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GENERAL SIGNAL'S FOURTH QUARTER NET FROM CONTINUING OPERATIONS AT $1.04, UP 8 PERCENT

 STAMFORD, Conn., Feb. 4 /PRNewswire/ -- General Signal (NYSE: GSX) today announced fourth quarter earnings per share of $1.04, before disposition of businesses and restructuring charges, compared to 96 cents a year ago. Net earnings from continuing operations increased to $20.6 million on sales of $377.8 million. The impact on the quarter of the company's previously announced adoption of FAS 106 (Financial Accounting Standards Board Statement, Employers' Accounting for Postretirement Benefits Other Than Pensions) and FAS 109 (Accounting for Income Taxes) was a charge to earnings of 6 cents and 4 cents per share, respectively. Both categories are non-cash in nature. In 1993, the incremental costs of FAS 106 should be nearly offset by steps the company has taken to control medical costs for both active and retired employees and therefore essentially no impact on net income is anticipated.
 The disposition and restructuring charges, which were previously announced and taken in the fourth quarter to provide for the divestiture of all of the company's semiconductor equipment operations, amounted to $85.6 million ($58.2 million after taxes or $2.95 per share), resulting in a loss of $37.6 million or $1.91 per share. The company expects the cash flow implications from these divestitures to be positive by approximately $30.0 million. The company's tax rate in the quarter and year increased to 32 percent from 28.5 percent in 1991 as a result of FAS 109; the company also had higher shares outstanding over the same timeframes.
 For the full year, after tax earnings before the disposition and restructuring charges and the cumulative effects of accounting changes were $3.45 as compared to $3.32 per share from continuing operations a year ago. The impact of FAS 106 and FAS 109 on continuing operations was a decrease of 24 cents and 17 cents per share, respectively. The cumulative effect of the change in accounting for income taxes and postretirement benefits was a charge of $4.72 per share for the year. These charges, combined with the fourth quarter restructuring charge, resulted in a loss for the year of $83.2 million or $4.25 per share. Sales for the year totaled $1.6 billion.
 "We are pleased with the fourth quarter showing of $1.04 per share from continuing operations," stated Edmund M. Carpenter, chairman and chief executive officer, "as it was our best quarter since the first quarter of 1990. Due to the requirement to charge operations for FAS 106 in 1992 but not 1991, the process and electrical controls sectors reported essentially flat earnings for the year, while the industrial technology sector recorded strong earnings improvement, even before the elimination of our semiconductor equipment operations performance," Mr. Carpenter added.
 "Over the past few years we have undergone an extensive repositioning of General Signal, exiting the defense, rail, and now semiconductor equipment businesses. With limited exception these divested operations, we believe, were unlikely to meet General Signal's overall performance objectives on a sustainable basis. At the same time, we have made 20 acquisitions that have been added to existing core units, significantly increasing their critical mass and market presence. These actions leave General Signal with 16 units as compared to 44 units in 1988, much more tightly focused on our core businesses, and certainly more predictable as to our future financial performance," said Mr. Carpenter.
 "In addition, ongoing efforts to improve our productivity and efficiency continue to prove rewarding as we've improved our working capital-to-sales ratio to a respectable 21.2 percent level -- down substantially from nearly 38.0 percent five years ago. The ratio of selling, general and administrative expenses to sales continued to improve to 20.3 percent from 24.0 percent and our return on equity from continuing operations rose to 14.0 percent from 7.6 percent over the same time frame.
 "We're excited about the transition of General Signal over the past several years and while there are just early signs of an economic recovery in the offing, we remain confident about our 1993 outlook," Mr. Carpenter concluded.
 General Signal Corporation, with 1992 sales of $1.6 billion, is a leading manufacturer of equipment and instruments for the process control, electrical, and industrial technology industries.
 GENERAL SIGNAL CORPORATION
 Consolidated Sales and Earnings
 (Unaudited, In thousands except per share data)
 Periods ended Dec. 31 Three Months
 1992 1991
 Net sales $377,806 $414,027
 Cost of sales 267,053 295,200
 Selling, general and
 administrative expenses 75,032 86,641
 Disposition of businesses and
 restructuring 85,600 0
 Total 427,685 381,841
 Operating earnings (loss) (49,879) 32,186
 Interest expense (5,959) (7,353)
 Interest income 546 1,156
 Earnings (loss) from continuing
