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CLARK EQUIPMENT ANNOUNCES SECOND QUARTER RESULTS, ANTICIPATES WEAKER THIRD QUARTER

 CLARK EQUIPMENT ANNOUNCES SECOND QUARTER RESULTS,
 ANTICIPATES WEAKER THIRD QUARTER
 SOUTH BEND, Ind., July 28 /PRNewswire/ -- For the three months ended June 30, 1992, Clark Equipment Co. recorded a net loss from continuing operations of $4.4 million, or 25 cents per share, on sales of $212.6 million. These results compare to a second quarter 1991 loss from continuing operations of $3.6 million, or 21 cents per share, on sales of $186.8 million.
 Including discontinued operations, Clark's net loss in second quarter 1992 was $9.9 million, or 57 cents per share, compared to a loss of $11.5 million, or 67 cents per share, in second quarter 1991. All previous Clark financial results have been restated to reflect Clark's forklift truck business as a discontinued operation. The quarterly results were announced by Leo J. McKernan, Clark chairman, president and CEO, who noted that the sale of the forklift truck business to Terex Corp. was proceeding on schedule.
 Clark's continuing consolidated operations include Melroe Co., Clark-Hurth Components, and Clark Automotive. In second quarter 1992, these operations produced a profit of $4.4 million, which was offset by an $8.2 million loss related to Clark's investment in VME, its 50- percent-owned joint venture, and a $5.5 million loss from discontinued operations. In second quarter 1991, continuing consolidated operations produced a profit of $0.4 million, which was offset by a $4.0 million loss related to VME and an $8.1 million loss from discontinued operations.
 In announcing quarterly results, Kernan said, "In general, the operating performance of Clark's consolidated businesses improved somewhat over the prior quarter's results. Higher sales and better expense control improved operating performance and earnings. However, continued worldwide weakness in construction machinery markets adversely affected results, including VME."
 Exclusive of Clark Material Handling, second quarter incoming orders were $206 million, down slightly from $212 million in first quarter. Nevertheless, the order level exceeded second quarter 1991's $166 million and fourth quarter 1991's $162 million. Restated, Clark's worldwide order backlog declined to $166 million on June 30, 1992, from $173 million on March 31, 1992. The restated backlogs at year-end 1991 and June 30, 1991 were $150 million and $173 million, respectively.
 Discussing the market factors that influenced Clark results, McKernan said: ''Principal VME markets, particularly in Europe, reflected low levels of equipment utilization and heavy price discounting. VME's $8.8 million loss for the period also reflects the impact of on-going plant restructuring and reorganization. It represents a slight improvement over the first quarter loss. We expect only modest improvement for the second half of 1992."
 McKernan also said the on-going, deep recession in the construction industry negatively affected sales and order levels at Clark-Hurth Components. "Compared to the first quarter, second quarter 1992 sales were flat, while orders and backlogs declined," said McKernan. "Incoming order rates were down in both Europe and North America. However, operating earnings and margins improved due to on-going cost reduction programs."
 Discussing Clark's Brazil-based automotive components business, McKernan said, "Clark Automotive delivered increased order levels and sales in the second quarter, compared to both first quarter 1992 and second quarter 1991. This business remained slightly profitable during the second quarter, in spite of margin pressure due to government anti- inflation actions and mandated wage and social programs." He added that improved performance in the domestic Brazilian automotive and light truck transmission more than offset continued weakness in the powershift and agricultural tractor transmission markets. He also noted that the medium-duty truck transmission export business held firm at levels well above earlier expectations.
 At Melroe Co., second quarter sales increased, despite generally flat retail activity in the North American skid-steer market, according to McKernan. "Improved business activity in North American construction, industrial and rental markets was offset by a decline in agricultural market sales. Led by Germany and Italy, European sales of skid-steer loaders and excavators remain above 1991 levels," said McKernan.
 Looking ahead to the third quarter, McKernan said, "Recent operating results and order rates do not provide an overall optimistic picture of business activity for the balance of 1992. The construction machinery and heavy equipment markets in Europe, North America, and Brazil remain weak. Market conditions will continue to depress the earnings of VME and Clark-Hurth for the balance of 1992. The situation in Brazil, which has improved in comparison to 1991, is still fragile. These factors and normal seasonality in Europe and the Melroe business may negatively effect Clark's third quarter results."
 Clark Equipment Co.'s business is the design, manufacture and sale of skid-steer loaders, construction machinery, transmissions for on highway vehicles, and axles and transmissions for off-highway equipment.
 CLARK EQUIPMENT CO.
