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DEXTER REPORTS THIRD QUARTER RESULTS

 WINDSOR LOCKS, Conn., Oct. 13 /PRNewswire/ -- The Dexter Corporation (NYSE: DEX), a leading specialty materials producer, reported that sales for the third quarter of 1993 were $220.1 million, a 5 percent decrease compared with sales of $231.0 million in the third quarter of 1992. Volume increases in the quarter of 4 percent were more than offset by a 6 percent decrease due to the effect of lower currency translation rates on international sales, a 2 percent decrease due to the net effect of acquisitions and divestitures and a 1 percent average price decrease.
 Reported net income for the quarter was $8.3 million, or $.34 per share, a $.03 per share decrease compared with net income of $9.0 million, or $.37 per share, for the same period last year. Increased earnings of $.04 per share from ongoing operations and a $.01 per share increase due to the reduction of the effective income tax rate from 37 percent to 36.5 percent were more than offset by a $.06 per share decrease from the effect of changes in currency translation rates and a $.02 per share decrease from the net effect of acquisitions and divestitures.
 K. Grahame Walker, chairman and chief executive officer, stated, "Third quarter earnings from our ongoing operations increased 14 percent over the same quarter last year after adjusting to nullify the effect of changes in exchange rates, acquisition and divestiture activity, and income tax rate differentials."
 Commenting further, he said, "We continue to be encouraged by the renewed volume growth and profitability improvements from our ongoing operations in each quarter compared with the prior year."
 Sales for the nine months ended Sept. 30, 1993, were $665.9 million or 8 percent below sales of $726.9 million for the same period last year. Half of this decrease is due to the effect of divestitures net of acquisitions with the remaining half resulting from currency translation rates. On balance, volume and average prices remained level with last year.
 Earnings for the first nine months of 1993 before the $.41 per share cumulative effect of accounting principle changes were $25.8 million, or $1.06 per share, compared with $29.5 million, or $1.22 per share in 1992. There was a $.10 per share increase in earnings from ongoing operations in 1993, half of which was attributable to improved results of companies owned 50 percent or less, and half due to increased margins. There was an additional $.01 per share increase due to the lower effective tax rate in 1993. More than offsetting these increases were a $.13 per share decrease due to the effect of weakened international currency exchange rates compared with 1992 and an $.11 per share decrease due to the effect of divestitures net of acquisitions. In addition, the nine month period ending Sept. 30, 1993, includes the second quarter 1993 provision of $1.0 million, or $.03 per share, for estimated environmental costs and a net favorable impact to earnings of $.03 per share capital gain from divestitures net of restructuring charges. There was a similar favorable net impact of $.03 per share in 1992.
 Products with strong sales performance in the third quarter and through the first nine months of 1993 include electronic encapsulation materials, printed wiring board products, magnetic materials, and at majority-owned Life Technologies, Inc., molecular biology and cell culture products. Products with weaker performance during 1993 include aerospace coatings, acoustical materials serving the automotive market, and food and beverage can coatings.
 Consolidated gross margin of 32.5 percent stated as a percentage of sales in the third quarter of 1993 improved slightly from the 32.2 percent in the same period last year due to improved productivity. Effective cost containment and higher productivity caused an improvement of 1.1 percentage points in the gross margin for the nine-month period ended Sept. 30, 1993, compared to the same period in 1992. However, consolidated nine month gross margin remained level at 33.2 percent as this improvement was completely offset by the effect of the divestiture of the high gross profit water management business last year.
 Marketing and administrative costs for the 1993 nine-month period were $131.0 million, a $13.8 million, or 10 percent decrease from last year due to the divestiture of the water management business.
 Other income increased substantially in both the third quarter and year-to-date 1993 compared with last year, principally due to improved results by companies owned 50 percent or less, notably D&S Plastics, International, Dexter's joint venture with Solvay S.A., of Belgium, serving the automotive market.
 In the third quarter, Dexter reduced its effective tax rate from 37 percent to 36.5 percent for the nine-month period ended Sept. 30, 1993. This reduction reflects the current estimate of the 1993 annual tax rate.
 The Dexter Corporation is a Fortune 500 company producing specialty materials for customers in five strategic global 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
 Net Sales by Market
 (In thousands of dollars)
 Three months ended Sept. 30 Pct.
 1993 1992 Change
 Aerospace(1) $11,169 $10,552 + 6
 Automotive(2) 7,589 12,973 -42
 Electronics(3) 36,993 33,998 + 9
 Food Packaging(4) 61,829 57,238 + 8
 Medical(5) 70,411 74,022 - 5
 Other(6) 32,157 42,245 -24
 Consolidated $220,148 $231,028 - 5
 Net Sales by Market
 (In thousands of dollars)
 Nine months ended Sept. 30 Pct.
 1993 1992 Change
 Aerospace(1) $32,668 $36,015 - 9
 Automotive(2) 27,799 45,851 -39
 Electronics(3) 108,150 103,430 + 5
 Food Packaging(4) 172,727 172,904
 Medical(5) 213,726 217,554 - 2
 Other(6) 110,874 151,114 -27
 Consolidated $665,944 $726,868 - 8
 (1) -- The net effect of businesses acquired or divested increased net sales to the Aerospace market by $1.2 million, or 12 for the quarter and $1.4 million, or 4 year-to-date.
 (2) -- Business divestitures caused a 29 decrease in net sales to the Automotive market of $3.8 million for the quarter and a 28 decrease, or $13.0 million year-to-date. Excludes unconsolidated joint venture D&S Plastics, International, which had third quarter sales of $16 million in 1993 and $13 million in 1992. For the nine month periods, D&S Plastics, International had unconsolidated sales of $50 million in 1993 and $35 million in 1992.
 (3) -- Business divestitures caused a 2 decrease in net sales to the Electronics market of $1.9 million year-to-date.
 (4) -- The net effect of businesses acquired or divested increased net sales to the Food Packaging market by $6.5 million, or 11 for the quarter and $16.7 million, or 10 year-to-date.
 (5) -- The effect of businesses divested decreased net sales to the Medical market by $1.8 million, or 1 year-to-date.
 (6) -- The effect of businesses divested decreased net sales in the "Other" category by $8.1 million, or 19 for the quarter, and $33.2 million, or 22 year-to-date.
 Statement of Income
 (In thousands of dollars, except per-share amounts)
 Three months ended Sept. 30 Pct.
 1993 1992 Change
 Revenues
 Net sales $220,148 $231,028 - 5
 Other income 2,349 1,788 + 31
 Total 222,497 232,816 - 4
 Expenses
 Cost of sales 148,534 156,644 - 5
 Marketing and administrative 43,018 43,882 - 2
 Research and development 10,579 10,363 + 2
 Interest 4,677 4,681
 Provision for environmental costs -- --
 Divestiture and restructuring activities -- --
 Gain on divestiture of product lines -- --
 Charge for restructuring businesses, net -- --
 Income before Taxes 15,689 17,246 - 9
 Income taxes 5,553 6,381 - 13
 Income before Minority Interests 10,136 10,865 - 7
 Minority interests 1,882 1,839 + 2
 Income before Cumulative Effect of
 Change in Accounting Principles 8,254 9,026 - 9
 Cumulative Effect of Change in
 Accounting Principles -- --
 Net Income $8,254 $9,026 - 9
 Income (Loss) per Share:
 Income before cumulative effect of
 change in accounting principles $.34 $.37 - 8
 Cumulative effect of change in
 accounting principles
 Net Income per Share $.34 $.37 - 8
 Dividends Declared per Share $.22 $.22
 Average Shares Outstanding (000) 24,330 24,251
 Nine months ended Sept. 30 Pct.
 1993 1992 Change
 Revenues
 Net sales $665,944 $726,868 - 8
 Other income 6,720 3,932 + 71
 Total 672,664 730,800 - 8
 Expenses
 Cost of sales 444,974 485,573 - 8
 Marketing and administrative 130,979 144,750 - 10
 Research and development 32,554 31,848 + 2
 Interest 13,890 14,165 - 2
 Provision for environmental costs 1,000 --
 Divestiture and restructuring activities -- --
 Gain on divestiture of product lines (13,016) (11,476) + 13
 Charge for restructuring businesses, net 11,968 9,618 + 24
 Income before Taxes 50,315 56,322 - 11
 Income taxes 18,365 21,241 - 14
 Income before Minority Interests 31,950 35,081 - 9
 Minority interests 6,192 5,550 + 12
 Income before Cumulative Effect of
 Change in Accounting Principles 25,758 29,531 - 13
 Cumulative Effect of Change in
 Accounting Principles (9,875) --
 Net Income $15,883 $29,531 - 46
 Income (Loss) per Share:
 Income before cumulative effect of
 change in accounting principles $1.06 $1.22 - 13
 Cumulative effect of change in
 accounting principles (.41) --
 Net Income per Share $.65 $1.22 - 47
 Dividends Declared per Share $.66 $.66
 Average Shares Outstanding (000) 24,322 24,202
 Condensed Statement of Financial Position
 (In thousands of dollars, except per-share amounts)
 9/30/93 12/31/92 9/30/92
 Assets
 Cash and short-term investments $27,606 $65,028 $68,983
 Accounts receivable, net 150,389 131,818 151,621
 Inventories
 Materials and supplies 57,669 54,693 59,066
 In process and finished 95,213 94,065 94,615
 LIFO reserve (21,253) (24,151) (24,271)
 Total 131,629 124,607 129,410
 Prepaid and deferred expenses 38,695 40,014 31,052
 Total current assets 348,319 361,467 381,066
 Property, plant and equipment,
 at cost, net 311,432 298,869 303,534
 Excess of cost over net assets of
 businesses acquired 70,107 49,683 52,106
 Other assets 93,477 72,006 65,462
 Total $823,335 $782,025 $802,168
 Liabilities & Shareholders' Equity
 Current installments of
 long-term debt $2,967 $2,768 $2,205
 Accounts payable 73,326 70,954 70,413
 Accrued liabilities and taxes 75,460 72,105 67,593
 Current environmental reserves 2,595 3,155 17,326
 Dividends payable 5,353 5,339 5,338
 Total current liabilities 159,701 154,321 162,875
 Long-term debt 202,714 179,024 187,136
 Deferred items 79,018 72,202 68,796
 Long-term environmental reserves 14,986 14,045 8,600
 Minority interests 51,932 46,819 47,425
 Shareholders' Equity
 Common stock and paid-in
 capital 36,883 36,434 35,054
 Retained earnings 308,986 309,157 305,824
 Currency translation effects (17,269) (16,361) (531)
 Treasury stock (13,616) (13,616) (13,011)
 Total shareholders' equity 314,984 315,614 327,336
 Total $823,335 $782,025 $802,168
 Equity per Share $12.95 $12.98 $13.49
 -0- 10/13/93
 /CONTACT: Kathleen Burdett or John D. Thompson, 203-627-9051, or Kevin Costello, 212-644-9560, all for Dexter Corporation/
 (DEX)


CO: Dexter Corporation ST: Connecticut IN: ARO AUT CPR SU: ERN

CK -- NY063 -- 1707 10/13/93 13:04 EDT
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Date:Oct 13, 1993
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