ALLIED PRODUCTS REPORTS THIRD QUARTER RESULTS
ALLIED PRODUCTS REPORTS THIRD QUARTER RESULTS CHICAGO, Nov. 11 /PRNewswire/ -- Chicago-based Allied Products Corp.
(NYSE: ADP) reported a $6,072,000 net loss for the third quarter of 1991 on net sales of $85,036,000. This compares to a net loss of $3,441,000 for the third quarter of 1990 on net sales of $115,295,000.
For the first nine months of 1991, Allied Products recorded net sales of $331,794,000 and a net loss of $14,159,000. In comparison, net sales and net income were $406,072,000 and $1,269,000, respectively, for the same nine-month period of 1990. Commenting on the third quarter results, Richard A. Drexler, president and chief executive officer of Allied Products, stated: "These results, while disappointing, reflect the impact of a number of factors that are non-recurring or that will have considerably less impact on future performance. The decline in sales volume, for example, is largely attributable to the divestiture of several businesses. In a related vein, costs relating to the sale and discontinuation of our tractor business had a substantial negative impact on earnings. "Our policy continues to reflect our emphasis on strengthening cash flow and preparing to refinance substantially all of the outstanding indebtedness of Allied Products. Our operating divisions generally performed profitably during the third quarter, but the overall weakness in the national economy clearly took its toll. "While we are anticipating a loss in the fourth quarter of 1991 and for the year as a whole, we believe that the actions taken by the company this year will result in a marked improvement in 1992, which should be profitable." Allied Products Corp. manufactures agricultural equipment, and transportation and industrial products. ALLIED PRODUCTS AND CONSOLIDATED SUBSIDIARIES Summary Statements of Income (loss) Periods ended THIRD QUARTER NINE MONTHS Sept. 30 1991 1990 1991 1990 Net sales $85,036,000 $115,295,000 $331,794,000 $406,072,000 Income (loss) before income taxes (6,072,000) (3,556,000) (14,159,000) 1,332,000 Provision (credit) for income taxes -- (115,000) -- 63,000 Net income (loss) ( 6,072,000) (3,441,000) (14,159,000) 1,269,000 Net (loss) applicable to common shares 6,773,000 4,203,000 (16,331,000) (1,107,000) Net (loss) per common share $(1.02) $(.79) $(2.55) $(.21) Common shares out- standing-weighted average 6,626,000 5,349,000 6,405,000 5,163,000 Income (loss) before income taxes in the third quarter and nine months ended Sept. 30, 1991, includes a gain of $927,000 (including the reversal of $2,300,000 of excess reserves) related to the disposition of certain assets of its material handling systems business. Income (loss) before income taxes for the nine months ended Sept. 30, 1991, includes a loss of $4,421,000 (no significant amount in the third quarter) related to the disposition of the White tractor product line and a gain of $536,000 (no significant amount in the third quarter) related to the disposition of certain assets of its automotive stamping business. Income (loss) before income taxes for the nine months ended Sept. 30, 1990, includes gains of $480,000 ($277,000 in the third quarter) arising from the sales of operating and non-operating assets. Income (loss) before income taxes for the nine months ended Sept. 30, 1991, includes a charge of $850,000 ($150,000 in the third quarter) to certain legal matters. -0- 11/11/91 /CONTACT: Richard Drexler or Kenneth Light of Allied Products, 312-454-1020/ (ADP) CO: Allied Products Corp. ST: Illinois IN: SU: ERN SM -- NY059 -- 3148 11/11/91 16:16 EST
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|Date:||Nov 11, 1991|
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