FARR CO. REPORTS HIGHER SALES
FARR CO. REPORTS HIGHER SALES EL SEGUNDO, Calif., Feb 20 /PRNewswire/ -- Farr Co.
(NASDAQ: FARC) reported sharply higher sales for both the fourth quarter and year. The majority of these increases were attributable to the acquisition of Cambridge Filter Corp. earlier in the year. Costs associated with this acquisition were the reason that the company sustained losses in both periods.
Fourth quarter sales were $29,830,000, up from $21,406,000 in the same period a year ago. A net loss of $1,552,000, or 43 cents per share, was recorded, compared to net income of $864,000, or 24 cents per share in 1990's final period. For the year, sales advanced to $112,410,000 from $84,899,000 in 1990. The loss for the year was $2,996,000, or 83 cents per share, compared to net income of $3,398,000, equal to 96 cents per share, a year ago. Charles R. Wofford, president and chief executive officer, commented: "The acquisition of Cambridge in April of 1991 was the largest contributor to the 32 percent gain in sales for the year, although sales of Farr products alone were up more than 9 percent for the year. In spite of the recession, Farr sales increased in the U.S., Canada, Europe and Asia. "The increase in sales from the acquisition was accompanied by significant costs associated with integrating the two companies. These costs included provision for a new computer system and rationalization of the combined products, manufacturing facilities and distribution systems. Harder to quantify, but just as significant, was the management time which was devoted to assimilating Cambridge into Farr. "We have made good progress in the integration of the two companies and remain convinced that the combined operations will become a stronger international competitor than either company could have been on its own. "Although sales for the year, exclusive of the Cambridge acquisition, were up better than 9 percent, recessionary pressures slowed the sales growth of a number of our traditional product lines in 1991. With our progress in merging Cambridge into Farr, we anticipate a return to profitable operations. Depending on the economic climate, we would expect improving sales and earnings as 1992 proceeds. The broader product line now available, as well as a strengthened distribution system, has positioned Farr to build sales in its traditional product lines as well as in such important new markets as high efficiency filters." Farr Co. is a leading producer of filters for particulate, liquid and gaseous filtration systems. The company has 12 manufacturing facilities in the United States as well as plants in Canada and England. FARR CO. Comparative Statements of Sales and Income (Thousands omitted) Fourth quarter ended Year ended Dec. 28, Dec. 29, Dec. 28, Dec. 29, 1991 1990 1991 1990 Sales $29,830 $21,406 $112,410 $84,899 Total costs and expenses 30,932 20,080 111,160 79,821 Provision for restructuring 990 --- 5,733 --- Income (loss) before income taxes (2,092) 1,326 (4,483) 5,078 Income taxes (540) 462 (1,487) 1,680 Net income (loss) ($1,552) $864 ($2,996) $3,398 Net income (loss) per share(a) ($.43) $.24 ($.83) $.96 (a) Based upon 3,611,386 and 3,550,764 average shares of common stock outstanding in 1991 and 1990, respectively. -0- 2/20/92 /CONTACT: Jack D. Carr, executive VP-finance and administration of Farr Co., 310-772-5221/ (FARC) CO: Farr Co. ST: California IN: SU: ERN
EH-JL -- LA007 -- 0793 02/20/92 09:05 EST
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|Date:||Feb 20, 1992|
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