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GRUMMAN THIRD QUARTER EARNINGS INCREASE 28 PERCENT

 BETHPAGE, N.Y., Oct. 25 /PRNewswire/ -- Grumman Corporation (NYSE: GQ) today reported 1993 third quarter net income of $29.9 million or 85 cents a share, an increase of 28 percent over 1992 third quarter income from continuing operations of $23.4 million or 67 cents a share. Sales in the quarter were $791.4 million, up 3 percent from $768.9 million in the year-ago quarter.
 For the nine-month period, income from continuing operations increased 19 percent to $91 million or $2.64 a share from $76.5 million or $2.20 a share. Sales were $2.4 billion compared with $2.6 billion. Net income for the 1993 period was $84.3 million or $2.45 a share, after a $6.7 million or 19 cents a share loss from discontinued operations reported in the first quarter. For the first nine months of last year, Grumman reported a net loss of $120.2 million or $3.64 a share after a charge of $198 million or $5.88 a share from Financial Accounting Standard 106, the accounting change for retiree health care benefits.
 "We are continuing our strong earnings performance based on improving operating margins and reduced interest costs," said Renso L. Caporali, chairman. "I'm confident that despite this period of declining military sales, our financial discipline will enable us to continue to improve our operating results."
 Operating income for the nine months increased to $156.3 million from $151.7 million. The operating margin increased to 6.5 percent from 5.9 percent. In the aerospace segment, which accounts for 60 percent of Grumman's revenues, the operating margin increased to 6.4 percent from 5.8 percent.
 Interest cost declined 41 percent to $25.3 million from $42.7 million. Total debt at the end of September was $251.2 million, down 45 percent in the past year. Cash and marketable securities totaled $245.9 million. The company's only remaining publicly-traded debt issue is the $200 million 10-3/8 percent notes which are not callable before 1996.
 "The strength of our balance sheet will enable us to aggressively pursue opportunities in our core businesses from electronics and information systems integration to aircraft production and modification," said Caporali.
 In the aerospace segment, nine month sales decreased 18 percent to $1.46 billion, and operating income was down 9 percent to $93.7 million. Sales and income for the E-2C aircraft were strong as eight aircraft were delivered compared with five in the first nine months of 1992. However, these gains did not offset declines on the F-14 program, where the last production aircraft was delivered in the second quarter of last year.
 Sales, operating income and margins in the company's other three business segments increased in the nine months. In electronics systems, sales increased 16 percent due to growth in trainer systems and the Joint STARS surveillance aircraft program. In information and other services, sales were up 10 percent from higher revenues in the Data Systems business. In special purpose vehicles, more truck body deliveries resulted in a 10 percent sales increase.
 Grumman Corporation is best known as a leading international aircraft and aerospace company. Other businesses range from sophisticated integrated information and electronics systems to aluminum walk-in vans. Headquartered in Bethpage, Grumman employs 19,000 people. Revenues were $3.5 billion in 1992.
 GRUMMAN CORPORATION AND SUBSIDIARIES
 Consolidated Financial Data
 Condensed Income Statement
 (Unaudited, dollars in thousands except per share amounts)
 Three Months ended Sept., 1993 1992
 Sales $ 791,417 $ 768,873
 Income before taxes 38,441 31,342
 Provision for federal
 income taxes 8,500 7,900
 Income from continuing
 operations 29,941 23,442
 Loss from discontinued
 operations --- (3,091)
 Net income $ 29,941 $ 20,351
 Primary earnings (loss) per share:
 From continuing operations $.85 $.67
 Loss from discontinued
 operations --- (.09)
 Net income $.85 $.58
 Nine months ended Sept. 30, 1993 1992
 Sales $ 2,409,378 $ 2,573,185
 Income before taxes 130,993 109,070
 Provision for federal
 income taxes 40,000 32,600
 Income from continuing
 operations 90,993 76,470
 Income (loss) from
 discontinued operations (6,700) 1,300
 Cumulative effect of change
 in accounting for
 postretirement benefits --- (198,000)
 Net income (loss) $ 84,293 $ (120,230)
 Primary earnings (loss) per share:
 From continuing operations $2.64 $ 2.20
 Income (loss) from
 discontinued operations (.19) .04
 Cumulative effect of
 accounting change --- (5.88)
 Net income (loss) $2.45 $(3.64)
 Balance Sheet Data at Sept. 30, 1993 1992
 Working capital $ 934,162 $ 959,515
 Net property, plant and equipment 380,122 407,717
 Long-term Debt 244,823 451,367
 Preferred Stock --- 70
 Shareholders' equity - common 890,977 803,804
 Shareholders' equity per common share $25.71 $23.99
 Common shares outstanding 34,651,104 33,508,201
 Backlog at Sept. 30, (A) $6.2 Billion $7.1 Billion
 (A) Includes authorized but unfunded amounts.
 Summary of Sales and Income by Business Segments
 (Unaudited, dollars in thousands)
 Three months ended Sept. 30,
 1993 1992
 Operating Operating
 Sales Income Sales Income
 Aerospace $471,385 $23,942 $ 464,709 $27,725
 Electronics
 Systems 152,308 2,347 145,430 2,611
 Information &
 Other Services 167,842 7,949 165,318 6,339
 Special Purpose
 Vehicles 93,728 8,890 85,752 6,363
 Corporate Items &
 Eliminations (93,846) 2,315 (92,336) 1,406
 Consolidated $791,417 45,443 $ 768,873 44,444
 Interest Expense --- 7,002 --- 13,102
 Income from continuing
 operations before
 Federal Inc. Taxes --- $38,441 --- $31,342
 Nine Months Ended September 30,
 1993 1992
 Operating Operating
 Sales Income Sales Income
 Aerospace $1,455,438 $ 93,696 $1,765,040 $102,812
 Electronics
 Systems 453,923 9,047 390,366 7,611
 Information &
 Other Services 494,544 24,348 451,421 19,224
 Special Purpose
 Vehicles 282,296 24,487 257,068 21,485
 Corporate Items &
 Eliminations (276,823) 4,742 (290,710) 604
 Consolidated $2,409,378 156,320 $2,573,185 151,736
 Interest Expense --- 25,327 --- 42,666
 Income from continuing
 operations before
 Federal Inc. Taxes --- $130,993 --- $109,070
 -0- 10/25/93
 /CONTACT: Robert P. Harwood of Grumman, 516-575-5287/
 (GQ)


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

MP -- NY038 -- 6171 10/25/93 09:38 EDT
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Date:Oct 25, 1993
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