GENCORP REPORTS STRONG SECOND QUARTER RESULTS
GENCORP REPORTS STRONG SECOND QUARTER RESULTS FAIRLAWN, Ohio, June 9 /PRNewswire/ -- GenCorp (NYSE: GY) reported
improved results from operations in the second quarter of its fiscal year. The company's net income was $14 million for the second quarter, amounting to $0.43 per share. Last year's second quarter net income was $13 million, or $0.39 per share. Net income for the second quarter of 1991 included a gain on the sale of broadcast properties totalling $1 million or $0.04 per share.
Sales in the second quarter of 1992 were even with the second quarter of 1991 at $500 million. Sales increases at GenCorp Automotive were accompanied by essentially flat sales at GenCorp Polymer Products and a slight decline at Aerojet, the company's aerospace/defense segment. Operating profit from the company's three segments increased in the second quarter of 1992 to $41 million, from $36 million in the second quarter of 1991. Profit at GenCorp Automotive increased substantially. GenCorp Polymer Products had a modest increase in profit for the quarter and Aerojet's profit was equal to the profit earned in the second quarter of 1991. GenCorp Chairman and Chief Executive Officer A. William Reynolds said, "We are encouraged that the improvement we saw in the first quarter was extended into the second quarter. "During the quarter we also made significant progress on our refinancing activities, which are intended to strengthen our balance sheet, diversify our sources of funds, lengthen and stagger our maturities and lower our borrowing costs." The company completed a new $450 million credit agreement on April 1, 1992 and in May, interest rate swaps of $225 million expired which will generate substantial savings. Finally, on May 18, a registration statement was filed with the Securities and Exchange Commission for a public offering of $100 million of convertible subordinated debentures. Sales for GenCorp Automotive in the second quarter of 1992 were $117 million, an increase of $22 million or 23 percent from the second quarter of 1991. The increase was largely due to higher shipments in key vehicle sealing programs including the General Motors Grand Am, Skylark and Achieva cars and Suburban light truck. New vibration control programs for Toyota and Mazda,
along with higher production for the General Motors APV also contributed to the sales increase. The increased volume resulted in an operating profit of $6 million in the second quarter of 1992, compared to $2 million in the second quarter of 1991.
Sales for Aerojet in the second quarter of 1992 totalled $253 million compared to $274 million in the second quarter of 1991. Sales increases in smart munitions, ammunition and in the Advanced Solid Rocket Motor program were offset by declines in strategic propulsion systems and air dispensed munitions. Operating profit was $18 million in the second quarter of 1992, which was even with the second quarter of 1991. At GenCorp Polymer Products, sales in the second quarter of 1992 were $130 million compared to $131 million in 1991. Segment operating profit was $17 million in the second quarter of 1992, compared with $16 million in 1991. This increase was due to higher sales at fabricated plastics and residential wallcovering, and to margin improvements at Penn Racquet Sports and latex. At the end of the second quarter of 1992, total debt was $396 million, compared to $405 million at the end of the first quarter in 1992. The company generated a modest positive cash flow in the second quarter, due primarily to working capital decreases. GenCorp is a technology-based company with strong positions in aerospace, automotive and related polymer products. Condensed Consolidated Balance Sheet (Unaudited) GenCorp Inc. May 31, Nov. 30, (Dollars in millions) 1992 1991 Assets Cash and marketable securities $ 38 $ 41 Accounts receivable 191 169 Inventories 173 167 Prepaid expenses 48 59 Total Current Assets 450 436 Investments and other assets 139 143 Property, plant and equipment, less accumulated depreciation 530 534 TOTAL $1,119 $1,113 Liabilities and Shareholders' Equity Notes payable $ 1 $ 1 Accounts payable-trade 97 113 Income taxes 49 51 Other current liabilities 206 214 Total Current Liabilities 353 379 Long-term debt 395 355 Other liabilities 153 166 Shareholders' equity 218 213 TOTAL $1,119 $1,113 The uncertainties involving environmental matters described in Note L of the Company's 1991 Annual Report continue. Business Segment Information (Unaudited) GenCorp Inc. Three Months Ended Six Months Ended (Dollars in millions, May 31, May 31, May 31, May 31, except per-share data) 1992 1991 1992 1991 Net Sales Aerojet $253 $274 $509 $531 GenCorp Automotive 117 95 209 168 GenCorp Polymer Products 130 131 243 234 Total $500 $500 $961 $933 Income (Loss) Aerojet 18 18 35 36 GenCorp Automotive 6 2 2 (6) GenCorp Polymer Products 17 16 25 21 Segment Operating Profit 41 36 62 51 Interest expense (13) (13) (26) (27) Corporate interest income and other 1 3 1 3 Corporate expenses (6) (4) (10) (8) Provision for income taxes (9) (9) (11) (8) Net Income $ 14 $ 13 $ 16 $ 11 Net Income per share of common stock $.43 $.39 $.50 $.34 Average shares of common stock outstanding (in thousands) 31,729 31,731 31,730 31,731 Capital expenditures $ 21 $ 15 $ 37 $ 27 Depreciation 20 19 40 39 -0- 6/9/91 /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
CG -- CL005 -- 8580 06/09/92 17:57 EDT
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|Date:||Jun 9, 1992|
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