Printer Friendly

AMERICAN PRESIDENT COMPANIES ANNOUNCES THIRD QUARTER RESULTS

 AMERICAN PRESIDENT COMPANIES ANNOUNCES THIRD QUARTER RESULTS
 OAKLAND, Calif., Oct. 7 /PRNewswire/ -- American President Companies Ltd. (NYSE: APC) today announced earnings for its third quarter ended Sept. 18, 1992, of $23.5 million, or $1.42 per share, fully diluted. This compares with earnings for the third quarter of 1991 of $33.5 million, or $1.96 per share. Revenues decreased to $591 million in the third quarter of 1992 from $605 million in the third quarter of 1991. Operating income was $44.0 million for the quarter, compared with $62.4 million for the third quarter of 1991. Transportation of Desert Storm cargo was a very significant contributor to operating results in the third quarter of 1991, while collection of detention revenue for Desert Storm containers contributed only $3.4 million to operating income in the third quarter of 1992.
 Earnings for the first three quarters of 1992 were $67.5 million, or $3.98 per share, fully diluted, before a one-time after-tax charge of $21.6 million, or $1.27 per share, related to a change in the company's method of recognizing revenues and expenses. This compares to earnings for the first three quarters of 1991 of $54.2 million, or $3.00 per share, before a one-time after-tax charge of $10.5 million, or $0.58 per share, related to a change in accounting for postretirement benefits. Including the accounting changes, net income for the first three quarters of 1992 and 1991 was $45.9 million, or $2.71 per share, and $43.7 million, or $2.42 per share, respectively. Revenues increased to $1,836 million in the first three quarters of 1992 from $1,780 million in the comparable 1991 period. Operating income was $120.3 million for the first three quarters of 1992, compared with $115.2 million in the same period in 1991. The 1991 third 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.
 Commenting on the non-Desert Storm operating results for the third quarter, Chairman John M. Lillie said the company realized increases in rates and improved cargo mix in its import and export markets. However, the company's volume of export cargo declined 12 percent compared with the third quarter of 1991, while the company's other international markets generated only slight volume increases. Additionally, operating costs in Asia increased in the third quarter, reflecting high rates of inflation and a weakened U.S. dollar.
 Lillie stated that APC's third quarter 1992 performance reflects the continued weakness of the United States and North Asian economies, primarily Japan. These economic conditions are expected to continue to affect the company's performance through the end of 1992 and into 1993.
 The company has reached agreements to purchase from certain lessors three C9-class vessels for $197 million currently under capital lease. These purchases are expected to be completed by the end of Jan. 1993, and will be funded with a combination of cash and borrowings.
 During the quarter the company repurchased a total of 96,200 shares of its common stock at an average price of $42.36 per share including expenses. Year-to-date stock repurchases totaled 1,030,164 shares at an average cost of $44.33 including expenses.
 American President Companies Ltd. provides container transportation services in North America, Asia and the Middle East through an intermodal system combining ocean, rail and truck transportation.
 NOTE: Common Stock Ticker Symbol: APS
 AMERICAN PRESIDENT COMPANIES LTD.
 CONSOLIDATED STATEMENT OF INCOME
 (In millions, except per share data)
 Quarter Ended 38 Weeks Ended
 Sept. 18 Sept. 20 Sept. 18 Sept. 20
 1992 1991 1992 1991
 (Restated) (Restated)
 REVENUES
 Transportation
 International $ 449.1 $ 449.3 $1,376.5 $1,310.8
 Domestic 141.7 151.4 457.6 462.6
 Real Estate 0.4 4.2 1.4 7.0
 591.2 604.9 1,835.5 1,780.4
 EXPENSES
 Operating, Net of
 Operating --
 Differential
 Subsidy 509.6 503.6 1,595.7 1,545.6
 General &
 Administrative 12.7 14.3 41.3 42.0
 Depreciation &
 Amortization 4.9 24.6 78.2 77.6
 547.2 542.5 1,715.2 1,665.2
 Operating
 Income (1) 44.0 62.4 120.3 115.2
 OTHER INCOME
 (EXPENSE)
 Interest Income 2.8 1.6 9.2 5.1
 Interest Expense (8.9) (10.0) (28.8) (32.9)
 Gain on Sale of Investment 8.1
 Income Before
 Taxes 37.9 54.0 108.8 87.4
 Federal, State &
 Foreign Tax
 Expense (2) 14.4 20.5 41.3 33.2
 Income before
 Cumulative Effect
 of Accounting
 Change 23.5 33.5 67.5 54.2
 Cumulative Effect on
 Prior Years of Changing
 the Accounting for
 Revenues & Expenses (3) (21.6)
 Cumulative Effect on
 Prior Years of Changing
 the Accounting for
 Postretirement Benefits (10.5)
 NET INCOME $ 23.5 $ 33.5 $ 45.9 $ 43.7
 EARNINGS PER COMMON SHARE (4)
 Primary
 Before Cumulative
 Effect of Accounting
 Changes $ 1.5 $ 2.12 $ 4.18 $ 3.11
 Cumulative Effect
 of Accounting Changes (1.44) (0.66)
 Earnings
 Per Share $ 1.50 $ 2.12 $ 2.74 $ 2.45
 Fully Diluted
 Before Cumulative
 Effect of
 Accounting
 Changes $ 1.42 $ 1.96 $ 3.98 $ 3.00
 Cumulative Effect of
 Accounting Changes (1.27) (0.58)
 Earnings
 Per Share $ 1.42 $ 1.96 $ 2.71 $ 2.42
 WEIGHTED AVERAGE
 Common Shares (4)
 Primary 14.5 15.0 14.9 15.8
 Fully Diluted 16.5 17.1 16.9 18.0
 OPERATING INCOME BY SEGMENT
 Transport-
 ation $ 44.0 $ 59.6 $ 120.3 $ 111.0
 Real Estate 2.8 4.2
 Total Operating
 Income $ 44.0 $ 62.4 $ 120.3 $ 115.2
 (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 $3 million and $38 million to Operating Income for the third quarter and first 38 weeks of 1992, respectively. An additional $20 million is the subject of dispute with the U.S. government, and the amount and timing of collection is uncertain.
 (2) 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 third quarter and first 38 weeks of 1991 have been restated from $34.1 million, or $2.00 per share and $42.4 million, or $2.35 per share, respectively.
 (3) 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 third quarter and first 38 weeks of 1992 would have been $23.1 million, or $1.40 per share, and $69.4 million, or $4.10 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 third quarter and first 38 weeks of 1991 would have been $30.4 million, or $1.78 per share and, $50.8 million, or $2.82 per share, respectively.
 (4) Earnings available to common stock are net of dividends on preferred stock of $1.7 million for the quarters ended Sept. 18, 1992, and Sept. 20, 1991, and $5.1 million for the 38 weeks ended Sept. 18, 1992, and Sept. 20, 1991. Weighted average common shares reflects the repurchase of 0.9 and 0.1 million shares in the second and third quarters of 1992, respectively, and 3.9 million shares in the first quarter of 1991.
 AMERICAN PRESIDENT COMPANIES, LTD.
 1992 THIRD QUARTER OPERATIONAL HIGHLIGHTS
 Quarter Ended 38 Weeks Ended
 Sept. 18 Sept. 20 Sept. 18 Sept. 20
 1992 1991 1992 1991
 VOLUMES (1)
 (in Forty-Foot Equivalent Units - FEU's)
 INTERNATIONAL
 Import 53,100 52,000 150,300 147,600
 Export 31,700 36,200 112,800 110,800
 Intra-Asia 32,000 31,700 105,500 103,300
 Desert Storm 6,900 19,100
 Total
 International 116,800 126,800 368,600 380,800
 STACKTRAIN
 International 45,200 45,600 140,700 135,700
 Domestic 73,500 76,700 230,700 227,100
 Total
 Stacktrain 118,700 122,300 371,400 362,800
 AVERAGE REVENUE PER FEU (1)
 INTERNATIONAL
 Import $4,131 $3,850 $4,008 $3,811
 Export $3,581 $3,337 $3,364 $3,303
 Intra-Asia $1,990 $2,007 $2,048 $1,968
 Desert Storm $5,498 $5,263
 DOMESTIC
 STACKTRAIN (2) $1,320 $1,332 $1,313 $1,303
 (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.
 Quarter Ended 38 Weeks Ended
 Sept. 18 Sept. 20 Sept. 18 Sept. 20
 1992 1991 1992 1991
 TRANSPORTATION OPERATING EXPENSES (in millions) (1)
 Land
 Transportation $ 216.9 $ 224.2 $ 674.5 $ 683.5
 Cargo Handling 106.3 97.3 331.4 288.9
 Vessel, Net 68.6 66.9 208.4 218.9
 Transportation
 Equipment 40.9 40.5 134.6 26.0
 Information
 Systems 11.5 11.0 36.0 35.6
 Other 65.0 62.3 209.4 189.9
 Total $ 509.2 $ 502.2 $1,594.3 $1,542.8
 Percentage of
 Transportation
 Revenue 86 84 87 87
 (1) Excluding Real Estate Operating Expenses
 -0- 10/7/92 R
 /CONTACT: Randall K. Gausman, 510-272-8284/
 (APS) CO: American President Companies Ltd. ST: California IN: TRN SU: ERN


