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POLAROID ANNOUNCES FIRST QUARTER RESULTS

 CAMBRIDGE, Mass., April 20 /PRNewswire/ -- Polaroid Corporation (NYSE: PRD) reported today that worldwide sales for the first quarter of 1993 were $468.5 million, compared with $431.3 million in the first quarter of 1992. The increase was due in considerable part to the company's contract to supply the Mexican government with voter identification cards for the 1994 national elections.
 As previously announced, in the first quarter of 1993 the company adopted FAS 106, Accounting for Postretirement Benefits, and FAS 109, Accounting for Income Taxes, and took a special charge for an early retirement and severance program. The net effect of the special one- time items on an after-tax basis was $125.7 million, consisting of charges of $132.9 million for FAS 106 and $26.4 million for an early retirement and other expenses and a credit of $33.6 million from FAS 109.
 Including these special items, the company recorded a net loss in the first quarter of 1993 of $122.8 million, or ($2.63) per share, compared to net earnings in the first quarter of 1992 of $6.2 million or 13 cents per share. Excluding these special items, operating profit would have been $13.7 million, compared with $26.8 million in the first quarter of 1992. Assuming a tax rate on operations of 40 percent and the effect of exchange, net earnings would have been $2.9 million, or 6 cents a share.
 I. MacAllister Booth, Polaroid chairman, president and chief executive officer, said, "In addition to the recurring incremental charge of $5 million for FAS 106, operating profits for the quarter were adversely affected by continued planned higher start-up costs for major new products. These costs are expected to continue to affect Polaroid's operating results this year as we complete a significant portion of our manufacturing scale-up and begin extensive marketing support for our new products."
 Worldwide shipments of instant cameras and film, conventional film and videotape all increased in the first quarter of 1993. Sales revenue in the U.S. was $213.3 million in the first quarter of 1993, a 4 percent increase over the $205.9 million recorded in the prior year period. Internationally, sales revenues were $255.2 million in the first quarter of 1993, a 13 percent increase over the $225.4 achieved in the same period last year. Increases in revenues in the Asia-Pacific region and other international markets, coupled with the company's Mexican voter identification program, more than offset lower sales in Europe.
 "Although overall revenues in Europe decreased, camera shipments increased significantly. We expanded the launch of our new instant consumer camera 'Joshua' known in Europe as Polaroid Vision, in that market in the quarter. As the year progresses, we anticipate gaining positive momentum as 'Joshua' is fully launched in Japan as 'JoyCam' and introduced to the U.S. market as 'Captiva' this summer. We also expect to accelerate sales of our new Helios laser medical imaging system, shipments of which began in the first quarter," Booth added.
 Polaroid's annual meeting of shareholders will be held Tuesday, May 11, 1993, at 2 p.m. at Alumnae Hall, Wellesley College, Wellesley, Mass.
 Polaroid Corporation, with sales of more than $2 billion, is the worldwide leader in instant imaging. The company supplies instant photographic cameras and films, conventional films, videotapes and electronic visual communication products to family, business and technical and industrial markets.
 POLAROID CORPORATION AND SUBSIDIARY COMPANIES
 Condensed Consolidated Statement of Earnings
 First Quarters ended April 4, 1993 and March 29, 1992
 (In millions, except per share data)
 (Unaudited)
 1993 1992
 Net Sales:
 United States $213.3 $205.9
 International 255.2 225.4
 Total net sales 468.5 431.3
 Cost of sales 284.4 236.0
 Marketing, research, engineering
 and administrative expenses 170.4 168.5
 Early retirement and other 44.0 ---
 Total costs 498.8 404.5
 Profit (loss) from operations (30.3) 26.8
 Other income 2.8 1.3
 Interest expense 12.8 14.0
 Earnings (loss) before
 income taxes and cumulative
 effect of changes in accounting
 principle (40.3) 14.1
 Federal, state and
 foreign income tax expense
 (credit) (16.8) 7.9
 Earnings/(loss) before
 cumulative effect of changes in
 accounting principle (23.5) 6.2
 Cumulative effect
 of changes in accounting
 principle for:
 Postretirement benefits
 other than pensions, net of tax
 of $85.0 million (132.9) --
 Income taxes 33.6 --
 Net earnings/(loss) (122.8) $6.2
 Primary earnings/ (loss) per
 common share:
 Earnings/(loss) before cumulative
 effect of changes in accounting
 principle $(0.50) $0.13
 Cumulative effect of changes
 in accounting prinicple for:
 Postretirement benefits other than
 pensions (2.85) --
 Income taxes 0.72 --
 Net earnings/(loss) $(2.63) $0.13
 Cash dividends per
 common share $ .15 $ .15
 Weighted average common shares
 used for primary earnings per
 share calculation
 (in thousands) 46,669 48,819
 Common shares outstanding at
 end of period (in thousands) 46,670 48,637
 /NOTE: Fully diluted earnings per share are not disclosed as the effect was antidilutive./
 POLAROID CORPORATION AND SUBSIDIARY COMPANIES
 Supplementary Financial Information -- UNAUDITED
 (In millions)
 First Quarter
 1993 1992
 EARNINGS STATEMENT DATA FOR FOREIGN CURRENCY
 EXCHANGE:
 After-tax foreign currency exchange
 gain/(loss) $0.4 $(3.1)
 SELECTED CASH FLOW DATA:
 Additions to property, plant, and equipment 33.5 37.2
 Depreciation 25.0 22.5
 At End of First Quarter
 BALANCE SHEET 1993 1992
 Current Assets:
 Cash and cash equivalents $116.8 $251.8
 Short term investments 38.5 111.0
 Receivables 434.5 397.2
 Inventories:
 Raw materials 135.4 114.4
 Work-in-process 260.2 232.4
 Finished goods 250.1 238.8
 Total inventories 645.7 585.6
 Prepaid expenses and other assets 165.3 101.3
 Total current assets 1,400.8 1,446.9
 Net property, plant and equipment 665.7 563.9
 Deferred tax assets 56.7 ---
 Total assets 2,123.2 2,010.8
 Current liabilities:
 Short-term debt 137.6 154.1
 Current portion of long-term debt 29.5 26.7
 Payables and accruals 219.9 219.1
 Compensation and benefits 153.6 119.3
 Federal, state and foreign income
 taxes 52.2 58.4
 Total current liabilities 592.8 577.6
 Long-term debt 637.5 669.5
 Accrued postretirement benefits 213.5 ---
 Stockholders' equity:
 Common stock, $1 par value 75.4 75.4
 Additional paid-in capital 379.5 379.5
 Retained earnings 1,550.8 1,608.8
 Less: Treasury stock, at cost 1,147.1 1,091.8
 Deferred compensation 179.2 208.2
 Total stockholders' equity 679.4 763.7
 Total liabilities and equity 2,123.2 2,010.8
 -0- 4/20/93
 /CONTACT: Mary T. Conway, 617-577-3124, or Harry Johnson, 617-577-2665, both of Polaroid/
 (PRD)


CO: Polaroid Corporation ST: Massachusetts IN: HOU SU: ERN

CH -- NE014 -- 8137 04/20/93 13:42 EDT
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Date:Apr 20, 1993
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