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DURIRON REPORTS STRONG SECOND QUARTER SALES WITH RECORD INCOMING BUSINESS

 DAYTON, Ohio, July 22 /PRNewswire/ -- Improved U.S. business activity has led to record incoming orders and strengthening sales volume for the quarter ended June 30, 1993, according to an announcement released today by The Duriron Company, Inc. (NASDAQ: DURI).
 Sales for this year's second quarter were $78.2 million with net earnings of $3.6 million, or $0.28 per share. In 1992's second quarter, sales of $72.8 million yielded net earnings of $4.5 million, or $0.35 per share.
 For the first six months of 1993, sales were $152.6 million with net earnings of $6.5 million, or $0.51 per share. During the same 1992 period, sales were $146.5 million with net earnings from operations of $9.0 million, or $0.71 per share. Early compliance with SFAS 106 - non- pension post retirement benefits - resulted in a loss of $12.1 million for the first six months of 1992.
 Incoming business of $83.7 million for the second quarter was a record and $157.1 million for the six months reflected improved business conditions. Backlog of $69.0 million at June 30, 1993, was an increase of $5.7 million from the previous quarter.
 Sales for this year's second quarter and six months have improved over those of a year ago despite the negative effect of the strengthening U.S. dollar on international revenues. For these periods, net income from operations has declined reflecting continued competitive pricing pressures, increased interest expense and selling, general and administrative expense, largely attributable to the addition of Kammer, and Valtek and Kammer sales commissions.
 Duriron President and CEO, William M. Jordan, expressed cautious optimism for the remainder of 1993. "During the second half of this year, we expect to ship nearly $17 million of equipment related to the Malaysian LNG and Hibernia Oil projects," he said. "Plus, we expect to turn our backlog into shipments rather quickly due to our emphasis on meeting our customers' delivery requirements and our focused factory capabilities. This should have a positive impact on operating results."
 "The key to our future performance remains incoming business," Jordan noted. "We are hopeful the recent trend of improved incoming U.S. business will continue for all our operating units. Canada's business climate has also shown recent improvement, and we think Europe's decline may have bottomed out. Nevertheless, competitive pricing pressures are expected to remain."
 THE DURIRON COMPANY, INC.
 Consolidated Financial Summary
 (dollars in thousands except per share data)
 2nd Quarter
 June 30, Increase (Decrease)
 FIN. CONDI. 1993 1992(A) 1993 1992(A)
 Current assets(B) $136,220 $130,675 $ (1,548) $ (521)
 Current liabilities 46,395 40,710 (2,438) (3,154)
 Working capital $ 89,825 $ 89,965 $ 890 $ 2,633
 Net property and other
 assets 109,575 87,275 (2,275) 1,323
 Long-term debt due
 after one year 38,778 20,067 (2,674) (692)
 Postretirement benefits
 and other def. items 38,600 36,086 268 651
 Shareholders' equity $122,022 $121,087 $ 1,021 $ 3,997
 Book value per share
 outstanding $ 9.67 $ 9.63 $ 0.07 $ 0.32
 Quarter Ended Six Months Ended
 June 30, June 30,
 OPERATIONS 1993 1992(A) 1993 1992(A)
 Net sales $ 78,209 $ 72,808 $152,572 $146,541
 Gross profit margin $ 29,720 $ 27,764 $ 56,765 $ 55,212
 Selling and admin. exp. $ 20,337 $ 17,729 $ 39,705 $ 35,341
 Res., engr. and devel.
 expense $ 2,158 $ 2,304 $ 4,365 $ 4,478
 Interest exp. $ 969 $ 540 $ 1,941 $ 1,109
 Other deductions, net $ 531 $ 238 $ 473 $ 239
 Earn. before inc. taxes $ 5,725 $ 6,953 $ 10,281 $ 14,045
 Provision for inc. taxes $ 2,115 $ 2,503 $ 3,800 $ 5,056
 Earnings before cumul.
 effect of a chg. in
 acctg. prin. $ 3,610 $ 4,450 $ 6,481 $ 8,989
 Cumul. effect of chg.
 in method of acctg.
 for post-retirement
 benefits --- --- --- (21,063)
 Net earnings (loss) $ 3,610 $ 4,450 $ 6,481 $(12,074)
 Gross inc. business $ 83,696 $ 75,638 $157,139 $150,958
 End. backlog --- --- $ 69,029 $ 56,027
 Avg. com. and common
 equiv. shares
 outstanding 12,716,673 12,717,210 12,716,673 12,717,210
 Earnings per share
 before cumul. effect
 of a chg. in acctg.
 prin. --- --- 0.51 $ 0.71
 Net earnings (loss) per
 share $ 0.28 $ 0.35 $ 0.51 $ (0.95)
 Dividends pd. (on shares
 outstand.) $ 0.15 $ 0.15 $ 0.30 $ 0.30
 (A) -- 1992 results reflect the early adoption of Statement of Financial Accounting Standards (SFAS) 106 covering non-pension, postretirement benefits. The early and immediate recognition of the SFAS 106 cumulative transition obligation decreased pretax net earnings by $32.9 million, or $1.66 per share, and increased ongoing annual pretax expense by approximately $1.5 million, or $.08 per share, and required restatement of previously reported quarterly results of operations for 1992.
 (B) -- Domestic inventories included in current assets as of June 30, 1993 and June 30, 1992, were valued using LIFO. Based on current cost, these inventories would be $29,825,000 and $29,832,000 higher, respectively.
 Interim reports are prepared from company records and are subject to year-end audit by independent certified public accountants.
 -0- 7/22/93
 /CONTACT: The Duriron Company, Inc., World Headquarters, 513-476-6150/
 (DURI)


CO: The Duriron Company, Inc. ST: Ohio IN: SU: ERN

AR -- CL011 -- 4485 07/22/93 11:20 EDT
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Date:Jul 22, 1993
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