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GENERAL CABLE REPORTS SECOND QUARTER RESULTS, IMPROVED OPERATING PERFORMANCE

 HIGHLAND HEIGHTS, Ky., Aug. 12 /PRNewswire/ -- General Cable Corporation (NASDAQ: GENC) today reported a 1993 second-quarter net loss of $8.8 million or $.68 per share compared with a 1992 second-quarter net loss of $5.4 million. The 1993 quarterly loss includes $7.4 million of interest expense primarily for debt issued to The Penn Central Corporation ("Penn Central") in connection with the distribution of General Cable's common stock on July 1, 1992. It also includes a $3.5 million reduction in inventory carrying values due to a decrease of approximately 15 percent in the price of copper during the second quarter. Net sales for the second quarter of 1993, also affected by declining copper prices, decreased to $221.9 million from $244.9 million in the same period in 1992.
 General Cable's net loss for the first six months of 1993 was $17.3 million or $1.33 per share compared with a 1992 first six month net loss of $11.1 million, which included recognition of a $7.5 million gain from the adoption of a new accounting standard. The 1993 six-month loss reflects $14.4 million in interest expense and the $3.5 million lower of cost or market inventory charge. No interest expense was incurred during the first half of 1992. Net sales for the six-month period ending June 30, 1993, were $419.8 million versus $449.2 million in the 1992 period.
 The company's operating results have strengthened significantly in 1993 over 1992. Operating losses for the second quarter and first six months of 1993 were $1.5 million and $3.3 million (including the $3.5 million inventory charge), as compared to losses of $5.0 million and $18.0 million for the same periods in 1992. In these periods, lower sales and the $3.5 million inventory charge were more than offset by higher gross margins from improved efficiencies at the company's manufacturing facilities and savings from restructuring activities.
 Shareholders' equity at June 30, 1993, was $186.2 million or $14.32 per share. These amounts include a retroactive accounting adjustment of approximately $15 million to the purchase price of the company's Carol Cable Company unit, which equally reduced the carrying value of capital surplus and goodwill. Carol Cable was purchased in March 1990 by Penn Central, and in 1991, Penn Central brought a lawsuit against the seller of Carol Cable asserting damage claims based on alleged breaches of contract and misrepresentations relating to Carol Cable and its financial condition prior to the purchase. The case was settled in June 1993, and the accounting adjustment is the net amount of the settlement paid to Penn Central, which retained the right to the litigation recovery as part of the spinoff of General Cable in July 1992.
 Ronald F. Walker, president and chief executive officer, said: "General Cable has experienced improved operating results in the first half of 1993 as compared to 1992 in soft markets, which is encouraging. We will continue to concentrate on raising sales and margin levels while trimming costs to yield greater efficiencies and better returns."
 General Cable manufactures and markets electrical, electronic and telecommunications wire and cable under the Carol Cable(A), Capital Wire & Cable, Romex(A), Saturday's Helper(A), Philadelphia Insulated Wire and General Cable brand names for the construction, consumer, automotive, original equipment manufacturer and telecommunications markets.
 GENERAL CABLE CORPORATION
 (In Millions, Except Per Share Amounts)
 SUMMARY FINANCIAL INFORMATION
 Three Months Ended Six Months Ended
 June 30 June 30
 1993 1992 1993 1992
 Net sales $221.9 $244.9 $419.8 $449.2
 Operating income (loss) $ (1.5) $ (5.0) $ (3.3) $(18.0)
 Interest expense $ (7.4) --- $(14.4) ---
 Income (loss) before
 income taxes $ (8.8) $ (4.9) $(17.3) $(17.9)
 Income (loss) before
 cumulative effect of
 accounting change $ (8.8) $ (5.4) $(17.3) $(18.6)
 Cumulative effect of
 accounting change --- --- --- $ 7.5
 Net income (loss) $ (8.8) $ (5.4) $(17.3) $(11.1)
 Net income (loss) per share $ (.68) (B) $(1.33) (B)
 Average common shares
 outstanding 13.0 (B) 13.0 (B)
 (A) -- Registered trademarks of General Cable Corporation.
 (B) -- Not applicable as General Cable was a subsidiary of The Penn Central Corporation in this period.
 -0- 8/12/93
 /CONTACT: Robert Siverd, senior vice president of General Cable Corporation, 606-572-8890/
 (GENC)


CO: General Cable Corporation ST: Kentucky IN: SU: ERN

AR -- CL005 -- 2047 08/12/93 10:16 EDT
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Publication:PR Newswire
Date:Aug 12, 1993
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