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COLTEC INDUSTRIES REPORTS SECOND QUARTER AND SIX MONTH RESULTS

 COLTEC INDUSTRIES REPORTS SECOND QUARTER AND SIX MONTH RESULTS
 NEW YORK, July 15 /PRNewswire/ -- Coltec Industries Inc. (NYSE: COT) today reported operating income increased 11 percent in the second quarter of 1992 on a slight increase in sales.
 Operating income for the quarter ended June 28, 1992, increased to $65.5 million from $59.0 million in the comparable period last year. Sales for the 1992 second quarter were $360.0 million compared with $357.3 million in the 1991 second quarter. The company's operating margin for the 1992 second quarter increased to 18.2 percent from 16.5 percent in 1991. Operating income for the 1992 second quarter reflects a $3.5 million nonrecurring reduction in insurance cost realized during the quarter.
 In the Aerospace/Government segment, operating income in the 1992 second quarter declined four percent on a four percent decrease in sales compared with the 1991 second quarter. Operating income in the automotive segment improved 28 percent on a nine percent sales increase, and operating income in the industrial segment was level on slightly lower sales.
 John W. Guffey Jr., president and chief operating officer of Coltec Industries, noted, "Incoming orders during the 1992 second quarter continued to reflect the lack of vigor in the manufacturing sector of the U.S. economy."
 Earnings before extraordinary item for the 1992 second quarter, reflecting an effective income tax rate of 35 percent, were $23.3 million, equal to 33 cents per share, compared with $2.6 million, or 10 cents per share, in the 1991 second quarter. The 1991 second quarter included substantial interest expense that has been reduced significantly by the recapitalization completed on April 1, 1992. Giving pro forma effect to the recapitalization as if it had occurred on Jan. 1, 1991, the company would have reported earnings before extraordinary item for the 1991 second quarter of $15.7 million, or 23 cents per share.
 In the 1992 second quarter, the company reported a net loss of $82.1 million which included extraordinary charges incurred in connection with its recapitalization (primarily premiums, expenses and write-off of deferred financing costs from early extinguishment of debt) of $105.3 million ($1.51 per share), net of a $28.0 million tax benefit.
 For the first six months of 1992, operating income increased nine percent on a slight increase in sales. Operating income for the six months ended June 28, 1992, was $117.8 million on sales of $697.5 million. This compared with operating income of $107.9 million on sales of $694.4 million in the like period a year ago. The company's operating margin for the first six months of 1992 was 16.9 percent compared with 15.5 percent in 1991.
 Earnings before extraordinary item for the first six months of 1992 were $20.6 million, equal to 44 cents per share, compared with $291,000, or one cent per share, in 1991. Giving pro forma effect to the recapitalization as if it had occurred on Jan. 1, 1991, the company would have reported earnings before extraordinary item of $38.3 million, equal to 55 cents per share, for the first six months of 1992 compared with $26.3 million, or 38 cents per share, in 1991.
 Coltec Industries Inc is a New York-based manufacturing company serving aerospace, automotive and other industrial markets.
 COLTEC INDUSTRIES INC. AND SUBSIDIARIES
 Summary Consolidated Statement of Earnings(A)
 (In thousands, except per share data, unaudited)
 Period ended Three months Six months
 6/30/91 6/28/92 6/30/91 6/28/92
 Net sales $357,297 $359,973 $694,384 $697,530
 Costs and expenses 298,309 294,493 586,462 579,757
 Operating income 58,988 65,480 107,922 117,773
 Dividend income 729 -- 1,431 --
 Earnings before interest,
 income taxes and
 extraordinary item 59,717 65,480 109,353 117,773
 Interest, net 49,747 29,664 99,622 78,384
 Earnings before income taxes
 and extraordinary item 9,970 35,816 9,731 39,389
 Provision for income taxes 7,416 12,536 9,440 18,822
 Earnings before
 extraordinary item(B) 2,554 23,280 291 20,567
 Extraordinary item(C) -- (105,347) 591 (105,347)
 Net earnings (loss) 2,554 (82,067) 882 (84,780)
 Earnings (loss) per common share
 Before extraordinary item(B) .10 .33 .01 .44
 Extraordinary item(C) -- (1.51) .02 (2.23)
 Net earnings (loss) .10 (1.18) .03 (1.79)
 Average number of common
 and common equivalent
 shares 25,000 69,548 25,000 47,274
 NOTES:
 (A) The unaudited summary consolidated statement of earnings for the first quarter of 1992 and for the six months of 1991 reflects the interest and finance cost related to the outstanding 14 percent senior discount debentures of Coltec Holdings Inc. because the net proceeds of the issuance and sale of senior notes and senior subordinated notes by the company in April 1992, together with bank borrowings, were used to repay such indebtedness.
 Earnings (loss) per common share for the six months ended June 28, 1992 does not equal the sum of earnings (loss) per common share for the first and second quarters of 1992 due to the public offering of 44.3 million shares of common stock in the April 1992 recapitalization.
 (B) Giving pro forma effect to the April 1992 recapitalization as if it had occurred on Jan. 1, 1991, the company would have reported earnings before extraordinary item as follows:
 Three months Six months
 Period ended 6/30/91 6/30/91 6/28/92
 (In millions)
 Earnings before interest,
 income taxes and extra-
 ordinary item $59.7 $109.3 $117.8
 Interest, net 29.8 60.2 59.2
 Earnings before income taxes
 and extraordinary item 29.9 49.1 58.6
 Provision for income taxes 14.2 22.8 20.3
 Earnings before extraordinary
 item 15.7 26.3 38.3
 Earnings per common share
 before extraordinary item .23 .38 .55
 (C) The extraordinary charge for the second quarter of 1992 was incurred in connection with the April 1992 recapitalization and included primarily premiums, expenses and write-off of deferred financing costs from early extinguishment of debt.
 COLTEC INDUSTRIES INC. AND SUBSIDIARIES
 Industry Segment Information
 (In millions -- Unaudited)
 Period ended Three months Six months
 6/30/91 6/28/92 6/30/91 6/28/92
 Sales:
 Aerospace/Government $143.4 $137.7 $282.8 $271.7
 Automotive 101.4 111.0 187.6 202.6
 Industrial 113.0 111.5 224.7 223.9
 Intersegment elimination (.5) (.2) (.7) (.7)
 Total 357.3 360.0 694.4 697.5
 Operating income:
 Aerospace/Government 26.5 25.4 51.7 48.8
 Automotive 18.4 23.6 28.8 39.4
 Industrial 21.6 21.5 41.7 42.6
 Total segments 66.5 70.5 122.2 130.8
 Corporate unallocated (7.5) (5.0) (14.3) (13.0)
 Operating income 59.0 65.5 107.9 117.8
 In the Aerospace/Government segment, sales declines were reported in the 1992 second quarter by Menasco and Walbar due to continued reductions in defense spending and stretchout of certain commercial programs. Higher sales and operating income were reported by Delavan Gas Turbine and Fairbanks Morse Engine. The strong second quarter performance in the automotive segment was aided by increased new car and truck production. Selected price increases and the introduction of new automotive products having higher margins contributed to the improved operating results fro the automotive segment. Second quarter operating results for the industrial segment were level compared with the 1991 second quarter. Improved results were achieved by Quincy Compressor, Garlock Bearings and Delavan Commercial; while lower sales and operating income were reported by Central Moloney Transformer and Garlock Mechanical Packing.
 -0- 7/15/92
 /CONTACT: Michael Dunn of Coltec Industries, 212-940-0523/
 (COT) CO: Coltec Industries Inc. ST: New York IN: ARO SU: ERN


SM-OS -- NY043 -- 9542 07/15/92 12:30 EDT
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Date:Jul 15, 1992
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