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OCE GROUP IN 1992: NET INCOME $48.7 MILLION, REVENUES $1,486.4 MILLION

 VENLO, The Netherlands, Feb. 16 /PRNewswire/ -- Consolidated results for the 1992 fiscal year ended Nov. 30, 1992, were published here today by Oce-Van Der Grinten N.V. (NASDAQ: OCENY).
 The Dutch copying equipment group shows a fourth quarter net income of US$9.6 million, or $0.60 per share based on 15,895,242 shares outstanding at Nov. 30, 1992, compared to $17.3 million or $1.13 per share based on 15,340,906 shares outstanding at the fiscal 1991 year- end.
 Revenues in the final quarter declined by 7 percent to $377 million. Exchange rate changes had a negative impact of 6 percent on sales. Internal revenues declined by 1 percent.
 Fourth quarter revenues in both the engineering systems and office systems markets were adversely affected by the continuing weak economic climate in almost all the group's geographical markets, and the depreciation of many currencies had a negative impact on sales when expressed in guilders.
 Final quarter operating income, including interest income from financial leases, amounted to $25.0 million (1991: $36.7 million).
 Net financial expense (aggregate of interest incurred and "other interest earned") remained virtually unchanged.
 Cash flow (net income plus depreciation) amounted to $47.2 million (1991: $61.5 million).
 Fiscal 1992 Results
 Although more or less as forecast last October, the results for fiscal 1992 were less gratifying than for 1991, a year in which the group performed favorably.
 Consolidated net income for fiscal 1992 amounted to $48.7 million, or $3.06 per share based on 15,895,242 shares outstanding at the Nov. 30 year-end, compared to the prior year's $56.3 million or $3.67 per share based on a comparable 15,340,906 shares outstanding at the fiscal 1991 year-end.
 Total revenues rose by 3 percent to $1,486.4 million. Internal growth, that is excluding the acquisition of Bruning (+4 percent) and exchange rate changes (-3 percent), amounted to 2 percent.
 Operating income, including interest income from financial leases, amounted to $111 million (last year: $123 million). Interest income from financial leases rose by 52 percent to $40.7 million (1991: $26.7 million).
 Cash flow went down by 4 percent to $212 million.
 Office Systems (Copying and Printing): Revenues rose by 3 percent to $805 million. Internal growth amounted to 6 percent. This growth was largely attributable to the renewal and broadening of the product range, with which OCE has further strengthened its position on the market, and by which it also replaced a large number of older copiers. A reduction in copying volumes per machine occurred during the course of 1992, due in part to the weak economic situation.
 Competition continued to be a significant factor and, since the stronger guilder also increased the cost element of the selling price, margins were squeezed further. On balance, 1992 profitability was adversely affected.
 At Chicago based OCE-Office Systems, Inc., which markets OCE's office copiers in the United States, losses were further reduced.
 Sales of printing systems went up slightly, with losses being reduced, thanks especially to cost control.
 Engineering Systems (Copying and Plotting): Revenues increased by 4 percent to $681 million. Internal revenues, that is excluding OCE-Bruning (+9 percent) and exchange rate changes (-3 percent), declined by 3 percent. This decline was mainly caused by the further weakening of the economic climate in 1992.
 The prolonged trend toward a change-over from Diazo to plain paper copying is continuing. Because of the recession, however, sales of Diazo equipment and supplies declined faster than the increase in sales of plain paper copiers and the related supplies.
 OCE-Bruning Inc., acquired in 1991 and active in the American design engineering market, closed the year with a profit. The plotter market was also affected by the weak investment climate but, thanks to a renewed product range, the group's sales levels in this market were more or less sustained at existing levels.
 Balance Sheet Highlights
