Printer Friendly

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
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:Apr 21, 1992
Words:984
Previous Article:'HOW TO COMPLY WITH THE AMERICANS WITH DISABILITIES ACT' SEMINAR TO BE HELD APRIL 29 IN LAS VEGAS
Next Article:ELECTRONIC ARTS ANNOUNCES 146 PERCENT INCREASE IN NET INCOME FOR ITS FOURTH QUARTER


Related Articles
IMO INDUSTRIES DECLARES REGULAR FOURTH QUARTER DIVIDEND
IMO INDUSTRIES REPORTS FOURTH QUARTER AND FULL YEAR 1991 RESULTS
IMO INDUSTRIES DECLARES REGULAR FIRST QUARTER DIVIDEND
IMO INDUSTRIES DECLARES REGULAR SECOND QUARTER DIVIDEND
IMO INDUSTRIES REPORTS SECOND QUARTER 1992 RESULTS
IMO INDUSTRIES DECLARES REGULAR THIRD QUARTER DIVIDEND
IMO INDUSTRIES ANNOUNCES RESTRUCTURING PROGRAM TO REDUCE DEBT; REPORTS THIRD QUARTER 1992 RESULTS
IMO INDUSTRIES REPORTS FOURTH QUARTER AND FULL YEAR 1992 RESULTS
IMO INDUSTRIES REPORTS SECOND QUARTER 1993 RESULTS
IMO INDUSTRIES REPORTS THIRD QUARTER 1993 RESULTS

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