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INGERSOLL-RAND REPORTS IMPROVEMENT IN FOURTH QUARTER RESULTS BEFORE RESTRUCTURING CHARGE AND ACCOUNTING CHANGES

 WOODCLIFF LAKE, N.J., Jan. 27 /PRNewswire/ -- Ingersoll-Rand Company (NYSE: IR), a New Jersey-based manufacturing company, today announced results for the fourth quarter of 1992 which included a $70 million restructuring charge relating to the Ingersoll-Dresser Pump Company (IDP) and the retroactive adoption of two accounting changes. The company's portion of the restructure of operations charge for IDP was $35 million pretax and $25.7 million ($0.25 per share) after-tax. The accounting changes related to the treatment of postretirement benefits, other than pensions, and deferred taxes, resulted in a one-time cumulative after-tax charge of $350 million or $3.36 per share, effective Jan. 1, 1992.
 The details of these accounting changes on an after-tax basis are as follows:
 -- $284 million ($2.73 per share) for the company's pre-1992 obligation for postretirement benefits, other than pensions, for its worldwide operations;
 -- $48 million ($0.46 per share) for the company's portion of Dresser-Rand's pre-1992 obligation for postretirement benefits; and
 -- $18 million ($0.17 per share) for the change associated with deferred taxes.
 In addition, these accounting changes had the effect of reducing 1992 earnings before tax by $36.8 million or $24.3 million ($0.23 per share) on an after-tax basis. The first three quarters of 1992 have been restated to reflect the effect of these changes on the company's quarterly operating results. (The restated quarters appear below as an exhibit to this release.)
 The company reported net earnings for the fourth quarter of 1992 of $32.4 million, or $0.31 per share, versus $54.7 million, or $0.53 per share, for the last quarter of 1991. Earnings for 1992, before the one- time cumulative effect of accounting changes, totalled $115.6 million, or $1.11 per share, as compared to $150.6 million, or $1.45 per share for 1991.
 The after-tax effect of the IDP restructuring of operations charge, coupled with the current year's costs associated with the accounting changes for the company and its portion of Dresser-Rand's adjustment totalled:
 -- $32.4 million ($0.31 per share) for the fourth quarter of the year, and
 -- $50.0 million ($0.48 per share) for 1992.
 Therefore, excluding these activities from 1992's results, the company's:
 -- fourth-quarter net earnings would have been $64.8 million ($0.62 per share), which is on a comparable basis with 1991 fourth quarter results of $54.7 million ($0.53 per share), and
 -- net earnings for the full year would have been $165.6 million ($1.59 per share), which would be comparable to 1991 net earnings of $150.6 million ($1.45 per share).
 A fourth quarter comparison of key financial data between 1992 and 1991 follows:
 -- Net sales for the fourth quarter of 1992, which included the results of IDP, totalled $1.1 billion. This represents a 17 percent increase over the prior year's fourth quarter. Excluding the sales from the pump units contributed by Dresser Industries, Inc., the fourth quarter net sales increase would have been 2 percent.
 -- Operating income for the quarter, before the restructuring charge for IDP, totalled $102.6 million. The fourth quarter operating income benefit from the Dresser units of IDP had a minimal effect on the quarter. The adoption of the accounting change for postretirement benefits reduced each quarter's operating income by approximately $7.4 million. On an after-tax basis, this adoption had the effect of reducing the company's net earnings per share by approximately 5 cents per share per quarter.
 -- Restructure of operations charge totalled $70 million and relates entirely to IDP. This charge is for the reduction in work force and excess facilities which will transform IDP into a world-class competitor in the pump business. This charge will be shared evenly by the partners of IDP; therefore, the minority interest elimination for this item is $35 million and the company's portion is $35 million ($25.7 million after-tax, or $0.25 per share).
 -- Income for the company's share of the operations of the Dresser- Rand joint venture totalled $1.2 million for the quarter. Dresser- Rand's quarterly operations were adversely affected by shipment delays on large orders, some operating inefficiencies and a $1.8 million quarterly charge for Ingersoll-Rand's portion of the joint venture's accounting change for postretirement benefits. On a per share basis, the adoption of this accounting change affected the company's results by 1 cent per quarter.
 -- Other income (expense) reflects an $8.3 million benefit compared to last year's fourth quarter. The benefit is attributed to an increase in earnings from partially-owned equity companies and a reduction in expenses of a miscellaneous nature partially offset by an increase in foreign currency losses.
 A yearly comparison of key financial data between 1992 and 1991 follows:
 -- Net sales in 1992 totalled $3.8 billion, 5.5 percent higher than in 1991. Excluding the sales from Dresser pump units contributed to IDP, the sales increase is approximately 2 percent.
 -- Operating income for the year before restructure of operations activity totalled $255.2 million, which is slightly lower than last year's $266.4 million. However, the 1992 results are after additional charges of $29.6 million for the 1992 accounting change for postretirement benefits. Excluding the effect of the accounting change, operating income for 1992 would have been $284.8 million or 7 percent higher than last year's comparable figure, before any restructure of operations activity.
