Printer Friendly

GRUMMAN INCOME FROM CONTINUING OPS UP 17 PERCENT

 BETHPAGE, N.Y., April 19 /PRNewswire/ -- Grumman Corporation (NYSE: GQ) today reported 1993 first quarter income from continuing operations of $34.2 million or $1.00 a share compared with $29.2 million or 85 cents a share in the 1992 quarter.
 A $6.7 million or 19 cents a share loss from discontinued operations brought net income for the 1993 quarter to $27.5 million or 81 cents a share. The loss was from the preliminary settlement of a lawsuit involving Grumman Sunstream solar panels. That business, which started in 1976, was discontinued in 1985.
 For the first quarter of 1992, Grumman reported a net loss of $167.5 million or $4.99 a share after a charge of $198 million or $5.88 a share for Financial Accounting Standard 106.
 Sales in the quarter declined 8 percent to $871.8 million from $950.5 million. The backlog was $7 billion, equal to the backlog at the end of the 1992 first quarter.
 "A dollar a share from continuing operations was an exceptionally strong quarterly performance," said Renso Caporali, chairman. "Although this will probably be our strongest 1993 quarter for earnings, I am confident that this will be a year of continued financial improvements.
 "Sales were down in the quarter, but we anticipate that for the full year they will be about even with last year's $3.5 billion," he continued.
 Interest expense declined 29 percent to $11.1 million from $15.7 million in the year-ago quarter. Total debt declined 39 percent to $361.9 million at the end of the quarter from $591.6 million a year ago. On March 31, the company had $250.7 million in cash, up $141.2 million from a year ago.
 The company is redeeming its $55.6 million of 10-1/2 percent sinking fund debentures on April 20. After this is completed, Grumman will have reduced its total debt by 66 percent in two years.
 "We are now working from a position of strength with one of the strongest balance sheets in the aerospace industry," said Caporali. Reflecting this strength, the company announced a 20 percent increase in its dividend at last week's annual meeting.
 In the company's business segments, sales and income were up in electronics systems, information and other services, and special purpose vehicles. In the aerospace segment, sales and income declined, but operating margins increased to 7.1 percent from 6.1 percent. The F-14 program was responsible for the 21 percent reduction in segment revenues as it changed from new aircraft production to the current remanufacturing program. That sales decline was partially offset by an increase in E-2C deliveries from one to three aircraft.
 "The margin growth in our aerospace segment is a promising indication that the increased emphasis we have imposed on working capital over the past two years can be brought to bear on profit margins," Caporali concluded.
 GRUMMAN CORPORATION AND SUBSIDIARIES
 Consolidated Financial Data
 (Unaudited, dollars in thousands except per share amounts)
 Condensed Income Statement
 Three Months ended March 31, 1993 1992
 Sales $ 871,771 $ 950,467
 Income before taxes 51,320 43,633
 Provision for federal
 income taxes 17,100 14,400
 Income from continuing
 operations 34,220 29,233
 Income (loss) from
 discontinued operations (6,700) 1,249
 Cumulative effect of change
 in accounting for
 postretirement benefits -- (198,000)
 Net income (loss) $ 27,520 $ (167,518)
 Primary earnings (loss) per share:
 From continuing operations $1.00 $ .85
 Income (loss) from
 discontinued operations (.19) .04
 Cumulative effect of
 accounting change -- (5.88)
 Net income (loss) $ .81 $ (4.99)
 Balance Sheet Data
 March 31 1993 1992
 Working capital $ 863,087 $ 1,060,923
 Net property, plant and equipment 391,121 424,164
 Long-term Debt 297,763 582,879
 Preferred Stock -- 32,360
 Shareholders' equity - common 820,446 772,695
 Shareholders' equity per common
 share $24.31 $23.07
 Common shares outstanding 33,754,476 33,497,027
 Backlog at March 31(A)
 (In billions) $7.0 $7.0
 (A) -- Includes authorized but unfunded amounts.
 GRUMMAN CORPORATION AND SUBSIDIARIES
 Summary of Sales and Income by Business Segments
 (Unaudited, dollars in Thousands)
 Three months ended
 March 31 1993 1992
 Operating Operating
 Sales Income (Loss) Sales Income (Loss)
 Aerospace $548,501 $38,944 $ 697,934 $42,328
 Electronics
 Systems 167,478 3,901 128,939 2,595
 Information &
 Other Services 150,634 7,341 142,985 6,542
 Special Purpose
 Vehicles 94,433 7,603 81,771 7,179
 Corporate items &
 eliminations (89,275) 4,678 (101,162) 640
 Consolidated $871,771 62,467 $ 950,467 59,284
 Interest expense 11,147 15,651
 Income from continuing
 operations before
 federal income taxes $51,320 $43,633
 -0- 4/19/93
 /CONTACT: Robert Harwood of Grumman, 516-575-5287/
 (GQ)


CO: Grumman Corporation ST: New York IN: ARO SU: ERN

TS -- NY084 -- 7465 04/19/93 14:01 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 19, 1993
Words:810
Previous Article:DEXTER REPORTS FIRST QUARTER RESULTS
Next Article:OAKWOOD HOMES CORPORATION REPORTS RECORD SALES, TOTAL REVENUES AND EARNINGS FOR SECOND QUARTER OF CURRENT FISCAL YEAR
Topics:


Related Articles
GRUMMAN 1992 INCOME FROM CONTINUING OPERATIONS UP 26 PERCENT; REPORTS NET LOSS AFTER FAS 106 ACCOUNTING CHANGE
GRUMMAN REPORTS SECOND QUARTER EARNINGS
/ C O R R E C T I O N -- GRUMMAN CORP. EARNINGS /
GRUMMAN THIRD QUARTER EARNINGS INCREASE 28 PERCENT
NORTHROP GRUMMAN REPORTS GAINS IN SALES, NET AND BACKLOG
NORTHROP GRUMMAN REPORTS RECORD SALES, NET INCOME FOR 1995
NORTHROP GRUMMAN REPORTS EARNINGS FOR SECOND QUARTER
Northrop Grumman Reports Third Quarter Increases
Northrop Grumman Reports Record 1996 Sales, Operating Margin
Northrop Grumman Reports First Quarter Sales, Net Income

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