THE WEST COMPANY REPORTS 1991 RESULTS
THE WEST COMPANY REPORTS 1991 RESULTS PHOENIXVILLE, Pa., Feb. 19 /PRNewswire/ -- The West Company, Inc.
(NYSE: WST) today reported sales for the full year 1991 of $329.6 million, a 2 percent increase from 1990 sales of $323.2 million.
Sales increases in United States, European and Asian markets were offset in part by lower sales in Brazil. The net loss for 1991 totalled $14.7 million, or $.95 per share, compared with 1990's net income of $4.3 million, or $.27 per share. Sales for the fourth quarter of 1992 were $82.2 million, compared with $80.5 million in the 1990 period. The company reported a net loss for the quarter of $18.1 million, or $1.16 per share, compared with a net loss of $5.9 million, or $.38 per share, for the fourth quarter of 1990. The net loss for 1991 was caused in part by the previously announced tax restructuring charge of $21.2 million, or $1.37 per share. This charge provided for the estimated losses resulting from the closure of non-strategic manufacturing sites and the disposal of obsolete assets. Additionally, the company adopted the new accounting standard governing non-pension retirement benefits and elected to recognize immediately the accumulated obligation for these costs related to employee service through Jan. 1, 1991. This resulted in a net charge for 1991 of $6.3 million or $.40 per share. The accounting standard requires that the adoption take effect as of the beginning of the year and the first three quarters have been restated to reflect the change in accounting method. In reporting the results for the year, William G. Little, president and chief executive officer stated, "The global restructuring that was announced in 1991 will position The West Company for success in 1992 and beyond. Our long-term business plan has confirmed the company's fundamental strengths. By centering our manufacturing on key sites and creating a strategic marketing alliance with our Japanese and European partners, we have enhanced these strengths, These decisions, together with our recently announced joint venture with the Schott Corporation, a leading European glass manufacturer, will provide immediate and long- term benefits. We believe that we are now positioned for success." The West Company is a premier supplier of products the satisfy the unique filling, sealing and dispensing needs of the health care and consumer products industries. More than 85 percent of West's revenue is generated by the health care markets. Products include stoppers, closures, containers, medical device components and assemblies made from elastomers, metal, plastic and glass. West also manufacturers related packaging machinery. THE WEST COMPANY, INC. Consolidated Statement of Operations (In thousands, except per-share data) Periods ended Quarters 12 months Dec. 31 1991 1990 1991 1990 Net sales $82,168 $80,460 $329,608 $323,218 Cost of goods sold 62,302 60,664 245,846 244,265 Gross profit 19,866 19,796 83,762 78,953 Selling, general and administrative expenses 14,914 15,920 55,444 54,385 Restructuring charges 28,826 9,918 29,516 10,930 Other (income) expense, net 74 503 437 (1,920) Operating profit (loss) (23,948) (6,545) (1,635) 15,558 Interest expense 1,278 1,522 6,032 5,927 Income (loss) before income taxes and minority interests (25,226) (8,067) (7,667) 9,631 Provision for income taxes (recovery) (4,412) (1,611) 4,734 6,404 Minority interests (2,554) (205) (2,389) 322 Income (loss) from consolidated operations (18,260) (6,251) (10,012) 2,905 Equity in net income of affiliated companies 207 376 1,556 1,374 Income (loss before cumulative effect of change in accounting method (18,053) (5,875) (8,456) 4,279 Cumulative effect to Jan. 1, 1991, of the change in accounting for non-pension retirement benefits --- --- 6,254 --- Net income (loss) (18,053) (5,875) (14,710) 4,279 Net income (loss) per share: Income (loss) before cumulative effect of change in accounting method $(.16) $(.38) $(.55) $.27 Cumulative effect of change in accounting method --- --- $(.40) --- Total $(.16) $(.38) $(.95) $.27 Average shares outstanding 15,555 15,538 15,527 15,793 Notes: The first nine months of 1991 have been restated to reflect the adoption of Financial Accounting Standards No. 106 (FAS 106), Employer's Accounting for Post-retirement Benefits Other than Pensions. 1990 has been reclassified to conform to 1991 classifications. /delval/ -0- 2/19/92 /CONTACT: Stephen M. Heumann, treasurer of The West Company, 215-935-4640/ (WST) CO: The West Company, Incorporated ST: Pennsylvania IN: MAC SU: ERN
JS-MP -- PH016 -- 0419 02/19/92 11:35 EST
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|Date:||Feb 19, 1992|
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