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INSPIRATION RESOURCES REPORTS SUBSTANTIALLY IMPROVED FOURTH QUARTER AND FULL YEAR RESULTS FROM CONTINUING OPERATIONS

 INSPIRATION RESOURCES REPORTS SUBSTANTIALLY IMPROVED FOURTH
 QUARTER AND FULL YEAR RESULTS FROM CONTINUING OPERATIONS
 SIOUX CITY, Iowa, Feb. 13 /PRNewswire/ -- Inspiration Resources Corporation (NYSE: IRC) today announced substantially stronger results for the 1991 fourth quarter and full year from continuing operations, with continued improvement expected in 1992, according to president and chief executive officer, Burton M. Joyce.
 For the quarter, IRC incurred a net loss of $2.8 million, or $0.04 per share, on revenues of $114.6 million, compared with a net loss in the 1990 quarter of $115.4 million, or $1.74 per share, on revenues of $121.2 million. Improved 1991 fourth quarter performance reflects a narrowed seasonal agribusiness loss, increased leasing income and lower corporate and interest expense. Results in the 1990 quarter included an $88 million loss from discontinued operations and a $12 million charge related to streamlining the corporate office and other operations.
 Net income from continuing operations for all of 1991 was $18.1 million, or $0.27 per share, compared with a net loss from continuing operations in 1990 of $34.1 million, or $0.52 per share. CEO Joyce commented: "Financial results from continuing operations improved considerably in 1991 due to the absence of losses from gold operations closed in 1990, increased fertilizer and agricultural chemical margins, strong growth in chemical market share, and lower corporate overhead and interest expense."
 For the full year, IRC's net loss was $151.7 million, or $2.26 per share, on revenues of $1,061.7 million, compared with a net loss in 1990 of $108.5 million, or $1.64 per share, on revenues of $994.2 million. The 1991 net loss included $174.8 million, or $2.60 per share, from the discontinued base metals segment, which consisted primarily of Hudson Bay Mining and Smelting Co., Limited, and an extraordinary gain of $5.1 million, or $.07 per share, on early retirement of debentures. Results in 1990 included a $16.5 million charge to reduce investment in a gold mining affiliate to zero and the fourth quarter items mentioned above.
 "Our financial condition is strong," CEO Joyce continued: "We have ended the year with over $100 million in cash due to the sale of our base metals segment and certain assets from our leasing portfolio. Total debt has been reduced from $185 million at the close of 1990 to $115 million at year end 1991. As a result, IRC has resources in place to expand our agribusiness operations."
 Joyce added: "We are optimistic about 1992 based on expectations that more U.S. acres will be planted this year in corn, the most important crop to our business; that nitrogen fertilizer markets will remain in balance, leading to continued pricing strength as spring plantings increase demand; and, that natural gas prices, the most important cost factor in manufacturing nitrogen fertilizers, will keep our production costs relatively stable. Terra's earnings, as always, will be subject to the vagaries of weather."
 Terra International, Inc., IRC's agribusiness subsidiary, recorded a fourth quarter operating loss of $2.1 million on revenues of $103.8 million, compared with an operating loss of $8.2 million in 1990 on revenues of $113.0 million. Seasonal losses were limited in the 1991 fourth quarter by favorable contract settlements and increased sales of manufactured fertilizers, compared with 1990. Terra's 1991 operating income rose to $35.1 million on revenues of $1,023.1 million from $24.0 million on revenues of $961.5 million in 1990.
 IRC's leasing subsidiary recorded fourth quarter operating income of $3.2 million on revenues of $3.1 million, compared with operating income of $0.1 million on revenues of $1.2 million in the comparable 1990 quarter. Results in the 1991 quarter included a $1.2 million gain on the settlement of certain cash flow guarantees. Full year leasing operating income was $7.2 million on revenues of $8.3 million, compared with operating income of $6.7 million on revenues of $10.3 million in 1990. Lower revenues in 1991 reflect the sale of $31 million of leased rail assets in the second quarter and scheduled lease expirations.
 The construction materials segment recorded $0.2 million of operating income in the 1991 fourth quarter on revenues of $7.5 million, compared with an operating loss of $1.1 million on revenues of $6.9 million in the final quarter of 1990. Improved results in the 1991 quarter were due to higher average


prices for ready-mix concrete and asphalt. For all of 1991, construction materials' operating income was $0.3 million on revenues of $29.4 million, compared with the same operating income in 1990 on revenues of $21.1 million. Higher revenues in 1991 were due to IRC's ownership of the construction materials group for the full year. Level operating income compared to last year, despite higher sales, reflects weak west coast construction markets.
 Inspiration Resources Corporation is a leading marketer and producer of fertilizer, crop protection products, seed and services for agriculture. It also produces construction materials and leases equipment.
 -0- 2/13/92 R
 /CONTACT: Ellen Duerksen, 712-277-5438, or Eileen Kirrane, 712-279-8787, both of Inspiration Resources/
 /FIRST AND FINAL ADD -- TABULAR MATERIALS -- TO FOLLOW/
 (IRC) CO: Inspiration Resources Corporation ST: Iowa IN: SU: ERN


TS -- NY005 -- 9671 02/13/92 10:57 EST
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Date:Feb 13, 1992
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