Printer Friendly

ARVIN REPORTS RECORD SALES FOR FOURTH QUARTER AND FULL YEAR 1992

 COLUMBUS, Ind., Feb. 3 /PRNewswire/ -- Arvin Industries, Inc. (NYSE: ARV) today reported earnings per share of $1.79 for the fiscal year ended Jan. 3, 1993, compared to $.81 a year ago. Sales for fiscal 1992 reached a record $1.9 billion, a 13 percent increase from $1.7 billion in the prior year.
 In the fourth quarter of 1992, the company elected early adoption of Financial Accounting Standards (FAS) 106, FAS 109 and FAS 112. The current year effect of these accounting changes was $(.09), reducing earnings from continuing operations to $1.70 per share. The cumulative effect of the accounting changes on prior years was $(1.67) per share, resulting in net earnings of $6.4 million, or $.03 per common share for the year.
 James K. Baker, chairman and CEO, said, "In the face of tight market conditions, fourth quarter sales and profits were as expected. Net earnings for the quarter were up 33 percent while earnings before accounting charges for the year increased 80 percent. This performance demonstrates our global strategy is working. Earnings per share more than doubled, outperforming others in our industry.
 "For the year, sales increases of North American OEM exhaust and ride control products, increased demand for emission control products in Europe and strong aftermarket demand in the E.C. and North America helped deliver this solid performance," Baker said. "The Japanese car companies continue to increase their purchases of Arvin components for their North American and European assembly plants.
 "Performance was also improved in the industrial segment where orders have rebounded and productivity improvements have been implemented.
 "The outlook for Arvin in 1993 is bullish. North American vehicle production estimates are up, and Arvin's penetration in Europe continues to improve. We are dedicated to further increasing our earnings per share in 1993. First quarter earnings are expected to exceed last year's first quarter by over 40 percent. Arvin is well prepared to serve the ever-changing marketplace," Baker concluded.
 FAS 106 requires recognition of the cost of future payments for retiree health-care and related costs over the employees' working lives. FAS 112 requires benefits paid after employment but before retirement to also be recognized as employee service is rendered. The effect of these two changes will be a non-cash charge to earnings that has two parts: a $33.5 million after-tax, or $1.67 per share, charge for a one-time adjustment for years prior to 1992, and $3.1 million pre-tax, or $.09 per share, related to charges for 1992.
 FAS 109 changes the method of accounting for income taxes from the deferral to the liability method. This change in accounting has been applied retroactively by restating prior years' financial statements, resulting in a decrease in retained earnings at Jan. 1, 1990, of $12.6 million.
 For the fourth quarter of 1992, the company reported sales of $455.1 million and net income of $9.9 million, prior to a $.5 million charge for accounting changes. Earnings per share were $.45 before the $.02 per share effect of the accounting changes. All three accounting changes mentioned above represent non-cash charges which do not affect the company's cash flow, and will result in restatement of earnings for the first three quarters of 1992. Restated results including segment data are shown in the table below and in the following tables.
 Arvin Industries, Inc.
 Earnings Per Share Highlights
 Fiscal 1992
 Fourth Full
 Quarter Year
 Earnings per share before changes
 in accounting methods $0.45 $1.79
 Effect of new accounting methods on
 current year results ($0.02) ($0.09)
 Earnings per share before cumulative
 effect of changes in accounting
 methods $0.43 $1.70
 Effect of changes in accounting methods
 on prior years --- ($1.67)
 Net Earnings per share $0.43 $0.03
 Arvin Industries, Inc. is an international manufacturing company supplying automotive parts and related products and services in more than 100 countries throughout the world.
 ARVIN INDUSTRIES, INC.
 CONSOLIDATED RESULTS FOR FOURTH QUARTER ENDED JANUARY 3, 1993
 (In Thousands Except Per Share Amounts)
 FOURTH QUARTER (UNAUDITED)
 1992 1991
 CONDENSED STATEMENT OF OPERATIONS
 Net Sales:
 Automotive Original Equipment $232,962 $198,406
 Automotive Replacement 141,617 146,868
 Technology 54,302 53,751
 Industrial 26,204 24,608
 Total Net Sales $455,085 $423,633
 Income From Operations
 Automotive Original Equipment $12,195 $11,719
 Automotive Replacement 13,493 12,931
 Technology 1,841 2,465
 Industrial 3,173 749
 Total Income From Operations $30,702 $27,864(A)
 Earnings From Continuing Operations $9,396 $7,271(A)
 Net Income (loss) from
 discontinued operations --- ---
 Earnings Before Cumulative Effect of
 Change in Accounting Method $9,396 $7,271
 Effect of change in accounting for
 postretirement benefits other than
 pensions --- ---
 Effect of change in accounting for
 postemployment benefits --- ---
 Net Earnings $9,396 $7,271(A)
 Earnings Per Common Share:
 From continuing operations $0.43 $0.28
 From discontinued operations --- ---
 Effect of change in accounting for
 postretirement benefits other
 than pensions --- ---
 Effect of change in accounting for
 postemployment benefits --- ---
 Net $0.43 $0.28(A)
 Average Common Shares Outstanding 21,825 19,102
 FULL YEAR (UNAUDITED)
 1992 1991
 CONDENSED STATEMENT OF OPERATIONS
 Net Sales:
 Automotive Original Equipment $885,763 $744,819
 Automotive Replacement 680,148 612,152
 Technology 210,811 213,816
 Industrial 113,462 105,578
 Total Net Sales $1,890,184 $1,676,365

