HOLNAM REPORTS THIRD-QUARTER RESULTS
HOLNAM REPORTS THIRD-QUARTER RESULTS DUNDEE, Mich., Nov. 11 /PRNewswire/ -- Holnam Inc. (NYSE: HLN), one
of North America's largest producers of portland cement, today reported consolidated revenues of $324.4 million and net income of $5.1 million for the third quarter ended Sept. 30, 1991, compared with revenues of $340.3 million and net income of $8.4 million in the third quarter of 1990.
For the first nine months of 1991, Holnam reported a consolidated net loss of $24.0 million on revenues of $728.2 million, vs. a net loss of $14.3 million on revenues of $822.0 million for the first nine months of 1990. According to Marc von Wyss, president and chief executive officer, the decrease in consolidated revenues for the third quarter and first nine months of 1991, as compared with revenues for the comparable periods of 1990, is primarily a result of the prolonged recession in the Canadian and United States markets served by St. Lawrence Cement (60 percent owned by Holnam Inc.) as well as reduced demand in certain of Holnam Operations' markets, which exclude St. Lawrence. Lower sales volume was partially offset by modest price improvements in most Holnam Operations markets. Holnam Operations' portions of the company's third-quarter net income and year-to-date net loss were $2.3 million and $20.8 million, respectively, as compared with $1.4 million net income and $28.0 million net loss for the comparable periods of 1990. St. Lawrence Cement's portions of the company's third-quarter net income and year-to-date net loss of $2.8 million and $3.2 million, respectively, declined from last year's $7.0 million net income for the third quarter and $13.7 million net income for the nine month period as a result of weak construction activity in St. Lawrence's principal markets of Quebec and Ontario, Canada, and the northeastern United States. In September 1991, Holman Inc. terminated its option to purchase the business and assets of BoxCrow Cement Company L.P. Subject to certain conditions, Holnam remains obligated to manage the operation until September 1992. Holnam is unable at this time to determine the extent to which its $30 million of subordinated working capital loans will ultimately be recoverable and any reimbursement obligations ultimately incurred under the $12.9 million Holnam-reimbursable letters of credit securing senior debt service liabilities of BoxCrow through the second quarter of next year. Holnam Inc. 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 Interim Report (In thousands, except per-share amounts) Condensed Consolidated Statements of Operations (Unaudited) Third Quarter For the period ended Sept. 30, 1991 1990 Cement Shipments (Tons) 4,204 4,173 Sales $324,381 $340,258 Cost of sales 271,254 279,215 Gross margin 53,127 61,043 Selling and administrative expenses 32,205 26,036 Interest expense, net 14,795 15,996 Other income 1,931 519 Income (Loss) before income taxes and minority equity in net income 8,058 19,530 Income tax provision (credit) 1,282 6,427 Minority equity in net income (loss) 1,709 4,718 Net income (loss) $ 5,067 $ 8,385 Per common share $.038 $.074 Weighted average common shares outstanding 134,800 113,212 Nine Months For the period ended Sept. 30, 1991 1990 Cement Shipments (Tons) 9,455 10,292 Sales $728,236 $822,003 Cost of sales 632,256 685,891 Gross margin 95,980 136,112 Selling and administrative expenses 89,623 83,180 Interest expense, net 43,340 44,704 Other income 3,728 1,797 Income (Loss) before income taxes and minority equity in net income (33,255) 10,025 Income tax provision (credit) (7,306) 14,994 Minority equity in net income (loss) (1,972) 9,309 Net income (loss) ($23,977) ($14,278) Per common share ($.178) ($.131) Weighted average common shares outstanding 134,776 109,254 Certain reclassifications have been made to the previously reported 1990 condensed consolidated statements of operations to conform to the 1991 presentation. -0- 11/11/91 /CONTACT: Stuart Kirvan of Holnam, 313-529-2411, or Colin MacLachlan of Gavin Anderson Doremus & Co., 212-921-1060, for Holnam/ (HLN) CO: Holnam Inc. ST: Michigan IN: SU: ERN KD -- NY071 -- 3162 11/11/91 16:43 EST
|Printer friendly Cite/link Email Feedback|
|Date:||Nov 11, 1991|
|Previous Article:||TIS MORTGAGE INVESTMENT ANNOUNCES HIGHER EARNINGS IN THE THIRD QUARTER OF 1991|
|Next Article:||VALLICORP PRESIDENT RESIGNS TO PURSUE PERSONAL INTEREST IN MINORITY EDUCATION, EMPLOYMENT; PROVISIONS MADE FOR TRANSITION|