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DRESSER INDUSTRIES, INC. REPORTS STRONGER THIRD QUARTER RESULTS

 DALLAS, Aug. 19 /PRNewswire/ -- Dresser Industries, Inc. (NYSE: DI) today reported increased sales and service revenues, operating profit, net earnings and earnings per share for the third fiscal quarter ended July 31, 1993.
 Dresser's third quarter highlights include the following:
 -- Sales and service revenues increased 11 percent from the prior- year total to $1.06 billion.
 -- Segment operating profit was up 33 percent to $109.7 million.
 -- Net earnings from continuing operations of $34.8 million ($0.26 per share) rose 19 percent.
 For the nine months ended July 31, 1993, Dresser's sales and service revenues were $3.06 billion, a 10 percent gain from $2.79 billion a year earlier. Operating profit of $266.3 million was 36 percent higher than the same period of 1992. Net earnings from continuing operations of $57.0 million, or $0.42 per share, were reduced by a special pre-tax charge of $65.0 million, $40.8 million net of taxes or $0.30 per share, to cover settlement and expenses related to a legal suit. Excluding that special charge, nine-month net earnings from continuing operations rose 84 percent to $97.8 million or $0.72 per share.
 John J. Murphy, chairman and chief executive officer, said, "The company's third quarter was enhanced both by recent acquisitions and improvements in several of our oilfield service and hydrocarbon processing businesses. The gains more than offset the on-going impact of a recession in Europe, disruption due to strikes at two U.S. plants and economic and political uncertainty in other markets we serve."
 Mr. Murphy further stated, "There are encouraging signs of an upturn in drilling activity in North America. Last quarter the drilling rig count increased 8 percent in the United States and 143 percent in Canada. The company is also benefiting from the economic expansion underway in the Far East. Overall, Dresser's outlook is bright, although we continue to monitor developments in less buoyant markets including Europe and several of the developing countries."
 Oilfield Services
 The oilfield services segment achieved third quarter gains in revenues and operating profit with the help of new acquisitions and an increase in the North American rig count. Revenues rose 55 percent to $212.8 million, while operating profit of $30.3 million increased more than two and a half times from $11.1 million in the third quarter of 1992.
 Segment results benefited from the performance of Bredero Price, a leader in international markets in the application of coatings to protect pipelines above and below ground and offshore. Bredero Price was acquired by Dresser in February, 1993. All other operations improved due to stronger domestic drilling activity, led by the offshore U.S. rig count that increased 75 percent. Gas well drilling was also higher, increasing 18 percent. Somewhat balancing the gains in North American drilling activity was a 11 percent decline in the rig count in the international markets.
 In the quarter, Western Atlas International, 29.5 percent owned by Dresser, capitalized on improved wireline activity in North America and Southeast Asia, cost efficiencies due principally to its technologically advanced seismic fleet and new opportunities in emerging markets, including China and Siberia.
 Hydrocarbon Processing
 Third quarter revenues in the hydrocarbon processing segment were $550.0 million versus $426.7 million in the prior year. Operating profit was $56.3 million versus $42.2 million last year.
 On a comparable basis, operating profit and margins at 51-percent owned Dresser-Rand rose due to a favorable mix of business in the quarter. A strike at one of Dresser-Rand's plants did not have a significant impact on performance. In last year's third quarter, the Company owned 50 percent of Dresser-Rand and accounted for its share of Dresser-Rand's earnings on an equity basis. The joint venture is now fully consolidated and the 49 percent interest that the company does not own is deducted net of taxes as minority interest.
 Forty-nine percent owned Ingersoll-Dresser Pump (IDP), a joint venture with Ingersoll-Rand formed in October, 1992, generated a $2.3 million contribution to operating profit. In the same period last year, Dresser's former pump operations generated $9.6 million in segment operating profit. A decline in performance was due to the very weak business climate in Europe and an on-going strike at IDP's largest manufacturing plant.
 The segment's operations excluding Dresser-Rand and IDP serving the hydrocarbon process industry generated improved quarterly results. Revenues of $277.2 million rose slightly and operating profit of $31.9 million was 18 percent higher than the prior year. Businesses that contributed to the increase included the Valve and Controls, Waukesha Engine and Wayne Divisions.
 Engineering Services
 M.W. Kellogg reported quarterly operating profit of $23.1 million versus last year's $29.4 million, which included a $15.5 million non- recurring gain. On a purely operating basis, Kellogg's operating profit rose 66 percent. The company's performance continued to benefit from major projects, primarily in international markets, including Africa, the Middle East and the Pacific region.
 At the end of the quarter, Dresser's backlog of unshipped orders for consolidated operations and its share of the backlog of major unconsolidated joint ventures was $4.04 billion, down slightly from the prior quarter but up from $3.42 billion a year earlier and $3.19 billion at the end of the last fiscal year.
 Headquartered in Dallas, Dresser is a leading supplier of highly engineered products and services utilized in hydrocarbon energy-related activities throughout the world.
 DRESSER INDUSTRIES, INC. AND SUBSIDIARIES
 (Unaudited, in millions, except per share data)
 Three Months Nine Months
 Period ended July 31 1993 1992(a) 1993 1992(a)
 Sales and service revenues
 Oilfield Services $ 212.8 $ 137.7 $ 568.2 $ 423.0
 Hydrocarbon Processing Industry
 Operations excluding Dresser-
 Rand and Pump 277.2 275.9 818.8 840.8
 Dresser-Rand (b) 272.8 -- 797.9 --
 Ingersoll-Dresser Pump/Pump
 operations (c) -- 150.8 -- 414.3
 550.0 426.7 1,616.7 1,255.1
 Engineering services 303.3 394.3 882.4 1,112.5
 Eliminations (1.3) (1.1) (11.6) (3.7)
 Sales and Service
 Revenues $1,064.8 $ 957.6 $3,055.7 $2,786.9
 Operating Profit
 Oilfield Services
 Consolidated
 operations 18.6 4.2 38.6 15.1
 Western Atlas
 operations 11.1 7.4 32.5 27.7
 Special charges 0.6 (0.5) 0.6 (2.5)
 30.3 11.1 71.7 40.3
 Hydrocarbon Processing Industry
 Operations excluding Dresser-
 Rand and Pump 31.9 27.0 78.6 78.9
 Dresser-Rand (b) 18.6 6.2 47.9 21.1
 Ingersoll-Dresser Pump/Pump
 operations (c) 2.3 9.6 23.0 18.2
 Special charges 3.5 (0.6) (3.7) (3.3)
 56.3 42.2 145.8 114.9
 Engineering services 23.1 29.4 48.8 40.9
 Total segment operating
 profit 109.7 82.7 266.3 196.1
 General corporate
 expenses (14.5) (15.6) (46.1) (46.2)
 Other nonsegment
 expenses, net (12.3) (8.3) (25.6) (27.7)
 Special charges -- -- (65.0) (3.5)
 Retiree medical benefit plan
 changes -- -- 12.8 --
 Interest income
 (expense), net (5.0) (3.1) (9.4) (11.4)
 Earnings before income taxes
 and other items below 77.9 55.7 133.0 107.3
 Income taxes (31.2) (24.9) (53.2) (48.1)
 Minority interest (11.9) (1.5) (22.8) (6.0)
 Earnings from continuing
 operations 34.8 29.3 57.0 53.2
 Discontinued operations,
 net of taxes -- (12.0) -- (16.7)
 Earnings before extraordinary
 item and accounting
 changes 34.8 17.3 57.0 36.5
 Extraordinary item -- -- -- (3.7)
 Cumulative effect of accounting
 changes -- -- -- (393.8)
 Net earnings (loss) 34.8 17.3 57.0 (361.0)
 Earnings per common share
 Earnings from continuing
 operations $ 0.26 $ 0.21 $ 0.42 $ 0.39
 Discontinued
 operations -- (0.09) -- (0.12)
 Earnings before extraordinary
 item and accounting
 changes 0.26 0.12 0.42 0.27
 Extraordinary item -- -- -- (0.03)
 Cumulative effect of accounting
 changes -- -- -- (2.91)
 Net earnings (loss) $ 0.26 $ 0.12 $ 0.42 $ (2.67)
 Average Common Shares
 Outstanding 137.4 135.8 137.3 135.0
 Dresser Industries, Inc. and Subsidiaries
 (In millions)
 July 31, 1993 October 31, 1992
 Unaudited Audited
 ASSETS
 Current Assets
 Cash and cash equivalents $ 194.4 $ 155.2
 Notes and accounts
 receivables - net 617.2 605.0
 Inventories 574.4 544.5
 Other current assets 118.4 101.9
 Total Current Assets 1,504.4 1,406.6
 Investment in and receivables
 from major unconsolidated
 joint ventures 423.9 406.8
 Intangibles 577.1 378.8
 Other non-current assets 341.1 338.3
 Plant and equipment - net 675.8 657.3
 $3,522.3 $3,187.8
 Liabilities and shareholders' investment
 Current Liabilities
 Short-term debt and current
 portion of long-term debt $ 204.0 $ 95.9
 Other current liabilities 1,209.1 1,222.0
 Total Current Liabilities 1,413.1 1,317.9
 Long-term debt 311.3 24.5
 Pension plans and other
 retiree benefits 690.2 698.3
 Other noncurrent liabilities 208.3 197.7
 Shareholders' investment 899.4 949.4
 $3,522.3 $3,187.8
 NOTES: (a) Restated for discontinued operations, accounting changes and other reclassifications.
 (b) 1993 includes 100 percent of Dresser-Rand's revenues and operating profit while 1992 includes Dresser's 50 percent share of Dresser-Rand's earnings.
 (c) 1993 includes Dresser's 49 percent share of earnings of Ingersoll-Dresser Pump Company while 1992 includes 100 percent of revenues and operating profit of Dresser's former Pump operations.
 -0- 8/19/93
 /CONTACT: Donald R. Galletly of Dresser Industries, Inc., 214-740-6757/
 (DI)


CO: Dresser Industries, Inc. ST: Texas IN: SU: ERN

TM -- NY080 -- 4536 08/19/93 18:11 EDT
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