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AMERICAN PRESIDENT COMPANIES ANNOUNCES FINANCIAL RESULTS FOR 1991

    AMERICAN PRESIDENT COMPANIES ANNOUNCES FINANCIAL RESULTS FOR 1991
    OAKLAND, Calif., Jan. 23 /PRNewswire/ American President Companies, Ltd. (NYSE: APS) today announced 1991 earnings of $64.0 million, or $3.65 per share, before a one-time after tax charge of $10.1 million, or $0.65 per share, related to a change in accounting for postretirement medical benefits.
    This compares with 1990 earnings of $10.3 million, or $0.18 per share, excluding the effect of a $69.9 million after tax restructuring charge.  Including the accounting change, net income for 1991 was $53.9 million, or $3.00 per share, compared with a net loss for 1990 of $59.6 million, or $3.46 per share, including the restructuring charge.  Revenues increased to $2.4 billion in 1991 from $2.3 billion in 1990.
    Net income for the fourth quarter of 1991 was $11.6 million, or $0.65 per share, compared with $2.0 million, or $0.02 per share, in 1990.  Revenues for the fourth quarter of 1991 and 1990 were $668 million and $633 million, respectively.
    In 1991, the company's transportation operations reported pretax income of $11.0 million for the fourth quarter and $91.6 million for the full year, compared with $2.2 million and $3.9 million, excluding the restructuring charge, for the comparable periods in 1990.  Pretax income for the company's real estate operations in 1991 was $8.3 million for the fourth quarter and $15.1 million for the full year, compared with $0.9 million and $12.1 million in 1990.  The company's real estate operations sold 79 acres in 1991, which includes 32 acres sold in the fourth quarter, compared with 67 acres in 1990.
    Chairman John Lillie said that the increase in 1991 earnings was due to the impact of transporting Operation Desert Storm cargo, better rates and mix in the company's intra-Asia market and operating improvements in the company's domestic transportation business.  In addition to freight revenue, the company collected $22.0 million of detention revenue, less expenses of $9.0 million, from the U.S. government for containers transported for Operation Desert Storm and held beyond an allowed time.  In 1991, the company also benefited from its cost reduction programs implemented in 1990.
    Trans-Pacific volumes and average revenue per FEU in each of the company's international markets increased in the fourth quarter of 1991 compared with last year's fourth quarter, excluding the impact of transporting Desert Storm cargo.  The company's domestic operations also realized higher volumes and revenue per FEU in the fourth quarter of 1991 compared with 1990.  In addition, earnings for the fourth quarter of 1991 reflect the collection of detention revenues and proceeds from real estate sales.
    Commenting on the outlook for 1992, Lillie stated that he expects U.S. economic conditions to improve in the second half of the year. Demand in the international transportation markets served by the company, excluding the effects of Desert Storm, is expected to grow in 1992 at about the same rate as 1991.  The company's capital spending, which was approximately $30.0 million in 1991, is expected to increase in 1992 to approximately $80.0 million, including $20.0 million carried over from 1991.  This spending will be primarily for the replacement of transportation equipment and expansion into key markets.
    American President Companies provides container transportation services in North America, Asia and the Middle East, through an intermodal system combining ocean, rail and truck transportation.
              AMERICAN PRESIDENT COMPANIES, LTD.
              CONSOLIDATED STATEMENT OF INCOME
             (In millions, except per share data)
                                     Quarter Ended     Year Ended
                                   Dec. 27  Dec. 28  Dec. 27  Dec. 28
                                     1991    1990 (A) 1991    1990 (A)
    REVENUES
    Transportation
    International               $  475.9  $ 449.9  $1,786.7  $1,586.4
    Domestic                       182.6    183.3     645.2     668.7
    Real Estate                      9.8      0.1      16.8      14.8
     Total                         668.3    633.3   2,448.7   2,269.9
    EXPENSES
    Operating, Net of Operating-
      Differential Subsidy         593.5    576.3    2,139.1  2,042.9
    General & Administrative        18.2     14.9       60.3     63.6
    Depreciation & Amortization     28.9     29.2      106.5    110.7
    Restructuring Charge                                        109.2
                                   640.6    620.4    2,305.9  2,326.4
    Operating Income (Loss) (B)     27.7     12.9      142.8    (56.5)
    OTHER INCOME (EXPENSE)
    Interest Income                  3.1      3.1        8.3     11.2
    Interest Expense               (11.5)   (12.9)     (44.4)   (47.9)
     Total                          (8.4)    (9.8)     (36.1)   (36.7)
    Income (Loss) Before Taxes      19.3      3.1      106.7    (93.2)
    Federal, State & Foreign Tax
     Expense (Benefit)               7.7      1.1       42.7    (33.6)
    Income (Loss) Before Cumulative
     Effect of Accounting Change    11.6      2.0       64.0    (59.6)
    Cumulative Effect on Prior
     Years of Changing the
     Accounting for Postretirement
     Benefits (C)                                      (10.1)
    Net Income (Loss)           $   11.6  $   2.0    $  53.9 $  (59.6)
    EARNINGS (LOSS) PER COMMON SHARE (D)
    Primary
     Before Cumulative Effect of
      Accounting Change        $    0.65 $   0.02    $  3.65 $  (3.46)
     Cumulative Effect of Changing the
      Accounting for Postretirement
      Benefits                                         (0.65)
         Primary Earnings (Loss)
          Per Share              $   0.65  $  0.02   $  3.00 $  (3.46)
    Weighted Average Common Shares   15.2     18.6      15.7     19.2
    OPERATING INCOME (LOSS) BY SEGMENT
    Transportation             $     20.3 $   13.1  $  131.2 $  (64.4)
    Real Estate                       7.4     (0.2)     11.6      7.9
    Total Operating Income (Loss) $  27.7   $ 12.9    $142.8 $  (56.5)
    INCOME (LOSS) BEFORE TAXES BY SEGMENT
    Transportation              $    11.0 $    2.2 $    91.6 $ (105.3)
    Real Estate                       8.3      0.9      15.1     12.1
    Total Income (Loss) Before
     Taxes                        $  19.3   $  3.1    $106.7  $ (93.2)
    (A) Certain amounts have been reclassified to conform with the 1991 presentation.
