IMO INDUSTRIES REPORTS FOURTH QUARTER AND FULL YEAR 1991 RESULTS
IMO INDUSTRIES REPORTS FOURTH QUARTER AND FULL YEAR 1991 RESULTS LAWRENCEVILLE, N.J., Feb. 18 /PRNewswire/ -- Imo Industries Inc. (NYSE: IMD) today reported net income for the year ended December 31, 1991 of $11.4 million, or $.68 per share, down from $21.2 million, or $1.20 per share, reported for 1990. Sales in 1991 were $1.024 billion, compared with $1.018 billion in the prior year. Net income for the fourth quarter of 1991 was $2.9 million, or $.17 per share, on sales of $264.5 million. This compares with net income of $6.5 million, or $.38 per share, on sales of $274.2 million in the fourth quarter of 1990. Bookings in the fourth quarter of 1991 were 21 percent ahead of those in the third quarter, and about flat with the fourth quarter of the prior year.
Excluding major turbomachinery orders and defense contracts, neither of which are evenly spread throughout any year, fourth quarter bookings were flat with the third quarter's and down about 20 percent from the prior year's fourth period. Backlog at year end 1991 was $539.0 million compared with $600.0 million at the end of 1990.
"Fourth quarter results were ahead of the third quarter's, largely due to improved performance in electro-optical, pumps and turbomachinery aftermarket operations: Earnings per share were up 31 percent in the fourth quarter over the third, and segment operating income was up 2 percent on a revenue gain of 8 percent," said W. J. Holcombe, IMO chairman and CEO. "However, the broad recessionary trough continued to adversely affect many of IMO's major markets, causing negative earnings comparisons year-over-year. "Along with manufacturing improvement programs, we have been rigorously pursuing expense control and cost-cutting programs to adjust our operations to the realities of the harsh business environment that has developed in many of our markets. Although it is probable that our first quarter 1992 earnings will be down from those of the fourth quarter of 1991, we expect a favorable improvement in earnings for all of 1992 over 1991, on flat to modestly increased revenue. We would, of course, expect added upward impetus to our earnings should the economy recover faster and to a greater extent than is currently widely expected." Instruments Group sales were down 2 percent in the fourth quarter compared with a year ago, but were up 9 percent for the full year due to combining Optic-Electronic Corp, acquired in December 1990, into the Electro-Optical Systems operations of the Group. Electro-Optical Systems operating income for the year improved more than the $10 million previously forecast. This gain was partially offset by the effects of reduced volume elsewhere in the Group and increased customer service requirements associated with introduction of new products. In total, Group operating income declined 8 percent in the fourth quarter compared with the same period of the prior year, but increased 27 percent for the year as a whole. On a moderate gain in revenue, Instruments Group profitability should improve in 1992 as a result of our cost-cutting programs and a reduction in expenses as new-product related support requirements are reduced. Fourth quarter revenue of the Mechanical Controls Group was up 4 percent compared with the prior year's level and operating income gained 45 percent, primarily due to gains at the Group's automotive operations in Italy. Profitability of aerospace operations showed a moderate gain, on reduced revenue, from a more favorable product mix. Mechanical Controls Group revenue and operating income in 1992 are expected to benefit from an improving product mix as the Group's automotive and industrial markets gain compared to relatively flat pleasure marine and declining aerospace activity. Power Transmission Group operating income declined 7 percent in the fourth quarter compared with the prior year's fourth quarter on a 1 percent increase in revenue, as improved performance of the Group's pump operations was offset by