ALLIS-CHALMERS REPORTS RESULTS
ALLIS-CHALMERS REPORTS RESULTS MILWAUKEE, Nov. 13 /PRNewswire/ -- Allis-Chalmers Corporation today
reported net income of $84,000 in the third quarter of 1991 compared with a net loss of $19,000 in the same period of 1990.
The improvement in net income was due primarily to a reduction in corporate administrative expenses associated with the costs of identifying and evaluating candidates for acquisition. Allis-Chalmers, nevertheless, is prudently continuing its acquisition strategy in order to increase its operating base and generate additional positive cash flow. The company's operations are B.R.B. Industries (BRB), a Hoboken, N.J. manufacturer of molded fabric products; Houston Dynamic Service, Inc. (HDS), a machine repair subsidiary in Houston; and Apparatus Repair Company (ARC), a Tracy, Calif. machine repair business. The company acquired ARC effective Jan. 1, 1991, and its results are included in 1991 only. Sales in the third quarter of 1991 were $3.2 million versus $3.3 million in 1990. BRB sales were down from the same period in 1990 due to continued weakness in the overall apparel market for molded fabric products. This decrease was mostly offset by an increase in HDS sales over the prior year. Third quarter 1991 gross margin as a percentage of sales was 35.1 percent compared with 34.5 percent in the 1990 period, excluding favorable adjustments relating to the 1989 acquisition of BRB. For the first nine months of 1991, the company recorded net income of $358,000 compared with a net loss of $54,000 in 1990. The results for the 1991 period reflect the improvement in profitability at HDS and the reduction in administrative expenses associated with the identification and evaluation of acquisition candidates. ALLIS-CHALMERS (thousands, except per share) Results for the three and nine month periods ended Sept. 30: Three months Nine months 1991 1990 1991 1990 Sales 3,213 3,341 10,109 9,781 Net income (loss) 84 (19) 358 (54) Average common shares 15,272 15,272 15,272 15,272 Income per share $-- $-- $.02 $-- -0- 11/13/91 /CONTACT: Dennis Thisted of Allis-Chalmers Corporation, 414-475-3343/ CO: Allis-Chalmers Corporation ST: Wisconsin IN: SU: ERN SH-KW -- NY078 -- 4068 11/13/91 15:45 EST
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|Date:||Nov 13, 1991|
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