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AMP INCORPORATED REPORTS RESULTS

 AMP INCORPORATED REPORTS RESULTS
 HARRISBURG, Pa., April 22 /PRNewswire/ -- AMP Incorporated


(NYSE: AMP) today issued the following results.
 A summary of the highlights follows:
 FIRST QUARTER 1992
 Sales -- Record $819 million, up 3 percent from $792 million in first quarter 1991 and $791 million in fourth quarter 1991.
 Earnings Per Share -- 66 cents per share, equal to 66 cents in the first quarter 1991; up 10 percent from 60 cents in the fourth quarter of 1991.
 Bookings -- Record $821 million, up from $800 million in year-earlier quarter and $809 million in fourth quarter 1991.
 Order Backlog -- Up $2 million during quarter to record $527 million compared to $522 million a year ago. Currency adjustments reduced international backlog over $10 million.
 Employment -- Unchanged during quarter at 25,000.
 Capital Expenditures -- $68 million in first quarter. Total for year expected to be between the $313 million in 1991 and record $338 million in 1990.
 Overall Outlook Becoming More Positive.
 Regular quarterly dividend of 38 cents per share declared -- payable June 1, 1992; record date May 4.
 At the Annual Meeting today, AMP's Chairman and Chief Executive Officer Harold A. McInnes made the following remarks on current results and outlook.
 "Recessionary conditions continue to affect much of our business, but the overall outlook is becoming more positive," McInnes said. First quarter sales set a new high of $819 million -- up 3 percent from $792 million in the first quarter of 1991 and $791 million in the fourth quarter of 1991. The increase was entirely in the United States; international was down slightly year-to-year and with the prior quarter. First quarter earnings were 66 cents per share, equal to the 66 cents per share in the year-earlier quarter, but up 10 percent from 60 cents per share in the fourth quarter.
 The increase in United States sales was broad-based, with gains in all markets except the aerospace/military and construction-related market sectors. "We usually have a seasonal improvement in the first quarter in our U.S. sales over the fourth quarter, but this year's growth over the year-earlier period also reflects the gradual economic recovery underway in the U.S.," he said. This pickup in U.S. sales permitted a modest improvement in profit margins in the first quarter.
 "We expect sales to set another new high in the second quarter, probably in the $825-850 million range, and earnings/share of 66 cents- 70 cents. This would be the first time in several years that we would be reporting earnings up from both the year-earlier and prior quarter levels. For the entire year, we continue to look for sales growth of about 7-9 percent worldwide and continue to agree with analyst consensus earnings estimates of $2.80-$3.00/share. In Europe we think economic conditions will improve later this year," McInnes stated.
 He continued, "One-third of our European sales are to the automotive industry, where the rising electronic content in cars provides good opportunity for new products. We also expect good growth in the networking and telecommunications sectors of the European market. We are mildly concerned about the economic slowdown in Japan; however, the continued slow growth expected in the specific markets we serve, combined with the introduction of a number of new products, should allow us to achieve modest sales growth there this year. We are expecting higher sales growth in the Asia/Pacific region outside of Japan, supported by good economic growth in that area. Led by an expected recovery in the Brazilian economy, we look for some growth in our Latin American sales this year after a moderate decline in 1991. In Canada, sales growth should parallel our U.S. growth.
 "We think the pricing environment should gradually continue to improve during 1992 and 1993 as rising demand improves connector industry capacity utilization."
 McInnes also made the following basic points:
 -- AMP is in the strongest position in its history.
 -- AMP should experience a secular as well as cyclical improvement in profit margins.
 -- AMP is evolving from a connector company to what its mission statement calls "a total interconnection system" company.
 -- AMP is making steady progress in becoming a globally integrated company.
 "We are optimistic that, given favorable economic conditions, we can resume double digit growth in sales and earnings during the 1990s," McInnes added.
 President and Chief Operating Officer James E. Marley reviewed a number of new products and reported that new products (defined as introduced in the last five years) reached a record 20 percent in 1991 and the goal is 25 percent by the mid 1990s.
 Executive Vice President-International William J. Hudson reviewed international operations and stated he expects 1992 European sales growth in local currencies to be significantly better than 1991's 2 percent; Asia/Pacific's local currency sales growth to be slightly better than 1991's 8 percent; and Latin America to grow more than 10 percent after a moderate decline in 1991. 6-8 percent sales growth is expected in the United States in 1992.
 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").
 AMP INCORPORATED
 & its Subsidiaries and Pamcor, Inc.
 COMBINED STATEMENTS OF INCOME
 (Unaudited; dollars in thousands except per share data)
 For the three months ended March 31 1992 1991
 Net Sales $ 818,576 $ 792,338
 Cost of Sales 544,038 524,248
 Gross income 274,538 268,090
 Selling, General & Admin. Expenses 146,789 143,604
 Income from operations 127,749 124,486
 Interest Expense (9,668) (11,510)
 Other Income (Deductions), net (3,064) (900)
 Income before income taxes 115,017 112,076
 Income Taxes 44,860 42,040
 Net Income $70,157 $70,036
 Per Share - Net income $.66 $.66
 Cash dividends .38 .36
 Weighted average number of shares 106,025,482 105,929,391
 /delval/
 -0- 4/22/92
 /CONTACT: William Oakland of AMP, 717-780-6371/
 (AMP) CO: AMP Incorporated ST: Pennsylvania IN: CPR SU: ERN DIV


MP -- PH004 -- 1083 04/22/92 09:14 EDT
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