    (B)The U.S. government is obligated to pay detention for the company's containers transported for Operation Desert Storm and held beyond an allowed time.  The revenue and related expenses are recognized as revenue is collected.  In 1991, the company recognized $22.0 million in revenue, less related expenses of $9.0 million.  The company presently estimates that remaining collections will range from approximately $25.0 million to $40.0 million, before expenses.  These expenses can vary significantly.
    (C)The company adopted the new accounting standard for postretirement medical benefits in the fourth quarter of 1991.  The cumulative effect of this standard on prior years income has been recognized as a one time charge as of the beginning of the year, and, as required, prior quarterly earnings for 1991 have been restated.
    (D)Primary earnings available to common stock are net of dividends on preferred stock of $1.7 million for the quarters ended Dec. 27, 1991, and Dec. 28, 1990, and $6.8 million for the year ended Dec. 27, 1991, and Dec. 28, 1990.  Weighted average common shares for the quarter and year ended Dec. 27, 1991, reflect the repurchase of a total of 3.9 million shares of common stock in the first quarter of 1991 and 1.4 million shares in 1990. Fully diluted earnings per share are not presented since the results of the calculation would be anti- dilutive.
                AMERICAN PRESIDENT COMPANIES, LTD.
          1991 FOURTH QUARTER OPERATIONAL HIGHLIGHTS
                                Quarter Ended       Year Ended
                              Dec. 27   Dec. 28   Dec. 27  Dec. 28
                                1991     1990       1991    1990
    VOLUMES
    (Forty-Foot Equivalent Units - FEUs)
    INTERNATIONAL
    Import                      56,400   55,300    204,000  197,700
    Export                      41,600   39,800    152,400  149,100
    Intra-Asia                  34,900   39,100    138,200  139,600
    Desert Storm                   300    4,400     19,400    4,700
    Total International        133,200  138,600    514,000  491,100
    STACKTRAIN
    Domestic                    93,600   91,800    320,700  325,200
    International               52,600   47,900    188,300  175,200
    Total Stacktrain           146,200  139,700    509,000  500,400
    AVERAGE REVENUE PER FEU
    INTERNATIONAL
    Import                      $3,770   $3,721     $3,800   $3,848
    Export                      $3,174   $3,010     $3,268   $3,105
    Intra-Asia                  $2,194   $1,871     $2,025   $1,735
    Desert Storm                   N/A   $5,733     $5,309   $5,661
    DOMESTIC STACKTRAIN (A)     $1,307   $1,283     $1,304   $1,261
    (A) Average revenue per FEU excludes the effect of international stacktrain revenues and volumes.
    OPERATING EXPENSES  (In millions)
       Land Transportation     $ 258.9  $ 263.4  $   942.4 $  941.6
       Cargo Handling            110.9    102.0      399.7    375.1
       Vessel, Net                74.5     86.5      293.5    277.5
       Transportation Equipment   54.2     45.2      180.2    163.1
       Information Systems        12.5     12.4       48.1     50.5
       Other                      82.5     66.8      275.2    235.1
    Total Operating Expenses, Net of Operating-
        Differential Subsidy   $ 593.5  $ 576.3  $ 2,139.1  $2,042.9
    -0-                       1/23/92
    /CONTACT: R.K. Gausman of American President Companies, Ltd., 510-272-8284/
    (APS) CO:  American President Cos. ST:  California IN:  TRN SU:  ERN RM -- SF002 -- 2642 01/23/92 09:16 EST
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Date:Jan 23, 1992
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