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ELCOR REPORTS HIGHER THAN ANTICIPATED FOURTH QUARTER AND FISCAL 1992 RESULTS; FISCAL 1993 NOW EXPECTED TO SURPASS EARLIER PROJECTIONS

 ELCOR REPORTS HIGHER THAN ANTICIPATED FOURTH QUARTER AND FISCAL 1992
 RESULTS; FISCAL 1993 NOW EXPECTED TO SURPASS EARLIER PROJECTIONS
 DALLAS, Aug. 18 /PRNewswire/ -- Elcor Corporation (NYSE: ELK) reported that its fourth quarter performance exceeded expectations and boosted fiscal 1992 earnings from continuing operations to $.59 per share, compared with $.55 per share projected earlier.
 In addition, fiscal 1993 first quarter demand for Elcor's roofing products confirms management's contention that fiscal 1993 earnings should surpass current estimates.
 "The strength in demand for our Elk Prestique(R) premium laminated fiberglass asphalt shingles has pushed our plants to capacity levels this spring and summer," said Roy E. Campbell, chairman and chief executive officer. "This very strong demand is being fueled by a surge in residential reroofing. That's why it appears Elcor should beat current security analysts' estimates for fiscal 1993 calling for $.80 to $.90 per share earnings from continuing operations.
 "In addition, our Industrial Products business is performing better. Sales were up 5 percent to $33 million and we reduced its operating loss by 36 percent to $4.2 million in fiscal 1992. This segment still has problems, but we know what needs to be done and are actively pursuing changes necessary to achieve profitability in fiscal 1993," Campbell said.
 Operating Results
 For the three months ended June 30, 1992, sales rose 19 percent to $43.2 million from $36.3 million in the 1991 fourth quarter. Earnings from continuing operations were $2,022,000, or $.27 per share, compared with a loss of $2,059,000, equal to $.28 per share last year. Net income increased to $4,869,000, or $.66 per share, aided by income from extraordinary items of $2,847,000, or $.39 per share. In the 1991 fourth quarter Elcor reported a net loss of $6,042,000, equal to $.83 per share.
 Fiscal 1992 net sales increased 16 percent to $149.1 million from $128.6 million. Earnings from continuing operations reached $4.3 million, or $.59 per share, compared with a loss of $8.7 million, equal to $1.20 per share. Net income rose to $8.3 million, or $1.13 per share, thanks to income from extraordinary items, which added $4 million, or $.54 per share. In fiscal 1991, Elcor had a net loss of $15.5 million, equal to $2.14 per share.
 Strong cash flows enabled Elcor to strengthen its balance sheet by reducing total long-term debt by $12.1 million, or 29 percent, to $30.5 million from $42.6 million. Net income helped to boost equity by 74 percent to $20.6 million. The company's financial position was also helped by a favorable refinancing of a portion of its debt, which added $.26 per share in extraordinary items to net income in fiscal 1992. Continuing strong cash flow in fiscal 1993 will further strengthen the company's financial position.
 Roofing Products
 Sales rose 19 percent to $116.2 million from $97.4 million last year. Operating profits reached $16 million, almost three times greater than last year's $6 million.
 Roofing Products benefited from record shipments of Elk Prestique premium laminated fiberglass asphalt shingles and premium ridge products; price increases in March and June; higher production levels and lower manufacturing costs per unit. In addition, warranty claims and costs expensed for a discontinued commodity shingle were sharply reduced from last year.
 Elk remains an industry leader in the premium laminated segment of the residential sloped roofing market, which is the fastest growing segment of the market. This segment accounts for about 13 percent of industry shipments and is growing at a compounded annual rate of nearly 15 percent per year, which means the market is doubling about every five years.
 Strong demand for Elk's Prestique line is expected to continue to increase as a result of the steadily increasing reroofing demand and the continuing shift in demand to upscale premium roofing products. The current demand will be even greater than the long-term trend for a number of years due to the large backlog of reroofing developed during the recession and last winter's and spring's severe weather, which damaged roofs in several metropolitan areas throughout the Sunbelt. Industrial Products
 Chromium Corporation's fiscal 1992 sales rose 32 percent. The subsidiary would have been profitable except for certain charges, reserves and inventory adjustments related to its 1991-1992 restructuring efforts.
 Chromium remains a leader in proprietary finishes for certain industrial components and certain computer and electronic plastic enclosures. It dominates the market for hard chrome plated original equipment and remanufactured diesel engine cylinder liners and tin- plated pistons for the rail, marine and stationary power markets.
 Mosley Machinery remains a major provider of fully automated solid waste balers and recycling equipment to the solid waste disposal and recycling industries. An improving economy is expected to help sales, which declined by 15 percent in fiscal 1992. Progress was also achieved in reducing Mosley's operating loss in fiscal 1992.
 Demand for Ortloff Engineers' process engineering and consulting services was at a high level in fiscal 1992 and good profits were earned. However, patent licensing income was substantially lower than last year due to our customers' product pricing uncertainties and timing of some active projects. Ortloff Engineers expects to achieve a significant increase in profits during fiscal 1993 based upon an existing plants, and from upgrading plants to achieve higher recovery levels. Outlook
 According to Campbell, "As we begin fiscal 1993, the outlook for a substantial improvement in earnings is excellent. Further, we have excellent opportunities for long-term growth that will be actively pursued during the year. Looking beyond fiscal 1993, we are bullish about our future and the implications that our rapidly improving earnings per share and financial position can have on shareholder values," he concluded.
 Elcor manufactures roofing products and industrial products. Each of Elcor's principal operating subsidiaries is the leader or one of the leaders within its particular market. Elcor's roofing products facilities are located in Tuscaloosa, Ala.; Dallas and Ennis, Texas. Its industrial products facilities are located in Cleveland, Ohio; Dallas, Lufkin, Midland, and Waco, Texas.
 For more information on Elcor Corporation, simply dial 1-800-PRO-INFO and enter the number 055.
 ELCOR CORPORATION
 Condensed Results of Operations
 (In thousands, except per share data)
 Unaudited Audited
 Three Months Ended Fiscal Year Ended
 June 30, June 30,
 1992 1991 1992 1991
 Sales $ 43,190 $ 36,300 $149,109 $128,555
 Income (Loss):
 Continuing operations $ 2,022 $ (2,059) $ 4,344 $ (8,684)
 Discontinued operations -- (3,983) -- (6,767)
 Before extraordinary item 2,022 (6,042) 4,344 (15,451)
 Extraordinary items (A) 2,847 -- 3,974 --
 Net Income (Loss) $ 4,869 $ (6,042) $ 8,318 $(15,451)
 Income (Loss) Per Common Share:
 Continuing operations $ .27 $ (.28) $ .59 $ (1.20)
 Discontinued operations -- (.55) -- (.94)
 Before extraordinary
 items $ .27 $ (.83) $ .59 $ (2.14)
 Extraordinary items (A) .39 -- .54 --
 Net Income (Loss) Per Share $ .66 $ (.83) $ 1.13 $ (2.14)
 Average common shares
 outstanding 7,380 7,269 7,339 7,215
 (A) Includes $1,278, or $.17 per share, in the quarter and year from extinguishment of debt, and the balance is tax benefit from tax-loss carryforwards.
 -0- 8/18/92
 /CONTACT: Richard J. Rosebery, vice president, treasurer, and chief financial officer of Elcor Corporation, 214-851-0500/
 (ELK) CO: Elcor Corporation ST: Texas IN: CST SU: ERN


DC -- NY030 -- 0931 08/18/92 11:55 EDT
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