Printer Friendly

DURACELL REPORTS RECORD RESULTS FOR ITS FOURTH QUARTER AND FULL FISCAL YEAR

 DURACELL REPORTS RECORD RESULTS
 FOR ITS FOURTH QUARTER AND FULL FISCAL YEAR
 BETHEL, Conn., July 30 /PRNewswire/ -- Duracell International Inc. (NYSE: DUR) today reported record alkaline volumes, sales, operating income, earnings before extraordinary items, and net income for both its fourth quarter and fiscal year ended June 30, 1992.
 Fourth quarter net income rose to $23 million, or $.20 per share, from a loss of $71 million, or $.75 per share, the prior year. Results in the year-earlier period reflected an extraordinary charge of $.73 per share for debt repurchase. Weighted shares outstanding rose 24 percent following equity offerings in May and October 1991.
 Driving the improvement in the latest quarter were strong worldwide sales and operating income and sharply reduced interest expense from deleveraging.
 Chairman Cites Improving Market Conditions
 Market and share growth in North America, better pricing in Europe and Latin America, plus increased merchandising activities and added distribution in international markets paved the way for a 14 percent jump in fourth quarter sales and a 16 percent increase in operating income. Sales rose 12 percent in North America, 13 percent in Europe (aided by $12 million in positive foreign currency translation), and 27 percent in other international markets.
 "Approximately 60 percent of Duracell's worldwide revenues are derived from markets that have been in recession the past two years," commented C. Robert Kidder, chairman and CEO of Duracell International. "In that context, we believe our strong fourth quarter performance reflects growing consumer confidence and improving economic conditions in many parts of the world. Clearly, if these trends continue, it bodes well for Duracell as the world's most recognized name in alkaline batteries," he added.
 Fiscal '92 Shows Strong Gains in EBEI and Net Income
 For the fiscal year ended June 30, 1992, Duracell reported earnings before extraordinary items of $167 million, or $1.43 per share, versus $41 million, or $.50 per share, in fiscal 1991. Net income totaled $128 million, or $1.09 per share, compared with a loss of $34 million, or $.42 per share, the prior year. The company's weighted average shares outstanding increased 42 percent to 117 million from 82 million in fiscal 1991.
 The earnings improvement stemmed primarily from higher worldwide sales and operating income, reduced interest expense and a lower effective tax rate. The $.34 per share charge for extraordinary items in fiscal 1992 reflected completion of the company's subordinated debt repurchase program while a $.92 per share charge the prior year resulted from a refinancing and repurchase of subordinated debt.
 Despite the unfavorable $18 million impact of European foreign currency translation in the fiscal year, Duracell's worldwide sales increased 6 percent to $1.6 billion on a 7 percent improvement in alkaline unit volume. On a geographical basis, sales rose 7 percent in North America, 1 percent in Europe, and 19 percent in other international markets. Full-year operating income improved 11 percent to $285 million.
 Achievements in Fiscal '92 Strengthen Optimism for Future
 "Duracell's strong performance in fiscal 1992 is especially encouraging because we achieved a 1.9 percentage point improvement in gross margin, made a record investment in R&D to support new product development, and recorded a 14 percentage point drop in our debt-to- capital ratio resulting from $251 million in long-term debt reduction," Kidder said. "These achievements further strengthen our optimism concerning Duracell's capacity to produce attractive, sustainable earnings growth in fiscal 1993 and the years ahead."
 Duracell International Inc., headquartered in Bethel, is the world's leading manufacturer and marketer of high-performance alkaline batteries. Duracell's batteries are sold throughout the world, primarily under the Duracell(R) trademark.
 DURACELL INTERNATIONAL INC.
 Statements of Consolidated Operations
 (Units/$ in millions except per share amounts)
 Periods ended Quarter Pct. Fiscal Year Pct.
 June 30 1992 1991 Change 1992 1991 Change
 Sales $355.7 $311.3 14 $1,616.7 $1,524.1 6
 Cost of sales $129.1 $113.0 (14) $ 590.4 $ 585.6 (1)
 Gross profit $226.6 $198.3 14 $1,026.3 $ 938.5 9
 Gross margin
 (pct) 63.7 63.7 -- 63.5 61.6 1.9pp
 S,G&A expenses $179.9 $158.2 (14) $ 741.0 $ 682.4 (9)
 Operating inc. $ 46.7 $ 40.1 16 $ 285.3 $ 256.1 11
 Operating margin
 (percent) 13.1 12.9 .2pp 17.6 16.8 .8pp
 Interest exp. $ 17.3 $ 37.0 53 $ 80.3 $ 186.3 57
 Other income
 (expense) $ 6.3 $ (1.8) NM $ 6.0 $ (5.1) NM
