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GRUMMAN REPORTS SECOND QUARTER EARNINGS

 GRUMMAN REPORTS SECOND QUARTER EARNINGS
 BETHPAGE, N.Y., July 21 /PRNewswire/ -- Grumman Corporation


(NYSE: GQ) today reported 1992 second quarter net income of $28 million or 80 cents a share compared with $29.6 million or 86 cents a share in the year ago quarter. Sales in the quarter were $866.6 million, down from $1.01 billion a year earlier.
 For the six months, net income increased 14 percent to $59.6 million or $1.72 a share from $52.1 million or $1.51 a share. Sales were $1.82 billion compared with $1.89 billion. The 1991 six month results included a nonrecurring charge of $46.5 million resulting from the settlement of claims against the bankrupt Tracor Aviation, Inc., and the release of $30.7 million in tax reserves.
 "Our second quarter earnings, while they didn't match last year's peak quarter, were exceptionally strong based on good operating results and cash management," said Renso L. Caporali, chairman. "The six month results show we are well on the way to a year of solid earnings.
 "Our balance sheet reflects the efforts we have made to reduce inventories and receivables and pay down debt," Caporali continued. "We said we would reduce inventories and receivables by $300 million over the last nine months. We have exceeded that goal by more than $100 million.
 "In the past year our total debt has almost been halved from $830 million to $462 million," he said. "Grumman has paid off its bank debt, and we will redeem our $2.80 preferred stock at the end of July. Our interest expense in the quarter was down almost 40 percent to $13.9 million from $22.8 million.
 "Our backlog is a solid $7 billion, and we're in a very good position to take advantage of new programs and opportunities as they arise in all of our business areas," said Caporali.
 Aerospace segment sales for the six months were $1.30 billion, compared with $1.36 billion a year ago. Six month operating income for the segment was $77.1 million, compared with $36 million which included the one-time Tracor charge. The F-14D remained the largest single program for the company as the last four new production aircraft under contract were delivered to the U.S. Navy. The company is funded to deliver remanufactured F-14D's through the first half of 1993.
 In the electronics systems segment, sales for the first six months increased 16 percent to $244.9 million from $210.9 million on growth in the Joint STARS radar aircraft program for the U.S. Air Force and Army. Sales in the special purpose vehicles segment declined $21.6 million to $171.3 million due to the closing of the fire truck business.
 The company is instituting changes in its post retirement health care benefits which will reduce the impact of FAS 106 accounting rules. Grumman estimates that its obligation at Dec. 31, 1992, will be $300 million pretax or $198 million after tax. The decision to recognize this obligation in total at year end or to amortize it over a 20-year period is under consideration. In the 1991 annual report, the company had estimated a $400 million to $600 million pretax impact. The reduction is attributable to cost controls and plan changes that will give retirees managed health care options. These will also reduce the annual cost of adopting FAS 106.
 GRUMMAN CORPORATION AND SUBSIDIARIES
 Consolidated Financial Data
 (Unaudited, dollars in thousands except per share amounts)
 Three months ended June 30, 1992 1991
 Sales $ 866,588 $1,009,111
 Income before taxes 40,457 44,862
 Provision for federal income taxes 12,500 15,300
 Net Income $ 27,957 $ 29,562
 Earnings per share $.80 $.86
 Six months ended June 30, 1992 1991
 Sales $1,823,794 $1,890,675
 Income before taxes 87,559 32,489
 Provision (credit) for federal
 income taxes 28,000 (19,600)
 Net income $ 59,559 $ 52,089
 Earnings per share $1.72 $1.51
 Balance Sheet Data
 June 30, 1992 1991
 Working capital $ 1,057,016 $ 1,311,897
 Net property, plant and equipment 418,993 450,895
 Long-term debt 453,828 819,307
 Preferred stock 29,769 32,362
 Shareholders' equity - common 992,564 904,037
 Shareholders' equity per common share $29.63 $27.16
 Common shares outstanding 33,499,101 33,280,546
 Backlog at June 30, (A) $7.0 billion $7.7 billion
 (A) -- Includes authorized but unfunded amounts.
 Summary of Sales and Income by Business Segments
 (Unaudited, dollars in thousands)
 Three months ended 1992 1991
 June 30 Operating Operating
 Sales income (loss) Sales income (loss)
 Aerospace $602,397 $33,789 $ 724,490 $46,230
 Electronics
 systems 115,997 2,675 116,972 4,192
 Information &
 other services 155,861 11,402 173,482 9,434
 Special purpose
 vehicles 89,545 7,946 97,983 8,997
 Corporate items &
 eliminations (97,212) (1,442) (103,816) (1,183)
 Consolidated $866,588 54,370 $1,009,111 67,670
 Interest expense 13,913 22,808
 Income before
 federal income taxes $40,457 $44,862
 Six months ended 1992 1991
 June 30 Operating Operating
 Sales income (loss) Sales income (loss)
 Aerospace $1,300,331 $77,147 $1,360,459 $35,995(A)
 Electronics
 systems 244,936 5,540 210,901 6,777
 Information &
 other services 305,585 20,110 336,186 19,698
 Special purpose
 vehicles 171,316 15,128 192,878 16,286
 Corporate items &
 eliminations (198,374) (802) (209,749) (1,060)
 Consolidated $1,823,794 117,123 $1,890,675 77,696
 Interest expense 29,564 45,207
 Income before
 federal income taxes $87,559 $32,489
 (A) -- Includes a $46.5 million charge arising from the settlement of claims against the bankrupt Tracor Aviation, Inc. (Tax reserves of $30.7 million were released and included in net income in the first quarter of 1991.)
 -0- 7/21/92
 /CONTACT: Robert P. Harwood of Grumman, 516-575-5287/
 (GQ) CO: Grumman Corporation ST: New York IN: ARO SU: ERN


TS -- NY064 -- 1368 07/21/92 13:01 EDT
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