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FEDERAL SIGNAL CORP. ANNOUNCES AN 11 PERCENT INCREASE IN NET INCOME FOR 1992 WITH FOURTH QUARTER; NET INCOME UP 14 PERCENT

 OAK BROOK, Ill., Jan. 26 /PRNewswire/ -- Federal Signal Corp. (NYSE: FSS) announced that its net income of $34.5 million increased 11 percent in 1992 from the $31.0 million reported in 1991. Earnings per share of $1.00 also increased 11 percent above the $.90 achieved in 1991. These results represent the eighth consecutive year of record earnings.
 Consolidated sales in 1992 reached a record $518.2 million, 11 percent above the $466.9 million reported in 1991. Return on shareholders' equity remained at 20.0 percent for 1992, equal to 1991's return. Backlogs declined slightly to $198.0 million at Dec. 31, 1992, compared to $203.2 million a year ago.
 The company's net income for the fourth quarter of 1992 was $9.6 million, a 14 percent increase over the $8.5 million reported in the fourth quarter of 1991. Earnings per share of $.28 for 1992's fourth quarter increased 12 percent above the $.25 achieved in the same period a year ago. Sales for the fourth quarter increased 9 percent to $131.0 million compared to $120.4 million in the fourth quarter of 1991.
 For the year ended Dec. 31, 1992, the Signal, Tool and Vehicle Groups each increased sales and earnings. The Sign Group experienced lower sales but was able to reduce the amount of its loss from the prior year. les. The Sign Group further restructured its operations during 1992, the results of which were a positive effect on this group's operating results for the year. The Sign Group reduced its loss every quarter in 1992 and ended the year with a positive fourth quarter, largely as a result of these restructurings.
 The Signal Group's 1992 earnings increased 22 percent on an 18 percent increase in sales. The increase in sales was principally due to the acquisition of VAMA in May 1992 and the successful introduction of new products made in the last few years. The group's increase in earnings was largely due to the Signal Products Division's ongoing success with new products and cost reduction programs.
 The Tool Group's earnings increased 11 percent for 1992 on a 12 percent increase in sales. Despite weakening overseas markets and slow but strengthening growth in domestic markets, the group's die component businesses reported substantial gains in market share. The group's carbide cutting tool businesses maintained their levels of sales and profitability despite continued weak demand in key market segments.
 The Vehicle Group's sales increased 12 percent for the year largely as a result of the acquisitions of Superior Emergency Vehicles and Frontline Emergency Vehicles at the end of 1991. These new acquisitions contribution to income was adversely affected by substantial reorganization costs. Ravo International's results declined due largely to substantial costs related to product development and operational changes as well as a weakening European economy. As a result, the Vehicle Group's income was up only 3 percent above the 1991 amount.
 Effective January 1992, the company adopted the provisions of Statements of Financial Accounting Standards No. 106, "Employers' Accounting for Postretirement Benefits Other Than Pensions," and No. 109, "Accounting for Income Taxes." The company elected to recognize the transition obligation for postretirement benefits, an after-tax charge of $1,231,000, in net income in the year of adoption. The company also elected to record an after-tax increase in income of $1,261,000 resulting from the remeasurement of the company's deferred income taxes. The net impact of these changes was an increase in net income of $30,000 which has been reported in the company's restated results for the first quarter of 1992. The provisions of these statements had an insignificant effect on operating results in 1992.
 Joseph J. Ross, chairman, president, and chief executive officer, stated, "We have seen some strengthening in our key domestic markets for each of our groups in the latter part of 1992. At the same time, we have also seen some deterioration in some of our important international markets, especially within Europe. We anticipate that growing domestic strength in 1993 will combine with a somewhat lesser growth rate in our international sales than that we have experienced in the last few years. We should continue to obtain significant benefits from recently introduced new products, improvements in our manufacturing processes and investments made in the training of our people. All of this leads us to be confident of another record year of sales and earnings for 1993."
 Federal Signal Corp., listed on the New York Stock Exchange, is a manufacturer and worldwide supplier of public safety, signaling and communications equipment, fire trucks, ambulances, street sweeping vehicles, parking control equipment, custom on-premise signage, carbide cutting tools, precision punches and related die components.
 FEDERAL SIGNAL CORP.
 Consolidated Income Data
 For the Years Ended 1992 and 1991
 Year ended Dec. 31: 1992 1991
 Revenues $518,223,000 $466,939,000
 Net income 34,460,000 31,046,000
 Cash flow from operations 40,239,000 43,903,000
 Share earns: Net income $ 1.00 $ .90
 Quarter ended Dec. 31: 1992 1991
 Revenues $130,984,000 $120,380,000
 Net income 9,648,000 8,475,000
 Share earns: Net income $ .28 $ .25
 Financial position at year-end:
 Working capital $ 49,500,000 $ 44,866,000
 Current ratio 1.6 1.5
 Debt to capitalization ratio:
 Manufacturing 2 pct. 1 pct.
 Financial services 82 pct. 77 pct.
 -0- 01/26/93
 /CONTACT: Charles R. Campbell of Federal Signal, 708-954-2020/
 (FSS)


CO: Federal Signal Corp. ST: Illinois IN: TRN SU: ERN

AH -- NY056 -- 9070 01/26/93 12:24 EST
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Date:Jan 26, 1993
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