 Financial lease revenues increased from $265 million to $358 million. The balance sheet value of rented machines declined because of the shift toward financial leases.
 Total assets rose by $45 million to $1,582 million. Shareholders' equity after profit appropriation totaled $540 million. This is equivalent to 34.2 percent of total assets.
 1993 Prospects
 With its strong technological and financial basis, good infrastructure and market-oriented product range, OCE has the strength and resilience to meet the challenges of the current period of unfavorable external circumstances. One of these is the fact that many users are postponing investment decisions, with the result that sales of new machines are lagging.
 Sales of supplies are likewise under pressure. When there is an economic upturn, this will have a positive effect at an early stage on sales of supplies in particular.
 OCE's activities in the United States are expected to make a positive contribution to profit again in 1993.
 For the first six months of 1993 OCE expects that the results will remain below the levels of 1992's favorable first half. Given positive economic developments in OCE's major markets as well as in interest and currency rates, improved results are possible in the course of the second half of 1993. It would seem impossible that full 1993 net income will come up to that of 1992.
 The annual report will be mailed to shareholders mid March and the April 15 stockholders meeting will be asked to approve the following:
 -- Appointment of H.B. Van Liemt as member of the board of supervisory directors with effect from July 1, 1993.
 -- Re-appointment as supervisory director of Th.M. Scholten, who is due to retire by rotation.
 -- Adoption of a cash dividend of NLG 2.25 (1991: NLG 2.25) per NLG 4.00 ordinary share for fiscal 1992, resulting in a final dividend of NLG 1.35 (1991: NLG 1.35).
 OCE-VAN DER GRINTEN N.V.
 Consolidated Statement of Operations
 For Fiscal 1992, From Dec. 1, 1991 - Nov. 30, 1992
 (Results in Millions, except per share (A))
 Periods ended Quarter Fiscal Year
 Nov. 30 1991 1992 1992 1991 1992 1992
 NLG NLG US$ NLG NLG US$
 Total revenues 727.7 675.8 377.0 2,575.5 2,664.3 1,486.4
 Depreciation 79.2 67.3 37.5 295.7 293.0 163.5
 Other operating costs 597.6 584.0 325.8 2,107.9 2,245.3 1,252.6
 Operating income 50.9 24.5 13.7 171.9 126.0 70.3
 Interest income from
 financial leases 14.8 20.4 11.3 47.8 72.9 40.7
 Operating income
 including interest
 inc. from financial
 leases 65.7 44.9 25.0 219.7 198.9 111.0
 Net financial expense 23.1 23.0 12.8 76.5 82.8 46.2
 Income before income
 taxes 42.6 21.9 12.2 143.2 116.1 64.8
 Income taxes 12.1 4.4 2.4 43.1 28.7 16.0
 Income after income
 taxes 30.5 17.5 9.8 100.1 87.4 48.8
 Equity in earnings
 of affiliates 0.4 - - 1.0 0.4 0.2
 Income before
 minority interests 30.9 17.5 9.8 101.1 87.8 49.0
 Minority interests -0.1 0.3 0.2 0.2 0.5 0.3
 Net income 31.0 17.2 9.6 100.9 87.3 48.7
 Cash flow 110.2 84.6 47.2 396.7 380.2 212.1
 Outstanding shares
 (x 1,000) 15,341 15,895 15,895 15,341 15,895 15,895
 Per share:
 Net profit 2.02 1.08 0.60 6.58 5.49 3.06
 Cash flow 7.18 5.32 2.97 25.86 23.92 13.34
 Balance Sheet Highlights
 11/30/91 11/30/92 11/30/92
 NLG NLG US$
 Fixed assets 1,344.6 1,408.0 785.5
 Current assets 1,409.8 1,427.0 796.1
 Total assets 2,754.4 2,835.0 1,581.6
 Shareholders' equity 949.0 968.4 540.3
 Long term liabilities 624.7 952.6 531.4
 Short term liabilities 1,180.7 914.0 509.9
 Liabilities and shareholders'
 equity 2,754.4 2,835.0 1,581.6
 (A) -- The company reports in Dutch guilders/florins (NLG). As a convenience for U.S. readers, the results for 1992 and 1991 have been converted at NLG 1,7925 equals US$1, the noon buying rate of Nov. 30, 1992. This compares with NLG 1,8341 equals US$1 used at this time last year.
 -0- 2/16/93
 /CONTACT: Ian Ogilvie of Ogilvie Taylor & Associates, in New York, 212-945-0590, for OCE/
 (OCENY)


CO: OCE-Van Der Grinten N.V. ST: IN: SU: ERN

GK-OS -- NY043A -- 6897 02/16/93 11:58 EST
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Date:Feb 16, 1993
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