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ALLEGHENY LUDLUM REPORTS EARNINGS

 PITTSBURGH, Feb. 1 /PRNewswire/ -- Allegheny Ludlum Corporation (NYSE: ALS) today reported 1992 income of $46,857,000, or $1.42 per common share before cumulative effect of accounting change.
 The company reported net sales of $1,036,029,000 for 1992, an increase of 3 percent over $1,004,622,000 reported for the prior year.
 If the new accounting standard had not been adopted in 1992, the company would have reported earnings of $54,644,000 or $1.66 per share, up 33 percent over 1991, a level in line with expectations of security analysts.
 Statement of Financial Accounting Standards (FAS No. 106) requires that the cost of future retiree medical and other benefits be charged on an accrual rather than a cash basis so as to recognize these obligations during the working life of each employee. By adopting this change retroactive to Jan. 1, 1992, Allegheny Ludlum booked an after-tax, one-time, non-cash transition obligation of $125,231,000, or $3.80 per share. In addition, the incremental impact of the accrual basis of accounting over the former pay-as-you-go cash method is reflected in the restatement of 1992 quarterly results attached. The new standard does not change the way benefits are funded and will have no current effect on cash flow.
 The restatement of 1992 income following adoption of the new standard results in a net loss of $78,374,000 or $2.38 per share. With the company's strong financial position and net worth at three times the liability incurred, this retroactive accounting charge will simplify future comparative information.
 "In 1992, lower raw material costs, reduced inventories, and close reins on production costs along with better customer service were key factors in our improved operating performance. Net income for the year benefited by $4,688,000, or $.14 per share, of net investment valuation gains primarily resulting from an investment in a limited partnership fund," Robert P. Bozzone, Allegheny Ludlum's president and chief executive officer said. "Looking forward, while market demand is strong, particularly for our stainless steel, current selling prices continue to lag below historic levels and do not reflect the true value of this material in our economy," he said.
 Bozzone noted, also, that Allegheny Ludlum begins the new year in a strong financial position, with a cash position of $123 million, and a debt to capitalization ratio of 36 percent.
 Allegheny Ludlum is a leading producer of a wide range of specialty materials, including stainless steels, electrical steels and high technology alloys. The company's stock trades on the New York Stock Exchange (symbol: ALS).
 ALLEGHENY LUDLUM CORPORATION
 Statement of Income (Unaudited)
 (000's except per share amounts and tons shipped)
 Fiscal Quarter Ended Fiscal Year Ended
 Jan. 3 Dec. 29 Jan. 3 Dec. 29
 1993 1991 1993 1991
 Net sales $256,630 $231,869 $1,036,029 $1,004,622
 Cost and expenses:
 Cost of products sold 206,893 182,588 850,180 828,516
 Research, development
 & technology 12,588 8,580 40,729 35,538
 Commercial and admin. 10,637 10,352 41,089 40,677
 Depreciation and amort. 6,906 6,569 27,578 26,224
 236,994 208,089 959,576 930,955
 Income from operations 19,636 23,780 76,453 73,667
 Other expense (income):
 Interest expense 2,287 1,074 8,000 5,424
 Other -- net (1,398) 644 (10,346) (4,148)
 889 1,718 (2,346) 1,276
 Income before income taxes
 and cumulative effect of
 accounting change 18,747 22,062 78,799 72,391
 Income taxes 7,522 9,025 31,942 31,281
 Income before cumulative
 effect of accounting
 change 11,225 13,037 46,857 41,110
 Cumulative effect on
 prior years of
 accounting change -- -- (125,231) --
 Net income 11,225 13,037 (78,374) 41,110
 Per common share:
 Income before cumulative
 effect of accounting
 change $.34 $.40 $1.42 $1.25
 Cumulative effect on
 prior years of
 accounting change -- -- $(3.80) --
 Net income $.34 $.40 $(2.38) $1.25
 Net income assuming
 accounting change had not
 been made $.40 $.40 $1.66 $1.25
 Dividends declared per
 common share $.22 $.22 $.88 $.88
 Weighted average
 common shares 32,891,756 32,898,480 32,911,748 32,903,095
 Tons shipped 121,217 110,305 479,060 478,900
 SUMMARIZED BALANCE SHEET DATA (UNAUDITED)
 Jan. 3, 1993 Dec. 29, 1991
 Net working capital $299,533 $192,933
 Properties - net 362,136 364,766
 Other assets 49,362 14,851
 711,031 572,550
 Long-term debt 138,070 48,524
 Other long-term obligations 316,069 159,537
 Shareholders' equity $256,892 $364,489
 ALLEGHENY LUDLUM CORPORATION
 Statement of Income
 Restated 1992 Quarterly Data
 (Unaudited)
 (000's except share amounts)
 Restated Restated Restated
 Quarter First Second Third Fourth Year
 Net sales $264,397 $260,665 $254,337 $256,630 $1,036,029
 Cost and expenses:
 Cost of products
 sold 217,411 213,505 212,371 206,893 850,180
 Research, devel.
 & technology 9,285 9,059 9,827 12,558 40,729
 Commercial &
 administrative 10,304 10,354 9,794 10,637 41,089
 Depreciation &
 amortization 6,890 6,822 6,960 6,906 27,578
 243,890 239,740 238,952 236,994 959,576
 Income from
 operations 20,507 20,925 15,385 19,636 76,453
 Other expense
 (income):
 Interest expense 1,259 2,270 2,184 2,287 8,000
 Other - net 132 (775) (8,305) (1,398) (10,346)
 1,391 1,495 (6,121) 889 (2,346)
 Income before income
 taxes and cumulative
 effect of accounting
 change 19,116 19,430 21,506 18,747 78,799
 Income taxes 7,773 7,901 8,746 7,522 31,942
 Income before
 cumulative effect
 of acctg.
 change 11,343 11,529 12,760 11,225 46,857
 Cumulative effect
 on prior years of
 acctg. change (125,231) -- -- -- (125,231)
 Net income (113,888) 11,529 12,760 11,225 (78,374)
 Per common share:
 Income before
 cumulative effect
 of accounting
 change $.34 $.35 $.39 $.34 $1.42
 Cumulative effect
 on prior years of
 acctg. change $(3.80) -- -- -- $(3.80)
 Net income $(3.46) $.35 $.39 $.34 $(2.38)
 Net income assuming
 accounting change
 had not been made $.40 $.41 $.45 $.40 $1.66
 -0- 2/1/93
 /CONTACT: Bert Delano of Allegheny Ludlum, 412-394-2813/
 (ALS)


CO: Allegheny Ludlum Corporation ST: Pennsylvania IN: MNG SU: ERN

CD-ML -- PG006 -- 1448 02/01/93 14:15 EST
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Date:Feb 1, 1993
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