IMC FERTILIZER REPORTS FIRST QUARTER EARNINGS
IMC FERTILIZER REPORTS FIRST QUARTER EARNINGS NORTHBROOK, Ill., Oct. 13 /PRNewswire/ -- IMC Fertilizer Group, Inc.
(NYSE: IFL) today reported net earnings of $19.7 million, or 89 cents per share for the first quarter of fiscal 1992/93 ended Sept. 30.
That result includes a $5 million or 23 cents per share benefit from a ruling concluding arbitration proceedings with Miami-based Florida Power & Light, which settled all issues under a contract dispute. Net earnings fro the same period a year ago (before a previously announced accounting change) were $21.2 million, or 96 cents per share. Sales for the first quarter were $220.9 million, compared with $258.7 million for the comparable period last year. Commenting on the company's most recent quarter, Billie B. Turner, IMCF chairman and chief executive officer, said the disappointing numbers reported today reflect a continuing weakness in fertilizer prices, especially concentrated phosphates, which have not responded to steady or growing demand. "The situation remains frustrating. The current pricing situation illustrates that the fertilizer industry must learn how to earn reasonable profit margins for products which are critical to high quantity and quality food production globally," Turner says. "Considering the uncertainties confronting the fertilizer industry, it would be inappropriate to attempt to project 12-month earnings by multiplying our first quarter results by four," Turner said. To address the positives, Turner notes that production cost savings, achieved by IMC Fertilizer in all product lines, continue to help offset some of the negative effects of weak prices./ IMC Fertilizer, Inc. is one of the world's leading producers and marketers of two basic crop nutrients, phosphate rock and potash. The company is also a major manufacturer of concentrated phosphates and a producer of sulphur, oil and natural gas. IMC FERTILIZER GROUP, INC. Quarter ended Sept. 30: 1992 1991 Net sales $220.9 $258.7 Cost of goods sold 169.1 201.7 Gross margins 51.8 57.0 Selling, admin. & general expenses 16.2 13.6 Other operating (income) and expense, net (A) (13.2) (.5) Operating earnings 48.7 43.9 Interest earned and other non-operating (income) and expense, net 3.5 (.4) Interest charges 10.7 10.9 Earnings before income taxes 34.5 33.4 Provision for income taxes 14.8 12.2 Earnings before cumulative effect of accounting change 19.7 21.2 Cumulative effect of accounting change (C) -- (165.5) Net earnings (loss) 19.7 (144.3) Earnings (loss) per share (B): Earnings before cumulative effect of accounting change $.89 $.96 Cumulative effect of accounting change (C) -- (7.51) Net earnings (loss) $.89 $(6.55) (A) -- 1992 included a gain of $8.1 million from the arbitrated settlement of a contract dispute. (B) -- Earnings per share were based on the weighted average number of shares and equivalent shares outstanding. Shares used in the calculations were 22.1 ad 22.0 million shares of the quarters ended Sept. 30, 1992 and 1991, respectively. (C) -- Reflected the cumulative effect of an accounting change for periods prior to July 1, 1991, resulting from the adoption of Statement of Financial Accounting Standards No. 109, "Accounting for Income Taxes." -0- 10/13/92 /CONTACT: Tom Unzicker, 708-205-4839, or (investors) John E. Galvin, 708-205-4814, both of IMC Fertilizer Group, Inc./ (IFL) CO: IMC Fertilizer Group, Inc. ST: Illinois IN: CHM SU: ERN
AH-TS -- NY013 -- 9182 10/13/92 09:47 EDT
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|Date:||Oct 13, 1992|
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