 -- Restructure of operations reflects a change of $87.1 million from the prior year. The current year's charges totalled $80 million, $70 million of which relates to the IDP venture, which was recorded in the fourth quarter (discussed previously), and $10 million from the third quarter, which related to the company's aerospace bearings business. The prior year included a $7.1 million benefit for restructuring activities.
 -- The company's share of income from Dresser-Rand Company, before the effect of the one-time accounting change, was approximately 30 percent below the 1991 level. Additional charges during 1992 for the adoption of the postretirement benefit accounting change amounted to $7.2 million of the difference.
 -- Other income (expense) reflects a year-over-year improvement of $18.3 million. This net benefit represents the difference between improvements in earnings from partially-owned equity companies, the gain on the sale of an equity interest in a company and a reduction in costs of a miscellaneous nature. These income improvements were reduced by an $8.7 million change in foreign currency activity.
 -- Interest expense in the current year was $5.2 million lower than last year's level.
 After the effect of the accounting changes and the restructure of operations, the company's operating segment results for the fourth quarter of 1992 were:
 -- Standard Machinery Segment's sales were $352 million, up 3 percent from the prior year's fourth quarter. Operating income totalled $34.9 million and represented a 16 percent increase over the comparable 1991 quarter. While Construction Equipment and Coal Mining sales were slightly below last year's fourth quarter, Air Compressor sales were up almost 10 percent. Operating income improvements were reflected in both the Construction and Air Compressor groups.
 -- Engineered Equipment Segment's sales totalled $281 million, up significantly from last year due to the formation of the Ingersoll- Dresser Pump Company at the beginning of the fourth quarter. However, sales of pump equipment on a comparable basis (i.e., excluding the contributed units of Dresser) reflect a decline of more than 20 percent from 1991's fourth quarter with a significant decrease in operating income. Process Systems Group's sales increased approximately 7 percent, and operating income reflected improvement over the prior year's fourth quarter.
 -- Bearings, Locks and Tools Segment's sales for the quarter were $459 million, up 9 percent from last year. Operating income totalled $64.6 million, an 11 percent increase over last year's fourth quarter. While European markets for Production Equipment products softened in the quarter, domestic markets improved. The continued improvement in both the automotive and housing markets resulted in increased sales and operating income for the company's domestic Bearings and Door Hardware businesses.
 Theodore H. Black, chairman and chief executive officer of the company, stated, "Total bookings for the quarter and year were $1 billion and $3.8 billion, up 19 percent and 9 percent, respectively; however, excluding the addition of the Dresser Pump bookings related to the Ingersoll-Dresser Pump Company formed in the fourth quarter, fourth quarter bookings and the total for the year would be up 6 percent. Domestic markets continued to strengthen while international markets, particularly in Europe, continue to be erratic."
 INGERSOLL-RAND COMPANY
 Consolidated Income Statement
 (In thousands, except per share figures)
 Three months ended Dec. 31 1992 1991
 Net sales $1,091,700 $933,900
 Operating income before restructure 102,600 100,500
 Restructure of operations (charge) benefit (70,000) --
 Operating income after restructure 32,600 100,500
 Other income/(expense) (2,100) (10,400)
 Interest expense 13,600 12,900
 Dresser-Rand income 1,200 7,000
 IDP minority interest 35,000 --
 Earnings before taxes 53,100 84,200
 Provision for income taxes 20,700 29,500
 Net earnings $ 32,400 $ 54,700
 Net earnings per common share $0.31 $0.53
 Average number of common shares 104,500 103,700
 12 months ended Dec. 31 1992(A) 1991
 Net sales $3,783,800 $3,586,200
 Operating income before restructure 255,200 266,400
 Restructure of operations (charge) benefit (80,000) 7,100
 Operating income after restructure 175,200 273,500
 Other income/(expense) (700) (19,000)
 Interest expense 54,100 59,300
 Dresser-Rand income 27,600 40,000
 IDP minority interest 35,000 --
 Earnings before taxes 183,000 235,200
 Provision for income taxes 67,400 84,600
 Earnings for the period, before the
 cumulative effect of acctg. changes (A) 115,600 150,600
 Cumulative effect on prior years for
 accounting changes for
 - Postretirement benefits other
 than pensions (332,000) --
 - Income taxes (18,000) --
 Net (loss) income $ (234,400) $ 150,600
 Earnings per common share before the
 cumulative effect of acctg. changes (A) $ 1.11 $ 1.45
 Cumulative effect on prior years for
 accounting changes for
 - Postretirement benefits other than
 pensions (3.19) --
 - Income taxes (0.17) --
 Net (loss) income $(2.25) $ 1.45
 Average no. of common shares outstanding 104,300 103,600
 (A) -- During the fourth quarter of 1992, the company retroactively changed its method of accounting for postretirement benefits (other than pensions) and deferred income taxes. The cumulative effect of these changes for the periods prior to Jan. 1, 1992, amounted to $350 million (net of tax), and resulted in the restatement of the company's net earnings for the first quarter from $26.4 million ($0.25 per share) to a net loss of $329.4 million ($3.16 per share). These changes also resulted in the restatement of the company's net earnings for the second and third quarters of the year from $38.6 million ($0.37 per share) and $35.9 million ($0.35 per share) to $32.6 million ($0.31 per share) and $30.0 million ($0.29 per share), respectively.
