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AMERICAN PRESIDENT COMPANIES ANNOUNCES SECOND QUARTER RESULTS

 OAKLAND, Calif., July 14 /PRNewswire/ -- American President Companies Ltd. (APC) (NYSE: APS) today announced improved earnings, excluding the effects of Desert Storm. Pretax income for the second quarter of 1993 was $32.0 million, compared with $27.1 million for the second quarter of 1992, excluding $1.7 million and $15.1 million, respectively, related to collecting Desert Storm detention charges. In the second quarter of 1993, the company benefited from the decrease in net interest expense from restructuring its balance sheet, which was completed earlier in the year.
 APC's net income for the second quarter ended June 25, 1993, was $21.3 million, or $1.34 per share. This compares with net income for the second quarter of 1992 of $26.2 million, or $1.53 per share. Revenues for the second quarter of 1993 were $581.8 million, compared with $583.9 million for last year's second quarter. Net income for the first half of 1993 was $33.4 million, or $2.11 per share. This compares to net income for the first half of 1992 of $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. Including the accounting changes, net income for the first half of 1992 was $22.4 million, or $1.26 per share. Revenues for the first half of 1993 were $1.21 billion, compared with $1.24 billion in the first half of 1992.
 Chairman John M. Lillie stated that despite the weakness in the United States and North Asia economies and strong competition in the company's U.S. export and intra-Asia markets, APC was able to increase total cargo volumes and continue to control its unit costs in the second quarter of 1993. Improvements in the company's import and intra-Asia volumes and import revenue per forty-foot equivalent unit ("FEU") for the quarter were offset by lower export volumes and a decline in revenue per FEU in the company's export and intra-Asia markets. Operating costs in Asia increased in the second quarter of 1993 compared with 1992 due to increased volume and the weakness of the U.S. dollar relative to certain Asian currencies. Lillie also noted that APC continued to benefit from higher operating margins in its domestic stacktrain operations in the second quarter.
 In the second quarter, the company sold the remainder of its investment in the common stock of Amtech Corp. for a pretax gain of $8.9 million. In the second quarter of 1992, the company sold approximately one half of this investment for a pretax gain of $8.1 million.
 Lillie stated that the weakness in the U.S. export and intra-Asia rates is expected to continue to affect APC's operations through the end of 1993. The company expects continued improvements in its domestic operation to partially offset this weakness.
 American President Companies Ltd. provides container transportation and related 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 26 Weeks Ended
 June 25 June 26 June 25 June 26
 1993 1992 1993 1992
 REVENUES
 Transportation
 International $ 433.3 $ 441.1 $ 912.3 $ 940.7
 Domestic 142.6 142.7 291.9 302.6
 Real Estate 5.9 0.1 6.4 1.0
 Total 581.8 583.9 1,210.6 1,244.3
 EXPENSES
 Operating, Net of
 Operating-Differential
 Subsidy 515.6 506.3 1,077.3 1,086.1
 General & Administrative 12.9 13.1 27.0 28.6
 Depreciation & Amortization 25.4 24.6 54.7 53.3
 Total 553.9 544.0 1,159.0 1,168.0
 Operating Income (1) 27.9 39.9 51.6 76.3
 OTHER INCOME (EXPENSE)
 Interest Income 1.1 3.1 2.2 6.4
 Interest Expense (4.2) (8.9) (9.7) (19.9)
