Printer Friendly

FIRST BRANDS EARNINGS INCREASE IN FISCAL 1993 THIRD QUARTER

 DANBURY, Conn., May 11 /PRNewswire/ -- First Brands Corporation (NYSE: FBR) announced today improved third quarter and nine months earnings due to increased operating margins and lower interest expense.
 Net income for the fiscal 1993 third quarter which ended March 31, 1993, increased to $8,932,000 or $.41 per share, from a loss of $1,081,000 or $.05 per share a year ago. Last year's results included an extraordinary charge of $7,128,000 or $.33 per share related to repurchased debt (excluding the extraordinary charge, income per share was $.28 per share). Revenues were $219,496,000 compared with $218,999,000 recorded in the third quarter last year.
 For the nine month period, net income was $38,822,000 or $1.78 per share versus $21,220,000 or $.97 a share last year. Last year's nine month results included an extraordinary charge of $10,760,000 or $.49 a share related to repurchased debt and the one-time restructuring expense of $3,500,000 or $.09 per share (excluding both the extraordinary charge and one-time restructuring expense, income per share was $1.55 per share). Revenues were $756,511,000 in this year's nine month period compared to last year's nine month sales of $723,466,000.
 Commenting on the results, Alfred E. Dudley, chairman and CEO, stated, "Our third quarter earnings increase largely resulted from increased operating margins and lower interest expense. Due to the sluggish retail environment and a previous quarter buy-in before a price increase took effect, total sales remained at prior year levels after inclusion in 1993 of our new A&M business. Soft sales occurred in nearly all domestic packaged goods markets in the third quarter due to economic conditions and harsh weather which debilitated many markets in mid-March. International sales remained soft due to the recessionary climate in Canada. Operating margins increased due to lower advertising and promotion costs compared to last year's higher spending level to launch new automotive products and the Glad-Lock expansion."
 "Our brands continue to be strong and have maintained their leading market shares despite the poor economic environment through the strength of our marketing programs and the product differentiation and quality that have always characterized First Brands' products. At issue with most investors has been a concern over private label encroachment, but during the recent quarter our largest brand, Glad, actually increased market share in its largest class of trade."
 Mr. Dudley continued, "Consumer confidence has not yet returned and until effective federal budgetary plans are made and the economy recovers, domestic retail markets will probably see little growth. Our near-term goals are to execute marketing programs conducive to such an environment while continuing to carefully watch costs and expenses. We remain committed to our long-term goals of internal growth through new products, increasing our premium mix, acquisitions of complementary businesses or products, and continuing reduction of costs and long-term debt. Now, in our fourth quarter of fiscal 1993, we see modest sales increases and expect continuing profit improvement."
 First Brands Corporation develops, manufactures, markets and sells leading consumer products sold under the Glad, Glad-Lock, Scoop Away, Ever Clean, Prestone, STP, and Simoniz brands.
 FIRST BRANDS CORPORATION
 Consolidated Condensed Statements of Income
 (Unaudited -- In thousands, except per share amounts)
 Nine months ended March 31 1993 1992(B)
 Net sales(A) $756,511 $723,466
 Cost of goods sold 472,804 440,314
 Selling, general & administrative expenses 179,720 176,391
 Operations restructuring expense -- 3,500
 Amortization and other depreciation 18,234 19,473
 Interest expense 17,553 29,121
 Discount on sale of receivables 3,133 --
 Other income (expense), net 443 (498)
 Income before provision for income
 taxes and extraordinary item 65,510 54,169
 Provision for income taxes 26,688 22,189
 Income before extraordinary item 38,822 31,980
 Extraordinary charge related to repurchase
 of subordinated debt, net of taxes -- (10,760)
 Net income 38,822 21,220
 Net income per common share and
 common equivalent:
 Income before extraordinary item $1.78 $1.46
 Extraordinary item -- (0.49)
 Net income $1.78 $0.97
 Weighted average common & common
 equivalent shares outstanding 21,868 21,832
 (A) -- Net sales by category
 Plastic wrap and bags $428,786 $442,069
 Other home products 39,778 --
 Antifreeze/coolant 131,131 129,924
 Other automotive products 156,816 151,473
 Total 756,511 723,466
 -- Net sales geographically
 United States $684,885 $648,808
 International 71,626 74,658
 Total 756,511 723,466
 (B) -- Results restated to reflect the effect of changing methods of accounting for inventories (LIFO to FIFO) and of adopting SFAS 109, Accounting for Income Taxes. Previously reported per share results were increased by $.04 per share (income before extraordinary item) and decreased by $.02 per share (income after extraordinary item).
 FIRST BRANDS CORPORATION
 Consolidated Condensed Statements of Income
 (Unaudited -- In thousands, except per share amounts)
 Third quarter ended March 31 1993 1992(B)
 Net sales(A) $219,496 $218,999
 Cost of goods sold 136,736 129,566
 Selling, general & administrative expenses 54,961 63,037
 Amortization and other depreciation 6,586 6,821
 Interest expense 5,370 9,114
 Discount on sale of receivables 948 --
 Other income (expense), net 239 (212)
 Income before provision for income
 taxes and extraordinary item 15,134 10,249
 Provision for income taxes 6,202 4,202
 Income before extraordinary item 8,932 6,047
 Extraordinary charge related to repurchase
 of subordinated debt, net of taxes -- (7,128)
 Net income (loss) 8,932 (1,081)
 Net income per common share and
 common equivalent:
 Income before extraordinary item $0.41 $0.28
 Extraordinary item -- (0.33)
 Net income $0.41 $(0.05)
 Weighted average common & common
 equivalent shares outstanding 21,933 21,813
 (A) -- Net sales by category
 Plastic wrap and bags $132,041 $149,472
 Other home products 15,901 --
 Antifreeze/coolant 15,514 13,232
 Other automotive products 56,040 56,295
 Total 219,496 218,999
 -- Net sales geographically
 United States $198,843 $198,127
 International 20,653 20,872
 Total 219,496 218,999
 (B) -- Results restated to reflect the effect of changing methods of accounting for inventories (LIFO to FIFO) and of adopting SFAS 109, Accounting for Income Taxes. Previously reported per share were unchanged (income before extraordinary item) and decreased by $.07 per share (income after extraordinary item).
 -0- 5/11/93
 /CONTACT: Donald A. DeSantis, vice president and chief financial officer of First Brands, 203-731-2306/
 (FBR)


