Printer Friendly

AMP INCORPORATED REPORTS RESULTS, DIVIDEND DECLARATION

 AMP INCORPORATED REPORTS RESULTS, DIVIDEND DECLARATION
 HARRISBURG, Pa., July 22 /PRNewswire/ -- AMP Incorporated


(NYSE: AMP) Chairman and Chief Executive Officer Harold A. McInnes today announced second quarter results and dividend declaration, highlighted as follows:
 SECOND QUARTER 1992 RESULTS
 -- Sales up 7 percent to $827 million from $776 million in year- earlier period.
 -- Earnings 68 cents per share -- up from 61 cents in year-earlier period.
 -- Order backlog -- record $531 million, up $4 million during quarter.
 -- Employment -- up 100 during quarter to 25,100.
 SIX MONTHS 1992 RESULTS
 -- Sales -- up 5 percent to new high of $1.65 billion from $1.57 billion in first half 1991.
 -- Earnings per share -- up 6 percent to $1.34 from $1.27 in year- earlier period.
 -- Capital expenditures -- $144 million compared to $147 million in first half 1991. Total for year should be similar to $313 million in 1991.
 -- Outlook remains favorable.
 -- Regular quarterly dividend of 38 cents per share declared.
 Sales set a new quarterly high of $827 million, but were only slightly above the record $819 million in the first quarter. Sales were lower than originally expected because of economic conditions in the U.S., Europe and Japan. U.S. sales continued at the first quarter 1992 level, while international sales rose slightly.
 Aided by the inclusion of Precision Interconnect Corporation acquired in December 1991, U.S. sales (41 percent of the total) were up 10 percent in the first half; while international sales were up 2 percent in U.S. dollars. Changes in currency exchange rates did not have a significant effect. European sales (35 percent of the total) were up 2 percent in local currencies and 1 percent in U.S. dollars. Asia/Pacific sales (20 percent of the total) were down 3 percent in local currencies and up 1 percent in U.S. dollars. In the Western Hemisphere outside the U.S. (4 percent of the total), sales were up 12 percent in U.S. dollars.
 Sales have resumed growth in the U.S., after being flat in 1991 and down 3 percent in 1990, but reflect the slow pace of the U.S. economic recovery. "Our growth is broad-based -- with some growth in all markets except the aerospace/military and construction-related markets," McInnes said. Strongest growth is in sales to the consumer goods sector -- automotive, appliance, home entertainment -- which is typical in the early stages of economic recovery. International sales showed good growth in the automotive and networking markets. Growth in Europe was achieved in Austria, Great Britain, Italy, Scandinavia and Spain. In Asia/Pacific, good sales growth occurred in nearly all countries, but sales were down slightly in Japan, reflecting the economic slowdown, decline in industrial production, and inventory reduction efforts there.
 This was the first time since the third quarter of 1990 that earnings (68 cents per share) increased over both the year-earlier (61 cents) and prior quarter (66 cents). Profit margins improved slightly in the U.S., and were down slightly in international operations.
 The pricing environment for the company's products is gradually improving in the U.S. -- with firming up becoming more apparent in certain markets. Price erosion may also be lessening in Europe. Understandably, the market in which connector pricing is the most competitive throughout the world is the personal computer industry.
 OUTLOOK
 McInnes said, "The outlook remains favorable. We are assuming the U.S. economy will continue its slow recovery and that our rate of U.S. sales growth will therefore be the same or better in the second half. We also expect a slightly better second half in our international sales. Worldwide sales and earnings in the third quarter will probably be a few percent lower than the second quarter, primarily because of the usual seasonal softening in Europe, but fourth quarter expectations are for sales and earnings higher than the second quarter. For the entire year, virtually all analysts' earnings estimates are now in the range of $2.70-$2.85 per share on sales growth of 6-8 percent. This seems reasonable except to note that reaching the upper part of the earnings range will probably require better economic conditions in the U.S., Europe and Japan than is generally expected at this time. Currently, we are looking for sales growth of about 10 percent in the U.S. and about 5 percent in local currency terms in Europe and Asia/Pacific. The U.S. dollar has weakened recently against other major currencies and thus if it remains at these levels, our international growth in the second half will be somewhat higher in U.S. dollars than in local currencies."
 EXPANSION/ACQUISITIONS
 McInnes continued, "We are nearing start-up of a newly constructed 22,000-square-foot facility near Cochin in the state of Kerala in southwestern India. A plant in China (Shanghai) and our third plant in Singapore are under construction and should begin operation in first half 1993. Other construction activity this year includes expansion in Japan, Korea, Germany, Italy and Spain.
 "As previously announced, in late June we acquired Optical Fiber Technologies Inc. (OFTI) of Westford, Mass. OFTI is a leading supplier of high precision metal-ferrule fiber optic connectors. Combining OFTI's metal-ferrule products with AMP's line of plastic and ceramic ferrule connectors should create the broadest fiber optic connector offering available from a single manufacturer anywhere in the world. OFTI has over 3,000 customers worldwide, with over one-fourth of its sales outside the U.S. AMP has merged OFTI into its Electro-Optics Division and is continuing operations at the 25,000-square-foot facility in Westford."
 DIVIDEND ACTION
 Today the board of directors of AMP Incorporated and its affiliate, Pamcor, Inc., declared a quarterly combined cash dividend of 38 cents per share (21-1/2 cents from AMP and 16-1/2 cents from Pamcor) payable Sept. 1, 1992, to shareholders of record Aug. 3. This should be the last dividend paid directly by Pamcor because its status is expected to change from an affiliate to a wholly owned subsidiary. The combined amount is the same as the previous quarterly dividend which was paid entirely by AMP. The current rate indicates an annual dividend of $1.52 per share for 1992 compared to $1.44 in 1991, $1.36 in 1990, and $1.20 in 1989 -- the 39th 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").
 AMP INCORPORATED AND ITS SUBSIDIARIES AND PAMCOR, INC.
 Combined Statements of Income
 (Unaudited; dollars in thousands, except per-share data)
 For the three months ended June 30 1992 1991
 Net sales $826,980 $775,694
 Cost of sales 548,728 516,882
 Gross income 278,252 258,812
 Selling, general and
 administrative expenses 148,552 139,950
 Income from operations 129,700 118,862
 Interest expense (6,488) (10,136)
 Other income (deductions), net (4,512) (4,122)
 income before income taxes 118,700 104,604
 Income taxes 46,650 39,920
 Net income $72,050 $64,684
 Per share - Net income $.68 $.61
 Cash dividends .38 .36
 Weighted average number of shares 105,717,559 105,921,852
 For the six months ended June 30 1992 1991
 Net sales $1,645,556 $1,568,032
 Cost of sales 1,092,766 1,041,130
 Gross income 552,790 526,902
 Selling, general and
 administrative expenses 295,341 283,554
 Income from operations 257,449 243,348
 Interest expense (16,156) (21,646)
 Other income (deductions), net (7,576) (5,022)
 Income before income taxes 233,717 216,680
 Income taxes 91,510 81,960
 Net income $142,207 $134,720
 Per share - Net income $1.34 $1.27
 Cash dividends .76 .72
 Weighted average number of shares 105,861,305 105,924,005
 AMP INCORPORATED AND ITS SUBSIDIARIES AND PAMCOR, INC.
 Combined Balance Sheets
 (Dollars in thousands)
 June 30 Dec. 31,
 1992 1991
 (Unaudited)
 ASSETS:
 Current Assets:
 Cash and cash equivalents $303,784 $370,829
 Marketable securities 99,052 80,167
 Receivables 636,589 589,212
 Inventories --
 Finished goods & work in process 251,455 246,187
 Purchased & manufactured parts 149,675 149,472
 Raw materials 42,903 44,943
 Total inventories 444,033 440,602
 Other current assets 152,736 135,559
 Total current assets 1,636,194 1,616,369
 Property, Plant & Equipment 2,635,665 2,550,406
 Less-Accumulated depreciation 1,460,906 1,370,236
 Property, plant & equipment, net 1,174,759 1,180,170
 Investments and Other Assets 213,549 210,356
 TOTAL ASSETS $3,024,502 $3,006,895
 LIABILITIES AND SHAREHOLDERS' EQUITY:
 Current Liabilities:
 Short-term debt $277,963 $336,660
 Payables, trade & other 256,777 250,605
 Accrued liabilities 330,613 301,142
 Total current liabilities 865,353 888,407
 Long-Term Debt 51,019 52,995
 Other Liabilities & Deferred Credits 175,032 152,450
 Total liabilities 1,091,404 1,093,852
 Shareholders' Equity 1,933,098 1,913,043
 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $3,024,502 $3,006,895
 /delval/
 -0- 7/22/92
 /CONTACT: William Oakland of AMP, 717-780-6371/
 (AMP) CO: AMP Incorporated ST: Pennsylvania IN: CPR SU: ERN DIV


