Printer Friendly

HOLNAM REPORTS 1991 RESULTS; ANNOUNCES ADDITIONAL FINANCING FROM HOLDERBANK

 HOLNAM REPORTS 1991 RESULTS;
 ANNOUNCES ADDITIONAL FINANCING FROM HOLDERBANK
 DUNDEE, Mich., March 9 /PRNewswire/ -- Holnam Inc. (NYSE: HLN) of Dundee reported today a consolidated net loss for 1991 of $95.1 million.
 Of this amount, $58.5 million ($62 million pretax) reflect charges for unusual items, including restructuring costs. This compares with a 1990 consolidated net loss of $25.1 million. Consolidated net sales for 1991 were $979 million, compared with $1.075 billion the previous year. All 1990 results have been restated to reflect a change in the method of accounting for inventory costs.
 The company also announced that its majority stockholder, Holderbank Financiere Glaris Ltd., has agreed to provide Holnam with additional financing of $50 million, most likely to be in the form of subordinated debt. The additional financing is intended to strengthen Holnam's overall capital structure.
 Excluding unusual items, the 1991 consolidated net loss would have been $36.6 million. St. Lawrence Cement Company, of Canada, contributed net losses of $4.4 million, compared with $12.4 million of net income in 1990. It is the first time in its history that St. Lawrence has reported a loss. St. Lawrence is 59 percent owned by Holnam and operates principally in eastern Canada and the northeastern United States, two areas hardest hit by the recession. The balance of Holnam's operations contributed a net loss of $32.2 million in 1991, compared with a net loss of $37.5 million in 1990.
 In 1991 pretax unusual charges of $62 million include approximately $39 million for the write-off of Holnam's outstanding subordinated loans to BoxCrow, and provision for Holnam's estimated exposure under letters of credit that secure certain BoxCrow debt service obligations. Management determined to record the charge against 1991 earnings because of BoxCrow's present financial situation, the uncertainties of its markets and Holnam's subordinated loan position. Holnam announced last year that it had terminated its option to purchase the business and assets of BoxCrow.
 The pretax $62 million charge also includes a restructuring provision of approximately $19 million for costs to implement strategic decisions the company made to rationalize facilities, sell certain unprofitable operations and centralize administration.
 "Our operating results, excluding the unusual items, reflect the recession that gripped the entire industry," said Marc von Wyss, president and chief executive officer of Holnam. "In addition, management acted to resolve several outstanding issues, which resulted in the one-time charges. Our efforts continue to be concentrated on improving operating results throughout Holnam Inc. by focusing on strategic assets and reducing costs.
 "Despite heavy losses of the past, I am optimistic that there will be an improvement of business conditions," continued von Wyss, "and that Holnam will maintain its leadership position in the cement industry."
 Holnam Inc. is a leading producer of cement in North America. It is a subsidiary of Holderbank Financiere Glaris Ltd., of Switzerland, one of the world's largest manufacturers of cement and allied construction materials.
 HOLNAM INC.
 Consolidated Statements of Operations
 (In thousands, except per-share amounts)
 Fourth quarter ended Dec. 31 1991 1990
 Cement shipments (tons) 2,594 3,044
 Sales $251,061 $252,576
 Cost of sales 226,164 226,880
 Selling and administrative expenses 30,374 33,212
 Unusual items (61,672) --
 Income (loss) from operations (67,149) (7,516)
 Interest expense, net 13,194 14,238
 Other income 1,588 1,306
 Income (loss) before taxes and
 minority equity in net income (78,755) (20,448)
 Income tax provision (credit) (6,488) (8,826)
 Minority equity in net income (loss) (1,190) (784)
 Net income (loss) ($71,077) ($10,838)
 Per common share ($0.53) ($0.08)
 Weighted average common shares outstanding 134,801 134,710
 Twelve months ended Dec. 31 1991 1990
 Cement shipments (tons) 12,049 13,336
 Sales $979,297 $1,074,579
 Cost of sales 858,420 912,771
 Selling and administrative expenses 119,997 116,392
 Unusual items (61,672) --
 Income (loss) from operations (60,792) 45,416
 Interest expense, net 56,534 58,942
 Other income 5,316 3,103
 Income (loss) before taxes and
 minority equity in net income (112,010) (10,423)
 Income tax provision (credit) (13,794) 6,168
 Minority equity in net income (loss) (3,162) 8,525
 Net income (loss) ($95,054) ($25,116)
 Per common share ($0.71) ($0.22)
 Weighted average common shares outstanding 134,782 115,670
 Note: Certain reclassifications have been made to the previously reported 1990 condensed consolidated statements of operations to conform to the 1991 presentation.
 -0- 3/9/92
 /CONTACT: Thomas A. Chizmadia of Holnam, 313-529-2411, ext. 2294, or Colin MacLachlan of Gavin Anderson & Co., 212-921-1060, for Holnam/
 (HLN) CO: Holnam Inc. ST: Michigan IN: SU: ERN


CK -- NY083 -- 6622 03/09/92 17:48 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Mar 9, 1992
Words:789
Previous Article:NEW JERSEY NATURAL GAS MAKES $41 MILLION PAYMENT TO STATE FOR GROSS RECEIPTS AND FRANCHISE TAXES
Next Article:MEDENTA ANNOUNCES FORMATION OF SCIENTIFIC ADVISORY BOARD
Topics:


Related Articles
HOLNAM WILL CLOSE ITS PLANT IN OKAY, ARK.
HOLNAM INC REPORTS FIRST QUARTER RESULTS
HOLNAM INC. REPORTS SECOND-QUARTER RESULTS
HOLNAM INC. REPORTS THIRD QUARTER RESULTS
HOLNAM REPORTS 1992 RESULTS
TXI Announces New Licensing Agreement for CemStar(SM) Process.
Holnam Inc. Plans to Redeem $68 Million in Industrial Development Bonds.
Commentary.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters