Printer Friendly

FAIRCHILD INDUSTRIES, INC. REPORTS FISCAL 1993 THIRD QUARTER RESULTS

 CHANTILLY, Va., May 7 /PRNewswire/ -- Fairchild Industries, Inc., a subsidiary of the Fairchild Corporation (NYSE: FA), a leading aerospace, industrial products and communications services company, today reported its results.
 For the current nine month period, Fairchild Industries' sales were $349,047,000 compared to $365,973,000 in the prior year. Operating income for the fiscal 1993 nine months was $28,729,000, up 2 percent from $28,288,000 for the fiscal 1992 nine months. The Industrial Products and Communications Services segments had significant increases in both sales and operating income in the fiscal 1993 year-to-date period. Higher other corporate income in the current year also helped to increase operating income. However, the results were severely impacted by the depressed airline and aviation industries.
 Sales were $114,399,000 in the fiscal 1993 quarter, down from $124,229,000 in the fiscal 1992 quarter. Third quarter operating income for fiscal 1993 was $7,650,000, down by 37 percent from $12,096,000 in the fiscal 1992 quarter. The Aerospace Fasteners segment had an operating loss of $1,394,000 in the current quarter, compared to operating income of $4,565,000 in the prior year quarter, reflecting weaker customer demand and excess capacity impacting this business. The company recognized a restructuring charge of $932,000 in the current quarter, in an ongoing effort to further downsize its Aerospace Fasteners business. Again, the Industrial Products and Communications Services segments achieved record high sales and earnings, which helped lessen the impact.
 The company reported a net loss for the fiscal 1993 third quarter of $1,002,000 compared to net earnings of $5,840,000 for the same quarter of fiscal 1992. For the fiscal 1993 nine month period, net earnings of $2,169,000 were reported, versus net earnings of $7,125,000 in the fiscal 1992 nine month period. The fiscal 1992 third quarter and nine month periods included $5.0 million of dividends realized on participating pension annuity contracts. Net interest expense was higher in the current quarter and nine month periods, primarily due to higher total borrowings and higher interest rates. Net earnings in the current nine month period also included a one-time extraordinary non- cash charge of $810,000, net of tax, which represents Fairchild's write- off of its deferred loan costs related to the portion of the term loan repaid during its recapitalization program completed last August.
 Commenting on the results, Chairman and Chief Executive Officer Jeffrey J. Steiner stated, "We are pleased to see the continued strong performance of D-M-E Company and Fairchild Communications Services Company. However, although year-to-date operating income overall was above the fiscal 1992 level, the third quarter results were disappointing due to the continuation of depressed sales and incoming orders at our Aerospace Fasteners business. We are committed to making further cuts in our operating costs and to taking other measures to operate more profitably in the depressed economic climate of the aviation industry."
 Mr. Steiner noted the recent hiring of Thomas Flaherty as chief operating officer of the Fairchild Corporation and stated that his many years of experience with manufacturers supplying the aviation industry will strengthen Fairchild's efforts to improve manufacturing techniques and systems and provide efficiencies that enhance the company's operating performance and future growth.
 FAIRCHILD INDUSTRIES, INC.
 Summary Income Statement
 (In thousands)
 Period Three Months Nine Months
 Ended 3/28/93 3/29/92 3/28/93 3/29/92
 Sales by business segment:
 Aerospace Fasteners $ 60,002 $ 74,877 $190,071 $226,170
 Industrial Products 37,325 34,694 109,413 96,534
 Communications Services 17,072 14,658 49,563 43,269
 Total 114,399 124,229 349,047 365,973
 Segment operating income:
 Aerospace Fasteners (1,394) 4,565 3,492 8,424
 Industrial Products 5,051 4,236 13,779 10,704
 Communications Services 3,728 3,413 10,851 9,775
 Total 7,385 12,214 28,122 28,903
 Corporate admin. expense (872) (647) (2,601) (2,211)
 Other corporate income 1,137 529 3,208 1,596
 Total operating income 7,650 12,096 28,729 28,288
 Net interest expense (8,160) (6,611) (22,057) (20,575)
 Investment income -- 5,000 -- 5,000
 Equity earnings 120 132 177 241
 Earnings (loss) from cont.
 opers. before income taxes (390) 10,617 6,849 12,954
 Income tax provision (612) (4,777) (3,870) (5,829)
 Earnings (loss) from
 continuing operations (1,002) 5,840 2,979 7,125
 Extraordinary item - net -- -- (810) --
 Net earnings (loss) $ (1,002) $ 5,840 $ 2,169 $ 7,125
 -0- 5/7/93
 /CONTACT: Mike Alcox, chief financial officer of the Fairchild Corporation, 703-478-5824/
 (FA)


CO: Fairchild Industries, Inc. ST: Virginia IN: ARO SU: ERN

GK-OS -- NY067 -- 6127 05/07/93 16:52 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:May 7, 1993
Words:800
Previous Article:THE FAIRCHILD CORPORATION REPORTS FISCAL 1993 THIRD QUARTER RESULTS
Next Article:CHILE FUND DIRECTORS APPROVE RIGHTS OFFERING
Topics:


Related Articles
FAIRCHILD INDUSTRIES REPORTS FISCAL 1992 FOURTH QUARTER AND ANNUAL RESULTS
THE FAIRCHILD CORPORATION REPORTS FISCAL 1993 SECOND QUARTER RESULTS
THE FAIRCHILD CORPORATION REPORTS FISCAL 1993 THIRD QUARTER RESULTS
FAIRCHILD CORPORATION REPORTS FISCAL 1993 FOURTH QUARTER, ANNUAL RESULTS
FAIRCHILD INDUSTRIES, INC., REPORTS FISCAL 1993 FOURTH QUARTER AND ANNUAL RESULTS
THE FAIRCHILD CORPORATION POSTS $129 MILLION GAIN ON SALE OF AFFILIATE IN FISCAL 1994 SECOND QUARTER
THE FAIRCHILD CORPORATION REPORTS FISCAL 1994 FOURTH QUARTER AND ANNUAL RESULTS
FAIRCHILD INDUSTRIES, INC. REPORTS FISCAL 1995 FIRST QUARTER RESULTS
THE FAIRCHILD CORPORATION REPORTS 1996 SECOND QUARTER RESULTS
FAIRCHILD INDUSTRIES, INC. REPORTS 1996 SECOND QUARTER RESULTS

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters