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SUNDSTRAND ANNOUNCES THIRD QUARTER RESULTS

 SUNDSTRAND ANNOUNCES THIRD QUARTER RESULTS
 ROCKFORD, Ill., Oct. 21 /PRNewswire/ -- Sundstrand Corporation


(NYSE: SNS) today reported third quarter 1992 sales of $416.6 million and net earnings of $26.3 million, or $.73 per share. Third quarter 1992 sales included $24.9 million for the former Westinghouse Electrical Systems Division (ESD), which was acquired during the second quarter. Third quarter 1992 net earnings included a charge of $3.5 million, or $.10 per share, for an increase in postretirement benefit costs resulting from the adoption of SFAS No. 106, "Employers' Accounting for Postretirement Benefits Other than Pensions." Third quarter net earnings also included a credit of $1.8 million, or $.05 per share, resulting from a previously disclosed change in pension cost assumptions.
 In the third quarter of 1991, sales were $405.5 million and net earnings were $27.4 million, or $.76 per share.
 Harry C. Stonecipher, chairman, president and chief executive officer, said, "Despite the continued weakness in many of our markets, our earnings are showing the benefits of last year's cost reduction efforts. As we announced in June, we are continuing to restructure our aerospace segment, which will provide additional benefits in future periods."
 In the first nine months of 1992, reported sales of $1,213.0 million included $39.7 million for the ESD acquisition. In the first nine months of 1992, a reported net loss of $160.9 million, or $4.46 per share, included a previously disclosed cumulative effect charge of $205.0 million, or $5.68 per share, and a period charge of $9.3 million, or $.26 per share, resulting from the adoption of SFAS No. 106. The net loss in the first nine months of 1992 also included previously disclosed charges totaling $24.2 million, or $.67 per share, for restructuring of, and reduction in employment in the company's aerospace segment, partially offset by a credit of $4.9 million, or $.13 per share, for the change in pension cost assumptions.
 In the first nine months of 1991, sales were $1,215.5 million and net earnings were $59.8 million, of $1.66 per share. Net earnings in the first nine months of 1991 included previously disclosed charges of $9.4 million, or $.26 per share, for employment reduction and relocation costs.
 In the third quarter of 1992, incoming orders were $467.4 million, compared to $343.3 million in the third quarter of 1991. In the first nine months of 1992, incoming orders were $1,339.3 million, compared to $1,139.0 million in the first nine months of 1991. The ESD contribution to incoming orders in 1992 was $11.9 million for the third quarter, and $17.6 million plus a $113.5 million backlog for the first nine months. Incoming orders for the first nine months of 1991 included $23.7 million in backlog from the Milton Roy acquisition. Incoming orders increased, in part, on the strength of initial orders from Boeing for equipment on the new 777 aircraft.
 Total unfilled orders on Sept. 30, 1992, including unfilled orders from the ESD acquisition, were $1,134.5 million, compared to $1,107.0 million on Sept. 30, 1991, and $1,008.2 million on Dec. 31, 1991.
 Sundstrand Corporation, with 1991 sales of $1,669.2 million, is an international market leader in the design, manufacture and sale of a variety of proprietary, technology-based components and subsystems for aerospace (61 percent of 1991 sales) and industrial (39 percent of 1991 sales) markets. Sundstrand's common stock is listed on the New York, Midwest and Pacific stock exchanges under the symbol SNS.
 SUNDSTRAND CORPORATION AND SUBSIDIARIES (SNS)
 Condensed Consolidated Statement of Earnings (Unaudited)
 (Amounts in millions, except per share data)
 Period ended Quarter Nine months
 Sept. 30 1992(A) 1991 1992(A) 1991
 Net sales $416.6 $405.5 $1,213.0 $1,215.5
 Costs, expenses and other income:
 Costs of products sold (B) 274.1 259.1 781.7 770.0
 Marketing and administration
 (C,D,E) 92.1 94.7 296.0 312.0
 Restructuring of aerospace
 segment -- -- 34.0 --
 Interest expense 15.8 19.3 49.1 59.5
 Interest income (5.0) (8.6) (16.4) (26.9)
 Other, net (E) (1.5) (2.8) (.3) 5.3
 Total 375.5 361.7 1,144.1 1,119.9
 Earnings before income taxes
