Printer Friendly

VARLEN ISSUES CORRECTED YEAR-END NEWS RELEASE; VARLEN FOURTH QUARTER EARNINGS INCREASE OVER YEAR-AGO PERIOD

 VARLEN ISSUES CORRECTED YEAR-END NEWS RELEASE;
 VARLEN FOURTH QUARTER EARNINGS INCREASE OVER YEAR-AGO PERIOD;
 NAPERVILLE, Ill., March 3 /PRNewswire/ -- Varlen Corp. (NASDAQ: VRLN) today issued a corrected version of its year-end earnings release. A preliminary draft was mistakenly issued by the company's investor relations counsel yesterday afternoon. The corrected version reads as follows:
 Varlen Corp. reported a substantial increase in net earnings for its fiscal fourth quarter compared to the comparable year-ago period, though a soft first half reduced results for the year.
 Richard L. Wellek, president and chief executive officer, noted that the final three months of the 1991 fiscal year represented the second straight quarter of increased earnings over comparable periods in the previous year.
 "We're pleased that both of our business segments contributed to the fourth quarter earnings gains," Wellek said.
 He noted that despite a drop in earnings and sales for the year, "all of the Varlen companies were profitable."
 For the three months ended Jan. 31, 1992, Varlen reported net income of $728,000 or 16 cents per share compared with net income of $26,000 or 1 cent per share in the year-ago period. Sales for the quarter were $55,901,000, down from $58,294,000 during the comparable year-ago quarter.
 For the full year, Varlen reported net income of $3,244,000 or 72 cents per share on sales of $230,517,000, down from net income of $5,057,000 or $1.13 per share on sales of $242,786,000 during the previous fiscal year.
 Wellek said that operating profits for the year in the company's laboratory products segment more than doubled on an approximate 11 percent increase in sales.
 "This business segment benefited from a full year's results at Walter Herzog GmbH, our German laboratory products subsidiary acquired in July 1990, as well as from cost reductions, improved productivity and new and updated products which helped these companies gain market share in a weak world-wide economy," Wellek said.
 He noted that the laboratory products business segment gains somewhat offset the decline in sales and profits for the year in Varlen's transportation group, which experienced a contraction in its served markets for the second straight year.
 Wellek said that "given the depth of the decline in our transportation related markets, we are proud of the performance of our transportation companies. We believe they outperformed their markets.
 "This was accomplished by continuous attention to cost reduction, new and revised product introductions and exceptional response to customer needs."
 Wellek said he believed Varlen's transportation companies are "well- positioned for improved earnings when their markets recover."
 Wellek noted that although Varlen was paying close attention to cost control, it had not stopped reinvesting in its businesses. Capital expenditures of approximately $8 million were made for equipment in support of cost reduction programs, quality improvements, new products, and maintaining compliance with safety and environmental regulations, he said.
 Varlen is a diversified manufacturer of precision industrial products, primarily for the transportation and laboratory equipment markets. The company serves U.S. and foreign markets with operating locations in six states and Germany. Headquarters are in Naperville.
 VARLEN CORP. AND SUBSIDIARIES
 (Unaudited; in thousands, except per-share amounts)
 Fourth quarter ended Jan. 31 1992 1991
 Net sales $55,901 $58,294
 Net earnings 728 26
 Net earnings per share $0.16 $0.01
 Weighted average number of
 shares outstanding 4,494 4,490
 (In thousands, except per-share amounts)
 Year ended Jan. 31 1992 1991
 Net sales $230,517 $242,786
 Net earnings 3,244 5,057
 Net earnings per share $0.72 $1.13
 Weighted average number of
 shares outstanding 4,492 4,489
 -0- 3/3/92
 /CONTACT: Richard L. Wellek, president and CEO, or Richard A. Nunemaker, VP-finance and CFO of Varlen, 708-420-0400; or Nicholas G. Biro of O'Connor Biro & Associates, 708-498-2284, for Varlen/
 (VRLN) CO: Varlen Corp. ST: Illinois IN: SU: ERN


CK -- NY049 -- 4478 03/03/92 12:21 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Mar 3, 1992
Words:656
Previous Article:KDKA-TV REPORTER TO RECEIVE 1992 WOMEN IN COMMUNICATIONS AWARD
Next Article:COLUMBIA REAL ESTATE INVESTMENTS DECLARES DIVIDEND
Topics:


Related Articles
VARLEN DECLARES REGULAR DIVIDEND
VARLEN THIRD QUARTER EARNINGS UP ON REDUCED VOLUME
VARLEN DECLARES REGULAR DIVIDEND
VARLEN CORP. DECLARES DIVIDEND
VARLEN DECLARES REGULAR QUARTERLY DIVIDEND
VARLEN FOURTH QUARTER EARNINGS DOUBLE ON INCREASED SALES AND IMPROVED MARGINS; OUTLOOK FAVORABLE FOR YEAR AHEAD
VARLEN REPORTS RECORD FIRST QUARTER SALES & EARNINGS FROM CONTINUING OPERATIONS; TRANSPORTATION PRODUCTS SEGMENT PACES GAINS
VARLEN CORP. ADDS JOSEPH J. ROSS TO BOARD
VARLEN REPORTS RECORD SECOND QUARTER; BACKLOG 42% AHEAD OF YEAR AGO
VARLEN CORPORATION ENTERS STRATEGIC ALLIANCE WITH BOSTON ADVANCED TECHNOLOGIES

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters