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GREENFIELD INDUSTRIES, INC., ANNOUNCES THIRD QUARTER RESULTS

 AUGUSTA, Ga., Oct. 28 /PRNewswire/ -- Greenfield Industries Inc. (NASDAQ: GFII) today reported improved results for the third quarter ended September 30, 1993. Net income (before extraordinary charges of $1,832 million, or $.12 per share, relating to debt refinancing) for the third quarter increased 63 percent to $3.059 million, or $.21 per share, from $1.874 million, or $.19 per share for the same period of 1992. Average shares outstanding were 14.3 million and 10.0 million for the three month period ended September 30, 1993 and 1992, respectively.
 For the nine months ended September 30, 1993, net income (before the extraordinary charge of $1.832 million, $.16 per share) increased 119 percent to $11.559 million, or $1.01 per share, from $5.280 million, or $.53 per share, for the same period of 1992.
 Paul Jones, President and Chief Executive Officer of Greenfield Industries, stated "The significant increase in Company profits reflects a continued increase in sales, coupled with the benefits of reductions in the Company's cost structure during the past two years." Mr. Jones continued: "Overall our sales volume is up 6.5 percent for the first nine months of 1993 and 5.0 percent for the third quarter of 1993 as compared to 1992."
 The company reported that sales of products in the industrial market, its largest market, are up 8.3 percent and 6.2 percent, respectively, for the nine and three month periods ended September 30, 1993. Sales of products in the oilfield equipment market rose 57.2 percent and 58.0 percent, for the nine and three month periods ended September 30, 1993, respectively, compared with the same periods of the previous year. Sales of products in the electronics market, however, decreased 11.0 percent and 12.8 percent, for the nine and three month periods ended September 30, 1993, respectively, due to continued poor European economics, conditions and fierce competition in the domestic markets. In response to these factors, and the continued focus on eliminating costs throughout the organization the company reported that it reduced employment levels throughout the organization by over l00 employees. These reductions included the closure and consolidation of the Company's Cerritos California circuit board drill plant, the downsizing of German operations. and certain other staffing reductions.
 "We are very encouraged by Greenfield's progress in expanding its industrial business," Mr. Jones commented, "and the extremely exciting developments in the oil and gas market. The electronics sector, while clearly very challenging, continues to have a bright future for the Company in the long-term."
 On July 29, 1993, Greenfield made an initial public offering of 6.250 million shares through a group of underwriters led by Morgan Stanley & Co., First Boston Corporation, and Wertheim Schroder & Co. within the United States and Morgan Stanley International, Credit Suisse First Boston Limited and Wertheim Schroder International Limited outside the United States.
 Greenfield Industries, Inc., is a leading manufacturer of expendable cutting tools used in a variety of industrial and other applications.
 GREENFIELD INDUSTRIES
 Consolidated Statement of Operations
 (Unaudited)
 (Dollars in thousands except per share data)
 For the periods ending Three months Nine months
 Sept. 30, 1993 1992 1993 1992
 Net sales $56,532 $53,836 $172,045 $161,513
 Cost of sales 39,346 37,754 118,137 114,178
 Gross profit 17,186 16,082 53,908 47,335
 Selling, general and
 administrative expenses 10,246 11,083 30,977 32,031
 Restructuring and plant
 consolidating costs --- --- --- ---
 Operating income 6,940 4,999 22,931 15,304
 Interest expense 1,788 3,118 7,604 9,791
 Income before provision for
 income taxes and
 extraordinary loss 5,152 1,881 15,327 5,513
 Provision for income taxes 2,093 7 3,768 233
 Income before extraord. loss 3,059 1,874 11,559 5,280
 Extraordinary loss on debt
 refinancing less applicable
 income taxes of $1,169 1,832 --- 1,832 ---
 Net income $1,227 $1,874 $9,727 $5,280
 Earnings per common share:
 Income before extraordinary
 loss $0.21 $0.19 $1.01 $0.53
 Extraordinary loss 0.12 --- 0.16 ---
 Net income $0.09 $0.19 $0.85 $0.53
 Weighted average number
 of common shares 14,279,892 10,000,002 11,442,309 10,000,002
 Dividends per common
 share $0.02 $0.00 $0.02 $0.00
 -0- 10/28/93
 /CONTACT: Mr. Paul Jones, CEO, or Mr. Gary Weller, CFO of Greenfield Industries, Inc., 706-863-7708/
 (GFII)


CO: Greenfield Industries, Inc. ST: Georgia IN: MAC SU: ERN

MP-TS -- NY017 -- 7752 10/28/93 09:23 EDT
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Date:Oct 28, 1993
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