 and cumulative effect of
 accounting change 41.1 43.8 68.9 95.6
 Income taxes 14.8 16.4 24.8 35.8
 Earnings before cumulative
 effect of accounting change 26.3 27.4 44.1 59.8
 Cumulative effect on prior
 years of change in method
 of accounting for post-
 retirement benefits other
 than pensions, net of
 income taxes -- -- (205.0) --
 Net earnings (loss)
 available for common shares 26.3 27.4 (160.9) 59.8
 Weighted average number
 of common shares outstanding 36.1 36.0 36.1 36.0
 Earnings (loss) per share:
 Earnings before
 cumulative effect .73 .76 1.22 1.66
 Cumulative effect of change
 in accounting for post-
 retirement benefits other
 than pensions -- -- (5.68) --
 Net earnings (loss) .73 .76 (4.46) 1.66
 Cash dividends per common share .30 .275 .875 .825
 Incoming orders (F,G) 467.4 343.3 1,339.3 1,139.0
 (A) -- Net sales in 1992 included sales of $24.9 million and $39.7 million for the quarter and nine months ended Sept. 30, 1992, respectively for the acquisition of the former Westinghouse Electrical Systems Division.
 (B) -- "Costs of products sold" included charges of $3.1 million and $8.3 million for the quarter and nine months ended Sept. 30, 1992, respectively, associated with the adoption of SFAS No. 106. "Costs of products sold" also reflected lower pension expense of $1.6 million and $4.4 million for the quarter and nine months ended Sept. 30, 1992, respectively related to a change in pension assumptions.
 (C) -- "Marketing and administration" included charges $2.3 million and $6.2 million for the quarter and nine months ended Sept. 30, 1992, respectively, associated with the adoption of SFAS No. 106. "Marketing and administration" also reflected lower pension expense of $1.2 million and $3.2 million for the quarter and nine months ended Sept. 30, 1992, related to a change in pension assumptions.
 (D) -- "Marketing and administration" included nonrecurring charges of $3.8 million for the nine months ended Sept. 30, 1992, associated with reductions in employment levels.
 (E) -- "Marketing and administration" included nonrecurring charges of $11.8 million for the nine months ended Sept. 30, 1991, respectively, associated with reductions in employment levels. "Other, net" included nonrecurring charges of $3.2 million for the nine months ended Sept. 30, 1991, respectively, associated with the relocation of an aerospace business unit.
 (F) -- Incoming orders for the nine months ended Sept. 30, 1991, included unfilled orders of $23.7 million from the acquisition of the Milton Roy Company.
 (G) -- Incoming orders included new orders of $11.9 million for the quarter ended Sept. 30, 1992, from the acquisition of the former Westinghouse Electrical Systems Division (ESD). Incoming orders included the new orders of $17.6 million and unfilled orders of $113.5 million, for the nine months ended Sept. 30, 1992, from the acquisition of ESD.
 SUNDSTRAND CORPORATION AND SUBSIDIARIES (SNS)
 Condensed Consolidated Balance Sheet (Unaudited)
 (Amounts in millions)
 9/30/92 12/31/91
 Assets
 Current assets
 Cash and cash equivalents $ 10.3 $ 8.4
 Accounts receivable 348.3 356.7
 Inventories 453.4 429.3
 Deferred income taxes 115.3 103.3
 Other current assets 20.4 46.9
 Total current assets 947.7 944.6
 Property, plant and equipment, net 529.0 494.3
 Intangible assets 301.3 221.3
 Other assets 58.7 59.3
 Total 1,836.7 1,719.5
 Liabilities and Shareholders' Equity
 Current liabilities
 Accounts payable 101.2 100.8
 Accrued salaries, wages and commissions 42.8 40.0
 Contributions due retirement plans 9.2 21.8
 Provision for losses on
 long-term contracts 12.3 24.5
 Restructuring of aerospace segment 26.9 --
 Other accrued liabilities 137.1 114.1
 Total current liabilities 329.5 301.2
 Deferred income taxes 74.9 192.8
 Long-term debt 500.3 454.9
 Accrued postretirement benefits
 other than pensions 338.7 --
 Other liabilities 88.1 78.2
 Shareholders' Equity
 Common stock, at par value 18.9 18.9
 Other shareholders' equity 486.3 673.5
 Total 505.2 692.4
 Total 1,836.7 1,719.5
 -0- 10/21/92
 /CONTACT: Gary Hedges of Sundstrand Corporation, 815-226-6245/
 (SNS) CO: Sundstrand Corporation ST: Illinois IN: ARO SU: ERN


TS-OS -- NY027 -- 2799 10/21/92 10:54 EDT
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