Printer Friendly

GENERAL SIGNAL FIRST QUARTER NET EARNINGS CLIMB 17 PERCENT

 STAMFORD, Conn., April 21 /PRNewswire/ -- General Signal Corporation (NYSE: GSX) recorded first quarter net earnings of $17.5 million, up 17.1 percent from the $14.9 million recorded a year ago from continuing operations. The 1992 quarter also included a $92.4 million or $4.78 per share charge for the company's adoption of FAS 106 (Employers' Accounting for Postretirement Benefits Other Than Pensions) and FAS 109 (Accounting for Income Taxes). Earnings per share of 88 cents were up 14.3 percent from last year's 77 cents on higher shares outstanding and a slightly higher tax rate. Sales of $363.1 million were down from the $411.9 million recorded last year, which included sales of $46.9 million for semiconductor equipment operations (SEO) that were divested at year end and are currently being held for sale. Exclusive of these operations, sales were essentially flat to year-ago levels. Operating losses on the SEO businesses in the first quarter of 1992 amounted to $700 thousand or 2 cents per share.
 Operating earnings for the process controls sector rose 1.3 percent to $15.2 million on a sales decline of 6.8 percent to $162.9 million, as productivity gains and reduced costs enhanced results. Improvements in pump and instrument lines offset weaker results from mixing and heat treating equipment.
 The electrical controls sector recorded flat sales of $138.0 million and an operating earnings decline of 7.9 percent to $9.3 million. Gains in fire safety controls, conduit fittings, fractional horsepower motors and hazardous location equipment were not enough to offset declines in utility demand for power transformers and the effect of a depressed European economy on the company's power conditioning business.
 The industrial technology sector, now comprised solely of telecommunications, auto and truck, and transit revenue control equipment (since the company's exit from the semiconductor equipment industry in 1992), posted strong gains in both sales and operating earnings. Operating earnings more than doubled to $9.4 million on a 16.7 percent gain in sales to $62.2 million. Most businesses posted gains in sales and earnings.
 Commenting on the company's performance for the quarter, Edmund M. Carpenter, chairman and chief executive officer, stated: "It is clear that General Signal's performance is continuing to reflect the benefit of focusing on its core businesses and overall cost reduction efforts. The company continues to trim costs as reflected in the ratio of selling, general and administrative expense-to-sales, which improved from 20.7 percent a year ago to 20.2 percent in the current quarter, and with the working capital-to-sales ratio at 17.6 percent, it is comforting to note that we have become proficient in asset utilization.
 "With our repositioning efforts of the past several years essentially completed, we look forward to a period of sustained earnings growth from our continuing business operations."
 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 Statement of Earnings
 (Unaudited, In thousands except per-share data)
 Periods ended March 31 Three Months Ended
 1993 1992
 Net sales $363,142 $411,945
 Cost of sales 258,331 298,329
 Selling, general and
 administrative expenses 73,221 85,430
 Total 331,552 383,759
 Operating earnings 31,590 28,186
 Interest expense (6,055) (7,601)
 Interest income 355 1,367
 Earnings from continuing operations
 before income taxes 25,890 21,952
 Income taxes 8,414 7,025
 Earnings from continuing operations 17,476 14,927
 Cumulative effect of accounting
 changes -- (92,400)
 Net earnings (loss) $ 17,476 $(77,473)
 Earnings per share
 of common stock:
 Earnings from continuing
 operations $ 0.88 $ 0.77
 Cumulative effect of accounting
 changes -- (4.78)
 Net earnings (loss) $ 0.88 $ (4.01)
 Average common shares outstanding 19,894 19,386
 GENERAL SIGNAL CORPORATION
 Sector Performance
 (Unaudited, In thousands)
 Periods ended March 31 Three $ 162,900 $ 174,


800
 Electrical Controls 138,000 136,900
 Industrial Technology 62,200 53,300
 Dispositions -- 46,900
 Total $ 363,100 $ 411,900
 Operating earnings:
 Process Controls $ 15,200 $ 15,000
 Electrical Controls 9,300 10,100
 Industrial Technology 9,400 4,600
 Dispositions -- (700)
 Total operating earnings before
 unallocated expenses, interest
 and equity income $ 33,900 $ 29,000
 GENERAL SIGNAL CORPORATION
 Consolidated Balance Sheet
 (Unaudited, In thousands)
 Periods ended March 31, December 31,
 1993 1992
 Assets
 Current assets:
 Cash and cash equivalents $ 9,215 $ 16,393
 Accounts receivable, net 255,558 267,232
 Inventories 208,301 198,387
 Deferred income taxes 64,487 62,992
 Prepaid expenses and other
 current assets 51,548 42,387
 Assets held for sale at estimated
 realizable value 87,633 91,069
 Total 676,742 678,460
 Property, plant and equipment, net 237,221 237,335
 Intangibles, net of accumulated
 amortization 174,000 175,782
 Other assets, net 112,537 106,396
 Deferred income taxes 27,869 28,021
 Total $1,228,369 $1,225,994
 Liabilities and Shareholders' Equity
 Current liabilities:
 Short-term borrowings and current
 maturities of long-term debt $ 11,318 $ 12,434
 Accounts payable 128,836 125,555
 Accrued expenses 155,709 177,321
 Income taxes 28,567 20,796
 Total 324,430 336,106
 Long-term debt less current maturities 346,279 358,151
 Accrued postretirement benefits 152,408 152,500
 Other liabilities 13,997 14,229
 Shareholders' equity 391,255 365,008
 Total $1,228,369 $1,225,994
 -0- 4/21/93
 /CONTACT: Nino Fernandez of General Signal Corporation, 203-329-4320/
 (GSX)


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

TM -- NY008 -- 8522 04/21/93 09:12 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 21, 1993
Words:936
Previous Article:SUMMIT TECHNOLOGY, INC. REPORTS FIRST QUARTER 1993 FINANCIAL RESULTS
Next Article:SANTA FE PACIFIC CORP. REPORTS FIRST QUARTER NET INCOME UP SIGNIFICANTLY
Topics:


Related Articles
GENERAL SIGNAL FIRST-QUARTER NET CLIMBS 17.3 PERCENT
GENERAL SIGNAL SECOND QUARTER EARNINGS PER SHARE RISES 18 PERCENT TO $.93
GENERAL SIGNAL THIRD QUARTER NET RISES 12.3 PERCENT
GENERAL SIGNAL'S FOURTH QUARTER NET FROM CONTINUING OPERATIONS AT $1.04, UP 8 PERCENT
FEDERAL SIGNAL CORP. ANNOUNCES A 15 PERCENT INCREASE IN NET INCOME IN 1993 FIRST QUARTER
HARMON REPORTS RECORD FIRST QUARTER;EARNINGS FROM CONTINUING OPERATIONS MORE THAN QUADRUPLE
GENERAL SIGNAL RECORDS SECOND QUARTER NET FROM CONTINUING OPERATIONS AT $.47, UP 15 PERCENT
FEDERAL SIGNAL CORPORATION ANNOUNCES A 15 PERCENT INCREASE IN NET INCOME IN 1993 THIRD QUARTER
UNION SWITCH & SIGNAL INC. CONTINUES RECORD PACE THROUGH FIRST QUARTER 1994
GENTEX REPORTS RECORD REVENUES AND OPERATING INCOME FOR THE FIRST QUARTER

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters