Moore Announces Third Quarter Results -- Restructuring and Cost Reduction Actions Detailed.FOREST, Ill.--(BUSINESS WIRE)--Oct. 21, 1998--Moore Corporation Limited reported today sales of $651 million in third quarter of 1998, a decrease of 2% from the $662 million in the third quarter of 1997. Sales in the first nine months of 1998 of $2.01 billion were 7% above sales of $1.88 billion in the same period in 1997. "The third quarter financial results are not acceptable, but I am satisfied that we are moving down the right path," said Ed Tyler Tyler, city (1990 pop. 75,450), seat of Smith co., E Tex.; inc. 1850. In the heart of the rich East Texas oil field, Tyler has refineries and other oil-based industries. , Moore Moore, city (1990 pop. 40,761), Cleveland co., central Okla., a suburb of Oklahoma City; inc. 1887. Its manufactures include lightning- and surge-protection equipment, packaging for foods, and auto parts. president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "We made good progress this quarter towards cutting costs and addressing future revenue growth. We went live with our SAP installation in Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of to upgrade administrative and transaction processing systems A Transaction Processing System (TPS) is a type of information system. TPSs collect, store, modify, and retrieve the transactions of an organization. A transaction is an event that generates or modifies data that is eventually stored in an information system. and our Y2K See Y2K problem and Y2K compliant. Y2K - Year 2000 activities continue on target." Summary of results -- Excluding the impact of the European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. forms divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). , acquisitions made in 1997 and foreign currency fluctuations, sales for the third quarter were up $17 million or 3%. -- In the third quarter of 1998, a loss from operations of $644 million was incurred compared to a loss from operations in the 1997 third quarter of $12 million. Included in the 1998 third quarter are $630 million of restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. , other one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. charges of $15 million and $9 million of expenditures associated with Year 2000 compliance. -- The net loss in the 1998 third quarter was $547 million or $6.18 per share compared to a net loss of $8 million or $0.09 million per share in the third quarter of 1997. In the third quarter of 1998, the restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). provision, other one-time charges of $15 million before tax, and the gain on sale of the Rediform business accounted for $6.15 loss per share. Restructuring update Moore announced a comprehensive restructuring plan on July July: see month. 22, 1998. The four key elements of the plan are non-strategic asset elimination, manufacturing rationalization rationalization, in psychology: see defense mechanism. , organizational integration and enhancing the profitability in growth businesses. These initiatives are designed to improve the cost structure of the Company. Moore will provide quarterly updates on its progress. During the third quarter of 1998, Moore completed the sale of its European forms and labels business and sold its Dallas-based Rediform operation. Of the six U.S. manufacturing plants scheduled for closing by the end of 1999, the Modesto Modesto (mōdĕs`tō), city (1990 pop. 164,278), seat of Stanislaus co., central Calif., on the Tuolumne River, near the northern end of the San Joaquin valley; inc. 1884. , CA facility was closed this quarter. The Company announced and began implementing a shared services shared services, n.pl the administrative, clinical, or other service functions that are common to two or more hospitals or their health care facilities and used jointly or cooperatively by them. organization throughout North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. and removed several layers of management in its Moore North America sales and marketing organization. A key component of the Company's restructuring is the revitalization re·vi·tal·ize tr.v. re·vi·tal·ized, re·vi·tal·iz·ing, re·vi·tal·iz·es To impart new life or vigor to: plans to revitalize inner-city neighborhoods; tried to revitalize a flagging economy. of its information systems infrastructure. In September, the Cowansville, Quebec Cowansville is a town in south-central Quebec, Canada, located on Lac Davignon km ( mi) north of the U.S. border. It is the seat of Brome-Missisquoi, a regional county municipality. manufacturing plant was the first Moore location to go live and begin phasing in SAP in Canada. When fully installed, the new information systems will dramatically simplify and improve data sharing The ability to share the same data resource with multiple applications or users. It implies that the data are stored in one or more servers in the network and that there is some software locking mechanism that prevents the same set of data from being changed by two people at the same time. , order management and product movement throughout the entire organization. Dividend On October 21, 1998, the Board of Directors declared a quarterly dividend of 5cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. payable in United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. funds on January 4, 1999 to shareholders of record on December 4, 1998. All figures are expressed in United States currency. Moore Corporation Limited (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). , ME, NYSE NYSE See: New York Stock Exchange : MCL MCL - Macintosh Common LISP ) helps companies communicate through print and digital technologies. As a leading supplier of document formatted information, print outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. and data-based marketing. Moore designs, manufactures and delivers business communications products, services and solutions to customers. Sales in 1997 were US $2.6 billion. The Moore Internet address There are two kinds of addresses that are widely used on the Internet. One is a person's e-mail address, and the other is the address of a Web site, which is known as a URL. Following is an explanation of Internet e-mail addresses only. For more on URLs, see URL and Internet domain name. is http://www.moore.com. This news release includes forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. (within the meaning of applicable U.S. federal securities laws) which are based on the Company's current expectations and assumptions, and are subject to a number of risks and uncertainties that could cause actual results to materially differ from those anticipated. Such risks and uncertainties include, among others, general business and economic conditions and competitive actions.