GT -- SF006 -- 7671 10/08/92 01:21 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 8, 1992
Words:1663
Previous Article:McDONNELL DOUGLAS ANNOUNCES CHANGES IN ITS HEALTH CARE AND PENSION PLANS FOR NON-UNION RETIREES
Next Article:/C O R R E C T I O N -- AMERICAN PRESIDENT COMPANIES/
Topics:


Related Articles
AMERICAN PRESIDENT COMPANIES ANNOUNCES THIRD QUARTER RESULTS
/C O R R E C T I O N -- AMERICAN PRESIDENT COMPANIES/
NORTH AMERICAN BIOLOGICALS, INC. ANNOUNCES THIRD QUARTER AND YEAR-END 1992 OUTLOOK
ENTERRA ANNOUNCES THIRD QUARTER RESULTS
APC ANNOUNCES 2-FOR-1 STOCK SPLIT
AMERICAN EXPLORATION COMPANY ANNOUNCES THIRD QUARTER RESULTS
AMERICAN PRESIDENT COMPANIES ANNOUNCES THIRD QUARTER RESULTS
AMERICAN PRESIDENT COMPANIES ANNOUNCES THIRD QUARTER RESULTS
AMERICAN PRESIDENT COMPANIES ANNOUNCES THIRD QUARTER RESULTS
American Bio Medica Reports Third Quarter Results

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters