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 NEW YORK, Oct. 13 /PRNewswire/ -- Coltec Industries Inc. (NYSE: COT) today reported earnings per share before extraordinary item of 27 cents per share for the third quarter of 1993 compared with 29 cents per share in the 1992 third quarter.
 Sales for the quarter ended Oct. 3, 1993, were $316.1 million compared with $330.6 million in the comparable period last year. Operating income for the 1993 third quarter was $56.8 million compared with $59.5 million in the 1992 third quarter. The company's operating margin for the 1993 third quarter was 18.0 percent, the same as in 1992.
 In the aerospace/government segment, operating income in the 1993 third quarter declined 19 percent on a 15 percent decline in sales. Operating income in the automotive segment improved 7 percent on a 2 percent sales increase, and operating income in the industrial segment was level on a 2 percent increase in sales.
 John W. Guffey Jr., president and chief operating officer, said: "The business trends that we experienced in the first half of the year are persisting. Our automotive segment continues to benefit from the strength in the automotive industry and increased applications for our components. Although defense spending and commercial aircraft production schedules remain at depressed levels, new commercial program shipments commenced in the third quarter. Results at our industrial segment divisions remain mixed despite slightly higher sales."
 Earnings before extraordinary item for the 1993 third quarter, reflecting an effective income tax rate of 36.7 percent, were $18.5 million compared with $19.9 million in the 1992 third quarter. The extraordinary charge in the third quarter of 1993 results from a debt refinancing.
 For the nine months of 1993, operating income was $174.0 million and the operating margin was 17.6 percent, excluding the restructuring charge of $25.2 million ($15.3 million after taxes, or 22 cents per share). This compared with operating income of $177.3 million and an operating margin of 17.2 percent in 1992. Sales for the nine months of 1993 were $990.6 million compared with $1,028.2 million a year ago.
 Earnings before extraordinary items for the nine months of 1993 were $57.3 million, equal to 82 cents per share, excluding the restructuring charge. This compared to earnings of $40.5 million, or 74 cents per share, in the nine months of 1992. Giving pro forma effect to the recapitalization as if it had occurred on Jan. 1, 1992, Coltec would have reported earnings before extraordinary item of $58.2 million, equal to 84 cents per share, for the nine months of 1992.
 Coltec Industries is a New York-based manufacturing company serving aerospace, automotive and other industrial markets.
 Summary Consolidated Statement of Earnings (A)
 (Unaudited, in thousands except per share data)
 Three months Nine Months
 Period ended 10/3/93 9/27/92 10/3/93 9/27/92
 Net sales $ 316,077 $ 330,640 $ 990,602 $1,028,170
 Costs and expenses 259,277 271,103 816,576 850,860
 Restructuring charge (B) --- --- 25,219 ---
 Operating income 56,800 59,537 148,807 177,310
 Interest, net 27,601 28,914 83,449 107,298
 Earnings before income
 taxes and extraordinary
 item 29,199 30,623 65,358 70,012
 Provision for
 income taxes 10,709 10,718 23,365 29,540
 Earnings before
 extraordinary item (C) 18,490 19,905 41,993 40,472
 Extraordinary item (D) (378) --- (1,017) (105,347)
 Net earnings (loss) $ 18,112 $ 19,905 $ 40,976 $ 64,875
 Earnings (loss) per
 common share:
 Before extraordinary
 item (C) .27 .29 .60 .74
 Extraordinary item (D) (.01) --- (.01) (1.93)
 Net earnings (loss) $ .26 $ .29 $ .59 $ (1.19)
 Average number of
 common and common
 equivalent shares 69,614 69,558 69,580 54,702
 (A) The unaudited summary consolidated statement of earnings for the first quarter of 1992 reflects the interest and finance cost related to the outstanding 14-3/4 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.
 (B) In the second quarter 1993, Coltec recorded a restructuring charge of $25.2 million, ($15.3 million after taxes, or 22 cents per share) to cover the cost of consolidation and rearrangement of certain manufacturing facilities and related reductions in work force primarily in the aerospace/government segment, as well as at the Central Moloney Transformer Division.
 (C) Giving pro forma effect to the April 1992 recapitalization as if it had occurred at Jan. 1, 1992, the company would have reported earnings before extraordinary item for the nine months ended Sept. 27, 1992 as follows (in millions, except per share data):
 Operating income $177.3
 Interest, net 88.1
 Earnings before income taxes
 and extraordinary item 89.2
 Provision for income taxes 31.0
 Earnings before extraord. item 58.2
 Earnings per common share
 before extraordinary item $ .84
 (D) The extraordinary charges for the third quarter and nine months of 1993 result from a debt refinancing and early extinguishment of debt. The extraordinary charge for the nine months 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.
 Industry Segment Information
 (Unaudited, in millions)
 Three months Nine months
 Period ended 10/3/93 9/27/92 10/3/93 9/27/92
 Aerospace/Government $ 104.4 $ 122.8 $ 326.5 $ 394.5
 Automotive 103.8 101.8 331.1 299.8
 Industrial 108.2 106.6 333.9 335.2
 Intersegment Elimination (.3) (.6) (.9) (1.3)
 Total $ 316.1 $ 330.6 $ 990.6 $1,028.2
 Operating Income:
 Aerospace/Government $ 21.1 $ 26.2 $ 39.4 $ 75.0
 Automotive 23.6 22.0 78.0 60.5
 Industrial 18.9 18.9 57.4 62.4
 Total segments 63.6 67.1 174.8 197.9
 Corporate unallocated (6.8) (7.6) (26.0) (20.6)
 Operating income $ 56.8 $ 59.5 $ 148.8 $ 177.3
 Operating income for the nine months of 1993 includes a restructuring charge of $25.2 million. This charge included $17.7 million in the aerospace/government segment, $3.8 million in the Automotive segment and $3.7 million in the industrial segment. Excluding the restructuring charge, operating income for the nine months of 1993 by segment would have been (in millions):
 Aerospace/Government $ 57.1
 Automotive 81.8
 Industrial 61.1
 Total segments $200.0
 The decline in sales and operating income for the aerospace/government segment reflects lower demand for new commercial aircraft and the resultant cutback in production schedules, as well as continued declines in defense spending. The improved performance in the automotive segment reflects higher new car and truck production and the introduction of new automotive products. In the industrial segment, higher sales and earnings were reported by Quincy Compressor, Ortman Fluid Power and the Sterling Die and Haber Tool Operations, while Central Moloney Transformer, Garlock Valves & Industrial Plastics and FMD Electronics reported lower results.
 -0- 10/13/93
 /CONTACT: Michael Dunn of Coltec Industries, 212-940-0523/

CO: Coltec Industries ST: New York IN: SU: ERN

WB-TW -- NY027 -- 1647 10/13/93 11:57 EDT
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Publication:PR Newswire
Date:Oct 13, 1993

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