Printer Friendly


 HARRISBURG, Pa., Jan. 27 /PRNewswire/ -- AMP Incorporated (NYSE: AMP) President and CEO William Hudson and Chairman James Marley today commented on current results and outlook, as follows:
 Sales -- Up 8 percent to record $3.337 billion from $3.095 billion
 Earnings per Share -- Up 12 percent to $2.75 per share from $2.45 per share in 1991
 Capital Expenditures -- Similar to the $313 million in 1991
 Employment -- Up 100 for year to 25,100
 Sales -- $845 million, up 7 percent from $791 million in year- earlier quarter; down slightly from record $847 million in preceding quarter
 Earnings per Share -- 67 cents per share, up 12 percent from 60 cents per share in year-earlier period; down from 74 cents in preceding quarter
 Backlog -- Down $28 million during quarter to $506 million due almost entirely to currency effects
 Dividend increased to 40 cents per share from 38 cents per share in 1992. Indicates $1.60 per share in 1993 from $1.52 per share in 1992.
 Aided by the continued strengthening in AMP's U.S. sales, fourth quarter sales of $845 million were up 7 percent from the year-earlier period and nearly equalled the third quarter record high of $847 million -- despite the strengthening of the U.S. dollar, further weakening in European business and the usual week-long year-end closedown in the U.S. and several other countries. Sales had risen to $819 million in the first, $827 million in the second and $847 million in the third quarter. If exchange rates had remained constant at the third quarter average level, sales would have been more than $20 million higher. Earnings growth was interrupted primarily because of the combination of the lower-than-expected European sales level, the higher U.S. dollar value and year-end adjustments. From a low point of 58 cents per share in the third quarter of 1991, earnings had improved to 60 cents in the fourth quarter, 66 cents in the first quarter, 68 cents in the second and 74 cents in the third quarter of this year.
 For the entire year, sales rose 8 percent to a record $3.337 billion from $3.095 billion in 1991. U.S. sales were up 11 percent to $1.36 billion, with 2-3 percent of this growth due to inclusion of Precision Interconnect Corporation acquired in December 1991.
 The spokesmen said, "We believe our 1992 U.S. sales growth without this acquisition was significantly higher than that of the overall U.S. connector industry growth. In 1991, U.S. sales, reflecting the recession, were flat with the prior year. Strongest sales growth in 1992 was in our automotive and appliance markets, followed by computer and certain industrial/commercial markets such as medical electronics. Sales to the aerospace/military market (less than 10 percent of U.S. sales) were down modestly -- much less than the overall connector industry decline in this market."
 Despite a slowdown late in the year, European sales were up 4 percent in local currencies and up 8 percent in U.S. dollars to a record high of $1.16 billion. In 1991 they were up 2 percent in local currencies and flat in U.S. dollars. Aided by growing electronic content in vehicles and the introduction of new AMP products, sales to the European automotive market were up in 1992, despite lower vehicle production.
 Asia/Pacific sales were down 4 percent in local currencies and up 1 percent in U.S. dollars to a record $670 million. In 1991 sales were up 8 percent in local currencies and up 14 percent in U.S. dollars. In 1992 sales grew in virtually all countries outside Japan, while Japanese sales were down modestly. Throughout the year AMP steadily reduced its expectations for the company's Japanese business because of the further slowing of the Japanese economy.
 Sales in the Americas outside of the U.S. were up 6 percent in 1992 to $144 million after declining 10 percent in 1991.
 Earnings rose 12 percent to $2.75 per share from $2.45 per share in 1991. The worldwide operating income margin improved to 16 percent from 15.2 percent in 1991. Profit margins in the U.S., aided by good sales growth and firmer pricingrice erosion in most countries.
 The strength in AMP's U.S. business in the fourth quarter has continued in January. "With a very broad sales base, we are apparently reflecting the general economic recovery underway in the U.S. Thus it seems likely that if this does continue, our sales growth in the U.S. in 1993 can be similar to last year's 11 percent growth rate," they said. European sales will probably be down in the first quarter from the year- earlier and prior quarter levels, but should resume growth later this year if, as generally expected, economic conditions begin to improve.
 Hudson and Marley added, "In the Asia/Pacific region we expect modest growth for the year. While sales growth should continue outside Japan, we will probably not see growth resume in Japan until the second half when the Japanese economy is expected to show some improvement. Latin American and Canadian sales should show good growth under improving economic conditions."
 Current economic conditions throughout the world make it more difficult than usual to assess the outlook of AMP's international business. "However, unless the current weakness in Europe and Japan becomes worse than now expected or the U.S. dollar value strengthens significantly, we believe that, given the strength of our U.S. business, first quarter sales and earnings can be maintained fairly close to fourth quarter levels. Despite this slow start in our international operations, we continue to expect further growth in total worldwide sales and earnings for the entire year 1993 because of our strong global position, the many new programs underway, and the prospect for improving economic conditions later in the year.
