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GENCORP REPORTS IMPROVED THIRD QUARTER OPERATING RESULTS

 GENCORP REPORTS IMPROVED THIRD QUARTER OPERATING RESULTS
 FAIRLAWN, Ohio, Sept. 16 /PRNewswire/-- GenCorp (NYSE: GY) reported net income of $4.9 million or $0.15 per share for the third quarter of fiscal 1992, comparable to the third quarter of 1991. Higher operating profit and lower interest expense for the third quarter of 1992 were partially offset by one-time costs of $0.04 per share associated with retiring $103 million of subordinated debt. In addition, 1991 third quarter income benefitted from the recovery on the settlement of certain legal proceedings of $0.04 per share.
 Sales in the third quarter of 1992 totaled $452 million, 6 percent below the 1991 level. GenCorp Automotive had substantial sales growth while GenCorp Polymer Products sales declined slightly, reflecting continued softness in the U.S. economy. Aerojet sales for the quarter decreased, primarily due to lower ordnance sales.
 Segment operating profit increased to $24.7 million in the third quarter of 1992, compared to $21.5 million in the third quarter of 1991. Improved performance at GenCorp Automotive was accompanied by stable operating profit at GenCorp Polymer Products and a decline at Aerojet.
 For the first nine months of 1992, sales of $1,413 million were even with 1991 while operating profit increased 20 percent to $86.5 million. Year-to-date net income of $20.7 million and earnings per share of $0.65 were 33 percent above 1991 levels.
 GenCorp Chairman and Chief Executive Officer, A. William Reynolds, said, "We continue to be encouraged by the underlying strength and stability of our businesses in a challenging environment. Although third quarter results were below our expectations due to an unanticipated non-recurring manufacturing problem at Aerojet, the company has made significant progress throughout the year in improving operating performance and restructuring its financial resources."
 In July, the company completed a public offering of $115 million of 8 percent subordinated debentures that are convertible into shares of GenCorp common stock. The proceeds from this financing were used to retire $103 million of existing high-yield subordinated notes and debentures. This financing, when combined with the April 1992 credit agreement and the expiration of interest rate swaps, will reduce interest expense by approximately $1 million per month and lengthen the company's debt maturities.
 In the third quarter of 1992, sales for GenCorp Automotive of $104 million were 22 percent above the third quarter of 1991. Year-to-date sales of $313 million were up 24 percent over 1991. The increase was primarily due to higher shipments in key vehicle sealing programs, a trend that began in the first quarter of 1992 with the introduction of the General Motors Grand Am, Skylark and Achieva cars and the Suburban light truck. New vibration control programs for Mazda and Toyota also contributed to the year-to-year sales increase.
 Higher sales in the quarter enabled GenCorp Automotive to significantly reduce its operating loss to $1.1 million. Year-to-date, GenCorp Automotive has generated $1.1 million in operating profit, a $13.8 million improvement over last year.
 Aerojet sales in the third quarter were $228 million compared to $269 million in 1991. Year-to-date sales of $737 million were also below the 1991 level of $800 million. The reduction in sales was largely due to fewer deliveries of the Combined Effects Munition system. Sales in the smart weapons and the Advanced Solid Rocket Motor programs increased over 1991.
 Aerojet operating profit of $14.5 million was below the $17.1 million earned in the third quarter of 1991. The decrease was due to the cost of correcting a non-recurring manufacturing problem in a tactical rocket motor program. For the nine months of 1992, Aerojet operating profit of $49.1 million was 6% below 1991 operating profit of $52.5 million.
 At GenCorp Polymer Products, 1992 third quarter sales of $121 million were 4 percent below 1991. The decrease was due to soft demand for tennis balls and latex products. Year-to-date sales of $364 million were slightly higher than last year.
 Third quarter operating profit for GenCorp Polymer Products was $11.3 million, slightly above 1991 performance. Year-to-date operating profit of $36.3 million was 13 percent ahead of last year's performance.
 At the end of the third quarter of 1992, total debt was $393 million, compared to $396 million at the end of the second quarter. As a result of this year's financing activity, the average cost of debt was reduced to approximately 7 percent at the end of the third quarter, down from over 10 percent at the beginning of the year.
 GenCorp is a technology-based company with strong positions in aerospace, automotive and polymer products.
 Business Segment Information (Unaudited)
 GenCorp Inc.
 Three Months Ended Nine Months Ended
 (Dollars in millions, Aug. 31, Aug. 31, Aug. 31, Aug. 31,
 except per-share data) 1992 1991 1992 1991
 Net Sales
 Aerojet $227.9 $269.3 $737.0 $799.9
 GenCorp Automotive 103.5 84.9 312.5 252.6
 GenCorp Polymer Products 120.8 125.9 363.7 360.2
 $452.2 $480.1 $1,413.2 $1,412.7
 Income (Loss)
 Aerojet 14.5 17.1 49.1 52.5
 GenCorp Automotive (1.1) (6.5) 1.1 (12.7)
 GenCorp Polymer Products 11.3 10.9 36.3 32.1
 Segment Operating Profit 24.7 21.5 86.5 71.9
 Interest expense (10.7) (12.8) (37.0) (39.6)
 Corporate interest income
 and other (2.2) 2.7 (1.1) 5.6
 Corporate expenses (3.5) (3.4) (13.0) (11.4)
 Provision for income taxes (3.4) (3.3) (14.7) (11.0)
 Net Income $ 4.9 $ 4.7 $20.7 $15.5
 Net Income per share
 of common stock $.15 $.15 $.65 $.49
 Average shares of
 common stock outstanding
 (in thousands) 31,729 31,730 31,729 31,731
 Capital expenditures $20.5 $16.3 $58.0 $43.7
 Depreciation $19.4 $19.5 $59.7 $59.0
 Condensed Consolidated Balance Sheet (Unaudited)
 GenCorp Inc.
 Aug. 31, Nov. 30,
 (Dollars in millions) 1992 1991
 Assets
 Cash and marketable securities $ 26.9 $ 41.1
 Accounts receivable 179.9 169.6
 Inventories 183.6 166.9
 Prepaid expenses 48.4 58.7
 Total Current Assets 438.8 436.3
 Investments and other assets 142.2 142.6
 Property, plant and equipment, less
 accumulated depreciation 531.1 533.8
 $1,112.1 $1,112.7
 Liabilities and Shareholders' Equity
 Notes payable $ 14.4 $ .7
 Accounts payable-trade 91.9 113.7
 Income taxes 50.5 51.2
 Other current liabilities 208.2 213.8
 Total Current Liabilities 365.0 379.4
 Long-term debt 378.4 355.1
 Other liabilities 149.4 165.9
 Shareholders' equity 219.3 212.3
 $1,112.1 $1,112.7


The uncertainties involving environmental matters described in Note L of the Company's 1991 Annual Report continue.
 -0- 9/16/92
 /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: ARO AUT SU: ERN


SM -- CL003 -- 9942 09/16/92 08:41 EDT
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