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STANDARD COMMERCIAL FIRST QUARTER IMPACTED BY BUSINESS SLOWDOWN AND SPECIAL CHARGES

 WILSON, N.C., Aug. 9 /PRNewswire/ -- Standard Commercial Corporation (NYSE: STW) reported sales of $233.1 million for its first quarter ended June 30, 1993, down 17.0 percent from $280.8 million for the same quarter in 1992. A loss on continuing operations of $4.8 million or $0.58 per share ($0.37 fully diluted), before inventory provisions and restructuring charges, was recorded in the current quarter compared with income from continuing operations of $5.1 million or $0.62 per share ($0.57 fully diluted) a year earlier. The loss on continuing operations in the current quarter after the special charges of $18.0 million ($15.2 million net of tax) amounted to $20.0 million or $2.36 per share ($1.76 fully diluted). The net loss for the current quarter of $19.9 million or $2.36 per share compared with net income of $5.3 million or $0.64 per share in the prior year.
 Tobacco sales totaled $148.0 million in the current quarter, down 17.2 percent from $178.7 million 1992, and declined slightly from 63.6 percent to 63.5 percent as a percentage of total sales. As a result of slack demand, volume was down 11 percent (15 percent excluding WA Adams in 1993 which was not included in 1992) and unit prices decreased by 7 percent. The volume of wool sold increased by 6 percent, but a change in the sales mix and lower unit prices resulted in an overall quarter-to-quarter decrease of 18.6 percent, from $96.8 million to $78.9 million. Wool represented 33.8 percent of total sales in 1993 versus 34.5 percent in 1992. Sales by other businesses increased by 18.6 percent from $5.3 million (1.9 percent of total sales) in 1992 to $6.2 million (2.7 percent of total sales) in 1993. Apart from the provision on tobacco inventories and restructuring charges in the 1993 quarter, the decline in income from continuing operations was primarily due to the lower level of sales and gross margins brought on by difficult market conditions, higher fixed cost related to the inclusion of WA Adams and nonrecurring costs associated with the merger agreement terminated in April.
 Because of the seasonal nature of the company's business, results for interim periods are not necessarily indicative of results for the full year.
 FINANCIAL HIGHLIGHTS
 (In thousands, except per share amounts; unaudited)
 Quarter Ended June
 1993 1992
 Sales - tobacco $147,975 $178,697
 - wool 78,852 96,826
 - other 6,227 5,253
 Total Sales 233,054 280,776
 Income (loss) from continuing operations
 before extraordinary items and
 cumulative effect of accounting changes (19,965) 5,101
 Extraordinary items - benefit of tax-loss
 carryforwards --- 181
 Cumulative effect of accounting changes 23 ---
 Net income (loss) (19,942) 5,282
 Primary earnings (loss) per share
 -- before extraordinary items and cumulative
 effect of accounting changes $(2.36) $0.62
 -- after extraordinary items and cumulative
 effect of accounting changes $(2.36) $0.64
 -- average shares outstanding 8,518.4 8,250.3
 Fully diluted earnings (loss) per share
 -- before extraordinary items and cumulative
 effect of accounting changes $(1.76) $0.57
 -- after extraordinary items and cumulative
 effect of accounting changes $(1.76) $0.59
 -- average shares outstanding 10,907.6 10,376.6
 Standard Commercial is one of the world's largest leaf tobacco dealers and among the top international wool trading companies. It operates in virtually every tobacco and wool producing country and sells worldwide to tobacco manufacturers and wool users.
 -0- 8/9/93
 /CONTACT: G.M. Ross, Standard Commercial, 919-291-5507/
 (STW)


CO: Standard Commercial Corporation ST: North Carolina IN: TOB SU: ERN

MM -- CH005 -- 0860 08/09/93 15:58 EDT
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Publication:PR Newswire
Date:Aug 9, 1993
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