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ABEX INC. REPORTS THIRD QUARTER RESULTS

 ABEX INC. REPORTS THIRD QUARTER RESULTS
 HAMPTON, N.H., Nov. 9 /PRNewswire/ -- Helped by higher sales and


lower interest expense, Abex Inc. (NYSE ABE) achieved net income of $500,000, or 3 cents per share, for the three months ended Sept. 30, 1992, compared with a net loss of $337.7 million or $17.09 per share, for the third quarter of 1991.
 Third-quarter 1991 results included restructuring and nonrecurring charges of $344.3 million and an extraordinary gain of $12.1 million.
 The developer and manufacturer of engineered products for the transportation industry had net sales for the latest period of $187.5 million, an increase of 7.8 percent from sales of $174 million in the July-September quarter of last year. Operating income increased to $15.2 million from $15 million, exclusive of restructuring and nonrecurring items. Interest expense declined to $13.8 million from $19.9 million.
 As previously reported, the stretch-out and reduction of certain commercial aircraft programs and the completion of several military orders are expected to dampen Abex aerospace sales in the future. Sales of aircraft passenger boarding bridges and brake materials for cars and trucks continued strong in the third quarter.
 Abex is adjusting to announced and anticipated cutbacks in aerospace programs by reducing costs across the board. Executive salaries have been cut up to 25 percent, and other salaries and wages have been frozen. In addition, selective personnel reductions have taken place in corporate headquarters and throughout the operations. The phaseout of Abex's Oxnard, Calif., plant and the consolidation of its manufacturing, overhaul, assembly and test operations into existing facilities at Kalamazoo., Mich., Dublin, Ga., and Beaufort, S.C., was announced last month. Other economy measures include asset disposals and the reduction of certain benefit programs.
 For the first nine months of 1992, Abex had a net loss of $16.9 million, or 85 cents per share, on net sales if $559.8 million, compared with a net loss of $425.1 million, or $21.52 per share, on net sales of $523.4 million in the year-ago period.
 Operating income for the latest nine months improved sharply to $38.7 million but was more than offset by interest expense of $50.9 million, which was $17.2 million lower than interest expense for the first three quarters of 1991. In that period, there was an operating loss of $313.4 million, which included $344.3 million of restructuring and nonrecurring charges.
 Abex Inc.
 Financial Highlights
 (in millions, except per share amounts)
 Three Months Ended Nine Months Ended
 Sept. 30, Sept. 30,
 1992-(c) 1991 1992-(c) 1991
 Net sales $187.5 $174.0 $559.8 $523.4
 Income (loss) before
 extraordinary items
 and transition effect
 of an accounting
 change-(a) $.5 $(349.8) $(10.9) $(380.5)
 Net income (loss)-(a) $.5 $(337.7) $(16.9) $(425.1)
 Earnings (loss) per
 common share:
 Before extraordinary
 items and transition
 effect of an accounting
 change-(a) 3 cents $(17.70) (55 cents) $(19.26)
 Net income (loss)-(a) 3 cents $(17.09) (85 cents) $(21.52)
 Weighted average common
 shares outstanding-(b) 19.8 19.8 19.8 19.8
 ----
 NOTE: (a) The three and nine months ended Sept. 30, 1991 include restructuring and nonrecurring charges of $344.3 ($17.43 per share) incurred in connection with the third quarter 1991 operations review and extraordinary gains of $12.1 million (61 cents per share) and $63.4 million ($3.21 per share), respectively, resulting from the early retirement of debt. The nine months ended Sept. 30, 1991 also reflect a $108.0 million charge ($5.47 per share) for the transition effect of an accounting change for postretirement benefit costs other than pensions. The nine months ended Sept. 30, 1992 includes a $6 million (30 cents per share) extraordinary loss related to the early retirement of debt.
 (b) Assumes the 19,757,752 shares of common stock outstanding following the July 1992 Distribution of Abex Inc. were outstanding for all periods presented.
 (c) The following pro forma financial data for the three- and nine- month periods ended Sept. 30, 1992 give effect to the reduction of interest expense and interest income related to the refinancing that was completed in the third quarter of 1992 as if it had occurred as of Jan. 1, 1992 (in millions, except per share amounts).
 Three Months Ended Nine Months Ended
 Sept. 30, 1992 Sept. 30, 1992
 Operating income $15.2 $38.7
 Interest expense $10.2 $32.2
 Other income (expense), net $(.1) $(1.5)
 Income before extraordinary
 item-(a) $3.5 $2.7
 Earnings per common share-(a) $.18 $.14
 ----
 NOTE: (a) The nine months ended Sept. 30, 1992 excludes a $6.0 million extraordinary charge related to the early retirement of debt.
 -0- 11/9/92
 /CONTACT: Norman Ritter of Abex, 603-929-2322/
 (ABE) CO: Abex, Inc. ST: New Hampshire IN: SU: ERN


TM -- NE015 -- 8920 11/09/92 16:59 EST
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