LJ-MP -- PH023 -- 1875 07/22/92 11:55 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:Jul 22, 1992
Words:1550
Previous Article:PIPER JAFFRAY COMPANIES DECLARES QUARTERLY DIVIDEND
Next Article:NATIONAL STEEL REPORTS OPERATING PROFIT OF $19.9 MILLION, NET PROFIT OF $4.5 MILLION FOR SECOND QUARTER
Topics:


Related Articles
MORRISON INCORPORATED BOARD APPROVES NAME CHANGE, DECLARES STOCK SPLIT, INCREASES DIVIDEND
AMP INCORPORATED REPORTS RESULTS, DIVIDEND DECLARATION
EQUITABLE BOARD DECLARES INITIAL DIVIDEND
EQUITABLE BOARD DECLARES INITIAL DIVIDEND
ART ANNOUNCES YEAR-END RESULTS, DECLARATION OF DIVIDEND AND MANAGEMENT CHANGES
ART ANNOUNCES YEAR-END RESULTS, DECLARATION OF DIVIDEND AND MANAGEMENT CHANGES
SHURGARD INCREASES QUARTERLY DIVIDEND
Community Bankshares Incorporated Announces Earnings of $685,239, or $.36 per Share, for the Period Ended March 31, 1997, Which, on an Annunalized...
Liberty Financial Declares Quarterly Dividend.
Simon Property Group Announces Reporting Information for 2003 Distributions.

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