Printer Friendly

AMP EXECUTIVES COMMENT EXPECTED FIRST QUARTER RESULTS AND THE OUTLOOK

AMP EXECUTIVES COMMENT EXPECTED FIRST QUARTER RESULTS AND THE OUTLOOK
 HARRISBURG, Pa., March 9 /PRNewswire/ -- In investor relations meetings this week in Europe and at the Prudential Securities Technology Conference on March 11, 1992, AMP Incorporated's (NYSE: AMP) Chairman and Chief Executive Officer Harold McInnes, and President and Chief Operating Officer James Marley, commented on expected first quarter results and the outlook.
 First quarter results should be in line with what we indicated several months ago. Sales should set a new high of $805-$820 million, up slightly from $791 million in the fourth quarter and $792 million in the year-earlier quarter. Earnings should be better than the 60 cents in the fourth quarter, but are not likely to be as high as the 66 cents in the year-earlier quarter. We expect further improvement in quarterly sales and earnings as the year progresses. We agree with consensus earnings estimates of $2.80-$3.00 -- up from $2.45/share last year -- on 7-9 percent worldwide sales growth.
 In the U.S., we expect 6-8 percent sales growth on the assumption that economic recovery will begin soon. Last year sales were flat in the U.S. In Europe we expect 5-8 percent growth in local currencies on the assumption that economic conditions will begin to improve there later in the year. Last year European sales were up 2 percent in local currencies and flat in U.S. dollars. In the Asia/Pacific region we expect local currency growth of 10 percent or more. Although Japan's economic growth is slowing, we think our growth expectations are realistic considering the types of markets we serve and the likelihood of good growth of our sales in that region outside Japan. Last year sales were up 8 percent in local and 14 percent in U.S. dollars. In Canada and Latin America we expect good growth of 10-20 percent. Last year sales were down 10 percent.
 Last year's dip in earnings from $2.70 to $2.45/share was due largely to less-than-expected sales, continued price erosion, and to non-operating factors such as interest expense and income, and currency transactions - and also to the rise in recent years of depreciation and amortization charges because of our record capital spending levels. In 1988 earnings peaked out at $2.96/share when depreciation and amortization was $159 million. This year we may approach or reach that earnings figure again, but depreciation and amortization will be about $280 million - about $120 million higher.
 Next year looks like a year of good sales and earnings growth on the assumption that economic conditions will be improving in most of the major industrialized countries. We definitely believe AMP is well positioned to fully participate in that economic and electronic industry growth.
 AMP also announced formation of a joint venture in China -- AMP Shanghai Connector, Ltd. -- which will begin construction of a manufacturing plant in the Shanghai area.
 Harrisburg-based AMP Incorporated is the world's leading producer of electrical/electronic connection devices. It has 25,000 employees in 165 facilities in the U.S. and 30 other countries. AMP stock is listed on the New York, Pacific and other regional stock exchanges (Symbol "AMP").
 /delval/
 -0- 3/9/92
 /CONTACT: William Oakland of AMP, 717-780-6371/ CO: AMP Incorporated ST: Pennsylvania IN: CPR SU: ERP


MP -- PH006 -- 6218 03/09/92 08:58 EST
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:Mar 9, 1992
Words:560
Previous Article:IMO INDUSTRIES ISSUES ANNOUNCEMENT
Next Article:PACIFIC HORIZON FUND ASSETS NEARLY DOUBLE TO $9.5 BILLION, THE FUND'S DISTRIBUTOR SAYS; NEW INITIATIVES CREDITED
Topics:


Related Articles
CHEMDESIGN DISCUSSES NEAR TERM OUTLOOK
CHEMDESIGN UPDATES FOURTH QUARTER OUTLOOK
VF FORECASTS INCREASED FIRST QUARTER EARNINGS
AMP INCORPORATED REPORTS RESULTS
AMP ESTIMATES THIRD QUARTER RESULTS; COMMENTS ON OUTLOOK; WILL ACQUIRE ELECTRO OPTICS PRODUCTS UNIT FROM DU PONT
THE SHERWIN-WILLIAMS COMPANY ISSUES CLARIFICATION
RYDER REPORTS STRONG INCREASE IN FIRST QUARTER EARNINGS BEFORE ACCOUNTING CHANGE
AMP INCORPORATED COMMENTS ON OUTLOOK
AMP INCORPORATED ISSUES ANNOUNCEMENT
Thomas Industries Announces First Quarter Earnings

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters