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FEDERAL SIGNAL ANNOUNCES AN 11 PERCENT INCREASE IN CONTINUING OPERATIONS E.P.S. FOR 1991

 FEDERAL SIGNAL ANNOUNCES AN 11 PERCENT INCREASE
 IN CONTINUING OPERATIONS E.P.S. FOR 1991
 OAK BROOK, Ill., Jan. 27 /PRNewswire/ -- Federal Signal (NYSE: FSS) announced that its earnings from continuing operations increased in 1991 to $1.35 per share, up 11 percent from $1.22 per share in 1990. Income from continuing operations of $31.0 million in 1991 was 11 percent above the $28.1 million achieved in 1990.
 Consolidated sales from continuing operations in 1991 reached a record $466.9 million, 6 percent higher than the $439.4 million posted in 1990. Return on shareholders' equity declined slightly to 20.0 percent in 1991 compared to 20.4 percent in 1990. Backlogs increased 2 percent to $203.2 million (including $8.3 million of acquired backlog resulting from the December 1991 purchases of Superior Emergency Equipment, Ltd., and Frontline Corp.) at Dec. 31, 1991, compared to $199.9 million a year earlier.
 Despite encountering soft domestic markets, the Vehicle, Signal and Tool groups increased sales in 1991 largely due to increased international sales and gains in domestic market shares. Significant increases in earnings for the Vehicle and Signal groups were partially offset by the Sign Group's deterioration to a loss position in 1991.
 The Vehicle Group had another outstanding year as sales increased 18 percent over 1990 and earnings increased 37 percent. Ravo International, acquired at the end of 1990, accounted for about one- fifth of the group's earnings increase and about two-thirds of the sales increase. Emergency One and Elgin Sweeper continued to further improve their operating margins in 1991 largely as a result of additional improvements in their manufacturing processes.
 The Signal Group's earnings increased 16 percent on a 2 percent increase in sales. While the domestic economy took its toll, this group was able to overcome this weak market with increasing international sales, continuing process improvements and by benefiting from a favorable shift in product mix. The group has improved its operating margins for the fifth consecutive year while at the same time the investment required to support the group's sales declined. International sales for the group increased 22 percent as sales of outdoor warning systems were strong in the Middle East.
 The Sign Group's sales declined 17 percent resulting in a $1.8 million loss compared to operating income of $4.0 million in 1990. The severe conditions in the commercial and industrial construction markets resulted in over capacity and severe price competition. While strategic cost reduction programs instituted over two years ago benefited the group in 1991, they were not enough to offset the effects of the decline in the economy.
 Despite having faced another year of adverse domestic market conditions, the Tool Group's sales increased 2 percent as international sales were up 6 percent and market share gains were posted in key segments of the group's domestic business. While sales increased, operating income declined slightly, due largely to competitive price pressure which negatively affected margins.
 Joseph J. Ross, chairman, president and chief executive officer, said, "Entering 1992 with our thirteenth straight year of an increased beginning backlog, having acquired two successful companies in the last two weeks of 1991, and currently experiencing positive momentum in most of our businesses, we are optimistic about our prospects for continued increases in sales and earnings in 1992. Despite expecting to encounter a difficult economic environment again, we expect each of our groups to improve their results. Our strategy of diversification should continue to pay benefits, since we anticipate the strength of most of our businesses will offset potential weakness in others. 1992 will be another important year for accomplishing our long-term growth strategies for Federal Signal."
 Federal's consolidated income from continuing operations for the fourth quarter of 1991 was $8.5 million, 11 percent above the 1990 fourth quarter. Earnings were $.37 per share, a 12 percent increase over 1990's fourth quarter. Consolidated sales were $120.4 million in the fourth quarter, 9 percent above 1990's fourth quarter of $110.7 million.
 Federal Signal Corp., listed on the New York Stock Exchange, is a manufacturer and worldwide supplier of public safety, signaling and communications equipment (Signal Products), fire trucks, rescues and ambulances (Emergency One, Superior and Frontline), street sweeping vehicles (Elgin Sweeper and Ravo International), parking control equipment (Federal APD), custom on-premise signage (Federal Sign), carbide cutting tools (Manchester Tool and Bassett Rotary Tool), and precision punches and related die components (Dayton Progress, Jamestown Perforators and Container Tooling).
 FEDERAL SIGNAL CORP.
 Consolidated Income Data
 For the Years Ended 1991 and 1990
 FEDERAL SIGNAL CORPORATION (NYSE)
 Year Dec. 31: 1991 1990
 Revenues $466,939,000 $439,426,000
 Income:
 Continuing operations 31,046,000 28,088,000
 Discontinued operations -- 100,000
 Gain on disposition -- 2,288,000
 Net 31,046,000 30,476,000
 Cash flow from operations $ 43,903,000 $ 48,282,000
 Share earns:
 Continuing operations 1.35 1.22
 Gain on disposition -- .10
 Net 1.35 1.32
 Quarter Dec. 31:
 Revenues $120,380,000 $110,703,000
 Income:
 Net 8,475,000 7,609,000
 Share earns:
 Net .37 .33
 Financial position at year-end:-
 Working capital $ 44,866,000 $ 42,673,000
 Current ratio 1.5 1.5
 Debt to capitalization ratio:
 Manufacturing 1 pct. 2 pct.
 Financial services 77 pct. 68 pct.
 -0- 1/27/92
 /CONTACT: Charles R. Campbell of Federal Signal, 708-954-2020/
 (FSS) CO: Federal Signal Corp. ST: Illinois IN: TRN SU: ERN


KD -- NY071 -- 3812 01/27/92 13:44 EST
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Date:Jan 27, 1992
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