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GENERAL SIGNAL RECORDS SECOND QUARTER NET FROM CONTINUING OPERATIONS AT $.47, UP 15 PERCENT

 STAMFORD, Conn., July 20 /PRNewswire/ -- General Signal (NYSE: GSX) today announced second quarter earnings per share of 47 cents from continuing operations, compared with 41 cents a year ago. These results are before an extraordinary charge of 16 cents for the early extinguishment of high-cost debt and on five percent higher shares outstanding. Net earnings from continuing operations increased 21.4 percent to $19.3 million from $15.9 million. After the extraordinary charge of $6.6 million, net earnings amounted to $12.7 million. Sales of $371.3 million were down from the $420.6 million recorded last year, which included sales of $49.3 million from semiconductor equipment operations (SEO), which have since been substantially divested. Exclusive of these operations, sales for the period were flat. Operating losses on the SEO businesses in the second quarter of 1992 amounted to $800 thousand or two cents per share. (Note: All share and per-share data have been restated to reflect the 2 for 1 stock split effective July 16, 1993.)
 For the six months ended June 30, earnings per share from continuing operations amounted to 91 cents, up 15 percent from 79 cents a year ago. After the 16-cent extraordinary charge in this year's second quarter and the cumulative effect of accounting changes for FAS 106 and 109 of $2.39 last year, reported net earnings per share for the periods were 75 cents and a loss of $1.60 for 1993 and 1992, respectively. Net earnings from continuing operations gained 19.3 percent to $36.7 million on essentially flat sales of $734.4 million from continuing operations.
 "Activity during the second quarter was at a high point," commented Edmund M. Carpenter, chairman and chief executive officer, "as we successfully completed our secondary offering of 2.1 million shares and the initial public offering (IPO) of our Electroglas unit. Net proceeds received from the offerings and other SEO asset sales totaled in excess of $200 million and were used to repay high-cost debt, bringing our debt to total capital ratio down to about 26 percent from 50 percent at the beginning of the year. The successful IPO of Electroglas, coupled with other asset sales and lower disposition and severance costs -- as part of our decision to exit the semiconductor equipment business -- leaves us about $42.6 million ahead of the reserve taken at year end." To further enhance the future performance and competitiveness of General Signal's core businesses, a $30.5 million provision was taken for a number of strategies including plant, product, and distribution rationalization. As a result, $12.1 million was returned to operating income, which was offset by $12.0 million provided in cost of sales for increased reserves relating to valuation of assets and liabilities, primarily for international operations. particularly abroad.
 Two of the company's three sectors continue to experience the effect of weak demand and pricing, particularly abroad. Even so, margins declined only modestly for both our process and electrical sectors, while those of our industrial technology sector expanded sharply from year-ago levels.
 Process controls earnings declined 8 percent to $13.7 million after adjustment for non-recurring charges on a three percent decline in sales to $167.3 million. Particularly impacted were the European operations of the mixing equipment and instrumentation businesses.
 Electrical controls also witnessed a three percent decline in sales to $135.6 million on an adjusted $9.0 million in earnings, essentially holding margins to year-ago levels. Weakness in European markets for power conditioning equipment and domestic utility demand for power transformers offset gains in fire safety control equipment.
 Strong gains were recorded across the board for the industrial technology sector as margins expanded by several points to nearly 17 percent on a sales gain of 18 percent to $68.4 million.
 "The company remains poised to leverage earnings from any pickup in top-line growth. Cost reduction continues to benefit corporate performance, as evidenced by our second quarter SG&A to sales ratio dipping below 20 percent for the first time," 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 Statement of Earnings
 (Unaudited, in thousands except per-share data)
 Three Months Ended June 30 1993 1992
 Net sales $371,272 $420,554
 Cost of sales 277,476(a) 306,579
 Selling, general and
 administrative expenses 72,843 84,994
 Dispositions of businesses and
 restructuring (12,100)(a) --
 Total 338,219 391,573
 Operating earnings 33,053 28,981
 Interest expense ( 4,869) ( 7,077)
 Interest income 368 1,449
 Earnings from continuing operations
 before income taxes 28,552 23,353
 Income taxes 9,280 7,473
 Earnings before extraordinary
 charge 19,272 15,880
 Extraordinary charge,
 net of taxes (6,576)(b) --
 Net earnings $ 12,696 $ 15,880
 Earnings per share of common stock (c)
 Earnings from continuing
 operations $ 0.47 $ 0.41
 Extraordinary charge (0.16) 40,940 39,068
 NOTES: (a)--During the second quarter of 1993, $42.6 million of excess reserves relating to the disposition of the semiconductor equipment operations (SEO) were identified as a result of higher proceeds from the sale of units, lower disposition costs, and lower severance costs. Also during the second quarter $30.5 million was provided for factory consolidation and rearrangement, product restructuring and realignment, and reorganization of lines of distribution and administration, all related to the continuing operations of the company. As a result, $12.1 million was returned to operating income, which was offset by $12.0 million provided in cost of sales for increasedreserves relating to valuation of assets and liabilities, primarily for international operations.
 (b)--Results from early extinguishment of debt.
 (c)--All share and per-share data have been restated for all periods presented to reflect the two-for-one stock split of the company common stock.
 GENERAL SIGNAL CORPORATION
 Consolidated Statement of Earnings
 (Unaudited,In thousands except per-share data)
 Six Months Ended June 30 1993 1992
 Net sales $734,414 $832,499
 Cost of sales 535,807(a) 604,908
 Selling, general and
 administrative expenses 146,064 170,424
 Dispositions of businesses and
 restructuring (12,100)(a) --
 Total 669,771 775,332
 Operating earnings 64,643 57,167
 Interest expense (10,924) (14,678)
 Interest income 723 2,816
 Earnings from continuing operations
 before income taxes 54,442 45,305
 Income taxes 17,694 14,498
 Earnings before extraordinary
 charge and cumulative effect
 of accounting changes 36,748 30,807
 Extraordinary charge,
 net of taxes (6,576)(b) --
 Cumulative effect of accounting
 changes -- (92,400)
 Net earnings (loss) $ 30,172 $(61,593)
 Earnings per share of common stock (c)
 Earnings from continuing
 operations $ 0.91 $ 0.79
 Extraordinary charge (0.16) --
 Cumulative effect of accounting
 changes -- (2.39)
 Net earnings (loss) $ 0.75 $ (1.60)
 Average common shares outstanding (3) 40,364 38,920
 NOTES: (a)--During the second quarter of 1993, $42.6 million of excess reserves relating to the disposition of the semiconductor equipment operations (SEO) were identified as a result of higher proceeds from the sale of units, lower disposition costs, and lower severance costs. Also during the second quarter $30.5 million was provided for factory consolidation and rearrangement, product restructuring and realignment, and reorganization of lines of distribution and administration, all related to the continuing operations of the company. As a result, $12.1 million was returned to operating income, which was offset by $12.0 million provided in cost of sales for increased reserves relating to valuation of assets and liabilities, primarily for international operations.
 (b)-- Results from early extinguishment of debt.
 (c)--All share and per-share data have been restated for all periods presented to reflect the two-for-one stock split of the company common stock.
 GENERAL SIGNAL CORPORATION
 SECTOR PERFORMANCE
 (Unaudited)
 (In thousands)
 Three Months Ended June 30 1993 1992


NET SALES:
Process Controls $167,300 $173,200
Electrical Controls 135,600 140,000
Industrial Technology 68,400 58,100
Dispositions and restructurings -- 49,300
 $371,300 $420,600


OPERATING EARNINGS:
Process Controls $ 5,700 (1) $14,900
Electrical Controls 4,900 (1) 9,400
Industrial Technology 11,500 7,500
Dispositions and restructurings 12,100 (2) (800)


Total operating earnings before

unallocated expenses, equity
 income and interest $ 34,200 $31,000
 Six Months Ended June 30 1993 1992


NET SALES:
Process Controls $330,200 $348,000
Electrical Controls 273,600 276,900
Industrial Technology 130,600 111,400
Dispositions and restructurings -- 96,200
 $734,400 $832,500


OPERATING EARNINGS:
Process Controls $ 20,900(1) $29,900
Electrical Controls 14,200(1) 19,500
Industrial Technology 20,900 12,100
Dispositions and restructurings 12,100(2) (1,500)


Total operating earnings before

unallocated expenses, equity
 income and interest $ 68,100 $60,000
 (1)--Includes second quarter charges of $12.0 million ($8.0 million for Process Controls and $4.0 million for Electrical Controls).
 (2)--During the second quarter of 1993, $42.6 million of excess reserves relating to the disposition of SEO were identified. Also during the second quarter, $30.5 million was provided for the Process Controls ($23.2 million) and Electrical Controls ($7.3 million) sectors, resulting in $12.1 million being returned to operating income.
 See further details relating to the above notes on page
 3.-7-
 GENERAL SIGNAL CORPORATION
 CONSOLIDATED BALANCE SHEET
 (Unaudited)
 (In thousands)
 June 30, Dec. 31,
 1993 1992


ASSETS Current assets:
 Cash and cash equivalents $ 35,611 $ 16,393
 Accounts receivable, net 244,607 267,232
 Inventories 202,837 198,387
 Deferred income taxes 68,251 62,992


Prepaid expenses and other
 current assets 64,975 42,387


Assets held for sale at estimated
 realizable value 41,026 91,069
 657,307 678,460
Property, plant and equipment, net 240,330 237,335


Intangibles, net of accumulated
 amortization 175,462 175,782
Other assets, net 113,066 106,396
Deferred income taxes 24,606 28,021
 $1,210,771 $1,225,994


LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities:

Short term borrowings and current
 maturities of long-term debt$ 16,233 $ 12,434
 Accounts payable 119,122 125,555
 Accrued expenses 176,383 177,321
 Income taxes 29,560 20,796
 341,298 336,106


Long-term debt less current
 maturities 184,526 358,151
Accrued postretirement benefits 151,908 152,500
Other liabilities 9,760 14,229
Shareholders' equity 523,279 365,008
 $1,210,771 $1,225,994
 -0- 7/20/93
 /CONTACT: Nino J. Fernandez of General Signal, 203-329-4320/


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

TM -- NY105 -- 3560 07/20/93 16:29 EDT
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