A. P. GREEN ANNOUNCES FOURTH QUARTER RESULTS
A. P. GREEN ANNOUNCES FOURTH QUARTER RESULTS MEXICO, Mo., Feb. 13 /PRNewswire/ -- A. P. Green Industries Inc.
(NASDAQ: APGI) today announced its final results for the fourth quarter and year ended Dec. 31, 1991. Losses for the year were $4.9 million or $1.86 per share. Total annual revenues declined to $170.3 million from $186.5 million the prior year.
The fourth quarter loss of $4.1 million or $1.52 per share was slightly improved from the loss of $4.3 million or $1.56 per share a year ago. Fourth quarter 1991 revenues were down 16 percent to $40.9 million compared to $48.5 million in the fourth quarter of 1990. As was previously announced in December, A. P. Green took an after-tax charge to earnings of $1.8 million or 68 cents per share, in the fourth quarter of 1991 due to an adjustment to the inventory of its domestic and Canadian refractory operations. Additionally, 1991 earnings were adversely affected by a number of other significant items, including the expenses of the substantial reduction in salaried and hourly personnel which included severance, moving and relocation expenses; legal and professional fees incurred in the prosecution and defense of several matters; and expenses incurred in our largest plant at Mexico, Mo., due to some operational, maintenance, and production changes. These items amounted to approximately $3.0 million after tax. These expenses were offset to some degree by a reduction in the LIFO reserve of $1.4 million after tax. The net effect was a reduction in after-tax earnings of $3.4 million. Harry M. Stover, chairman and chief executive officer, said, "1991 has been the roughest year I have seen in my 37 years in the refractory industry. Demand in our major markets such as steel, paper, and construction was significantly below 1990 levels. There was, and still is, too much production capacity chasing too few orders. Profit margins were at or near an all-time low and we had to run some plants at low efficiency levels. To offset these problems, we have made significant cuts in both our salaried and hourly employees and closed a number of low-profit warehouses and sales offices. We continue to prune our product line and to emphasize sales of our higher margin products. "While the domestic and Canadian refractory markets were slow, we did have good export sales, particularly United States exports to Central and South America and exports from our United Kingdom subsidiary to Europe, the Middle East and the Pacific Basin. APG Lime Corp. had a satisfactory year and should show some improvement in shipments to the paper and road building industries in 1992. Despite the severe problems we faced in 1991, we believe that the difficult and costly steps we have taken will enable us to meet whatever market conditions may arise in the future." A. P. Green Industries, headquartered in Mexico, Mo., is a leading manufacturer and distributor of refractory products in both the United States and international markets. The company also manufactures industrial lime products used in the production of steel, aluminum, and paper, and for road stabilization and water purification. The company operates 13 plants in the United States, Canada and the United Kingdom. A. P. GREEN INDUSTRIES INC. CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited) Period Ended Dec. 31 (Dollars in thousands Three Months Twelve Months except per share data) 1991 1990 1991 1990 Net sales $40,891 $48,471 $170,298 $186,450 Cost of sales 40,442 44,472 152,536 158,271 Gross profit 449 3,999 17,762 28,179 Expenses and other income Selling & administrative expenses 6,816 7,410 27,261 26,928 Interest expense 388 302 1,478 1,149 Interest income (312) (429) (1,680) (1,838) Provision for loss on investments 0 2,781 1,504 2,781 Other income, net (169) (275) (2,968) (1,803) Earnings (loss) before income taxes (6,274) (5,790) (7,833) 962 Income taxes (credits) (2,221) (1,516) (2,870) 854 Net Earnings (Loss) $(4,053) $(4,274) $(4,963) $108 Earnings (Loss) Per Common Share $(1.52) $(1.56) $(1.86) $0.04 -0- 2/13/92 /CONTACT: Gary L. Roberts of A. P. Green Industries, 314-473-3626; or Mark Trinske of Carl Thompson Associates, 303-494-5472, for A. P. Green Industries/ (APGI) CO: A. P. Green Industries Inc. ST: Missouri IN: SU: ERN
MC -- DV004 -- 9877 02/13/92 15:35 EST
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|Date:||Feb 13, 1992|
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