 Gain on Sale of Investment 8.9 8.1 8.9 8.1
 Income Before Taxes 33.7 42.2 53.0 70.9
 Federal, State & Foreign
 Tax Expense 12.4 16.0 19.6 26.9
 Income before Cumulative Effect
 of Accounting Change 21.3 26.2 33.4 44.0
 Cumulative Effect on
 Prior Years of Changing
 the Accounting for
 Revenues & Expenses (2) (21.6)
 Net Income $ 21.3 $ 26.2 $ 33.4 $ 22.4
 Earnings Per Common Share (3)
 Primary
 Before Cumulative Effect
 of Accounting Change $ 1.41 $ 1.62 $ 2.19 $ 2.68
 Cumulative Effect of
 Accounting Change (1.42)
 Earnings Per Share $ 1.41 $ 1.62 $ 2.19 $ 1.26
 Fully Diluted
 Before Cumulative Effect
 of Accounting Change $ 1.34 $ 1.53 $ 2.11 $ 2.68
 Cumulative Effect of
 Accounting Change (1.42)
 Earnings Per Share $ 1.34 $ 1.53 $ 2.11 $ 1.26
 Weighted Average Common Shares (3)
 Primary 13.8 15.1 13.7 15.1
 Fully Diluted 15.9 17.1 15.8 15.1
 Operating Income (Loss) by Segment
 Transportation $ 24.3 $ 40.0 $ 48.0 $ 76.3
 Real Estate 3.6 (0.1) 3.6
 Total Operating Income $ 27.9 $ 39.9 $ 51.6 $ 76.3
 (1) 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 $1.7 million to Operating Income for the second quarter and first half of 1993 and $15.1 million and $34.9 million to Operating Income for the second quarter and first half of 1992, respectively.
 (2) The company changed its method of revenue and expense recognition in the first quarter of 1992 to a percentage of completion method for revenue, and expenses as incurred, from recording revenue and variable expenses when cargo was loaded.
 (3) Weighted average shares for the second quarter and first half of 1993 reflects the repurchase of approximately two million shares of the company's common stock in the second through fourth quarters of 1992. Weighted average shares for the second quarter and for the first half of 1992 reflects the repurchase of 0.9 million shares in the second quarter of 1992.
 AMERICAN PRESIDENT COMPANIES, LTD.
 1993 Second Quarter Operational Highlights
 Quarter Ended 26 Weeks Ended
 June 25 June 26 June 25 June 26
 1993 1992 1993 1992
 VOLUMES (1)
 (in Forty-Foot Equivalent Units - FEU's)
 INTERNATIONAL
 Import 47,000 45,700 99,200 97,200
 Export 34,000 36,100 72,400 81,100
 Intra-Asia 40,100 34,600 82,000 73,500
 Total International 121,100 116,400 253,600 251,800
 STACKTRAIN
 International 46,400 46,200 97,000 101,500
 Domestic 74,200 70,400 152,200 151,200
 Total Stacktrain 120,600 116,600 249,200 252,700
 AVERAGE REVENUE PER FEU (1)
 INTERNATIONAL
 Import $4,151 $4,071 $4,092 $3,941
 Export $3,196 $3,313 $3,326 $3,279
 Intra-Asia $1,851 $2,052 $1,878 $2,073
 DOMESTIC STACKTRAIN (2) $1,286 $1,274 $1,287 $1,273

 TRANSPORTATION OPERATING EXPENSES
 (in millions) (3)
 Land Transportation $ 206.5 $ 217.0 $ 431.7 $ 460.7
 Cargo Handling 117.3 107.9 244.1 225.1
 Vessel, Net 65.1 65.5 137.8 139.8
 Transportation Equipment 41.0 37.4 87.8 93.7
 Information Systems 11.1 11.9 23.5 24.5
 Other 72.3 66.4 149.6 141.3
 Total $ 513.3 $ 506.1 $1,074.5 $1,085.1
 Percentage of Transportation
 Revenue 89 pct 87 pct 89 pct 87 pct
 (1) 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.
 (2) Average revenue per FEU excludes the effect of international stacktrain revenues and volumes.
 (3) Excluding Real Estate Operating Expenses.
 -0- 7/14/93
 /CONTACT: Randall K. Gausman of American President Companies, 510-272-8284/
 (APS)


CO: American President Companies Ltd. ST: California IN: TRN SU: ERN

TM -- SF016 -- 1684 07/14/93 22:40 EDT
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