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KERR REPORTS SECOND QUARTER 1992 RESULTS

 KERR REPORTS SECOND QUARTER 1992 RESULTS
 LOS ANGELES, July 23 /PRNewswire/ -- Kerr Group Inc. (NYSE: KGM)


today reported earnings from continuing operations applicable to common stockholders (after deduction for preferred stock dividends) of $572,000 or 16 cents per common share (primary and fully diluted) for the second quarter of 1992, compared to $4,000 or zero cents per common share (primary and fully diluted) for the second quarter of 1991.
 Roger W. Norian, chairman, president and chief executive officer, said the increase in earnings from continuing operations in the second quarter of 1992, as compared to the same period in 1991, was due to improved results in the consumer products business and lower general and administrative expenses.
 The company said earnings of the consumer products business increased in the second quarter of 1992 compared to the same period in 1991 primarily due to improved pricing and the elimination of the unprofitable pie filling product line, which was discontinued in 1991. Earnings of the plastic products business declined slightly in the second quarter of 1992 compared to the same period in 1991, however, results of the plastic products business for the full year of 1992 are expected to show improvement over the full year of 1991. Although the loss in the metal crown business increased in the second quarter of 1992 compared to the same period in 1991, the metal crown remachining project is progressing and late in the second quarter of 1992, the company began shipping metal crowns produced by the new metal crown lining equipment. The company believes that results in the metal crown business during the second half of 1992 will show improvement over the same period in 1991.
 Net sales from continuing operations for the three months ended June 30, 1992 were $43,180,000 compared to $44,829,000 in the year- ago period. The decrease in net sales for the three months was due to lower sales of metal crowns, plastic products and pie filling.
 The company has restated its results to present as discontinued operations the company's commercial glass container business, which was sold on Feb. 28, 1992.
 The company noted that it finished the quarter in an improved financial position compared to the same time last year. At June 30, 1992, the company had no bank debt outstanding and approximately $10 million of cash and temporary cash investments.
 Loss from continuing operations applicable to common stockholders (after deduction for preferred stock dividends) for the six months ended June 30, 1992 declined to $599,000 or 16 cents per common share (primary and fully diluted) compared to a loss from continuing operations applicable to common stockholders (after deduction for preferred stock dividends) of $1,352,000 or 37 cents per common share (primary and fully diluted) for the six months ended June 30, 1991.
 Net sales from continuing operations for the six months ended June 30, 1992 were $72,346,000 compared to $76,436,000 a year ago. The decrease in net sales for the six months was due to lower sales of plastic products and metal crowns.
 Kerr, headquartered in Los Angeles, is a major producer of plastic packaging products, home canning supplies and metal crowns.
 KERR GROUP INC.
 Results of Operations for the Three Months and Six Months Ended
 June 30, 1992 and 1991
 Unaudited
 (In thousands, except per share amounts)
 Three months Six months
 Ended June 30, Ended June 30,
 1992 1991 1992 1991
 Net sales $43,180 $44,829 $72,346 $76,436
 Earnings (loss) from
 continuing operations
 before income taxes 1,319 420 (203) (1,395)
 Provision (benefit)
 for income taxes 540 209 (18) (457)
 Earnings (loss) from
 continuing
 operations 779 211 (185) (938)
 Discontinued Operations:
 Earnings from discontinued
 operations --- 1,198 --- 589
 Cumulative effect of
 change in accounting
 related to
 discontinued
 operations (a) --- --- --- 886
 Total earnings related
 to discontinued
 operations --- 1,198 --- 1,475
 Net earnings (loss) 779 1,409 (185) 537
 Preferred stock
 dividends 207 207 414 414
 Net earnings (loss)
 applicable to common
 stockholders $572 $1,202 ($599) $123
 Net Earnings (Loss)
 Per Common Share,
 Primary and Fully
 Diluted (b):
 Earnings (loss) per
 common share from
 continuing operations $0.16 --- ($0.16) ($0.37)
 Discontinued Operations:
 Earnings per common
 share from discontinued
 operations --- 0.33 --- 0.16
 Cumulative effect per
 common share of
 change in
 accounting (a) --- --- --- 0.24
 Total earnings per
 common share related
 to discontinued
 operations --- 0.33 --- 0.40
 Net earnings (loss) per
 common share $0.16 $0.33 ($0.16) $0.03
 Weighted average number
 of common shares
 outstanding 3,675 3,675 3,675 3,675
 Common shares
 outstanding at end of
 period 3,675 3,675 --- ---
 (a) Effective Jan. 1, 1991, the company changed its method of accounting to include substantially all new machine repair parts related to discontinued operations in other assets. The purchase cost of certain new machine repair parts was previously charged directly to expense. The cumulative effect of this change (as of Jan. 1, 1991) relating to the new repair parts previously expensed, was to increase pre-tax earnings of the discontinued operations during the six months ended June 30, 1991 by $1,438,000 ($886,000 after-tax or 24 cents per common share). The period-to-period pro forma effect on prior years' financial statements was not material. The company believed this change was preferable because it provided a better matching of costs with related revenues and more accurately reflected the value of machine repair parts.
 (b) Fully diluted net earnings (loss) per common share reflect when dilutive, 1) the incremental common shares issuable upon the assumed exercise of outstanding stock options, and 2) the assumed conversion of the preferred stock and the elimination of the related preferred stock dividends. Antidilution occurred in the three and six months ended June 30, 1992 and 1991.
 -0- 7/23/92
 /NOTE: The company sold its commercial glass container business on Feb. 28, 1992, and, accordingly, has reflected the results of the discontinued commercial glass container business separately from continuing operations in the above table./
 /CONTACT: D. Gordon Strickland, senior VP-finance and CFO of Kerr Group, 310-284-2585/
 (KGM) CO: Kerr Group Inc. ST: California IN: SU: ERN


AL-JB -- LA030 -- 2693 07/23/92 15:57 EDT
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Date:Jul 23, 1992
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