ALLIS-CHALMERS CORPORATION REPORTS RESULTS
ALLIS-CHALMERS CORPORATION REPORTS RESULTS MILWAUKEE, Nov. 13 /PRNewswire/ -- Allis-Chalmers Corporation today
reported a net loss of $585,000, or $.58 per common share, in the third quarter of 1992 compared with net income of $84,000, or $.08 per share, in the same period of 1991.
The 1992 loss included restructuring costs of $331,000 associated with the closing of one of the company's machine repair operations, an operating loss in the company's machine repair business and lower profitability in the molded fabric products business. In September 1992, Allis-Chalmers closed operations at Apparatus Repair Company, Tracy, Calif., which had been unprofitable since its acquisition in early 1991. Allis-Chalmers third quarter sales totaled $3 million in 1992 and $3.2 million in 1991. While sales in the molded fabric products business improved
slightly in 1992 over 1991, machine repair sales declined 21 percent.
Third quarter gross margin as a percentage of sales was 24 percent in 1992 compared with 35 percent in 1991. The decrease was the result of continued price competition in the weak apparel market served by the molded fabric products business and reduced sales and profitability in the machine repair business. During the third quarter of 1992, a 1-for-15 reverse stock split reduced the number of common shares outstanding to 1,003,596 from 15,164,195 and the number of shareholders to 7,408 from approximately 17,799. The reverse stock split became effective on July 8, 1992. For the first nine months of 1992, Allis-Chalmers had a net loss of $765,000, or $.76 per share, versus 1991 net income of $358,000, or $.36 per share. The loss was a consequence of the factors which affected the 1992 third quarter results. Nine month sales were $9.1 million in 1992 and $10.1 million in 1991. Results for the three and nine month periods ended Sept. 30. ALLIS-CHALMERS CORPORATION (Thousands, except per share) Period ended Three months Nine months Sept. 30 1992 1991 1992 1991 Sales $2,978 $3,213 $9,149 $10,109 Net income (loss) (585) 84 (765) 358 Average common shares 1,004 1,004 1,004 1,004 Income (loss) per share (.58) .08 (.76) .36 -0- 11/13/92 /CONTACT: Dennis Thisted of Allis-Chalmers Corporation, 414-475-3343/ CO: Allis-Chalmers Corporation ST: Wisconsin IN: SU: ERN
LD-OS -- NY068 -- 0862 11/13/92 16:34 EST
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|Date:||Nov 13, 1992|
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