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VALHI REPORTS 1992 RESULTS

 DALLAS, March 25 /PRNewswire/ -- Valhi Inc. (NYSE: VHI) reported a net loss for 1992 of $98.3 million, or $.86 per share, compared to net income of $24.8 million or $.22 per share in 1991. Results from 1992 include a one-time non-cash net charge of $69.8 million, or $.61 per share, as a result of adopting two new accounting standards which mandated changes in accounting for postretirement benefits other than pensions and income taxes. These changes in accounting principles were adopted retroactively to the beginning of 1992 and, accordingly, the company's previously reported 1992 quarterly results have been restated.
 For the fourth quarter of 1992, Valhi reported a net loss of $26.4 million, or $.23 cents per share, compared to a net loss of $2.3 million, or $.02 per share, in 1991. As discussed below, the fourth quarter 1992 results include a $22 million pre-tax charge to earnings for impairment in value of an affiliate.
 Operating income increased 4 percent to $19.3 million in the fourth quarter, and increased 20 percent to $79.0 million for the year, while sales increased 7 percent to $199.1 million in the fourth quarter, and increased 6 percent to $811.8 million for the year. Refined sugar sales volume increased in 1992 because of record production from the sugarbeet crop, however lower selling prices and increased processing costs resulted in lower earnings of this segment. Record medium density fiberboard sales volumes and prices contributed to the significant improvement in forest products results for the year. The fast food and hardware products segments also reported higher earnings in 1992 primarily as a result of higher volumes.
 Interest expense declined $20.7 million, or 29 percent, in 1992 because of reduced borrowing levels and lower interest rates.
 While the company's consolidated operations reported improved earnings in 1992, the operations of the company's unconsolidated affiliates, NL Industries Inc. (49 percent-owned) and Tremont Corp. (48 percent-owned), continued to be adversely affected by, among other things, recessionary conditions and industry overcapacity in their respective major businesses. In the fourth quarter of 1992, Valhi recorded a $22 million pre-tax charge to earnings for impairment in the value of its investment in Tremont. The company's equity in the operations of NL and Tremont in 1992 was a loss of approximately $71 million, including the $22 million impairment charge, compared to a loss of approximately $20 million in 1991. NL reported significantly lower earnings from its chemicals operations and higher net interest expense in 1992. Operating results of Tremont's titanium metals business declined significantly in 1992. In addition, more than 90 percent of the company's net charge for the cumulative effect of changes in accounting principles in 1992 related to NL and Tremont.
 The $3.5 million net gain from business unit dispositions in 1992 consists of an insurance gain relating to a forest products plant destroyed by fire and a loss relating to the permanent closure of a forest products plywood plant. Securities transaction gains of $64 million in 1991 relate principally to the company's previously reported reduction in its holdings of Baroid Corp. common stock.
 The $6.3 million extraordinary loss in 1992 relates to the retirement of a portion of Valhi's 12.5 percent Senior Subordinated Notes due 1998, including accrual of the premium on $100 million principal amount of notes called in December 1992 for redemption in February 1993. Extraordinary gains in 1991 consist of the company's equity in extraordinary items reported by NL, principally income tax benefits of tax loss and tax credit carryforwards.
