Printer Friendly

GENCORP ANTICIPATES IMPROVED EARNINGS IN FIRST QUARTER

 GENCORP ANTICIPATES IMPROVED EARNINGS IN FIRST QUARTER
 NEW YORK, Feb. 18 /PRNewswire/ -- GenCorp (NYSE: GY) anticipates improved earnings the first quarter of 1992, company executives said today.
 In a speech before the New York Society of Security Analysts, GenCorp Chairman and Chief Executive Officer A. William Reynolds said that results for the company's first quarter, which ends Feb. 28, should be "better than the first quarter of 1991 and in the black." In the first quarter of 1991, GenCorp experienced a loss of $0.05 per share.
 Reynolds and President and Chief Operating Officer Jack L. Heckel also provided a review of the company's operating results for 1991, an outlook for the remainder of 1992 and outlined GenCorp's longer term business prospects.
 In the address, Reynolds stated that for the first quarter of 1992, "Aerojet sales should be about even with the first quarter of 1991." He said the recent announcement of defense program cancellations has not affected first quarter results. Sales at GenCorp Automotive "will be higher than last year because of increased market penetration and higher volume" in the company's vehicle sealing product lines. "We expect GenCorp Polymer Products sales also to be higher" because of continued success penetrating markets in fabricated plastics, wallcovering and tennis balls in both the U.S. and Europe, he stated.
 Commenting about the balance of 1992, Reynolds said there are reasons for cautious optimism. "For GenCorp as a whole there is still a great deal of uncertainty relative to funding for Aerojet programs and relative to recovery in automotive markets. However, from what we know at the current time it is not unreasonable to expect modest improvement in our operating results in 1992 relative to 1991," he said.
 He said that while the company will be affected by cancellation of the Small ICBM program and cessation of production of Peacekeeper missiles, "we expect the impact of program cancellations to be manageable."
 Reynolds indicated that although sales for Aerojet will probably be lower than 1991, several key programs are well supported in Congress and by the president. "Funding is in place to support a reduced stream of deliveries of propulsion programs. We are encouraged by the solid support for SDI-related programs and major space sensor systems."
 "In 1992 GenCorp Automotive should see some improvement in revenue and a return to profitability. At GenCorp Polymer Products, we expect growth in both sales and earnings" as a result of investments in the wallcovering and tennis ball businesses.
 Reynolds said GenCorp is "currently in negotiations to refinance the large portion of our debt that matures in 1993." The aim of these refinancing actions, said Reynolds, is to "lengthen and stagger our maturities, diversify our sources of funds and lower our borrowing costs, providing us with a secure, cost effective financing base for the future."
 Underscoring the company's confidence in its future, Heckel highlighted several programs that will contribute significantly to the company's success in the 1990's. He cited longer-term growth opportunities for GenCorp in smart weapons, SDI-related programs, automotive vehicle sealing and vibration control products, latex coatings, wallcovering, and tennis balls. In summing up, Heckel said, "We are excited about GenCorp's longer-term outlook. We believe we are well-positioned in each of our businesses because we have technological capabilities that add value to our customers."
 GenCorp is a technology-based company with strong positions in aerospace, automotive and related polymer products.
 -0- 2/18/92
 /CONTACT: Cynthia Riddle, communications, 216-869-4494, or Richard A. Nelson, investor relations, 216-869-4411, both of GenCorp/
 (GY) CO: GenCorp ST: Ohio IN: SU:


BN-BR -- CL014 -- 9978 02/18/92 13:16 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Feb 18, 1992
Words:598
Previous Article:DISNEY ANNOUNCES ACTIONS AT ANNUAL MEETING
Next Article:BARD REQUESTS IDE FOR HYLAGEL-MUSCLE
Topics:


Related Articles
GENCORP REPORTS IMPROVED FIRST QUARTER RESULTS
GENCORP ANNUAL MEETING REMARKS
GENCORP REPORTS SIGNIFICANTLY IMPROVED FIRST QUARTER RESULTS
GENCORP CHAIRMAN AND CEO SPEAKS TO SHAREHOLDERS AT ANNUAL MEETING MARCH 31, 1993
GENCORP REPORTS IMPROVED SECOND QUARTER RESULTS
Improvements Continue At Gencorp In First Quarter
GenCorp Reports $0.41 First Quarter EPS, a 32% Improvement Versus 1998.
GenCorp Reports Improved 3rd Quarter 2000 EPS of $0.46.
GenCorp to Web Cast First Quarter Earnings Results.

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