Printer Friendly

BAROID SIGNS LETTER OF INTENT TO SELL SHAFFER SUBSIDIARY; REPORTS 1991 NET INCOME OF $1.1 MILLION AFTER CHARGES OF $24.0 MILLION

BAROID SIGNS LETTER OF INTENT TO SELL SHAFFER SUBSIDIARY; REPORTS 1991
 NET INCOME OF $1.1 MILLION AFTER CHARGES OF $24.0 MILLION
 HOUSTON, Feb. 2 /PRNewswire/ -- Baroid Corporation (NYSE: BRC) a leading worldwide supplier of petroleum services and equipment, today announced the signing of a letter of intent covering the sale of its Shaffer subsidiary to Varco International, Inc. for approximately $39 million in total consideration. The total consideration consists of $37 million in cash and an estimated payment of $2 million based upon Shaffer's 1992 operating results.
 Shaffer, with 1991 sales of $72 million, is a leading international supplier of pressure control equipment, including blowout preventers, blowout preventer control systems, motion compensation equipment, subsea production control systems and spare parts and service.
 J. Landis Martin, chairman and chief executive officer of Baroid, said "This transaction is good for everyone concerned. It's a great opportunity for Shaffer to become part of Varco's successful oilfield equipment manufacturing team. We are very pleased to have reached an agreement with Varco."
 The transaction, subject to the execution of a definitive agreement, board approval, financing, and appropriate governmental review, is expected to close in March 1992. Baroid said there will be no gain or loss on the transaction.
 The company also announced that income from continuing operations for the year ended Dec. 31, 1991, was $.6 million, or $.01 per share compared to $19.6 million or $.28 per share for the prior year. Excluding the previously announced charges for restructuring U.S. operations of $8.0 million or $.11 per share and the loss on the sale of Atlas Bradford of $16.0 million or $.21 per share, 1991 income from continuing operations grew by 25 percent over 1990.
 For the fourth quarter of 1991, the loss from continuing operations of $15.6 million or $.21 per share compared to income of $7.6 million or $.10 per share for the fourth quarter of 1990. The 1991 fourth quarter results also reflect the charges associated with the U.S. operations' restructuring and the Atlas Bradford sale. Excluding these charges, earnings for the fourth quarter of 1991 exceeded the fourth quarter of 1990 by 11 percent.
 Drilling fluids net sales and operating income declined 9 percent and 28 percent, respectively, in the fourth quarter of 1991 compared to the fourth quarter of 1990 primarily due to the average U.S. rig count that was 28% lower in the fourth quarter of 1991.
 Drilling services and products reported net sales of $75.7 million for the fourth quarter of 1991 and $265.6 million for the year compared to $54.4 million and $171.7 million, respectively, for the 1990 periods. Sperry-Sun reported improvements in both sales and operating income during 1991 although fourth quarter 1991 operating income was below the 1990 level due to continued pricing weakness in the U.S. market as activity declined. DBS sales increased slightly in the fourth quarter of 1991 compared to the third quarter, although operating income was lower due to the deterioration in U.S. drilling activity.
 During 1991 the company elected early adoption of Statement of Financial Accounting Standards No. 106 ("SFAS No. 106"), "Employers' Accounting for Postretirement Benefits Other Than Pensions." The statement requires accrual basis accounting for such benefits as opposed to the Company's previous method of cash basis accounting. The impact of adopting SFAS No. 106 was a charge of approximately $.5 million to the company's 1991 results.
 Baroid's 1991 results are subject to final audit.
 BAROID CORPORATION
 Summary of Consolidated Operations
 (In thousands, except per share data)
 Periods Ended Quarter Year
 Dec. 31 1991 1990(A) 1991 1990(A)
 Net sales:
 Drilling fluids $ 91,266 $100,351 $349,907 $348,989
 Drilling services &
 products 75,691 54,367 265,579 171,654
 Oilfield equipment 26,311 22,079 90,658 78,549
 Total 193,268 176,797 706,144 599,192
 Operating income:
 Drilling fluids 8,518 11,829 28,752 34,922
 Drilling services &
 products 6,556 5,910 24,649 13,558
 Oilfield equipment (123) 871 862 107
 Restructuring charge (7,450) -- (7,450) --
 Total 7,501 18,610 46,813 48,587
 Disposition of business
 unit (16,000) -- (16,000) --
 Corporate expense, net (1,552) (1,160) (2,778) (1,846)
 Interest expense (4,980) (3,856) (18,335) (11,969)
 Total (15,031) 13,594 9,700 34,772
 Provision for inc. taxes 1,489 5,394 9,035 13,128
 Total (16,520) 8,200 665 21,644
 Minority interest (956) 571 91 2,049
 Income (loss) from cont.
 operations (15,564) 7,629 574 19,595
 Discontinued operations -- 3,514 -- 18,805
 Extraordinary items 23 1,946 556 5,566
 Net income (loss) (15,541) 13,089 1,130 43,966
 Inc. (loss) per com. shr.:
 Continuing operations $(.21) $.10 $.01 $.28
 Discontinued operations -- .05 -- .26
 Extraordinary items -- .03 .01 .08
 Net income (loss) (.21) .18 .02 .62
 Weighted average common
 shares outstanding 74,346 74,171 74,258 70,837
 (A) Reclassified
 -0- 2/2/92
 /CONTACT: Robert P. Wallace of Baroid Corporation, 713-987-5186/
 (BRC) CO: Baroid Corporation ST: Texas IN: OIL SU: ERN


PS -- NYSU001 -- 5933 02/02/92 23:00 EST
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:Feb 2, 1992
Words:869
Previous Article:EQUIFAX LOWERS COST OF CREDIT REPORTS TO CONSUMERS
Next Article:VARCO INTERNATIONAL INC. TO ACQUIRE BAROID CORPORATION'S SHAFFER SUBSIDIARY
Topics:


Related Articles
BAROID ANNOUNCES SALE OF ATLAS BRADFORD
CSX EARNINGS INCLUDE ONE-TIME CHARGE
SONAT REPORTS ANNUAL RESULTS, DECLARES DIVIDEND, ANNOUNCES ACCOUNTING CHANGE
TOSCO REPORTS RESULTS
VARCO INTERNATIONAL INC. TO ACQUIRE BAROID CORPORATION'S SHAFFER SUBSIDIARY
VALHI REPORTS 1991 RESULTS
PACIFICORP REPORTS 1991 EARNINGS
BARIOD ANNOUNCES FIRST QUARTER 1992 RESULTS
BAROID ANNOUNCES 1992 SECOND QUARTER RESULTS
QUAKER STATE ANNOUNCES STRUCTURAL AND ACCOUNTING CHANGES WITH ITS 1992 RESULTS

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