Printer Friendly

ARMCO TO RECORD CHARGE OF $170 MILLION FOR INSURANCE

          ARMCO TO RECORD CHARGE OF $170 MILLION FOR INSURANCE
    PARSIPPANY, N.J., Nov. 21 /PRNewswire/ -- Armco Inc. (NYSE: AS)


today announced that it would record a charge of $170 million in the fourth quarter related to the insurance companies which it intends to sell. The company said that a special committee of the board of directors had concluded reassessing the value that Armco carries on its balance sheet for these companies. The resulting charge would reflect a writedown to the net asset value of the insurance companies to be sold and would not require the use of cash. Armco currently values these companies at $303 million.
    Previously, when Armco reported its third quarter results, the company indicated that a future charge was possible pending completion of the reassessment.  Armco said that premium pricing was under severe pressure because of the current depressed market conditions in the property and casualty industry and that underwriting losses had increased consistent with recessionary conditions in the economy.  As a result, the insurance companies to be sold lost money in the third quarter, are expected to report a loss in the fourth quarter and only be marginally profitable in 1992.
    Armco stated that its strategy is to sell these companies in the near term; but, because of the poor results and depressed industry conditions, it would be prudent to first enhance their profitability and then sell them as conditions in the industry improve.
    Armco Inc. produces stainless, electrical and carbon steels and steel products.  Through joint ventures the company also produces coated and high-strength carbon flat-rolled steels and oilfield equipment and machinery.
    Insurance services are provided through businesses Armco intends to sell or liquidate.
    -0-          11/21/91
    /CONTACT:  James A. Herzog of Armco, 201-316-5276/
    (AS) CO:  Armco Inc. ST:  New Jersey IN:  MNG SU: TS -- NY014 -- 5723 11/21/91 08:57 EST
COPYRIGHT 1991 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1991 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Nov 21, 1991
Words:309
Previous Article:NATIONAL COMPUTER SYSTEMS REPORTS THIRD QUARTER RESULTS
Next Article:ARBOR DRUGS, INC. REPORTS RECORD FIRST-QUARTER RESULTS; NET INCOME UP 24.3 PERCENT ON SALES INCREASE OF 16.2 PERCENT
Topics:


Related Articles
ARMCO ENTERS NEW BANK AGREEMENT
ARMCO/CYCLOPS PROXY TO MAIL
ARMCO COMPLETES SALE OF SOUTHWESTERN OHIO STEEL
ARMCO REPORTS FOURTH QUARTER, FULL YEAR 1992 RESULTS
ARMCO SELLS E.G. SMITH CONSTRUCTION PRODUCTS DIVISION
ARMCO ANNOUNCES DIVESTMENTS AND SPECIAL CHARGES
ARMCO REPORTS THIRD QUARTER RESULTS
ARMCO REPORTS THIRD QUARTER RESULTS
EASTERN STAINLESS CORPORATION TO SELL BUSINESS ASSETS
ARMCO SELLS JOINT VENTURE INTEREST FOR $73 MILLION

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