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AMERICAN PRESIDENT COMPANIES ANNOUNCES SECOND QUARTER RESULTS

 AMERICAN PRESIDENT COMPANIES ANNOUNCES SECOND QUARTER RESULTS
 OAKLAND, Calif., July 15 /PRNewswire/ -- American President Companies, Ltd. (NYSE: APS) today announced earnings for its second quarter ended June 26, 1992 of $26.2 million, or $1.53 per share, fully diluted. This compares with earnings for the second quarter of 1991 of $11.7 million, or $0.68 per share. Revenues increased to $584 million in the second quarter of 1992 from $551 million in the second quarter of 1991. Operating income was $39.9 million for the quarter, compared with $28.2 million for the second quarter of 1991.
 Earnings for the first half of 1992 were $44.0 million, or $2.68 per share, before a one-time after-tax charge of $21.6 million, or $1.42 per share, related to a change in the company's method of recognizing revenues and expenses. This compares to earnings for the first half of 1991 of $20.7 million, or $1.06 per share, before a one-time after-tax charge of $10.5 million, or $0.64 per share, related to a change in accounting for postretirement benefits. Including the accounting changes, net income for the first half of 1992 and 1991 was $22.4 million, or $1.26 per share, and $10.2 million, or $0.42 per share, respectively. Revenues increased to $1,244 million in the first half of 1992 from $1,176 million in the first half of 1991. Operating income was $76.3 million for the first half of 1992, compared with $52.8 million in the same period in 1991. The 1991 second quarter and year- to-date amounts have also been restated to give effect to statement of financial accounting standards No. 109 "Accounting for Income Taxes", which was implemented as of the beginning of 1989.
 Chairman John M. Lillie said that the financial results for the second quarter and first half of 1992 benefited from rate increases and improved cargo mix in the company's international operations and its alliance with Orient Overseas Container Lines, Inc. These benefits were generally offset by cost increases in the company's Asia operations. Detention of containers related to Operation Desert Storm contributed operating income of $15 million in the second quarter and $35 million in the first half of 1992. Transportation of Desert Storm cargo was a very significant contributor to operating income in the second quarter and first half of 1991.
 Lillie stated that APC's international and domestic volume growth during the second quarter stalled, which appears to reflect a stagnant U.S. economy. This causes the company increased concern about the economic recovery predicted by many economists for the second half of 1992.
 The company sold approximately one-half, or 593,750 shares, of its investment in Amtech Corporation during the second quarter of 1992. This sale resulted in a pre-tax gain of $8.1 million.
 In addition, during the quarter the company repurchased a total of 933,964 shares of its common stock at $44 per share plus expenses. As previously announced, the company plans to repurchase up to an additional 1,066,036 shares from time to time through open market and privately negotiated transactions at prices deemed appropriate by management.
 American President Companies, Ltd. provides container transportation services in Asia, North America 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 26 Weeks Ended
 June 26 June 28 June 26 June 28
 1992 1991 1992 1991
 REVENUES
 Transportation
 International $ 434.4 $ 402.7 $ 927.4 $ 861.5
 Domestic 149.4 145.8 315.9 311.2
 Real Estate 0.1 2.8 1.0 2.8
 Total 583.9 551.3 1,244.3 1,175.5
 EXPENSES
 Operating, Net of Operating-
 Differential Subsidy 506.3 486.4 1,086.1 1,042.0
 General & Administrative 13.1 12.1 28.6 27.7
 Depreciation & Amortization 24.6 24.6 53.3 53.0
 Total 544.0 523.1 1,168.0 1,122.7
 Operating Income (A) 39.9 28.2 76.3 52.8
 Interest & Other, net (5.8) (9.3) (13.5) (19.4)
 Gain on Sale of Investment 8.1 --- 8.1 ---
 Income (Loss) Before Taxes 42.2 18.9 70.9 33.4
 Federal, State & Foreign Tax
 Expense (B) 16.0 7.2 26.9 12.7
 Income before Cumulative Effect
 of Accounting Change 26.2 11.7 44.0 20.7
 Cumulative Effect on Prior Years
 of Changing the Accounting for
 Revenues & Expenses (C) --- --- (21.6) ---
 Cumulative Effect on Prior Years
 of Changing the Accounting for
 Postretirement Benefits --- --- --- (10.5)
 Net Income $ 26.2 $ 11.7 $ 22.4 $ 10.2
 Earnings Per Common Share (D)
 Primary
 Before Cumulative Effect of
 Accounting Changes $ 1.62 $ 0.68 $ 2.68 $ 1.07
 Cumulative Effect of
 Accounting Changes --- --- (1.42) (0.65)
 Earnings Per Share $ 1.62 $ 0.68 $ 1.26 $ 0.42
 Fully Diluted
 Before Cumulative Effect of
 Accounting Changes $ 1.53 $ 0.68 $ 2.68 $ 1.06
 Cumulative Effect of
 Accounting Changes --- --- (1.42) (0.64)
 Earnings Per Share $ 1.53 $ 0.68 $ 1.26 $ 0.42
 Weighted Average Common Shares (D)
 Primary 15.1 14.8 15.1 16.1
 Fully Diluted 17.1 14.9 15.1 16.4
 OPERATING INCOME BY SEGMENT
 Transportation $ 40.0 $ 26.6 $ 76.3 $ 51.4
 Real Estate (0.1) 1.6 --- 1.4
 Total Operating Income $ 39.9 $ 28.2 $76.3 $ 52.8
 (A) 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. Desert Storm detention contributed $15 million and $35 million to Operating Income for the second quarter and first half of 1992, respectively. The company presently estimates that remaining collections will range from approximately $10 million to $30 million, before expenses.
