FAIRCHILD REPORTS FISCAL 1992 FIRST QUARTER RESULTS
FAIRCHILD REPORTS FISCAL 1992 FIRST QUARTER RESULTS CHANTILLY, Va., Nov. 8 /PRNewswire/ -- The Fairchild Corporation
(NYSE: FA), a leading aerospace, industrial products and communications services company, today reported a net loss of $8,140,000, or $0.48 per share, for the first quarter ended September 30, 1991.
For the comparable quarter of the prior fiscal year, Fairchild reported net income of $20,154,000, or $1.18 per share, which reflected, among other things, a non-recurring pretax gain of $54,550,000 primarily from the sale of 52.8 percent of the Company's interest in Banner Aerospace. The loss in the quarter was attributed principally to reduced sales and margins at some of its businesses. This was partially offset by Fairchild's ability to lower corporate expense and net interest expense. Sales amounted to $120,962,000 for the three months ended September 30, 1991, compared with $123,162,000 for the same quarter of the prior year. Operating income was $4,349,000 for the recent quarter, compared with $8,787,000 for the three months ended September 30, 1990. Other major items reflected in the results were equity earnings of $2,993,000 and $6,008,000 for the quarters ended September 30, 1991 and 1990, respectively. Results for the year-ago quarter also included a loss of $10,140,000 on disposal of discontinued operations and an extraordinary gain of $1,025,000 on the repurchase of debt. "During the first quarter, historically the weakest one of the year, a continuation of soft demand and lower margins adversely impacted our Aerospace Fastener and Industrial Products segments. In response, we have initiated various cost-reduction measures such as personnel reductions and further consolidation of operations within the Aerospace Fastener segment, and we are continuing to implement improved manufacturing techniques in both segments," said Chairman and Chief Executive Officer Jeffrey J. Steiner. "At the same time, we did enjoy strong sales and profit increases at our Communications Services segment. We were also successful in reducing net interest expense by $1.1 million for the recent quarter, while cutting corporate overhead by another $2.2 million," Steiner added. The Fairchild Corporation is a leading supplier of aerospace and industrial products and communications services. THE FAIRCHILD CORPORATION Summary Income Statement (In thousands, except per share data) First quarter ended Sept. 30 1991 1990 Sales: Aerospace fasteners $76,753 $83,311 Industrial products 30,045 32,777 Communications services 14,164 7,074 Total $120,962 $123,162 Segment operating income: Aerospace fasteners $3,489 $9,403 Industrial products 2,710 4,282 Communications services 3,004 1,230 Total 9,203 14,915 Corporate expense 5,353 7,576 Corporate income 499 1,448 Total operating income $4,349 $8,787 Equity earnings 2,993 6,008 Minority interest (157) (192) Net interest expense (17,989) (19,123) Investment loss (683) (1,760) Non-recurring items (A) --- 54,550 Earnings (loss) from continuing operations before taxes (11,487) 48,270 Tax (provision) benefit 3,200 (19,000) Earnings (loss) from continuing operations (8,287) 29,270 Earnings (loss) from discontinued operations (B) 88 (10,141) Extraordinary items - net 59 1,025 Net earnings (loss) $(8,140) $20,154 Earnings (loss) per share: Continuing operations $(.49) $1.71 Discontinued operations .01 (.59) Extraordinary items --- .06 Net earnings $(.48) $1.18 Common shares outstanding 16,878 17,077 (A) Principally pretax gain from sale of 52.8 percent interest in Banner Aerospace. (B) Loss in quarter ended September 30, 1990, primarily attributed to after-tax loss on sale of waste water treatment business. /delval/ -0- 11/8/91 /CONTACT: Deborah M. Tucker of Fairchild, 703-478-5856/ (FA) CO: Fairchild Corporation ST: Virginia IN: ARO SU: ERN CC -- PH021 -- 2673 11/08/91 15:37 EST
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|Date:||Nov 8, 1991|
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