Printer Friendly

DRESSER INDUSTRIES ANNOUNCES FINANCIAL RESULTS

 DRESSER INDUSTRIES ANNOUNCES FINANCIAL RESULTS
 DALLAS, Aug. 31 /PRNewswire/ -- Dresser Industries, Inc. (NYSE: DI)


today reported that its net earnings for the third quarter and nine months ended July 31 were off from a year earlier primarily due to losses from discontinued operations and the adverse effect of depressed U.S. drilling activity on oilfield product and service operations. Net earnings were $28.0 million or $0.20 per share for the 1992 third quarter vs. $44.5 million or $0.33 per share a year earlier and $57.4 million or $0.42 per share for the 1992 nine months vs. $86.3 million or $0.64 per share a year earlier.
 Losses from discontinued operations spun off August 7 reduced net earnings by $8.3 million or $0.06 per share for the third quarter and $10.8 million or $0.08 per share for the first nine months of fiscal 1992.
 Dresser's earnings from continuing operations were $35.2 million or $0.25 per share for the third quarter vs. $44.2 million or $0.33 per share a year earlier and $68.6 million or $0.50 per share for the nine months vs. $78.9 million or $0.59 per share a year earlier.
 The lower results of consolidated oilfield product and service operations more than offset favorable performances from the 29.4 percent Dresser-owned Western Atlas International joint venture, a leader in strong foreign seismic activity, and Dresser's hydrocarbon processing and distribution operations, which "continued to benefit from customer programs to build, expand, modernize and revamp energy-related facilities throughout the world," according to John J. Murphy, chairman and chief executive officer.
 He said the depressed U.S. rig count, which affected both the opportunities and margins of Dresser's drilling-related businesses, was 28 percent below year-earlier levels through July 31 and reached an all-time low of 596 the week ended June 12. However, the U.S. rig count was 690 at July 31. International drilling activity has been about flat with the prior year. Termination-related costs for employee staff reductions in oilfield product and service operations and other Dresser businesses reduced results by $1.6 million for the third quarter and $7.3 million for the nine months.
 Dresser's consolidated sales revenues for the third quarter were $971 million, off from $1.01 billion in the same period of 1991. Revenues for the nine months amounted to $2.83 billion, which compared to $2.96 billion a year earlier.
 Outlook
 Murphy pointed out that Dresser's hydrocarbon processing and distribution markets "should remain strong throughout the 1990s and beyond, as increased investment and activity are essential to improving the standard and quality of living in both industrialized and developing nations."
 In commenting on the company's recent spin-off of non-core operations, Murphy noted that "the now totally energy-focused Dresser will be able to concentrate on what we do best -- provide highly engineered products and services for the broad spectrum of hydrocarbon- related activities. The spin-off was the culmination of a long-term strategic program in which we not only divested a total of 26 non-core operations but also broadened our energy orientation and capabilities by entering into selective acquisitions and joint ventures and stressing internal development."
 Headquartered in Dallas, Dresser is a major supplier worldwide to industries involved in finding and developing oil and natural gas and transforming them into added-value products for businesses and consumers. The company's common stock is traded under the ticker symbol DI on the New York Stock Exchange and Pacific Stock Exchange.
 DRESSER INDUSTRIES, INC.
 (Unaudited, in millions, except per share data)
 Periods ended Three months Nine months
 July 31 1992 1991(A) 1992 1991(A)
 SALES AND SERVICE REVENUES
 Hydrocarbon Drilling/
 Exploration/Production $ 134.2 $ 162.1 $ 410.6 $ 478.5
 Hydrocarbon Processing/
 Distribution
 Manufactured Products 424.9 417.2 1,249.7 1,238.3
 Engineering services 408.9 421.1 1,158.4 1,218.0
 Other 3.4 8.8 12.0 32.1
 Eliminations (0.3) (2.0) (3.1) (4.9)
 Net Sales and Service
 Revenues $ 971.1 $1,007.2 $2,827.6 $2,962.0
 OPERATING PROFIT
 Hydrocarbon Drilling/
 Exploration/Production $ 2.4 $ 15.8 $ 10.7 $ 40.4
 Hydrocarbon Processing/
 Distribution
 Manufactured Products 38.5 35.8 101.1 97.8
 Engineering services 26.4 27.8 32.6 34.5
 Other 0.3 (1.7) 0.4 (1.6)
 Subtotal 67.6 77.7 144.8 171.1
 Dresser-Rand partnership
 operations 8.7 10.3 28.6 31.4
 Total segment
 operating profit 76.3 88.0 173.4 202.5
 General corporate expenses (15.5) (16.3) (45.6) (44.2)
 Other nonsegment expenses,
 net (7.8) (1.2) (28.6) (19.1)
 Interest income (expense),
 net (3.1) (6.4) (11.4) (15.6)
 Earnings before income
 taxes, minority interests
 and equity earnings 49.9 64.1 87.8 123.6
 Income taxes (21.0) (22.2) (38.5) (53.2)
 Minority interest in
 earnings of subsidiaries (1.5) (4.6) (5.3) (10.4)
 Equity in earnings of
 unconsolidated affiliates 7.8 6.9 24.6 18.9
 Earnings from continuing
 operations 35.2 44.2 68.6 78.9
 Discontinued operations,
 net of taxes (8.3) (0.2) (10.8) 4.4
 Earnings before
 extraordinary items 26.9 44.0 57.8 83.3
 Extraordinary items
 Charge from early
 retirement of debt,
 net of taxes -- -- (5.0) --
 Tax benefits from loss
 carryforwards 1.1 0.5 4.6 3.0
 Total extraordinary items 1.1 0.5 (0.4) 3.0
 Net earnings $ 28.0 $ 44.5 $ 57.4 $ 86.3
 Earnings per common share
 Earnings from continuing
 operations $ 0.25 $ 0.33 $ 0.50 $ 0.59
 Discontinued operations (0.06) 0.00 (0.08) 0.03
 Earnings before
 extraordinary items 0.19 0.33 0.42 0.62
 Extraordinary items 0.01 0.00 0.00 0.02
 Net earnings $ 0.20 $ 0.33 $ 0.42 $ 0.64
 Average common shares
 outstanding 135.8 134.2 135.0 134.2
 (A) -- Restated for discontinued operations.
 -0- 8/31/92
 /CONTACT: Kenneth C. Rueckert of Dresser Industries, Inc., 214-740-6757/
 (DI) CO: Dresser Industries, Inc. ST: Texas IN: OIL SU: ERN


TS -- NY037 -- 4910 08/31/92 11:13 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:Aug 31, 1992
Words:1050
Previous Article:FAIR, ISAAC APPOINTS VETERAN FINANCIAL EXECUTIVE, BARRY ROACH, TO NEW STRATEGIC DEVELOPMENT POST
Next Article:HBO & COMPANY DECLARES DIVIDEND
Topics:


Related Articles
DRESSER ANNOUNCES RECORD DATE FOR SPIN-OFF TO SHAREHOLDERS
DRESSER INDUSTRIES MAKES ANNOUNCEMENT
DRESSER SHAREHOLDERS APPROVE MERGER
DRESSER COMPLETES SALE OF WESTERN ATLAS INTEREST
DRESSER AND WHEATLEY TXT PLAN TO MERGE
DRESSER-RAND ACQUIRES MAJORITY INTEREST IN PARAGON ENGINEERING SERVICES
Dresser Receives $130 Million of New Awards in the Russian Federation
Dresser Industries Credit Analysis Now Available
Dresser-Rand Has No Exposure to LSB Industries (El Dorado Chemical) Judgment.
Dresser-Rand to name Mark E. Baldwin Executive Vice President and Chief Financial Officer Following Resignation Announcement of Leonard Anthony.

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