 Income From Operations
 Automotive Original Equipment $42,382 $26,907
 Automotive Replacement 66,348 52,161
 Technology 8,376 10,329
 Industrial 10,157 5,592
 Total Income From Operations $127,263(B) $94,989(A)
 Earnings From Continuing Operations $39,896(B) $21,632(A)
 Net Income (loss) from
 discontinued operations --- 1,207
 Earnings Before Cumulative Effect of
 Change in Accounting Method $39,896 $22,839
 Effect of change in accounting for
 postretirement benefits other than
 pensions (27,627) ---
 Effect of change in accounting for
 postemployment benefits (5887) ---
 Net Earnings $6,382(B) $22,839(A)
 Earnings Per Common Share:
 From continuing operations $1.70 $0.73
 From discontinued operations --- 0.06
 Effect of change in accounting for
 postretirement benefits other
 than pensions ($1.38) ---
 Effect of change in accounting for
 postemployment benefits (0.29) ---
 Net $0.03(B) $0.79(A)
 Average Common Shares Outstanding 20,054 19,094
 (A) -- Restated for FAS 109.
 (B) -- Restated for FAS 106, FAS 109 and FAS 112.
 ARVIN INDUSTRIES, INC.
 CONSOLIDATED RESULTS FOR FOURTH QUARTER ENDED JANUARY 3, 1993
 (In Thousands)
 YEAR END (UNAUDITED)
 1992 1991
 CONDENSED STATEMENT OF FINANCIAL CONDITION
 Cash and Temporary Investments $14,631 $ 7,615
 Other Current Assets 453,920 466,582
 Total Current Assets 468,551 474,197
 Long-Term Assets 683,895 656,222
 Total $1,152,446 $1,130,419(A)
 Short-Term Debt 20,837 38,773
 Other Current Liabilities 263,619 236,980
 Total Current Liabilities 284,456 275,753
 Accrued Employee Benefits 53,581 ---
 Deferred Taxes and Other 20,272 35,808
 Long-Term Debt 390,183 334,983
 Minority Interest 5,527 9,356
 Redeemable Preferred Shares --- 100,455
 Shareholders' Equity 410,844 359,706
 Cumulative Translation Adjustment (12,417) 14,358
 Total Shareholders' Equity 398,427 374,064
 Total $1,152,446 $1,130,419(A)
 (A) -- Restated for FAS 109.
 -0- 2/3/93
 /CONTACT: John Brown of Arvin Industries, Inc., 812-379-3389/
 (ARV)


CO: Arvin Industries, Inc. ST: Indiana IN: AUT SU: ERN

KK -- CL007 -- 2311 02/03/93 10:46 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:Feb 3, 1993
Words:1230
Previous Article:ALLTEL, GTE TO EXCHANGE TELEPHONE PROPERTIES
Next Article:REPUBLIC REPORTS QUARTERLY FINANCIAL RESULTS
Topics:


Related Articles
ARVIN REPORTS INCREASED ORIGINAL EQUIPMENT SALES FOR FOURTH QUARTER AND FULL YEAR 1991
ARVIN REPORTS RECORD SECOND QUARTER SALES
ARVIN REPORTS RECORD THIRD QUARTER SALES
ARVIN FIRST QUARTER E.P.S. MORE THAN TRIPLES
ARVIN REPORTS 34 PERCENT INCREASE IN EPS FOR FIRST 6 MONTHS
ARVIN CEO ISSUES EARNINGS FORECAST
ARVIN REPORTS THIRD QUARTER PERFORMANCE AS FORECASTED
WHITMAN CORP. REPORTS SALES AND INCOME
ARVIN REPORTS RECORD SALES
ARVIN REPORTS FIRST QUARTER EARNINGS AND SALE OF SCHRADER AUTOMOTIVE

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