 Statement of Income and Retained Earnings
 (Amounts in Thousands, except per share data)
 For The Period Ended June 30
 Second Quarter Six Months
 1992 1991(A) 1992 1991(A)
 Net sales $212,621 $186,793 $ 402,223 $ 369,799
 Operating costs
 and expenses:
 Cost of goods sold 177,453 155,803 333,381 314,219
 Selling, general &
 adminis. expenses 24,369 24,971 47,757 50,872
 Total operating costs $201,822 $180,774 $ 381,138 $ 365,091
 Operating income 10,799 6,019 21,085 4,708
 Other income, net 4,277 3,247 7,544 5,616
 Interest expense (6,577) (6,983) (13,395) (12,208)
 Pre-tax income (loss)
 from consolidated
 operations 8,499 2,283 15,234 (1,884)
 Provision for income
 taxes 4,121 1,841 7,718 2,651
 Income (loss) from
 consolidated
 operations 4,378 442 7,516 (4,535)
 Equity in net income
 of associated
 company (8,762) (4,012) (19,707) (9,203)
 Loss from continuing
 operations (4,384) (3,570) (12,191) (13,738)
 Loss from discontinued
 operations (5,512) (8,076) (7,056) (13,642)
 Loss before extraordinary
 credit and effect of
 changes in accounting
 principle (9,896) (11,646) (19,247) (27,380)
 Income tax tax benefit
 from loss carryforward -- 190 -- 315
 Effect of accounting changes:
 Postretirement benefits -- -- -- (244,900)
 Income taxes -- -- 92,000 --
 Net income (loss) (9,896) (11,456) 72,753 (271,965)
 Add: Income retained
 (accumulated
 deficit) at befinning
 of period 61,750 56,112 (20,899) 316,621
 Income retained at end
 of period $ 51,854 $ 44,656 $ 51,854 $ 44,656
 Income (loss) per share:
 From continuing
 operations $ (.25) $ (.21) $ (.70) $ (.80)
 From discontinued
 operation (.32) (.47) (.41) (.79)
 Extraordinary
 credit -- .01 -- .02
 From effect of
 accounting change -- -- 5.31 (14.16)
 Net income (loss) $ (.57) $ (.57) $ 4.20 $ (15.73)
 Avg no. of shares 17,329 17,293 17,324 17,281
 No. of shares outstdg
 at end of period 17,331 17,293 17,331 17,293
 Sales by classes of Products: (Amounts in Millions)
 Axles &
 transmissions $ 95.8 $ 86.5 $ 179.4 $ 174.9
 Material handling
 equipment and
 vehicles 240.6 220.0 459.5 437.9
 Total $ 336.4 $ 306.5 $ 638.9 $ 612.8
 (A) Restated to reflect the deconsolidation of the Material Handling Company business.
 CLARK EQUIPMENT CO.
 Condensed Balance Sheet (Amounts in Thousands)
 June 30 Dec.31
 1992 1991
 ASSETS
 Current Assets:
 Cash and cash equivalents,
 and short-term investments $ 182,962 $ 183,296
 Accounts and notes
 receivable 86,403 116,769
 Accounts receivable from
 associated companies 4,010 2,731
 Refundable income taxes 7,400 7,400
 Inventories 105,551 184,023
 Investment in discontinued
 operations-material
 co. and remaining finance
 operations 73,798 9,111
 Prepaid income taxes-net 20,833 4,200
 Other current assets 6,660 12,880
 Total current assets 487,626 520,410
 Investments and advances -
 associated companies 131,544 137,695
 Prepaid income taxes--net 94,689 --
 Property, plant and
 equipment--net 245,371 299,942
 Goodwill and acquired
 intangibles--net 97,117 119,469
 Other assets 25,801 42,434
 Total assets $1,082,148 $1,119,950
 Liabilities and Stockholder's Equity
 Current Liabilities:
 Notes payable $ 56,472 $ 57,311
 Accounts payable and
 accrued liabilities 148,562 226,979
 Income taxes payable 6,417 4,295
 Accrued postretirement
 benefits-current 17,800 17,800
 Deferred income taxes-current 1,152 --
 Current installment on
 long-term debt 21,486 21,271
 Total current liabilities 248,889 327,656
 Long-term borrowings 211,909 216,949
 Other non-current
 liabilities 64,806 106,336
 Accrued postretirement
 benefits 231,100 230,100
 Deferred income taxes 15,206 1,410
 Total liabilities 771,910 882,451
 Stockholders' Equity:
 Capital stock 322,996 322,950
 Retained earnings
 (accumulated deficit) 51,854 (20,899)
 Cumulative translation &
 other adjustments 27,456 28,054
 Common stock held in
 treasury at cost (51,511) (52,049)
 Leveraged Employee Stock
 Ownership
 Plan shares (40,557) (40,557)
 Total stockholders' equity 310,238 237,499
 Total liabilities and
 stockholders' equity $1,082,148 $1,119,950
 Debt/Capitalization ratio 48.0 pct. 55.4 pct.
 -0- 7/28/92
 /CONTACT: Joseph Fimbianti of Clark Equipment, 219-239-0176/
 (CKL) CO: Clark Equipment Co. ST: Indiana IN: MAC SU: ERN


LD -- NY117 -- 4368 07/28/92 20:45 EDT
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