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 OAK BROOK, Ill., Oct. 18 /PRNewswire/ -- For the 28th consecutive quarter, Federal Signal Corporation (NYSE: FSS) reported record quarterly earnings. Third quarter earnings of $.31 per share are 15 percent greater than the $.27 per share attained in the third quarter of 1992. All four of the company's operating groups reported higher earnings versus the prior year's third quarter amounts. Incoming orders increased 13 percent as all four groups showed significant increases in new business.
 Net income rose 15 percent in 1993s third quarter to $10.7 million compared to $9.3 million reported in the third quarter of 1992. Sales increased 5 percent to $142.7 million, compared to $135.5 million in the same period a year ago. The 13 percent increase in new business resulted in a backlog of $198.7 million.
 Third quarter earnings included a required charge of $.6 million, or $.02 per share, for the year-to-date effect on the federal income tax provision due to the corporate tax rate being raised to 35 percent by the enactment of the 1993 Budget Reconciliation Act. This charge was essentially offset by a credit to the income tax provision for the effect of the favorable results of audits of the company's income tax returns also completed in the third quarter.
 Net income for the first nine months increased to $28.4 million, 15 percent higher than the $24.8 million reported for the same period in 1992. Sales for the first nine months increased 8 percent to $416.7 million compared to $387.2 million for the first nine months of 1992. Earnings of $.82 per share were 14 percent above the $.72 per share reported in the same period a year ago.
 All four groups posted improved operating earnings compared to the third quarter of 1992. The Signal, Vehicle and Sign Groups posted strong earnings gains compared to last year's third quarter.
 The Signal Group earnings increased 20 percent on a sales increase of 6 percent. Signal Products and Federal APD both achieved significantly improved earnings as a result of the combined benefits of higher sales and greater operational efficiencies. VAMA, the company's Spain-based signal unit, saw both sales and earnings decline due to the depressed Spanish economy. VAMA's new business in the third quarter, however, was more than double the level recorded in 1992's third quarter. VAMA's increase in new business, coupled with solid increases in incoming orders for Signal Products and Federal APD, resulted in the group's orders being 17 percent greater than the prior year levels. This increase will benefit the group's results in the fourth quarter of 1993.
 The Vehicle Group achieved a 13 percent increase in operating income as sales increased 6 percent above last year's third quarter. Most of the sales increase and about one-half of the earnings increase resulted from the addition of Guzzler Manufacturing, acquired late in the first quarter of this year. No sales or earnings of Guzzler were included in the Vehicle Group's results in
the third quarter of 1992. Strongly contributing to the group's higher earnings were the significant efficiencies achieved in the third quarter in the production of the P23 Airport Rescue Fire Fighting vehicles being built for the U.S. Air Force under a multi-year contract. Guzzler's new business and a 10 percent higher level of fire apparatus orders account for the group's 10 percent increase in incoming orders over last year's levels. The company's management continues to expect significantly improved order trends for fire apparatus due to current high levels of bidding activity in both domestic and overseas markets which should benefit results in early 1994.
 The Sign Group posted earnings of $.3 million in the third quarter of 1993 compared to a loss of $.3 million in the third quarter of 1992, despite a 4 percent decline in sales. The Sign Group continued to see benefits from its ongoing restructuring efforts through improved efficiencies and lower operating expense levels versus year ago amounts. Also encouraging is the group's 26 percent increase in new business over that reported in the third quarter of 1992.
 Earnings of the Tool Group increased slightly on a sales increase of 7 percent. Sales and earnings of the company's carbide cutting tool businesses continued to be above last year. While the die component and precision parts business' domestic markets continued to show improvement, sales in its international markets were down sharply during the third quarter of 1993 compared to the quite strong international markets experienced in 1992's third quarter, thereby resulting in essentially flat earnings for the group.
 Joseph J. Ross, chairman, president and chief executive officer, stated, ``The continuing improvement in the results of the Sign Group, strong incoming orders in the Signal and Vehicle Groups, and some strengthening in certain overseas markets should provide a solid foundation for continued sales and earnings improvements in the fourth quarter and into 1994.''
 Federal Signal Corporation, 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 and vacuum loader vehicles, parking control equipment, custom on-premise signage, carbide cutting tools, precision punches and related die components.
 Consolidated Income Data
 Quarter Sept 30: 1993 1992
 Revenues $142,740,000 $135,513,000
 Net income 10,661,000 9,275,000
 Share earns: Net income .31 .27
 9 months:
 Revenues $416,650,000 $387,239,000
 Net income 28,414,000 24,812,000
 Share earns: Net income .82 .72
 -0- 10/18/93
 /CONTACT: Charles R. Campbell of Federal Signal, 708-954-2020/

CO: Federal Signal Corporation ST: Illinois IN: SU: ERN

PS -- NY045 -- 3330 10/18/93 11:11 EDT
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Publication:PR Newswire
Date:Oct 18, 1993

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