MARTIN MARIETTA REPORTS 6.6 PERCENT EPS INCREASE BEFORE ACCOUNTING CHARGE
BETHESDA, Md., April 20 /PRNewswire/ -- Martin Marietta (NYSE: ML) today reported first quarter 1993 earnings of $76.4 million, or $1.61 per share, prior to a one-time $412 million, $8.69 per share, after-tax charge resulting from the corporation's adoption of FAS 106. Before the charge, the corporation's earnings per share increased 6.6 percent from first quarter 1992. One year ago, the corporation's first quarter net earnings were $74.6 million, or $1.51 per share. Sales in the first quarter 1993 were $1.17 billion, compared with $1.37 billion last year. After recognition of the FAS 106 non-cash charge, the corporation had a net loss in the quarter of $335.6 million, or $7.08 per share. "The corporation was able to maintain earnings growth despite an anticipated decline in sales resulting from continuing reductions in U.S. defense expenditures," said Norman R. Augustine, chairman and chief executive officer of Martin Marietta. "Operating margins grew over 20 percent to 10.7 percent in the quarter, reflecting continued improvements in productivity and the benefits of our cost-reduction efforts throughout the corporation," he added. "With the recent combination of Martin Marietta's businesses with those of General Electric's aerospace businesses, we anticipate continued strong performance. We are moving expeditiously to implement recommendations of our transition teams in order to realize the benefits expected from this combination of the nation's two leading defense research and development contractors." During the first quarter, the corporation's Electronics, Information & Missiles Group received a contract from Raytheon exceeding $300 million to provide Patriot missiles and launchers for Saudi Arabia and Kuwait. The Group also was selected to supply LANTIRN navigation and fire control systems for F-16s for Greece, a $100 million order. Martin Marietta Aero & Naval Systems won a $47 million contract to produce advanced submarine towed sonar arrays and other equipment for the U.S. Navy. The corporation's Astronautics Group was awarded a $35 million contract for a propulsion subsystem for NASA's Cassini spacecraft, to be launched by a Martin Marietta Titan IV on a scientific mission to Saturn. The Statement of Financial Accounting Standards No. 106 (FAS 106) after-tax charge of $412 million, or $656 million pre-tax, represents a one-time cumulative adjustment for retiree health benefits attributable to prior years. The corporation elected to record a one-time charge rather than amortize the transition expense over future operations. The one-time charge has no effect on the corporation's cash balance or financial strength, and will not have an adverse effect on future earnings. In addition to FAS 106, the corporation also adopted FAS 109, "Accounting for Income Taxes" during the quarter. FAS 109 had no effect on earnings during the quarter. Backlog at the end of the first quarter was $9.2 billion, up from
$8.9 billion reported at year-end.
MARTIN MARIETTA CORPORATION Statement of Earnings (in millions, except per share) Quarter Ended March 31, 1993 1992 Net Sales $1,168.6 $1,371.5 Cost of Sales, Other Costs, and Expenses 1,044.0 1,250.6 Earnings from Operations 124.6 120.9 Other Income and Expenses, net 7.2 7.9 Total 131.8 128.8 Interest Expense on Debt 11.2 15.5 Earnings before Taxes on Income 120.6 113.3 Taxes on Income 44.2 38.7 Earnings before Cumulative Effect of Accounting Change 76.4 74.6 Cumulative Effect to Jan.1, 1993, of Change in Accounting for Post- Retirement Benefits Other Than Pensions (412.0) -- Net Earnings (Loss) $ (335.6) $ 74.6 Earnings Per Share Before Cumulative Effect of Accounting Change $ 1.61 $ 1.51 Cumulative Effect of Accounting Change $ (8.69) $ -- Total $ (7.08) $ 1.51 Average Number of Common Shares Outstanding 47,415,673 49,326,166 Condensed Balance Sheet (in millions) March 31, 1993 Dec. 31, 1992 Cash and cash equivalents $ 378.6 $ 239.6 Other current assets 1,380.8 1,194.8 Current liabilities (596.6) (586.2) Net Working Capital 1,162.8 848.2 Property, plant, and equipment, net 1,224.6 1,257.1 Investments, other assets, intangibles 479.5 908.1 Non-current deferred income taxes (90.4) (297.3) Post-retirement benefits(A) (516.9) (102.0) Other non-current liabilities (175.5) (194.2) Total $ 2,084.1 $2,419.9 Long-term debt (excluding current maturities) $ 474.5 $ 474.7 Shareowner's equity(A) 1,609.6 1,945.2 Total Capitalization $ 2,084.1 $2,419.9 Firm Backlog was $9.2 billion at March 31, 1993, compared with $10.2 billion at March 31, 1992. (A) During the first quarter of 1993, the corporation adopted Statement of financial Accounting Standards No. 106, "Employers' Accounting for Post-retirement Benefits Other than Pensions." The corporation elected to expense the unrecognized prior service costs
immediately upon adopting the new standard. The immediate recognition of the $656 million transition obligation resulted in a one-time after-tax charge to net income of $412 million in the first quarter of 1993.
-0- 4/20/93 /CONTACT: Charles Manor of Martin Marietta, 301-897-6258/ (ML)
CO: Martin Marietta Corporation ST: Maryland IN: ARO SU: ERN
TW -- DC025 -- 8182 04/20/93 14:33 EDT
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|Date:||Apr 20, 1993|
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