primarily attributable to the Group's automotive operations in Italy which benefitted from special government subsidies and from the sale of a building as a just-in-time manufacturing activity was relocated. The Group's pleasure marine business in the United States showed some signs of recovery during the quarter, aided byt?wo product lines added last year. Gains here, however, were offset by the slowdown in the European industrial and marine markets, and continued weakness in the aerospace sector. Power Transmission Group operating income declined 26 percent in the first quarter, compared with the prior year's first quarter, on a 6 percent decline in sales, largely due to weakness in the Group's aerospace and industrial markets for bearings. Operating income of the pump operations was almost flat with the prior year's, on slightly lower sales. There are signs that the markets for speed reducers and gears may be starting to turn up. Power Products and Services Group sales and earnings were both down sharply from last year's first quarter, due primarily to a customer- induced delay on a major piece of turbomachinery, a less favorable product mix, and continuing weak performance in the Group's TurboCare maintenance market. Quotations and bookings for turbomachinery products and related TurboCare activities are active, offering signs of improving results. IMO, with 1991 sales of $1 billion, supplies analytical and optical instruments, electronic and mechanical controls, engineered power products and their support services to industrial and defense customers worldwide. IMO INDUSTRIES INC. AND SUBSIDIARIES Condensed Consolidated Statements of Income (Unaudited) (Amounts in thousands, except per share data) Three Months Ended March 31 1992 1991 Net Sales $229,194 $261,175 Gross Profit 60,873 68,696 Segment Operating Income 17,350 22,725 Income Before Income Taxes and Minority Interest 3,519 7,346 Income Taxes 1,337 2,791 Minority Interest 851 766 Net Income $1,331 $3,789 Earnings Per Share $0.08 $0.23 Average Shares Outstanding 16,867 16,737 Bookings: Instruments and Controls $186,296 $215,754 Power Systems 85,977 102,669 Total Bookings $272,273 $318,423 Backlog $582,045 $657,287 IMO INDUSTRIES INC. AND SUBSIDIARIES Segment Information (Unaudited) (Dollars in thousands) Three Months Ended March 31 1992 1991 Net Sales: Instruments and Controls: Instruments $84,030 $100,965 Mechanical Controls 64,046 64,526 148,076 165,491 Power Systems: Power Transmission 49,149 52,190 Power Products and Services 31,969 43,494 81,118 95,684 Total Net Sales 229,194 261,175 Segment Operating Income: Instruments and Controls: Instruments 4,908 5,488 Mechanical Controls 5,205 4,228 10,113 9,716 Power Systems: Power Transmission 4,338 5,836 Power Products and Services 2,899 7,173 7,237 13,009 Total Segment Operating Income 17,350 22,725 Equity in Income of Unconsolidated Companies 2,909 1,397 Net Interest Expense (14,577) (15,092) Corporate Expense (2,163) (1,684) Income Before Income Taxes and Minority Interest $3,519 $7,346 /delval/ -0- 4/21/92 /CONTACT: Paul B. Lazovick, director of Investor Relations for Imo Industries, 609-896-7615/ CO: Imo Industries Inc. ST: New Jersey IN: SU: ERN
LJ -- PH047 -- 0832 04/21/92 16:00 EDT
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|Date:||Apr 21, 1992|
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