DRESSER INDUSTRIES REPORTS EARNINGS
DRESSER INDUSTRIES REPORTS EARNINGS DALLAS, Feb. 20 /PRNewswire/ -- Dresser Industries, Inc. (NYSE: DI)
today reported total segment operating profit for the first fiscal quarter ended Jan. 31, 1992 of $34.9 million, up slightly from $34.6 million a year earlier due to a continuing strong performance from downstream equipment and services and lower losses by the Komatsu Dresser joint venture. However, first quarter net earnings declined, as pension plan settlement gains of $0.2 million compared to $10.8 million in the first quarter of 1991.
Total segment operating profit improved despite lower consolidated oilfield product and service results, which reflected the domestic rig count falling below the 700 level for the first time since 1986 and averaging 30 percent less than the first quarter of 1991 when the Persian Gulf crisis stimulated drilling activity. Net earnings of $12.3 million or $0.09 per share were off from $14.4 million or $0.11 per share in the first quarter of 1991 but benefited from a substantially larger contribution to equity in earnings of unconsolidated affiliates than a year earlier by Western Atlas International, a joint venture owned 29.4 percent by Dresser. Extraordinary tax benefits from loss carryforwards added $2.1 million to net earnings in the first quarter of 1992 vs. $0.3 million in the first quarter of 1991. Consolidated sales and service revenues for the 1992 first quarter were $1.04 billion, off from $1.10 billion a year earlier. Total revenues, including Dresser's share of major unconsolidated joint ventures, were $1.35 billion, which compared to $1.45 billion in the first quarter of 1991. Dresser recently announced a plan to spin off to shareholders its industrial and mining equipment operations. The spin-off will include five consolidated operations as well as Dresser's 50 percent interest in Komatsu Dresser. The energy-related operations that Dresser will retain after the spin off realized revenues of $1.14 billion in the first quarter, including Dresser's share of the Dresser-Rand and Western Atlas joint ventures, while the operations to become part of the new company had pro forma revenues of $215 million, including Dresser's share of the Komatsu Dresser joint venture. In assessing first quarter results for upstream operations, which had consolidated operating profit of $3.5 million vs. $14.6 million in the same quarter of 1991, Murphy observed that "international drilling has continued to improve vs. a year earlier but not sufficiently to offset the dramatically lower domestic activity." Despite the overall industry's depressed upstream opportunities in the United States, Western Atlas International is benefiting from increased global demand for its technologies and services that help clients reduce their exploration and production costs. Western Atlas International plans to invest more than $275 million in seismic and well logging equipment in 1992. Dresser's energy processing and conversion equipment segment increased its operating profit 52 percent to $24.9 million from $16.4 million a year earlier, while the engineering services segment's operating profit of $2.9 million was up from $0.7 million in the first quarter of 1991. Komatsu Dresser lowered Dresser's total operating profit by $9.6 million in the first quarter of 1992, but that was a substantial improvement from the $14.6 million loss in the same period of 1991. Murphy pointed out that "low interest rates are beginning to have a positive effect on home building and buying, and President Bush's economic recovery program, including the $120 billion allocated for highway construction, also should help put Komatsu Dresser on the road to recovery." He added that "improving economic activity will benefit all of our energy and industrial markets." In addition to reporting results for the first fiscal quarter of 1992, Dresser announced that the Executive Committee of its board of directors met today and authorized redemption on April 1, 1992 of the $61.5 million principal amount of the company's outstanding 9-3/8 percent sinking fund debentures due 2000 and the $9.1 million principal amount of the company's outstanding 9-3/8 percent sinking fund debentures due 1995. Dresser also said the executive committee of its board of directors declared a quarterly dividend of $0.15 per share on the company's common stock that will be payable March 20, 1992 to shareholders of record March 2, 1992. Headquartered in Dallas, Dresser is a major global supplier of highly engineered products and services and had revenues of more than $6 billion in 1991 from consolidated operations and its share of major unconsolidated joint ventures. DRESSER INDUSTRIES, INC. AND SUBSIDIARIES In millions, except per share data (Unaudited) Three months ended Jan. 31 1992 1991 Sales and Service Revenues Upstream (oilfield) products & services $140.3 $157.3 Downstream (processing) equipment & services Energy processing & conversion equipment 396.9 380.9 Engineering services 362.6 406.8 Industrial products 137.7 155.9 Eliminations (1.3) (1.5) Net Sales & Service Revenues $1,036.2 $1,099.4 Operating Profit Upstream (oilfield) products & services $3.5 $14.6 Downstream (Processing) Equipment & Services Energy processing & conversion equipment 24.9 16.4 Engineering services 2.9 0.7 Industrial products 5.7 7.5 Subtotal 37.0 39.2 Partnership operations Dresser-Rand 7.5 10.0 Komatsu Dresser (9.6) (14.6) Total operating profit 34.9 34.6 Other Income (deductions) General corporate expenses (14.9) (13.8) Other nonsegment expenses, net (8.6) (9.2) Pension plan settlements 0.2 10.8 Interest income (expense), net (4.3) (3.4) Total other income (deductions), net (27.6) (15.6) Earnings before income taxes, minority interests & equity earnings 7.3 19.0 Income taxes (5.5) (9.1) Minority interest in earnings of subsidiaries (1.4) (2.8) Equity in earnings of unconsolidated affiliates 9.8 7.0 Earnings before extraordinary item 10.2 14.1 Extraordinary item - tax benefits from loss carryforwards 2.1 0.3 Net earnings $12.3 $14.4 Earnings Per Share Earnings before extraordinary item $0.07 $0.11 Extraordinary tax benefits 0.02 0.00 Net earnings $0.09 $0.11 Average common shares outstanding 134.4 134.2 DRESSER INDUSTRIES, INC. AND SUBSIDIARIES (In millions - Unaudited) ASSETS 1/31/92 Current Assets Cash and cash equivalents $235.7 Notes and accounts receivables-net 681.1 Inventories 497.1 Other current assets 120.5 Total Current Assets 1,534.4 Investments and Other Assets 712.7 Intangibles 357.6 Plant and Equipment-net 586.3 Total $3,191.0 LIABILITIES AND SHAREHOLDERS' INVESTMENT Current Liabilities Short-term debt and current portion of long-term debt $88.8 Other current liabilities 965.7 Total Current Liabilities 1,054.5 Long-Term Debt 159.0 Other Noncurrent Liabilities 195.3 Shareholders' Investment 1,782.2 Total $3,191.0 DRESSER INDUSTRIES, INC. AND SUBSIDIARIES In millions - Unaudited ASSETS 10/31/91 Current Assets Cash and cash equivalents $284.9 Notes and accounts receivables-net 689.3 Inventories 513.8 Other current assets 120.4 Total Current Assets 1,608.4 Investments and Other Assets 702.4 Intangibles 357.4 Plant and Equipment-net 582.6 Total $3,250.8 LIABILITIES AND SHAREHOLDERS' INVESTMENT Current Liabilities Short-term debt and current portion of long-term debt $26.7 Other current liabilities 1,036.6 Total Current Liabilities 1,063.3 Long-Term Debt 222.3 Other Noncurrent Liabilities 204.0 Shareholders' Investment 1,761.2 Total $3,250.8 -0- 2/20/92 /CONTACT: Kenneth C. Rueckert of Dresser Industries, 214-740-6757/ (DI) CO: Dresser Industries, Inc. ST: Texas IN: SU: ERN SM -- NY082 -- 1160 02/20/92 17:35 EST
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|Date:||Feb 20, 1992|
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