 INGERSOLL-RAND COMPANY
 Consolidated Income Statement
 (In millions, except per share figures)
 ------Restated-------
 First Second Third Fourth Year
 Qtr. Qtr. Qtr. Qtr. (1992)
 Net sales by segment:
 Standard Machinery $325.6 $358.4 $349.7 $351.6 $1,385.3
 Engineered Equipment 117.4 122.0 124.5 281.4 645.3
 Bearings, Locks & Tools 418.2 446.5 429.8 458.7 1,753.2
 Total net sales 861.2 926.9 904.0 1,091.7 3,783.8
 Operating inc. after
 restructure of opers.
 charge by segment:
 Standard Machinery 16.6 26.6 12.8 34.9 90.9
 Engineered Equipment 4.5 6.0 5.6 (57.1) (41.0)
 Bearings, Locks & Tools 27.0 36.2 29.6 64.6 157.4
 Segment operating income 48.1 68.8 48.0 42.4 207.3
 Unallocated corporate exps. (7.7) (6.7) (7.9) (9.8) (32.1)
 Operating income after
 restructure 40.4 62.1 40.1 32.6 175.2
 Other income/(expense) (3.5) (3.4) 8.3 (2.1) (0.7)
 Interest expense 12.2 13.2 15.1 13.6 54.1
 Dresser-Rand income 7.7 5.2 13.5 1.2 27.6
 IDP minority interest -- -- -- 35.0 35.0
 Earnings before taxes 32.4 50.7 46.8 53.1 183.0
 Provision for inc. taxes 11.8 18.1 16.8 20.7 67.4
 Earnings for the period,
 bef. the cumulative effect
 of accounting changes 20.6 32.6 30.0 32.4 115.6
 Cumulative effect on prior
 years for accounting changes
 for
 - Postretirement benefits
 other than pensions (332.0) -- -- -- (332.0)
 - Income taxes (18.0) -- -- -- (18.0)
 Net (loss) income $(329.4) $32.6 $30.0 $32.4 $(234.4)
 Earnings per common share
 before the cumulative effect
 of accounting changes $0.20 $0.31 $0.29 $0.31 $1.11
 Cumulative effect on prior
 years for accounting changes
 for
 - Postretirement benefits
 other than pensions (3.19) -- -- -- (3.19)
 - Income taxes (0.17) -- -- -- (0.17)
 Net (loss) income $(3.16) $0.31 $0.29 $0.31 $(2.25)
 Average number of common
 shares outstanding 104.1 104.4 104.4 104.5 104.3
 INGERSOLL-RAND COMPANY
 Business Segment Review
 Fourth Quarter and Year
 (In millions of dollars, except percentages)
 Periods ended Three Months 12 Months
 Dec. 31 1992 1991 1992 1991
 Standard Machinery:
 Sales $351.6 $341.4 $1,385.3 $1,363.2
 Oper. inc. bef. restructure 34.9 30.2 90.9 86.8
 Restructure of operations
 (charge) benefit -- -- -- (16.7)
 Oper. inc. after restructure $ 34.9 $ 30.2 $ 90.9 $ 70.1
 and as a percent of sales 9.9 8.8 6.6 5.1
 Engineered Equipment:
 Sales $281.4 $171.3 $ 645.3 $ 575.7
 Oper. inc. bef. restructure 12.9 22.1 29.0 55.7
 Restructure of operations
 (charge) benefit (70.0) -- (70.0) --
 Oper. inc. after restructure $(57.1) $ 22.1 $ (41.0) $ 55.7
 and as a percent of sales (20.3) 12.9 (6.4) 9.7
 Bearings, Locks and Tools:
 Sales $458.7 $421.2 $1,753.2 $1,647.3
 Oper. inc. bef. restructure 64.6 58.4 167.4 155.3
 Restructure of operations
 (charge) benefit -- -- (10.0) 23.8
 Oper. inc. after restructure $ 64.6 $ 58.4 $ 157.4 $ 179.1
 and as a percent of sales 14.1 13.9 9.0 10.9
 Total:
 Sales $1,091.7 $933.9 $3,783.8 $3,586.2
 Oper. inc. bef. restructure 112.4 110.7 287.3 297.8
 Restructure of operations
 (charge) benefit (70.0) -- (80.0) 7.1
 Oper. inc. after restruct. $ 42.4 $110.7 $ 207.3 $ 304.9
 and as a percent of sales 3.9 11.9 5.5 8.5
 Unallocated corporate exp. $ (9.8) $(10.2) $ (32.1) $ (31.4)
 Consolidated oper. income $ 32.6 $100.5 $ 175.2 $ 273.5
 -0- 1/27/93
 /CONTACT: Richard A. Spohn, 201-573-3387, or Paul A. Dickard, 201-573-3120, both of Ingersoll-Rand/
 (IR)


CO: Ingersoll-Rand Company ST: New Jersey IN: MAC SU: ERN

GK-DP -- NY025 -- 9620 01/27/93 11:51 EST
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