Printer Friendly

FARR CO. REPORTS INCREASED EARNINGS IN THIRD QUARTER

 EL SEGUNDO, Calif., Nov. 1 /PRNewswire/ -- Farr Co. (NASDAQ: FARC) reported an increase in income despite a decrease in revenues for third quarter ended Oct. 2, 1993, compared to the same period last year.
 Net income for the third quarter of 1993 was $168,000 or 4 cents per share vs. net income of $33,000 or 1 cent a share in the third quarter last year. Sales were $26,704,000 compared with $28,536,000 in the corresponding quarter a year ago.
 According to Farr Co.'s Chairman and President Charles Wofford, a significant reduction in expenses coupled with improved manufacturing variances more than offset the profit impact from the lower sales. The decline in third quarter sales from last year was primarily due to weakness in the economies of Europe and California, currency rates of exchange fluctuations between the United States and Canada and the United States and the United Kingdom, and setback in on-time delivery performance in the United States. The latter, which resulted in the loss of some orders, was associated with temporary disruptions as a result of converting to the company's new computer software system.
 Sales for the nine months were $86,987,000, up 2 percent from the $85,118,000 in the same period last year. Net income was $1,251,000 or 34 cents a share compared to a loss of $110,000 or 3 cents a share in 1992. Results for 1992 have been restated from a net profit of $390,000 to a loss of $110,000 to reflect adoption of SFAS 109 relating to accounting for income taxes, or 14 cents per share reduction in net income.
 Wofford said: "We're disappointed by the temporary setback experienced in our on-time delivery performance as conversion to our new computer software system was completed. By the end of the quarter, we were well along the road to recovery with our total delinquent backlog at its lowest month-end level this year -- and at the third lowest month-end level in the past three years.
 "On the other hand, we're pleased with the progress made in other areas. During this reporting period, manufacturing variances improved from both the third quarter of last year and each of the previous quarters of 1993 while selling, general and administrative expenses were reduced in absolute dollars and as a percentage of revenues."
 Wofford also noted improvement in the company's financial position. At the close of the third quarter, total debt had been reduced by over $3,000,000 from the same date a year ago.
 He concluded: "Looking ahead, the fourth quarter can be expected to be h?er challenging period for Farr Co. We're counting on additional sales from an improving economy and increased production of new products introduced earlier this year to partially offset the lower level of filter house business scheduled for the fourth quarter vs. the third."
 Farr Co. is a leading producer of filters for particulate, liquid and gaseous filtration systems. The company has eight manufacturing facilities in the United States as well as plants in Canada and England.
 FARR CO. AND SUBSIDIARIES
 Condensed Consolidated Income Statements
 (Unaudited)
 Three Months Ended Year-To-Date
 Oct. 2, Sept. 26, Oct. 2, Sept. 26,
 1993 1992 1993 1992
 Net sales $26,704,000 $28,536,000 $86,987,000 $85,118,000
 Costs and
 expenses:
 Cost of sales 21,185,000 22,423,000 67,324,000 65,949,000
 Selling,
 general and
 administrative 4,728,000 5,433,000 15,778,000 16,555,000
 Interest expense 620,000 589,000 1,950,000 1,836,000
 Total cost and
 expenses 26,533,000 28,445,000 85,052,000 84,340,000
 Income before
 income taxes 171,000 91,000 1,935,000 778,000
 Income taxes 3,000 58,000 684,000 388,000
 Income before
 cumulative effect
 of accounting
 change $168,000 $33,000 $1,251,000 $390,000
 Cumulative effect of
 accounting change --- --- --- 500,000
 Net income (loss) $168,000 $33,000 $1,251,000 ($110,000)
 Income before
 cumulative effect of
 accounting change
 per common share $0.04 $0.01 $0.34 $0.11
 Cumulative effect of
 accounting change
 per common share --- --- --- (0.14)
 Earnings (loss) per
 common share(a) $0.04 $0.01 $0.34 ($0.03)
 (a) Based upon 3,668,174 and 3,648,362 average shares outstanding in 1993 and 1992 respectively.
 -0- 11/1/93
 /CONTACT: Kenneth W. Gerstner, VP-finance and administration, 310-536-6300/
 (FARC)


CO: Farr Co. ST: California IN: SU: ERN

LM-MF -- LA006 -- 9084 11/01/93 11:00 EST
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:Nov 1, 1993
Words:765
Previous Article:THE WACKENHUT CORPORATION REPORTS REVENUES AND INCOME FOR 3RD QUARTER
Next Article:MAVERICK TUBE CORP. IMPROVED DRILLING ACTIVITY LEADS TO HIGHER PROFITS
Topics:

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