 operations before income taxes (55,292) 25,989
 Income taxes (17,701) 7,407
 Earnings (loss) from continuing
 operations (37,591)(A) 18,582
 Loss on disposal of discontinued
 operations, net of income taxes 0 (9,800)
 Net earnings (loss) ($37,591) $ 8,782
 Net earnings (loss) per share of
 common stock:
 Continuing operations ($1.91) (A) $.96
 Loss on disposal of discontinued
 operations -- (.51)
 Net earnings (loss) ($1.91) $.45
 Average number of common
 shares outstanding 19,701 19,328
 (A) Reflects after tax effect of disposition of businesses and restructuring charges of $58.2 million or $2.95 per share and impact of changes in accounting of approximately $2.0 million or $.10 per share.
 GENERAL SIGNAL CORPORATION
 Consolidated Sales and Earnings
 (Unaudited, In thousands except per-share data)
 Period ended Dec. 31 Year Ended
 1992 1991
 Net sales $1,618,276 $1,615,832
 Cost of sales 1,168,389 1,165,325
 Selling, general and
 administrative expenses 327,901 333,001
 Disposition of businesses and
 restructuring 85,600 0
 Total 1,581,890 1,498,326
 Operating earnings 36,386 117,506
 Interest expense (27,130) (32,193)
 Interest income 4,250 4,138
 Earnings from continuing
 operations before income taxes 13,506 89,451
 Income taxes 4,315 25,494
 Earnings from continuing
 operations 9,191 (A) 63,957
 Loss on disposal of discontinued
 operations, net of income taxes 0 (9,800)
 Earnings before cumulative effects
 of accounting changes 9,191 54,157
 Cumulative effect of accounting
 changes (92,400) 0
 Net earnings/(loss) ($83,209) $ 54,157
 Net earnings/(loss) per share of
 common stock:
 Continuing operations $.47 (A) $3.32
 Loss on disposal of discontinued
 operations -- (.51)
 Cumulative effect of accounting
 changes (4.72) --
 Net earnings/(loss) ($4.25) $2.81
 Average number of common
 shares outstanding 19,561 19,286
 (A) Reflects after tax effect of disposition of businesses and restructuring charges of $58.2 million or $2.98 per share and impact of changes in accounting of approximately $8.0 million or $.41 per share.
 GENERAL SIGNAL CORPORATION
 Sector Performance
 (Unaudited, In thousands)
 Periods ended Dec. 31 Three Months Ended
 1992(A) 1991
 Net sales:
 Process Controls $ 168,900 $ 174,000
 Electrical Controls 142,200 132,900
 Industrial Technology 66,700 54,100
 Dispositions -- 53,000
 Total $ 377,800 $ 414,000
 Operating earnings:
 Process Controls $ 15,900 $ 16,700
 Electrical Controls 11,000 11,800
 Industrial Technology 12,300 7,600
 Dispositions -- 1,900
 Disposition of businesses
 and restructuring (85,600) --
 Total operating earnings/(loss)
 before unallocated expenses,
 interest and equity income $ (46,400) $ 38,000
 Periods ended Dec. 31 Year Ended
 1992(A) 1991
 Net sales:
 Process Controls $ 683,100 $ 695,600
 Electrical Controls 567,500 515,400
 Industrial Technology 232,800 212,800
 Dispositions 134,900 192,000
 Total $1,618,300 $1,615,800
 Operating earnings:
 Process Controls $ 62,000 $ 62,400
 Electrical Controls 43,200 43,900
 Industrial Technology 32,900 26,600
 Dispositions (7,400) (5,300)
 Disposition of businesses
 and restructuring (85,600) --
 Total operating earnings before
 unallocated expenses, interest and
 equity income $ 45,100 $ 127,600
 (A) Reflects additional costs related to the new accounting standard adopted in 1992 for Other Post Employment Benefits (OPEB) of $6.5 million pretax. This was allocated to the sectors as follows: Process Controls, $.6 million in Q4 and $2.6 million for the year; Electrical Controls, $.7 million in Q4 and $2.6 million for the year and Industrial Technology, $.2 million in Q4 and $1.2 million for the year.
 GENERAL SIGNAL CORPORATION
 Consolidated Balance Sheet
 (Unaudited, In thousands)
 Periods ended Dec. 31 1992 1991
 Assets
 Current assets:
 Cash and cash equivalents $ 16,393 $ 18,352
 Accounts receivable, net 267,232 294,441
 Inventories 198,387 246,130
 Deferred income taxes 62,992 16,369
 Prepaid expenses and
 other current assets 42,387 26,640
 Assets held for sale
 at net realizable value 91,069 0
 Total 678,460 601,932
 Property, plant and equipment, net 237,335 263,650
 Intangibles, net of accumulated
 amortization 175,782 217,273
 Deferred income taxes 28,021 0
 Other assets, net 106,396 97,343
 Total $1,225,994 $1,180,198
 Liabilities and shareholders' equity:
 Current liabilities:
 Short-term borrowings and current
 maturities of long-term debt $ 12,434 $ 13,479
 Accounts payable 125,555 128,876
 Accrued expenses 177,321 179,264
 Income taxes 20,796 36,429
 Total 336,106 358,048
 Long-term debt less current maturities 358,151 289,839
 Accrued postretirement benefits 152,500 0
 Other liabilities 14,229 55,875
 Shareholders' equity 365,008 476,436
 Total $1,225,994 $1,180,198
 -0- 2/4/93
 /CONTACT: Nino Fernandez of General Signal, 203-329-4320/
 (GSX)


CO: General Signal Corporation ST: Connecticut IN: SU: ERN

TM -- NY009 -- 2817 02/04/93 09:27 EST
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Date:Feb 4, 1993
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