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GENCORP DECLARES ENCOURAGING YEAR-END EARNINGS

 GENCORP DECLARES ENCOURAGING YEAR-END EARNINGS
 FAIRLAWN, Ohio, Jan. 9 /PRNewswire/ -- GenCorp (NYSE: GY) today


reported that net income for fiscal year 1991 was $32 million, or $1.00 per share, compared to $63 million, or $1.99 per share, in 1990. For 1990, net income included significant gains from discontinued operations and unusual items.
 Net sales in fiscal year 1991 increased 12 percent to $1.99 billion versus $1.78 billion in 1990. The increase in sales occurred primarily at Aerojet, but GenCorp Polymer Products also experienced a modest increase.
 Operating profit from the company's three segments totaled $111 million for fiscal year 1991, down from $154 million in 1990. Excluding restructuring and unusual items, segment operating profit in 1990 was $125 million. Aerojet and GenCorp Polymer Products generated higher earnings while GenCorp Automotive incurred an operating loss.
 Income from continuing operations declined to $32 million in 1991 from $51 million in 1990. Before restructuring and unusual items, income from continuing operations in 1990 was $34 million. In 1991 the profit decline at GenCorp Automotive was largely offset by higher earnings at Aerojet and GenCorp Polymer Products and lower interest expense.
 Total debt at the end of 1991 was $356 million, $6 million below the level at the end of the third quarter, yet $9 million above the level at the end of 1990. Although debt at the end of 1991 was slightly above the prior year's level, throughout 1991 average debt was significantly below 1990 levels, reducing interest expense by $10 million.
 GenCorp Chairman and Chief Executive Officer, A. William Reynolds said of fiscal year 1991, "The overall performance of our business units in 1991 was encouraging. Both Aerojet and GenCorp Polymer Products generated higher earnings than initially anticipated for 1991. The recession and a loss of market share by U.S.-based vehicle producers had a negative impact at GenCorp Automotive, reducing performance to well below our plan for the year.
 "During the year, we made important advances in strengthening the competitive position of our businesses. Specifically, we began construction of a new latex plant to serve the paper industry; we added manufacturing capacity to our Penn tennis ball facility; we acquired two leading wallcovering brands to strengthen our leadership position in the commercial wallcovering business; and we were selected as the prime contractor for the U.S. Army's Sense and Destroy Armor submunitions program. Our operating performance has enabled us to maintain and support a substantial level of capital investment which is designed to generate long-term growth."
 Aerojet's sales increased 30 percent during fiscal year 1991 to $1,142 million from $878 million in 1990. The principal sales increase occurred in the ordnance business which had a higher number of Combined Effects Munition (CEM) systems deliveries. Sales were slightly lower in the defense electronics business while the propulsion business experienced a modest increase.
 Segment operating profit, excluding provisions for restructuring and unusual items, for Aerojet in 1991 was $75 million compared to $65 million in 1990. This increase was due to higher sales levels and reduced costs in both the propulsion and ordnance businesses. The increase in CEM system deliveries had no corresponding profit impact.
 Sales for GenCorp Polymer Products increased 5 percent in fiscal year 1991 to $483 million from $461 million in 1990. The increase was principally a result of the acquisition of two commercial wallcovering product lines and sales growth in Penn Racquet Sports both in the United States and in Europe.
 Due to a strong fourth quarter, segment operating profit for GenCorp Polymer Products rose to $41 million in 1991, from $37 million in 1990. Improved margins in the latex business and at Penn Racquet Sports contributed to this increase in profit.
 GenCorp Automotive's sales declined in fiscal year 1991 to $368 million, from $436 million in 1990. Improved market penetration in vehicle sealing and vibration control partially offset the significant decline in domestic vehicle production for the full year.
 As a result, GenCorp Automotive had an operating loss in 1991 of $5 million, down from a profit of $23 million in 1990. The decrease was primarily attributable to lower sales but also included higher costs associated with new program launches. GenCorp Automotive did close the year with an $8 million operating profit in the fourth quarter.
 GenCorp is a technology-based company with strong positions in aerospace, automotive and related polymer products.
 Business Segment Information (Unaudited)
 GenCorp
 Three Months Ended Twelve Months Ended
 (Dollars in millions, Nov. 30, Nov. 30, Nov. 30, Nov. 30
 except per-share data) 1991 1990 1991 1990
 Net Sales
 Aerojet $ 342 $ 287 $ 1,142 $ 878
 GenCorp Automotive 115 109 368 436
 GenCorp Polymer Products 123 110 483 461
 $ 580 $ 506 $ 1,993 $ 1,775
 Income (Loss)
 Aerojet 22 25 75 65
 GenCorp Automotive 8 8 (5) 23
 GenCorp Polymer Products 9 5 41 37
 Restructuring and
 Unusual Items - - - 29
 Segment Operating Profit 39 38 111 154
 Interest expense (12) (13) (52) (62)
 Corporate interest income
 and other - 3 6 6
 Corporate expenses (5) (4) (16) (16)
 Provision for income taxes (6) (8) (17) (31)
 Income from Continuing
 Operations 16 16 32 51
 Discontinued operations,
 net of income taxes - (3) - (6)
 Gain on sale of
 discontinued operations,
 net of income taxes - - - 18
 Income (Loss) from
 Discontinued Operations - (3) - 12
 Net Income $ 16 $ 13 $ 32 $ 63
 Per Share Of Common Stock
 Income from Continuing
 Operations $ .51 $ .49 $ 1.00 $ 1.60
 Discontinued operations - (.06) - (.16)
 Gain (Loss) on sale of
 discontinued operations - (.01) - .55
 Income (Loss) from
 Discontinued Operations - (.07) - .39
 Net Income $ .51 $ .42 $ 1.00 $ 1.99
 Average shares of
 common stock outstanding
 (in thousands) 31,730 31,731 31,730 31,731
 Capital expenditures $ 49 $ 29 $ 93 $ 79
 Depreciation and
 amortization 18 17 79 76
 Condensed Consolidated Balance Sheet (Unaudited)
 GenCorp
 Nov. 30, Nov. 30,
 (Dollars in millions) 1991 1990
 Assets
 Cash and marketable securities $ 41 $ 31
 Accounts receivable 169 145
 Inventories 167 183
 Prepaid expenses 59 56
 Total Current Assets 436 415
 Investments and other assets 143 98
 Discontinued operations, net - 37
 Property, plant and equipment, less
 accumulated depreciation 534 528
 $1,113 $1,078
 Liabilities and Shareholders' Equity
 Notes payable $ 1 $ 2
 Accounts payable-trade 113 100
 Income taxes 51 32
 Other current liabilities 214 211
 Discontinued operations, net - 20
 Total Current Liabilities 379 365
 Long-term debt 355 345
 Other liabilities 166 168
 Shareholders' equity 213 200
 $1,113 $1,078
 -0- 1/9/92
 /CONTACT: Cynthia Riddle, communications, 216-869-4494 or Richard Nelson, Investor Relations, 216-869-4411, both of GenCorp/
 (GY) CO: GenCorp ST: Ohio IN: ARO AUT SU: ERN


LC -- CL003 -- 8120 01/09/92 10:09 EST
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