FISCHER & PORTER REPORTS THIRD QUARTER RESULTS
FISCHER & PORTER REPORTS THIRD QUARTER RESULTS WARMINSTER, Pa., Nov. 14 /PRNewswire/ -- Fischer & Porter Company
(AMEX: FP) today reported sales of $55,475,000 and a net loss of $2,274,000 or $.45 per share for the third quarter of 1991.
These operating and financial results reflect the effects of the worldwide recessionary economy, the rationalization of the company's business and the evolution of its products. In the comparable quarter of 1990, sales were $62,570,000 with a net loss of $1,940,000 or $.38 per share. Sales decreased $4 million in the United States, principally in the Instrument Business, due to the continuing recession. Sales in International decreased $3.1 million due to the differences in currency exchange rates. At comparable exchange rates, sales by International would have been essentially the same as the prior year. Income from operations was $1.1 million lower than the prior year, as a result of $600,000 of cost associated with reduction of personnel in a European manufacturing operation and no sales growth for International. The cost reduction program undertaken in the United States earlier in this year had a positive effect as U.S. income from operations increased $1.1 million despite lower sales. Combined interest and currency gains were virtually unchanged; consequently, pretax income also declined $1.1 million. The absence of tax benefits for pretax losses in the United States and a European subsidiary resulted in a consolidated tax provision despite a consolidated, pretax loss. For the first nine months of 1991, the company incurred a net loss of $1,987,000 or $.41 per share on sales of $174,940,000. Sales were $175,029,000 in 1990 with a net loss of $1,571,000 or $.34 per share. Sales were slightly higher in International and slightly lower in the United States. Currency exchange rates had no impact on comparability of sales. Operating income was approximately $800,000 lower this year. The cost reductions in the United States had a major influence in limiting the decline in operating income after considering slackening sales, the $600,000 severance cost and normal, inflationary cost increases, worldwide. The recession in Europe has significantly affected one subsidiary, in particular, such that its pretax (and aftertax) loss in 1991 was $3.2 million (including the severance cost previously mentioned) compared to a pretax (and aftertax) profit of $400,000 in 1990. In the United States, income from operations increased $2 million. Interest expense was $647,000 lower due to reduced debt levels. Currency losses of $202,000 were incurred in 1991 whereas, in 1990, there were currency gains of $718,000. Pretax income was $1.1 million lower and the unusual relationship between pretax income and the tax provision is as was explained relative to the third quarter. Orders received for the first nine months of 1991 were $167.5 million compared to $189 million in 1990. Orders in the United States declined $9.6 million. Orders in International were $11.9 million lower than the prior year of which approximately $6.2 million was due to different currency exchange rates. For the third quarter, orders were $51.5 million in 1991 and $56.5 million in 1990. Most of the decrease was in International, principally due to currency rates. The backlog of orders at the end of September 1991 was $64.5 million compared to $72 million at Dec. 31, 1990, and $68.5 million at June 30, 1991. The level of orders received so far in 1991 and expected in the near term are less than previously anticipated, on a worldwide basis. The recession is continuing to have an adverse effect on orders, both for systems as well as instruments. In the beginning of 1991, the company eliminated substantial costs in the United States and is obtaining the benefit from these actions. This activity was necessary to lower the cost structure on a permanent basis. Management currently is performing an intensive strategic analysis of the business. A different corporate and operating structure may be required due to changing worldwide economies and technologies, the development of new products by the company and evolving markets. When this analysis is completed, the company said, it is possible that asset writedowns and/or reserves may result; although it is not possible, at this time, to quantify to what extent. Additional information will be forthcoming, as corporate decisions are made. It is likely, however, that the company will report a net loss in the fourth quarter of 1991 and for the year. Also, the company said it will be looking at the possibility of implementing FASB 106 (Postretirement Benefits Other than Pensions) in the fourth quarter of 1991 for a modest life insurance program for U.S. retirees. The one-time adjustment could be in the range of $5 million. In addition, the company and its U.S. lenders will be rearranging the existing revolving credit facility to an asset-based formula facility that should provide adequate financing to the company for its development. Fischer & Porter Company is a world leader in measurement and control technologies. The company's products include flowmeters, transmitters, process controllers, microcomputers, distributed control systems, analytical instruments and various types of disinfection equipment. Throughout the world, Fischer & Porter instruments and systems are an integral part of such varied enterprises as chemical plants, pharmaceutical plants, food and beverage processing facilities, pulp and paper mills, mines, metal refineries and municipal and industrial water and wastewater treatment plants. FISCHER & PORTER COMPANY Consolidated Statements of Income (Unaudited; 000s omitted) Periods ended Three months Nine months Sept. 30 1991 1990 1991 1990 Net sales $55,475 $62,570 $174,940 $175,029 Costs and expenses: Cost of sales 36,757 41,608 111,818 111,305 Research & development 3,132 3,506 9,730 9,814 Selling, general & administrative expenses 15,995 16,759 49,202 48,894 Total 55,884 61,873 170,750 170,013 (Loss) income from operations (409) 697 4,190 5,016 Interest expense 907 1,097 2,424 3,071 Foreign exchange (gains) losses (111) (320) 202 (718) (Loss) income before provision for income taxes (1,205) (80) 1,564 2,663 Provision for income taxes 1,069 1,860 3,551 4,234 Net (loss) income (2,274) (1,940) (1,987) (1,571) Net (loss) income per share ($.45) ($.38) ($.41) ($.34) Average shares 5,222 5,210 5,215 5,208 Orders received and backlog: Orders received $51,500 $56,500 $167,500 $189,000 Backlog of unfilled orders 64,500 75,500 64,500 75,500 Consolidated Balance Sheets (000s omitted) Sept. 30, 1991 Dec. 31, 1990 (Unaudited) Assets: Cash $8,630 $8,645 Receivables 51,168 50,850 Inventories 52,848 62,451 Prepaid expenses 1,907 1,760 Total current assets 114,553 123,706 Property, plant & equipment, net 41,549 43,958 Other assets 6,881 7,303 Total 162,983 174,967 Liabilities and shareholders' equity: Current portion of long-term debt 1,223 1,505 Notes payable 5,744 3,559 Accounts payable and accrued expenses 36,809 42,867 Total current liabilities 43,776 47,931 Long-term debt 25,659 26,897 Other noncurrent liabilities 25,709 26,433 Preferred stock 2,140 2,140 Shareholders' equity 65,699 71,566 Total 162,983 174,967 /delval/ -0- 11/14/91 /CONTACT: Laurence P. Finnegan Jr. of Fischer & Porter, 215-674-6102/ (FP) CO: Fischer & Porter Company ST: Pennsylvania IN: SU: ERN CC-KA -- PH027 -- 1152 11/14/91 14:20 EST
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|Date:||Nov 14, 1991|
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