 Income before
 extraord. items
 and inc. taxes $ 35.7 $ 1.3 NM $ 211.0 $ 64.7 226
 Provision for
 income taxes $ 12.3 $ 2.8 NM $ 44.2 $ 23.5 (88)
 Effective tax
 rate (pct) 34.5 210.5 NM 20.9 36.4 15.5pp
 Inc. (loss) bef.
 extraord. items $ 23.4 $ (1.5) NM $ 166.8 $ 41.2 305
 Extraord. items -- $(69.9) NM $ (39.0) $ (75.4) NM
 Net inc. (loss) $ 23.4 $(71.4) NM $ 127.8 $ (34.2) NM
 Per share amounts:
 Inc. (loss) bef.
 extraord. items $.20 $(.02) $1.43 $ .50
 Extraord. items -- $(.73) $(.34) $(.92)
 Net inc. (loss) $.20 $(.75) $1.09 $(.42)
 Weighted aver. shrs.
 and share equivs.
 outstanding 118.5 95.7 116.9 82.3
 NOTE: The effective tax rate decreased as an increased percentage of pre-tax earnings are being generated in the United States which continue to benefit from the utilization of net operating loss carryforwards.
 DURACELL INTERNATIONAL INC.
 Statements of Consolidated Operations
 (Units/$ in millions except per share amounts)
 Geographic Analysis:
 Periods ended Quarter Pct. Fiscal Year Pct.
 June 30 1992 1991 Change 1992 1991 Change
 Alkaline unit
 volume:
 North America 188.7 170.1 11 915.1 908.6 1
 Europe 154.1 150.1 3 639.4 607.9 5
 Other Intl.
 markets 94.9 74.1 28 423.3 325.7 30
 Total 437.7 394.3 11 1,977.8 1,842.2 7
 Sales:
 North America $171.7 $153.3 12 $ 821.0 $ 767.5 7
 Europe 139.8 123.2 13 600.7 592.6 1
 Other Intl.
 markets 44.2 34.8 27 195.0 164.0 19
 Total 355.7 311.3 14 1,616.7 1,524.1 6
 Operating income:
 North America 40.5 33.6 21 220.3 189.2 16
 Europe 27.6 24.1 15 119.2 115.4 3
 Other Intl.
 markets 1.1 .3 267 19.2 16.2 19
 Subtotal 69.2 58.0 19 358.7 320.8 12
 Corporate (22.5) (17.9) (26) (73.4) (64.7) (13)
 Total 46.7 40.1 16 285.3 256.1 11
 DURACELL INTERNATIONAL INC.
 Consolidated Balance Sheets
 (In millions except per share amounts)
 6/30/92 6/30/91
 ASSETS
 Current assets:
 Cash and cash equivalents $ 7.9 $ 5.5
 Accounts receivable, less allowance
 of $21.7 and $15.6 270.5 227.2
 Inventories 222.0 179.8
 Prepaid and other current assets 27.7 23.8
 Total current assets 528.1 436.3
 Property, plant and equipment, net of
 accumulated depreciation of $130.8 and $99.0 330.9 312.0
 Intangibles, net of accumulated amortization
 of $195.7 and $142.3 1,288.0 1,285.9
 Other assets 9.6 19.9
 Total assets $2,156.6 $2,054.1
 LIABILITIES AND EQUITY
 Current liabilities:
 Accounts payable $ 92.5 $ 101.6
 Short-term borrowings and current portion
 of long-term debt 37.6 26.2
 Accrued liabilities 182.2 160.1
 Total current liabilities 312.3 287.9
 Long-term debt 696.5 897.1
 Deferred income taxes 77.9 64.2
 Other non-current liabilities 61.9 88.8
 Total liabilities 1,148.6 1,338.0
 Equity:
 Common stock and capital surplus 992.0 846.3
 Accumulated deficit (6.5) (134.3)
 Accumulated translation adjustment 22.5 4.1
 Total equity 1,008.0 716.1
 Total liabilities and equity $2,156.6 $2,054.1
 Book value per share $8.98 $6.76
 Shares of common stock outstanding 112.3 106.0
 Total debt to capital ratio (percent) 42 56
 DURACELL INTERNATIONAL INC.
 Statements of Consolidated Cash Flows
 (In millions)
 Fiscal year ended June 30 1992 1991
 Operating activities:
 Income before extraordinary items $ 166.8 $ 41.2
 Adjustments to reconcile income before
 extraordinary items to cash provided
 by operating activities:
 Depreciation 35.8 35.4
 Amortization 48.4 48.4
 Noncash interest 8.1 61.6
 Provision for losses on accounts receivable 8.7 8.3
 Other noncash items 8.1 9.9
 (Increase) decrease in:
 Accounts receivable (36.6) (36.0)
 Inventories (29.1) (15.5)
 Other working capital (22.1) 4.6
 Cash provided by operating activities 188.1 157.9
 Investing activities:
 Purchase of property, plant and equipment (53.7) (38.1)
 Proceeds from sales of assets 4.4 .8
 Acquisition of business -- (10.3)
 Other (.9) 1.1
 Cash used by investing activities (50.2) (46.5)
 Financing activities:
 Issuance of common stock 144.1 490.0
 Repurchase of subordinated debt (370.2) (527.9)
 Issuance of revolving credit borrowings, net 198.7 20.3
 Repayment of commercial paper, net (79.1) (58.5)
 Premium on purchase of subordinated debt (32.0) (53.1)
 Net change in other borrowings and other 3.1 15.3
 Cash used by financing activities (135.4) (113.9)
 Effect of exchange rate changes on cash (.1) (.9)
 Increase (decrease) in cash and cash equivalents 2.4 (3.4)
 Cash and cash equivalents, beginning of year 5.5 8.9
 Cash and cash equivalents, end of year $ 7.9 $ 5.5
 Cash paid during the period for:
 Interest $ 83.4 $ 134.1
 Taxes $ 24.6 $ 12.0
 -0- 7/30/92
 /CONTACT: Jim Donahue (media), 203-796-4654, or Walter B. Rogers (investors), 203-796-4364, both of Duracell/
 (DUR) CO: Duracell International Inc. ST: Connecticut IN: HOU SU: ERN


