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 CINCINNATI, Sept. 17 /PRNewswire/ -- Eagle-Picher Industries (NYSE: EPI) today announced that sales for the third quarter ended Aug. 31, 1993, were $162.2 million compared with $155.4 million for the third quarter of 1992. Operating income for the quarter declined to $10.6 million from $12.7 million for the same period last year. Net income was $8.3 million or 75 cents per share compared with $8.2 million or 75 cents per share for the same period last year. At the end of the third quarter, the company's cash position was $83.8 million. Costs incurred with respect to the Chapter 11 reorganization were $0.8 million for the quarter.
 Thomas E. Petry, Eagle-Picher chairman, said, "Despite a rather sluggish economy the company's operations performed relatively well. The Automotive Group experienced modest increases in sales and operating income. Results, however, were adversely affected by plant closings by automotive manufacturers due to model year changeovers and vacations, which were greater than usual during the third quarter. A second factor adversely affecting profitability was start-up costs associated with new orders received earlier in the year by the Plastics, Orthane and the Trim Divisions. The Machinery Group experienced lower sales and lower operating income. The primary problem in the Group continued to be start-up costs at the Construction Equipment Division related to new business. Backlogs continued to build and shipments continued to increase for high volume can washing machinery produced by Cincinnati Industrial Machinery. The Electronics Division experienced strong demand for special purpose batteries by the aerospace and commercial markets. Ross Aluminum Foundries experienced lower volumes as a result of reduced levels of demand in several of its general industrial markets. In the Industrial Group, results were essentially equal to those of the third quarter of last year. Demand for super clean (totally uncontaminated) containers, which conform to strict EPA protocols, was at a high level. The Minerals Division, which manufactures diatomaceous earth products, experienced some weakness in margins due to pricing pressures in the industry.
 "Significant progress continues to be made in the mediation effort which began in the second half of 1992 when the Bankruptcy Court appointed a mediator to assist in the negotiation of a consensual plan of reorganization. Under the rules established by the mediator, the mediation is proceeding on a confidential basis. To date, the primary participants in the mediation process with the company have been the Injury Claimants' Committee and the Representative for Future Claimants, representatives of the holders of present and future asbestos-related and other tort claims. These claims in the aggregate represent the most significant claims to be addressed in any plan of reorganization.
 "While it is not possible at this time to predict when a plan of reorganization will be filed, or its terms, it appears that prepetition creditors will likely receive significantly less than 100 percent of the amount of their claims and, accordingly, there is no assurance, as the company has previously stated, that there will be any value for or distributions to shareholders under a plan of reorganization.
 "The company's operations continue to perform well in light of the current economic environment. Based upon this performance, the company's strong cash flow from operations, and its current cash position, there is every reason to believe that a successful reorganization will be achieved."
 (Data in thousands except per share)
 Three Months Ended Aug. 31 1993 1992
 Net sales $162,228 $155,371
 Operating income 10,643 12,676
 Other non-operating items (372) (914)
 Reorganization items (813) (2,416)
 Income before taxes 9,458 9,346
 Net income 8,256 8,246
 Net income per share .75 .75
 Average shares 11,041 10,978
 Nine Months Ended Aug. 31 1993 1992
 Net sales $485,565 $450,129
 Operating income 33,651 33,811
 Other non-operating items (348) (3,040)
 Reorganization items (3,200) (6,759)
 Income before taxes 30,103 24,012
 Net income 26,683 21,612
 Net income per share 2.42 1.97
 Average shares 11,027 10,978
 -0- 9/17/93
 /CONTACT: J. Rodman Nall of Eagle-Picher Industries, 513-721-7010/

CO: Eagle-Picher Industries ST: Ohio IN: AUT ARO CHM SU: ERN

AR -- CL006 -- 3125 09/17/93 13:48 EDT
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Publication:PR Newswire
Date:Sep 17, 1993

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