Printer Friendly

DEXTER REPORTS THIRD QUARTER EARNINGS GROWTH EXCEEDS SALES IMPROVEMENT

DEXTER REPORTS THIRD QUARTER EARNINGS GROWTH EXCEEDS SALES IMPROVEMENT
 WINDSOR LOCKS, Conn., Oct. 13 /PRNewswire/ -- The Dexter Corporation (NYSE: DEX), a leading specialty materials producer, reported that sales for the third quarter of 1992 were $231 million, a 1 percent increase over sales of $228.7 million in the third quarter of 1991. Earnings for the 1992 quarter were $9 million, or $.37 per share, compared to a net loss of $8.2 million, or $.34 per share in the same period last year. The 1992 third quarter results were 6 percent greater than the 1991 third quarter results of $.35 per share excluding the $.69 per share charge for the "Provision for Environmental Settlement Cost and Related Legal Fees." There was no such charge in the 1992 quarter.
 Sales for the nine months ended Sept. 30, 1992 were $726.9 million, a 4 percent increase over sales of $701.7 million for the same period last year. Earnings for the first nine months of 1992 were $29.5 million, or $1.22 per share compared with $3.5 million, or $.15 per share in 1991. Excluding the divestiture gain of $.28 per share and restructuring activities charge of $.25 per share, earnings for the 1992 nine month period were $1.19 per share yielding a 14 percent increase over the comparable $1.04 per share in the nine month period last year excluding the "Provision for Environmental Settlement Costs" of $.86 per share and the restructuring activities charge of $.03 per share.
 The 1 percent increase in sales for the third quarter of 1992 comprises a 1 percent increase in unit volume, a 6 percent increase due to the effect of higher currency translation rates on international sales and a 6 percent decrease due to net effect of acquisitions and divestitures. The 4 percent increase in sales on a year-to-date basis for 1992 comprises a 3 percent increase in volume, average price increases of 1 percent, a 2 percent increase due to the effect of higher currency translation rates on international sales and a 2 percent decrease due to net effect of acquisitions and divestitures. K. Grahame Walker, president and chief executive officer, stated "We are encouraged by our ability to increase our volume and maintain prices in most of our core businesses despite the lack of improvement in the economy since last year. We believe this success reflects the truly value added equality of our specialty products."
 Products with strong sales performance in the third quarter of 1992 compared with last year include electronic encapsulation materials, printed wiring board products, container coatings serving the international markets and at majority-owned Life Technologies, Inc., molecular biology and cell culture products. In addition to these products, aerospace adhesives and acoustic materials serving the automotive market were also strong for the nine month period compared with last year.
 Consolidated gross margins of 32.2 percent, stated as a percentage of sales, for the third quarter of 1992 decreased from 33.6 percent for the same period last year. This decrease actually comprises an increase of one-half percentage point due to increased productivity and cost containment programs which was offset by a 1.9 percent decrease due to the divestiture of the high gross profit Water Management business. Gross margins for the nine months ended Sept. 30, 1992 were 33.2 percent versus 33.3 percent for the same period last year. Excluding Water Management, consolidated gross margins improved six-tenths of a percentage point.
 Marketing and administrative expenses decreased 9 percent and 2 percent for the quarter and year-to-date, respectively. This decrease resulted from the divestiture of the Water Management business which had significantly higher marketing and administrative costs stated as a percentage of sales.
 Interest expense increased $.4 million in the third quarter of 1992 and $2 million on a year-to-date basis compared with 1991 due to a higher level of long-term borrowing.
 Other income increased $.3 million, or 22 percent, in the third quarter of 1992 principally due to reduced losses by companies owned 50 percent or less offset by lower royalty income at Life Technologies of $.4 million. Other income decreased $1.2 million for the nine months Sept. 30, 1992, compared with the same period last year, primarily due to a decrease in interest income at Life Technologies of $1 million.
 The consolidated effective tax rate for the nine months ended Sept. 30, 1992 was 37.7 percent compared with a rate of 61 percent for the same period last year. An effective rate of 37 percent was applied to results other than the 1992 gain on divestiture, which was subject to higher U.S. tax rates, and the "Provision for Environmental Settlement Costs" in 1991, a portion of which was not tax deductible.
 K. Grahame Walker emphasized that "Restructuring and cost containment programs are yielding results and we expect continued success in this area." Further, he stated that continuous improvement resulted in ISO 9001 quality awards at two facilities so far this year, with more expected by year-end.
 The Dexter Corporation is a Fortune 500 company producing specialty materials and supporting services to customers in five strategic markets: aerospace, automotive, electronics, food packaging and medical. Founded in 1767, Dexter is the oldest company listed on the New York Stock Exchange.
 THE DEXTER CORPORATION
 Statement of Income
 (In thousands of dollars, except per share amounts)
 Periods Ended Three Months Nine Months
 Sept. 30 1992 1991 1992 1991
 Revenues
 Net sales $231,028 $228,731 $726,868 $701,734
 Other income 1,788 1,461 3,932 5,152
 Total 232,816 230,192 730,800 706,886
 Expenses
 Cost of sales 156,644 151,948 485,573 467,930
 Marketing &
 administrative 43,882 47,967 144,750 147,261
 Research &
 development 10,363 10,467 31,848 31,985
 Interest 4,681 4,265 14,165 12,169
 Provision for environmental
 settlement costs & related
 legal fees -- 20,341 -- 25,068
 Divestiture & restructuring
 activities
 Gain on divestiture of
 product lines -- -- (11,476) --
 Charge for restructuring
 businesses, net -- -- 9,618 1,135
 Inc. (loss) bef. taxes 17,246 (4,796) 56,322 21,338
 Income taxes 6,381 2,069 21,241 12,941
 Inc. (loss) before
 minority interests 10,865 (6,865) 35,081 8,397
 Minority interests 1,839 1,360 5,550 4,893
 Net income (loss) 9,026 (8,225) 29,531 3,504
 Net inc. (loss) per shr. $.37 $(.34) $1.22 $.15
 Divs. declared per shr. $.22 $ .22 $ .66 $.66
 Average shares
 outstanding (000) 24,251 24,148 24,202 24,144
 -0- 10/13/92
 /CONTACT: Kathleen Burdett or John D. Thompson of Dexter, 203-627-9051, or Walter Barrett of Cameron Associates, 212-644-9560, for Dexter/
 (DEX) CO: Dexter Corporation ST: Connecticut IN: CHM SU: ERN


TM-PS -- NY093 -- 9618 10/13/92 19:01 EDT
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:Oct 13, 1992
Words:1139
Previous Article:TAB DECLARES CASH DIVIDEND
Next Article:VALHI PRICES DEBT OFFERING
Topics:


Related Articles
DEXTER ANNOUNCES EXPECTED RESULTS
Corporate, financial news.
STANDARD MOTOR PRODUCTS ANNOUNCES 3RD QUARTER 1994 EARNINGS AND DIVIDEND PAYMENT
WESCAST ANNOUNCES STRONG THIRD QUARTER RESULTS
/C O R R E C T I O N -- WESCAST EARNINGS/
DEXTER REPORTS THIRD QUARTER RESULTS EARNINGS INCREASE 11% ON CONTINUED VOLUME GROWTH
DEXTER ANNOUNCES LOWER EARNINGS EXPECTATIONS
DEXTER REPORTS RECORD SECOND QUARTER RESULTS
Dexter Reports Record Third Quarter Results
Dexter Reports Record Third Quarter Sales and Earnings; Earnings Per Share Improve 24%

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters