INDRESCO ADOPTS HOLDING COMPANY STRUCTURE WITH NEW NAME: GLOBAL INDUSTRIAL TECHNOLOGIES, INC.
"Our stock will continue to trade on the New York Stock Exchange, as Global Industrial Technologies, Inc., with a new trading symbol of GIX," announced Chairman and Chief Executive Officer J.L. Jackson. "We are excited about announcing this new corporate identity, which more closely matches the strategy we have been implementing for the past two years.
"The old name depicted the past. Global Industrial Technologies has a specific, straightforward meaning that clearly describes where we are today and where we hope to be tomorrow."
Since becoming a public company in 1992, Global Industrial Technologies has embarked on a program of aggressive global growth by changing its portfolio of businesses and expanding market share of the businesses it retained. As further evidence of achieving the company's growth commitment, preliminary figures for the fiscal year that ended Oct. 31 indicate earnings per share of approximately $1.65 after a 9% tax provision, compared to the previous year's reported earnings per share of $1.02 which had no tax provision. The outlook for the coming fiscal year is for another period of attractive sales and earnings growth.
"Our new name symbolizes our growth strategy. The philosophy upon which that strategy is based holds that if we are to succeed as a corporation, we must create a winning partnership among shareholders, customers and employees. None of those three constituencies can succeed unless all succeed, and the best way to achieve that success is to reverse the no-growth doctrine that had guided these companies in the past."
As specific examples of implementation of the growth strategy, two recent business decisions were cited: the creation of an international division within the corporation's refractories unit and the divestiture of the underground mining equipment division.
"Within our Harbison-Walker Refractories unit, we noted that our growth objectives could only be met if we adopted an aggressive program of worldwide expansion. The success of our refractories acquisitions in Mexico and Chile convinced us to create a new operating division, Harbison-Walker International, responsible for exploring and developing growth opportunities around the globe. It will be led by Juan Bravo, who has successfully directed our Mexican refractories operation and has three decades of international experience in this industry. He will be ably assisted by Jess Hutchinson, who has had responsibility for past international activities of Harbison-Walker."
The rationale for the recent disposition of the Jeffrey Underground Mining Equipment business was explained.
"A conservative approach would have been to keep Jeffrey, since it has been a profitable and contributing part of our company. But when we considered growth potential and the severely cyclical nature of that industry, Jeffrey did not meet our long-term objectives. That logic led us to the sale -- we believe we can better use those resources in pursuing our growth strategy."
In conclusion, Jackson said he was pleased with Global Industrial Technologies' performance since adopting its growth philosophy, and expressed optimism for its future opportunities.
Global Industrial Technologies is a leading supplier of specialized industrial tools, surface mining equipment, recycling/processing equipment, forged products and premium refractories. Refractories are specialized heat-resistant ceramics that line the heat-containing vessels, used in making steel, cement, glass, aluminum and other basic materials.
/CONTACT: Joe Stroop, Indresco Inc., 214-953-4518/
CO: Indresco Inc.; Global Industrial Technologies, Inc. ST: Texas IN: MNG SU:
BR-KW -- AT001 -- 7160 11/01/95 08:15 EST