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BALDWIN'S FY92 EARNINGS: SMALL PROFIT ON CONTINUING OPERATIONS

 BALDWIN'S FY92 EARNINGS: SMALL PROFIT ON CONTINUING OPERATIONS
 ROWAYTON, Conn., Aug. 26 /PRNewswire/ -- Baldwin Technology Company, Inc. (AMEX: BLD) reported today that its net sales for the fiscal year ended June 30, 1992, were $221,474,000, an increase of 1 percent over net sales of $218,767,000 for the fiscal year ended June 30, 1991, adjusted for the discontinuation of certain operations. Income from continuing operations was $770,000 or $0.05 per share, compared to $8,561,000 or $0.50 per share for the prior year. As a result of the previously announced special one-time charge to earnings of $7,600,000 in connection with the company's restructuring and discontinuation of certain operations, a net loss of $6,966,000 or ($0.41) per share was posted for the fiscal year ended June 30, 1992, compared to net income of $6,878,000 or $0.40 per share for the fiscal year ended June 30, 1991.
 Wendell M. Smith, chairman, made these comments on the results: "Although we had total sales slightly over last year, our profit picture was very disappointing. The gross profit is down, primarily as a result of great price pressure in this, the worst printing machinery recession ever. We did, however, continue innovative product development and engineering at 7.7 percent of net sales, resulting in the introduction of several significant new products. We also continued to strengthen our technical sales and service operations in order to provide support to our customers worldwide. To that end, the company established several additional sales/service operations during this past year, despite the difficult market conditions."
 The Company explained the principal components of the previously announced special charge which impacted on the fourth quarter and year- end results, as follows: A restructuring charge of $1.7M for consolidation of facilities, product lines and offices in certain U.S. business units. This reflects further decentralization of administrative functions and a reduction of manufacturing capacity. This charge is included in operating expenses from continuing operations and the savings connected with these moves should be reflected in earnings beginning in fiscal year 1993. A $5.9M discontinued operations charge was provided for the expected loss on the disposition of the thermographic and forms handling businesses. The company has signed an agreement in principle with members of the existing management of ECAMO, a French subsidiary and its U.S. sales counter-part, Baldwin SPM, for the sale of those two businesses, which incurred an operating loss of over $1.8M in fiscal 1992. With products outside the mainstream of Baldwin's other businesses, these operating units serve small printers, a segment of the industry that has been particularly hard hit during the recent recession.
 The company also completed a restructuring of its bank debt. The recently announced Amendment to the Credit Agreement was successfully accomplished with the current bank group, easing the company's debt payment obligations. "We had been working under a five year amortization schedule and we met all of our obligations of repayment; however, it is prudent, especially with current interest rates, to lower our outflow obligations and improve liquidity," Smith said. The company's short-term debt obligations decreased from approximately $25 million at June 30, 1991 to approximately $14 million at June 30, 1992, with overall debt at 37 percent of the company's total capitalization, down from 42 percent at June 30, 1991.
 Smith concluded that he is more optimistic about prospects for this next fiscal year based on several months of order increases over last year and operating expense controls in place.
 BALDWIN TECHNOLOGY COMPANY, INC.
 (in thousands, except per share data)
 Fiscal year ended June 30, 1992 1991
 Net Sales (A)(B) $221,474 $218,767
 Income from continuing operations (C) 770 8,561
 Inc. per share from continuing operations 0.05 0.50
 Discontinued operations (A)
 (Loss) from opers. of discont.
 subsidiary (1,842) (1,683)
 (Loss) on disposal of discont.
 subsidiary (5,894) ---
 Net (loss) income (6,966) 6,878
 (Loss) per share from operations of
 discont. subsidiary, net of tax benefit (0.11) (0.10)
 (Loss) per share on disposal
 of subsidiary (0.35) ---
 Net (loss) income per share (0.41) 0.40
 Weighted average shares outstanding 17,106 17,378
 (A) Company announced decision made during Q4 of FY92 to discontinue operations of its thermographic and forms handling businesses. Accordingly, fiscal 1991 figures shown above have been reclassified to report that segment as a discontinued operation.
 (B) Technical Service revenues and expenses have been reclassified in fiscal 1991.
 (C) Includes a special one-time charge of $1.7M for consolidation of facilities, product lines and administrative offices.
 Baldwin Technology Company, Inc. (BLD) is listed on the American Stock Exchange and is a leading multinational manufacturer of material handling, accessory, control and pre-press equipment for the printing industry.
 -0- 8/26/92
 /CONTACT: Helen P. Oster of Baldwin Technology Company, 203-866-3497/
 (BLD) CO: Baldwin Technology Company, Inc. ST: Connecticut IN: CST SU: ERN


SH -- NY022 -- 3418 08/26/92 11:28 EDT
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Publication:PR Newswire
Date:Aug 26, 1992
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