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MK REPORTS FIRST-QUARTER NET INCOME OF $7.9 MILLION

 BOISE, Idaho, April 20 /PRNewswire/ -- Morrison Knudsen Corp. (MK) (NYSE: MRN) today reported first-quarter net income of $7.9 million, or 26 cents per share, compared with earnings before the cumulative effect of an accounting change of $6.8 million, or 22 cents per share, in the first quarter of 1992.
 The net loss for the first quarter of 1992 was $(10.6) million, or (35 cents) per share, after a charge of $(17.4) million, or (57 cents) per share, representing a required accounting change for postretirement health-care costs.
 William J. Agee, MK's chairman and chief executive officer, said first-quarter operating income was bolstered by strong performance from the Rail Systems segment and improved performance by the company's Engineering and Construction segment. However, these operating income improvements partially were offset by the company's recognition of its equity share of the net loss by one of its unconsolidated affiliates.
 "We are pleased by the overall performance of the company for this quarter and, when added to the previous quarter, are encouraged that the successful execution of work under contract will produce favorable results in the quarters ahead," said Agee.
 General and administrative expense declined in the first quarter compared to the same quarter in 1992, due largely to management's continuing efforts to decentralize corporate support functions and obtain permanent savings through cost-reduction programs.
 MK reported backlog at the end of the first quarter of $4.4 billion, down from $4.5 billion at the end of 1992.
 Morrison Knudsen Corp. is an international company serving the environmental, industrial process, power and transportation markets with complete development, design/engineering, construction, operating and financial services.
 MORRISON KNUDSEN CORP.
 CONSOLIDATED FINANCIAL DATA
 (Thousands of dollars except per-share data)
 Three Months Ended March 31: 1993 1992(A)
 Revenue
 Engineering and construction $ 470,998 $ 455,250
 Rail systems 89,197 53,712
 Total revenue $ 560,195 $ 508,962
 Operating income
 Engineering and construction $ 15,768 $ 14,989
 Rail systems 2,108 86
 Total operating income 17,876 15,075
 Equity in net earnings (loss) and
 interest earned from unconsolidated
 affiliates (3,466) 1,421
 Other income - net 8,879 8,399
 General and administrative expense (7,987) (10,032)
 Interest expense (189) (3,694)
 Income before income taxes, minority
 interests, and cumulative effect
 of accounting change 15,113 11,169
 Income tax expense (6,989) (4,405)
 Minority interests in earnings of
 subsidiaries (241) --
 Income before cumulative effect of
 accounting change 7,883 6,764
 Cumulative effect of accounting change
 for postretirement health care costs,
 net of tax(B) -- (17,403)
 Net income (loss) $ 7,883 $ (10,639)
 Earnings (loss) per common and
 common equivalent share(C)
 Income before cumulative effect
 of accounting change
 $ 0.26 $ 0.22
 Cumulative effect of accounting change -- (0.57)
 Net income (loss) $ 0.26 $ (0.35)
 New business booked in period
 Engineering and construction $ 389,200 $ 334,200
 Rail systems(D) (1,800) 687,700
 Total new business $ 387,400 $1,021,900
 Backlog at March 31: 1993 1992
 Engineering and construction $3,411,400 $3,724,600
 Rail systems 1,066,500 1,038,300
 Total backlog $4,477,900 $4,762,900
 (A) Restated to include the results of operations of businesses acquired in December 1992 accounted for as poolings-of-interests. Cost and expenses of certain corporate centralized service functions were reclassified from general and administrative expense to cost of revenue.
 (B) The corporation changed to the accrual method of accounting for postretirement health care costs effective Jan. 1, 1992. The cumulative after-tax effect of the change, representing unfunded prior service cost at Dec. 31, 1991, was recognized as a restatement of the first quarter's results of operations.
 (C) Earnings-per-share data for the quarter ended March 31, 1992, have been restated to reflect a two-for-one stock split in May 1992.
 (D) The deduction from rail systems backlog in 1993 was due to scope reductions on contracts previously awarded.
 -0- 4/20/93
 /CONTACT: Brent Brandon of Morrison Knudsen, 208-386-5387/
 (MRN)


CO: Morrison Knudsen Corp. ST: Idaho IN: CST SU: ERN

SW -- SE014 -- 8001 04/20/93 11:22 EDT
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Date:Apr 20, 1993
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