continued weakness in our gear markets. A slowing in pump orders, primarily for the defense sector, could dampen Group performance in 1992 despite an anticipated gain in gear operations. Power Products and Services Group sales and operating income were both down sharply from the prior year's fourth quarter due primarily to the shipment in the 1990 fourth quarter of some high-margin gas turbines. Less favorable product mix and deferrals of customer maintenance schedules also contributed to the sales and operating income declines. Power Products and Services Group performance may be relatively flat in 1992 as improving aftermarket maintenance and repair business offsets an expected decline in replacement parts sales and a less favorable product mix. IMO supplies analytical and optical instruments, electronic and mechanical controls, engineered power products and their support services to industrial and defense customers worldwide. IMO INDUSTRIES INC. AND SUBSIDIARIES Condensed Consolidated Statements of Income (Unaudited) (Amounts in thousands, except per share data) Three Months Ended December 31 1991 1990 Net Sales $264,519 $274,160 Gross Profit 67,874 75,309 Segment Operating Income 19,766 26,662 Income Before Income Taxes and Minority Interest 4,388 12,450 Income Taxes 1,667 4,482 Minority Interest (193) 1,455 Net Income $2,914 $6,513 Earnings Per Share $0.17 $0.38 Average Shares Outstanding 16,867 16,967 Bookings: Instruments and Controls $165,084 $118,272 Power Systems 70,515 119,447 Total Bookings $235,599 $237,719 Twelve Months Ended December 31 1991 1990 Net Sales $1,023,986 $1,018,078 Gross Profit 264,105 269,276 Segment Operating Income 81,971 96,902 Income Before Income Taxes and Minority Interest 20,196 42,077 Income Taxes 7,674 15,148 Minority Interest 1,111 5,757 Net Income $11,411 $21,172 Earnings Per Share $0.68 $1.20 Average Shares Outstanding 16,811 17,701 Bookings: Instruments and Controls $622,196 $565,152 Power Systems 340,063 400,368 Total Bookings $962,259 $965,520 Backlog $538,966 $600,039 IMO INDUSTRIES INC. AND SUBSIDIARIES Segment Information (Unaudited) (Dollars in thousands) Three Months Ended December 31 1991 1990(A) Net Sales: Instruments and Controls: Instruments $99,610 $101,953 Mechanical Controls 61,599 59,495 161,209 161,448 Power Systems: Power Transmission 53,569 52,938 Power Products and Services 49,741 59,774 103,310 112,712 Total Net Sales 264,519 274,160 Segment Operating Income: Instruments and Controls: Instruments 6,465 7,005 Mechanical Controls 4,279 2,958 10,744 9,963 Power Systems: Power Transmission 3,944 4,242 Power Products and Services 5,078 12,457 9,022 16,699 Total Segment Operating Income 19,766 26,662 Equity in Income of Unconsolidated Companies 1,400 3,089 Net Interest Expense (13,754) (13,764) Corporate Expense (3,024) (3,537) Income Before Income Taxes and Minority Interest $4,388 $12,450 Twelve Months Ended December 31 1991 1990(A) Net Sales: Instruments and Controls: Instruments $385,884 $354,696 Mechanical Controls 241,123 265,246 627,007 619,942 Power Systems: Power Transmission 207,771 212,961 Power Products and Services 189,208 185,175 396,979 398,136 Total Net Sales 1,023,986 1,018,078 Segment Operating Income: Instruments and Controls: Instruments 19,422 15,291 Mechanical Controls 17,967 25,735 37,389 41,026 Power Systems: Power Transmission 19,278 24,086 Power Products and Services 25,304 31,790 44,582 55,876 Total Segment Operating Income 81,971 96,902 Equity in Income of Unconsolidated Companies 4,878 6,918 Net Interest Expense (57,698) (53,544) Corporate Expense (8,955) (8,199) Income Before Income Taxes and Minority Interest $20,196 $42,077 (A) Reclassified to conform to 1991 presentation. /delval/ -0- 2/18/92 /CONTACT: Paul B. Lazovick, director of Investor Relations for Imo Industries, 609-896-7615/ CO: Imo Industries Inc. ST: New Jersey IN: SU: ERN
JS -- PH037 -- 0111 02/18/92 16:26 EST
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|Date:||Feb 18, 1992|
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