CO: First Brands Corporation ST: Connecticut IN: HOU SU: ERN

TS-PS -- NY025 -- 6950 05/11/93 10:37 EDT
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:May 11, 1993
Words:1094
Previous Article:PEPSI-COLA INTRODUCES REVOLUTIONARY 24 CAN-PACK; 'THE CUBE' MEETS GROWING DEMAND FOR LARGER-SIZE PACKAGES
Next Article:DRUG SCREENING SYSTEMS ANNOUNCES SALE OF 625,000 COMMON SHARES, 1-FOR-10 REVERSE STOCK SPLIT; REPORTS THIRD QUARTER/NINE MONTHS RESULTS
Topics:


Related Articles
GENESEE CORPORATION ANNOUNCES THIRD QUARTER SALES AND EARNINGS
CONAGRA REPORTS RECORD THIRD QUARTER AND NINE MONTH EARNINGS
SARA LEE CORPORATION REPORTS RECORD EARNINGS FOR THIRD QUARTER 1993
PERRIGO COMPANY ANNOUNCES STRONG QUARTER OF SALES, EARNINGS GROWTH AND EXECUTIVE APPOINTMENTS
OMC RESTRUCTURING PROGRAM AIMED AT IMPROVING PROFITS RESULTS IN OPERATING LOSS FOR THIRD QUARTER
UNI-MARTS, INC. ANNOUNCES THIRD QUARTER FISCAL 1993 RESULTS
SYBRON SALES AND NET INCOME UP BEFORE EXTRAORDINARY ITEM
ESCO ELECTRONICS CORPORATION REPORTS INCREASED FISCAL 1993 THIRD QUARTER SALES AND PROFITS
EMERSON REPORTS RECORD RESULTS IN SALES, NET EARNINGS AND EARNINGS PER SHARE FOR THIRD QUARTER AND FIRST NINE MONTHS
CONAGRA REPORTS RECORD THIRD QUARTER AND NINE MONTH EARNINGS

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters