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FIELDCREST CANNON REPORTS RESULTS

 EDEN, N.C., April 21 /PRNewswire/ -- Fieldcrest Cannon, Inc. (NYSE: FLD), today announced that sales in the first quarter of 1993 were $263.4 million compared to $271.4 million in the first quarter of last year, a decrease of 3 percent. Bed and bath product sales for the first quarter decreased by 4 percent and carpet and rug sales increased by 1 percent. Income before cumulative effect of accounting changes for the quarter was $3.7 million, or 31 cents per share, compared to $.6 million, or 6 cents per share, in the first quarter of 1992. As described below, the cumulative effect of accounting changes reduced income in the first quarter of 1993 by $70.3 million, or $5.86 per share, and resulted in a net loss of $66.6 million, or $5.55 per share.
 Bed and bath division operating income for the first quarter of 1993 increased significantly from 1992 levels. Department and specialty store sales increased in 1993, but a decline of sales in the mass merchant and promotional categories resulted in a net reduction in total sales. An improved product mix and lower cotton costs were the primary contributing factors to the higher operating income.
 Carpet and rug division operating income for the first quarter of 1993 was approximately even with 1992 levels. The continued strong operating income contribution resulted primarily from the increased sales level and improved product mix in the medium-to-high end segment of the residential and commercial markets.
 The company adopted FAS 106, "Employers' Accounting for Postretirement Benefits other than Pensions," and FAS 109, "Accounting for Income Taxes," effective Jan. 1, 1993. The cumulative effect of the accounting changes for FAS 106 and 109 reduced first quarter income by $21.8 million and $48.5 million, respectively. The one-time charges have no cash impact. Prospectively, the company expects its 1993 postretirement benefits expense and effective income tax rate to decline from 1992 levels by amounts that will favorably affect 1993 annual net income by approximately $2 million.
 On March 5, 1993, the company acquired the Caldwell trademark, Canada's leading brand name in towels, and the distribution and marketing operations of C. S. Brooks/Caldwell. C. S. Brooks/Caldwell also became a manufacturing contract supplier for the company. 1992 annual sales of Caldwell branded towels were approximately $20 million. Sales of the Caldwell branded towel for the company's account will begin at the end of June. The acquisition of these distribution and marketing operations allows the company to provide Canadian retailers with improved services and a wider diversity of products.
 The company remains cautiously optimistic for the remainder of the year and continues its efforts to improve the long-term profitability of its businesses.
 Fieldcrest Cannon, Inc., manufactures and markets bed and bath products under the Fieldcrest, St. Marys, Cannon Royal Family, Cannon Monticello, and private brand labels. Carpet and rug division products include high quality woven and tufted carpets and rugs marketed under the Karastan and Bigelow brands.
 Fieldcrest Cannon, Inc., common stock is traded on the New York Stock Exchange under the symbol "FLD".
 FIELDCREST CANNON, INC.
 Condensed Consolidated Statements
 (Dollars in thousands, except per share data)
 Three months ended March 31 1993 1992
 CONSOLIDATED STATEMENT OF INCOME
 Net sales:
 Bed and bath products $203,940 $212,442
 Carpet and rugs 59,508 58,910
 Total net sales 263,448 271,352
 Cost of sales 212,870 224,381
 Selling, general and administrative 35,364 34,899
 Total operating costs and expenses 248,234 259,280
 Operating income 15,214 12,072
 Interest expense 9,098 10,969
 Other deductions (income) 1 (17)
 Income before income taxes and accounting
 changes 6,115 1,120
 Income tax provision 2,383 493
 Income before accounting changes 3,732 627
 Cumulative effect of accounting changes (70,305) --
 Net income (loss) $(66,573) $ 627
 Average primary shares outstanding 12,000 10,462
 Net income before accounting changes $ .31 $.06
 Cumulative effect of accounting changes (5.86) --
 Primary earnings (loss) per share (5.55) .06
 Fully diluted earnings (loss) per share $(5.55) $.06
 The adoption of FAS 106, "Employers' Accounting for Postretirement Benefits other than Pensions," resulted in a pre-tax charge of $35.1 million ($21.8 million after tax; $1.82 per share). The adoption of FAS 109, "Accounting for Income Taxes," reduced net income by $48.5 million, or $4.04 per share. The new accounting standards were adopted effective Jan. 1, 1993, and the cumulative effect on prior years of the changes were charged to income in 1993.
 3/31/93 3/31/92
 CONSOLIDATED STATEMENT OF FINANCIAL POSITION
 Current assets:
 Cash $ 5,124 $ 6,095
 Accounts receivable 158,097 181,512
 Inventories 297,605 275,075
 Deferred tax assets -- 22,314
 Other prepaid expenses and current assets 7,028 5,643
 Total current assets 467,854 490,639
 Plant and equipment, net 360,975 383,080
 Deferred charges and other assets 32,404 25,285
 Total assets $861,233 $899,004
 Current liabilities:
 Short-term borrowings $ 23,087 $193,798
 Accounts and drafts payable 57,553 62,154
 Federal and state income taxes 4,752 1,567
 Deferred income taxes 16,226 --
 Accrued liabilities 80,106 76,414
 Current portion of long-term debt 10,138 14,469
 Total current liabilities 191,862 348,402
 Long-term debt 355,723 251,038
 Deferred income taxes 41,902 36,769
 Other non-current liabilities 52,935 18,627
 Shareowners' equity 218,811 244,168
 Total liabilities and shareowners' equity $861,233 $899,004
 Three months ended March 31 1993 1992
 CONSOLIDATED STATEMENT OF CASH FLOWS
 Cash flows from operating activities:
 Net income (loss) $(66,573) $ 627
 Cumulative effect of accounting changes 70,305 --
 Depreciation and amortization 10,101 9,625
 Deferred income taxes 1,197 111
 Working capital and other (32,319) (17,518)
 Net (used in) operating activities (17,289) (7,155)
 Cash flows from investing activities:
 Additions to plant and equipment (1,878) (4,397)
 Proceeds from disposal of plant and equipment 8,407 53
 Total cash provided by (used in) investing
 activities 6,529 (4,344)
 Net cash provided by financing activities 11,219 8,256
 Increase (decrease) in cash $ 459 $ (3,243)
 -0- 4/21/93
 /CONTACT: K. W. Fraser Jr., chief financial officer, 919-627-3253, or T. R. Staab, vice president-finance, 919-627-3117, both of Fieldcrest Cannon/
 (FLD)


CO: Fieldcrest Cannon, Inc. ST: North Carolina IN: TEX SU: ERN

GK-WO -- NY035 -- 8652 04/21/93 10:59 EDT
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Date:Apr 21, 1993
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