GK -- NY002 -- 4871 07/30/92 07:01 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:Jul 30, 1992
Words:1650
Previous Article:SMALL BUSINESS TAKES STEPS TO PREPARE FOR SLOW RECOVERY
Next Article:BAYER TO MARKET SYNTRO VACCINE IN EUROPE
Topics:


Related Articles
DURACELL REPORTS IMPROVED FIRST QUARTER RESULTS; UNVEILS PLAN TO GRANT STOCK OPTIONS TO ALL EMPLOYEES
DURACELL REPORTS STRONG SECOND QUARTER GROWTH FROM OPERATIONS; PRE-TAX INCOME UP 11 PERCENT; HIGHER TAX BITE PARES NET INCOME ONE PERCENT
DURACELL ANNOUNCES RECORD EARNINGS BEFORE ACCOUNTING CHANGE AND RESTRUCTURING CHARGE
DURACELL POSTS RECORD FIRST QUARTER EARNINGS OF $44 MILLION OR 37 CENTS PER SHARE; ANNOUNCES 5.8 MILLION SHARE SECONDARY OFFERING BY KKR
DURACELL's PRE-TAX INCOME JUMPS 20% IN SECOND QUARTER; GROWTH DRIVEN BY OPERATING RESULTS IN NORTH AMERICA AND OTHER INTERNATIONAL MARKETS
DURACELL POSTS 19% INCREASE IN Q4 NET EARNINGS BEFORE MARKING-TO-MARKET ITS FOREIGN EXCHANGE CONTRACTS; FISCAL YEAR 1995 NET EARNINGS ROSE 16%
DURACELL POSTS RECORD SECOND QUARTER EARNINGS
DURACELL TELLS FINANCIAL COMMUNITY THAT SECOND QUARTER RESULTS MAY FALL SHORT OF EXPECTATIONS
DURACELL POSTS RECORD THIRD QUARTER RESULTS
DURACELL POSTS RECORD Q4 EARNINGS; OUTLINES RESTRUCTURING; REITERATES 15% EPS GROWTH IN F'97

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