MOORE CORPORATION LIMITED
CONSOLIDATED BALANCE SHEET
Expressed in United States currency in thousands of dollars
September 30 December 31
1998 1997
------------ ------------
Assets
Current Assets:
Cash and short-term securities $ 173,157 $ 227,118
Accounts receivable 452,506 476,059
Inventories:
Raw materials 46,289 52,584
Work in process 26,910 23,048
Finished goods 129,653 119,631
Prepaid expenses 28,911 26,275
Deferred income taxes 79,866 40,363
------------ ------------
Total current assets 937,292 965,078
------------ ------------
Property, plant & equipment:
Cost 1,352,462 1,480,658
Less: Accumulated depreciation 857,784 844,888
------------ ------------
494,678 635,770
------------ ------------
Goodwill 201,577 370,471
Other assets 187,282 203,253
------------ ------------
Total assets $ 1,820,829 $ 2,174,572
============ ============
Liabilities
Current Liabilities:
Bank loans $ 26,265 $ 31,139
Accounts payable and accruals 699,802 568,882
Short-term debt 273,825 136,275
Dividends payable 4,423 20,786
Income taxes 5,680 33,372
------------ ------------
Total current liabilities 1,009,995 790,454
Long-term debt 9,052 49,109
Deferred income taxes and liabilities 198,927 131,706
Minority interests 16,290 17,691
------------ ------------
Total liabilities 1,234,264 988,960
------------ ------------
Shareholders' Equity
Common shares 310,881 310,765
Unrealized foreign currency
translation adjustments (118,647) (112,218)
Retained earnings 394,331 987,065
------------ ------------
586,565 1,185,612
------------ ------------
Total liabilities
and shareholders' equity $ 1,820,829 $ 2,174,572
============ ============
MOORE CORPORATION LIMITED
CONSOLIDATED STATEMENT OF EARNINGS
Expressed in United States currency and, except earnings per
share, in thousands of dollars
Three Months Ended Nine Months Ended
September 30 September 30
--------------------- -----------------------
1998 1997 1998 1997
----------- --------- ---------- -----------
Sales $ 651,325 $ 661,768 $ 2,018,827 $ 1,884,043
----------- --------- ---------- -----------
Cost of sales 455,611 455,309 1,406,972 1,272,753
Selling, general
and administrative
expenses 174,655 162,855 525,469 442,463
Provision for
restructuring costs 630,000 - 630,000 -
Realignment costs - 17,000 - 17,000
Capital asset
amortization 29,543 31,052 94,812 84,620
Research and
development expense 5,972 7,142 18,278 21,871
----------- --------- ---------- -----------
1,295,781 673,358 2,675,531 1,838,707
----------- --------- ---------- -----------
Income (loss) from
operations (644,456) (11,590) (656,704) 45,336
Investment and
other income 5,824 3,312 8,821 69,012
Interest expense 5,177 4,758 13,927 10,049
Unrealized exchange
adjustments 130 271 344 568
----------- --------- ---------- -----------
(643,939) (13,307) (662,154) 103,731
Income tax expense
(recovery) (96,660) (5,388) (98,392) 49,238
Minority interests (415) (39) (662) 433
----------- --------- ---------- -----------
Net earnings
(loss) $(546,864) $ (7,880) $ (563,100) $ 54,060
=========== ========= =========== ============
Earnings (loss)
per share $(6.18) $(0.09) $(6.36) $0.57
MOORE CORPORATION LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
Expressed in United States currency in thousands of dollars
Nine Months Ended September 30
1998 1997
------------ -----------
Operating Activities
Net earnings (loss) $ (563,100) $ 54,060
Items not affecting cash resources 684,502 43,118
Increase in working capital (140,698) (19,427)
other than cash resources
------------ -----------
Total $ (19,296) $ 77,751
------------ -----------
Investing Activities
Expenditure for property,
plant and equipment $ (54,733) $ (81,981)
Sale of property, plant and equipment 21,916 2,779
Proceeds from sale of investments 21,629 97,113
Taxes on sale of an investment (16,519) -
Proceeds from sale of businesses 11,547 500
Acquisition of businesses (24,095) (301,172)
Software expenditures (44,190) (19,454)
Other (587) (7,064)
------------ -----------
Total $ (85,032) $ (309,279)
------------ -----------
Financing Activities
Dividends $ (45,997) $ (65,044)
Repurchase of common shares - (267,080)
Addition to debt 140,307 130,348
Reduction in debt (38,231) (47,591)
Other (496) 3,982
------------ -----------
Total $ 55,583 $ (245,385)
------------ -----------
Decrease in cash resources before
unrealized exchange adjustments $ (48,745) $ (476,913)
Unrealized exchange adjustments (342) 256
------------ -----------
Decrease in cash resources (49,087) (476,657)
Cash resources at beginning of year (a) 195,979 654,174
------------ -----------
Cash resources at end of period (a) $ 146,892 $ 177,517
============ ===========
(a) Cash resources is defined as cash and short-term securities
less bank loans.
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