 (B) The company adopted the new income tax accounting standard in the first quarter of 1992 and applied the effects retroactively to 1989. Net Income and Earnings per Share for the second quarter and first half of 1991 have been restated from $10.9 million, or $0.62 per share and $8.3 million, or $0.30 per share, respectively.
 (C) The company changed its method of revenue and expense recognition in 1992 to a percentage-of-completion method for revenue, and expenses as incurred, from recording revenue and variable expenses when cargo was loaded. If the new method of recognizing revenues and expenses had not been implemented, Net Income and Earnings per Share for the second quarter and first half of 1992 would have been $25.3 million, or $1.48 per share, and $46.3 million, or $2.69 per share, respectively. Conversely, if the new method of recognizing revenues and expenses had been applied retroactively to 1991, Income before the Cumulative Effect of Accounting Change and related Earnings per Share for the second quarter and first half of 1991 would have been $10.7 million, or $0.61 per share and, $20.4 million, or $1.04 per share, respectively.
 (D) Earnings available to common stock are net of dividends on preferred stock of $1.7 million for the quarters ended June 26, 1992 and June 28, 1991 and $3.4 million for the 26 weeks ended June 26, 1992 and June 28, 1991. Weighted average common shares reflects the repurchase of 0.9 million shares in the second quarter of 1992 and 3.9 million shares in the first quarter of 1991.
 AMERICAN PRESIDENT COMPANIES, LTD.
 1992 SECOND QUARTER OPERATIONAL HIGHLIGHTS
 Quarter Ended 26 Weeks Ended
 June 26 June 28 June 26 June 28
 1992 1991 1992 1991
 VOLUMES (A)
 (in Forty-Foot Equivalent Units - FEU's)
 INTERNATIONAL
 Import 45,700 45,500 97,200 95,600
 Export 36,100 37,300 81,100 74,600
 Intra-Asia 34,600 34,500 73,500 71,600
 Desert Storm --- 3,300 --- 12,200
 Total International 116,400 120,600 251,800 254,000
 STACKTRAIN
 International 43,200 40,500 95,500 90,100
 Domestic 73,400 71,300 157,200 150,400
 Total Stacktrain 116,600 111,800 252,700 240,500
 AVERAGE REVENUE PER FEU (A)
 INTERNATIONAL
 Import $4,071 $3,807 $3,941 $3,790
 Export $3,313 $3,235 $3,279 $3,286
 Intra-Asia $2,052 $1,899 $2,073 $1,950
 Desert Storm --- $5,095 --- $5,131
 DOMESTIC STACKTRAIN (B) $1,313 $1,293 $1,309 $1,288
 (A) -- Volumes and revenue per FEU information is based upon shipments originating during the period, which differs from the percentage-of-completion method which is used for financial reporting purposes.
 (B) -- Average revenue per FEU excludes the effect of international stacktrain revenues and volumes.
 Quarter Ended 26 Weeks Ended
 June 26 June 28 June 26 June 28
 1992 1991 1992 1991
 TRANSPORTATION OPERATING EXPENSES (in millions) (A)
 Land Transportation $215.3 $213.7 $457.6 $459.3
 Cargo Handling 107.9 92.0 225.1 191.6
 Vessel, Net 65.5 65.2 139.8 152.0
 Transportation Equipment 37.4 40.4 93.7 85.5
 Information Systems 11.9 11.8 24.5 24.6
 Other 68.1 62.2 144.4 127.6
 Total $506.1 $485.3 $1,085.1 $1,040.6
 Percentage of Transportation Revenue 87 88 87 89
 (A) Excluding Real Estate Operating Expenses
 /CONTACT: Randall K. Gausman of American President Companies, 510-272-8284/
 (APS) CO: American President Companies, Ltd. ST: California IN: TRN SU: ERN


KD -- NY111 -- 9814 07/16/92 00:42 EDT
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