 Valhi Inc., headquartered in Dallas, is a diversified company engaged in the refined sugar, forest products, fast food and hardware products industries and, indirectly through publicly traded NL and Tremont, in the chemicals, titanium metals and bentonite mining industries. Valhi's common stock is traded on the New York and Pacific Stock Exchanges under the symbol "VHI".
 VALHI INC. AND SUBSIDIARIES
 Summary of Consolidated Operations
 (In millions, except per share data)
 Three months ended Years ended
 Dec. 31, Dec. 31,
 1992 1991 1992 1991
 Revenues and other
 income:
 Net sales $199.1 $186.4 $811.8 $765.7
 Equity in loss of:
 NL Industries Inc. (9.5) (3.6) (32.1) (19.3)
 Tremont Corp. (29.5) (1.2) (38.6) (.4)
 Securities
 transactions 1.9 .3 2.1 64.0
 Other, net 4.5 3.2 21.5 13.9
 Total $166.5 $185.1 $764.7 $823.9
 Income (loss) before
 income taxes ($30.8) $.4 ($35.4) $39.6
 Income tax benefit
 (expense) 10.5 (2.9) 13.2 (19.6)
 Income (loss) before
 extraordinary items (20.3) (2.5) (22.2) 20.0
 Extraordinary items (6.1) .2 (6.3) 4.8
 Cumulative effect of
 changes in
 accounting principles --- --- (69.8) ---
 Net income (loss) ($26.4) ($2.3) ($98.3) $24.8
 Income (loss) per
 common share:
 Before extraordinary
 items ($.17) ($.02) ($.19) $.18
 Extraordinary items (.06) --- (.06) .04
 Cumulative effect of
 changes in
 accounting principles --- --- (.61) ---
 Net income (loss) ($.23) ($.02) ($.86) $.22
 Weighted average
 common shares
 outstanding 113.9 113.6 113.9 113.5
 VALHI INC. AND SUBSIDIARIES
 Business Segment Information
 (In millions)
 Three months ended Years ended
 Dec. 31, Dec. 31,
 1992 1991 1992 1991
 Net sales:
 Refined sugar $109.5 $105.4 $459.2 $439.7
 Forest products 46.1 43.2 194.8 179.7
 Fast food 28.8 27.2 103.8 101.5
 Hardware products 14.7 10.6 54.0 44.8
 Total $199.1 $186.4 $811.8 $765.7
 Operating income:
 Refined sugar $6.5 $9.1 $37.8 $42.0
 Forest products 6.0 4.4 22.0 8.0
 Fast food 3.3 2.8 8.5 7.8
 Hardware products 3.5 2.4 10.7 7.9
 Total operating income 19.3 18.7 79.0 65.7
 Equity in loss of:
 NL Industries (9.5) (3.6) (32.1) (19.3)
 Tremont Corp. (29.5) (1.2) (38.6) (.4)
 Business unit
 dispositions, net --- --- 3.5 ---
 Reduction in interest
 in NL --- --- --- (.8)
 General corporate
 income (expense):
 Securities transactions 1.9 .3 2.1 64.0
 Interest and dividend
 income 2.5 1.6 9.3 6.0
 General expenses (2.0) (2.5) (7.4) (7.6)
 Other, net (.4) .5 .3 4.2
 Interest expense (13.1) (13.4) (51.5) (72.2)
 Income (loss) before
 income taxes ($30.8) $.4 ($35.4) $39.6
 VALHI INC. AND SUBSIDIARIES
 Condensed Consolidated Balance Sheets
 (In millions)
 Dec. 31,
 1992 1991
 Current assets $504.6 $496.5
 Investment in NL and Tremont 248.4 410.6
 Other non-current assets 135.7 75.6
 Property and equipment 188.3 194.4
 Total $1,077.0 $1,177.1
 Current liabilities $489.0 $378.1
 Long-term debt 288.7 352.7
 Other non-current liabilities 40.2 60.8
 Stockholders' equity 259.1 385.5
 Total $1,077.0 $1,177.1
 Common shares outstanding 114.1 113.9
 Summary of Consolidated Stockholders' Equity
 (In millions)
 Years ended
 Dec. 31,
 1992 1991
 Beginning of year $385.5 $294.6
 Net income (loss) (98.3) 24.8
 Dividends - $.20 per share (22.8) (22.7)
 Adjustments:
 Currency translation (6.4) 8.5
 Marketable equity securities .2 73.1
 Other, net .9 7.2
 End of year $259.1 $385.5
 -0- 3/25/93
 /CONTACT: William C. Timm, VP-finance and administration of Valhi Inc., 214-450-4212/
 (VHI)


CO: Valhi Inc. ST: Texas IN: MNG FOD SU: ERN

JB-EH -- LA014 -- 9626 03/25/93 13:23 EST
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Date:Mar 25, 1993
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