 "We are confident that our goal of growing at least one and one-half times the connector industry growth rate is achievable. The dramatic improvement we have made in recent years in quality, delivery, service, technology support and responsiveness has, we believe, resulted in market share gains in 1992 in each of the major regions. Spending on new products and processes is being maintained at a high level and the proportion of new products in current sales continues to increase. To speed our progress in the fast-growing fiber optics and networking markets, and in value-added assemblies, we made several small acquisitions and strategic alliances during the past year."
 They continued, "We have been steadily expanding throughout the world. So far in the 1990s (1990-1992) we have established or enlarged facilities in the U.S. and over a dozen other countries. 1992 expansion included additions in France, Germany, and Japan; start-up of operations in India and groundbreaking for our first manufacturing plant in China (Shanghai). This year we will start construction on large production facilities in the Harrisburg, Pa., and Greensboro, N.C., areas, start operations in China and Hungary, launch production in our third plant in Singapore, begin construction of additional plants in Korea and Spain, and add to facilities in several other countries.
 "Our top priority is to accelerate our efforts to become a truly globally integrated company that provides complete interconnection systems. This steady evolution to value-added assemblies such as panel and cable assemblies, while concurrently strengthening our core connector component business, provides excellent opportunities to participate on a much broader basis in the good growth we see ahead for the electrical and electronic markets we serve. We have therefore made a number of organizational changes recently to deploy our resources more effectively on a global basis and to more aggressively pursue new strategic product and market opportunities."
 The board of directors of AMP Incorporated increased the regular quarterly cash dividend to 40 cents per share, payable March 1, 1993, to shareholders of record Feb. 8. The current rate indicates an annual dividend of $1.60 per share for 1993 compared to $1.52 per share in 1992, $1.44 in 1991, and $1.36 in 1990 -- and would result in the 40th consecutive annual increase.
 Harrisburg-based AMP Incorporated is the world's leading producer of electrical/electronic connection devices. It has 25,100 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").
 (Dollars in thousands except per share data)
 Three months ended Dec. 31 1992(A) 1991
 Net Sales $ 845,000 $ 790,601
 Cost of Sales 570,000 540,489
 Gross income 275,000 250,112
 Selling, General and
 Administrative Expenses 143,000 139,801
 Income from operations 132,000 110,311
 Interest Expense (7,000) (10,154)
 Other Income (Deductions), net (9,000) 5,019
 Income before income taxes 116,000 105,176
 Income Taxes 46,000 41,710
 Net Income $ 70,000 $ 63,466
 Per Share - Net income $.67 $.60
 Cash dividends .38 .36
 Weighted average
 number of shares 105,044,190 105,823,946
 12 months ended Dec. 31
 Net Sales $3,337,000 $3,094,951
 Cost of Sales 2,219,000 2,069,526
 Gross income 1,118,000 1,025,425
 Selling, General and
 Administrative Expenses 585,000 555,662
 Income from operations 533,000 469,763
 Interest Expense (30,000) (41,561)
 Other Income (Deductions), net (24,000) (4,608)
 Income before income taxes 479,000 423,594
 Income Taxes 189,000 163,850
 Net Income $ 290,000 $ 259,744
 Per Share - Net income $2.75 $2.45
 Cash dividends $1.52 $1.44
 Weighted average
 number of shares 105,496,092 105,882,591
 (A) Unaudited and subject to further adjustment.
 (dollars in thousands)
 Dec. 31 Dec. 31
 1992(A) 1991
 Current Assets:
 Cash & cash equivalents $ 371,000 $ 370,829
 Marketable securities 107,000 80,167
 Receivables 560,000 589,212
 Finished goods & work in process 243,000 246,187
 Purchased & manufactured parts 146,000 149,472
 Raw materials 46,000 44,943
 Total inventories 435,000 440,602
 Other current assets 141,000 135,559
 Total current assets 1,614,000 1,616,369
 Property, Plant & Equipment 2,715,000 2,550,406
 Less-Accumulated depreciation 1,536,000 1,370,236
 Property, plant & equipment, net 1,179,000 1,180,170
 Investments and Other Assets 212,000 210,356
 TOTAL ASSETS $3,005,000 $3,006,895
 Current Liabilities:
 Short-term debt $ 311,000 $ 336,660
 Payables, trade & other 235,000 250,605
 Accrued liabilities 299,000 301,142
 Total current liabilities 845,000 888,407
 Long-Term Debt 43,000 52,995
 Other Liabilities & Deferred Credits 174,000 152,450
 Total liabilities 1,062,000 1,093,852
 Shareholders' Equity 1,943,000 1,913,043
 (A) Unaudited and subject to further adjustment.
 -0- 1/27/93
 /CONTACT: William Oakland of AMP, 717-780-6371/

CO: AMP Incorporated ST: Pennsylvania IN: CPR SU: ERN DIV

CC -- PH012 -- 9622 01/27/93 11:54 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jan 27, 1993

Related Articles
McCormick Completes Sale of Gilroy Foods and its Cogeneration Unit
AMP Announces New Distribution Policy
Donnelley Enterprise Solutions Incorporated Announces Completion of Initial Public Offering Of 2,860,000 Of Its Common Stock
AMP Incorporated to Take Second-Quarter Charge for Litigation
Iron Mountain Incorporated Schedules Fourth Quarter and Full Year 2003 Earnings Release and Conference Call.
Kosan Extends Collaboration Agreement for Production of Novel Antibiotic Leads.
Standard & Poor's Raises McCormick & Company's Credit Ratings.

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