IMO INDUSTRIES REPORTS SECOND QUARTER 1992 RESULTS
IMO INDUSTRIES REPORTS SECOND QUARTER 1992 RESULTS LAWRENCEVILLE, N.J., July 22 /PRNewswire/ -- Imo Industries Inc.
(NYSE: IMD) today reported net income of $0.8 million, or $.05 per share, for the second quarter ended June 30, 1992, compared with $2.5 million, or $.15 per share, reported for the second quarter of 1991.
Sales for the second quarter of 1992 were $245.5 million, compared with $253.8 million for the second quarter of last year. For the first six months of 1992, net income was $2.1 million, or $.13 per share, compared with $6.3 million, or $.38 per share. Sales for the most recent six months were $474.7 million, compared with $515.0 million. Bookings in the second quarter of 1992 amounted to $231.0 million, 8 percent more than in the second quarter of 1991. Excluding major turbomachinery orders and defense contracts, neither of which are evenly spread throughout the year, second quarter bookings were 1 percent below those of a year ago, and down 3 percent from the first quarter of 1992. Backlog at the end of the quarter was $567.9 million, 8 percent less than at the same time a year ago. "We had, earlier, detected some indications that the economy was on the verge of turning up," said W.J. Holcombe, IMO chairman. "However, there was not a consistent follow-through in many of our markets, and some, in fact, have continued to slide. Orders, revenue and income in the second quarter fell far short of expectations. "The defense and aerospace sectors of our business have been those most directly affected to date, and our near-term projections do not call for any significant improvement in the more rapid response portions of our business. As a result, while we expect our second-half performance to improve over the first half, our backlog position and inquiry levels now lead us to anticipate full-year 1992 earnings will be below the $.68 per share earned last year." Instruments Group sales were down 3 percent in the second quarter of this year compared with a year ago, as an 11 percent decline in electro-optical operations was only partially offset by gains elsewhere. Electro-optical revenue comparisons were negative due primarily to a shortfall in orders from foreign customers and reduced defense spending in the United States. Group operating income comparisons were favorable because certain expenses related to the integration of Optic-Electronic Corp. and Varo were absorbed in last year's second quarter, while this year's period benefitted from a favorable change in estimated reserve requirements. Without these items, operating income comparisons would have been unfavorable. This integration effort is largely complete and priorities are now focused on operating within the revised structure. Mechanical Controls Group revenue was up slightly in the second quarter, compared with a year ago, as sales into the Group's automotive market in Italy and pleasure marine market in the United States offset a decline in aerospace and defense market sales. Operating income in the quarter was almost flat, as margins in the aerospace divisions contracted on the reduced sales level. Power Transmission Group sales and operating income were lower in the second quarter, compared with the prior year's second quarter, primarily due to continued weakness and pricing pressures in the Group's aerospace and industrial markets for bearings. Operating income of the pump operations was flat, on a moderate increase in revenue. Sales and operating income of speed reducer and gear products held steady. Power Products and Services Group sales in the second quarter of this year declined 12 percent. Revenues from the Group's defense market, and from its utility and hydrocarbon markets for maintenance, repair and parts, were lower and adversely affected the quarter despite an increase in turbomachinery unit shipments. Operating income was down even more sharply because of this unfavorable product mix. Orders booked during the second quarter, primarily for turbomachinery units deliverable next year, were 78 percent ahead of bookings in last year's second quarter, and 63 percent above this year's first quarter bookings. This market continues active and important additional orders of this type have been received during early July. IMO, with 1991 sales of $1 billion, 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 June 30 1992 1991 Net Sales $245,466 $253,801 Gross Profit 62,706 66,164 Segment Operating Income 17,638 20,045 Income Before Income Taxes and Minority Interest 1,499 5,045 Income Taxes 570 1,918 Minority Interest 139 618 Net Income $790 $2,509 Earnings Per Share $0.05 $0.15 Average Shares Outstanding 16,867 16,785 Bookings: Instruments and Controls $126,710 $130,661 Power Systems 104,328 82,545 Total Bookings $231,038 $213,206 Six Months Ended June 30 1992 1991 Net Sales $474,660 $514,976 Gross Profit 123,579 134,860 Segment Operating Income 34,988 42,770 Income Before Income Taxes and Minority Interest 5,018 12,391 Income Taxes 1,907 4,709 Minority Interest 990 1,384 Net Income $2,121 $6,298 Earnings Per Share 0.13 $0.38 Average Shares Outstanding 16,867 16,764 Bookings: Instruments and Controls $313,006 $346,415 Power Systems 190,305 185,214 Total Bookings $503,311 $531,629 Backlog $567,867 $619,543 IMO INDUSTRIES INC. AND SUBSIDIARIES Segment Information (Unaudited) (Dollars in thousands) Three Months Ended June 30 1992 1991 Net Sales: Instruments and Controls: Instruments $88,826 $91,638 Mechanical Controls 64,041 62,436 Total 152,867 154,074 Power Systems: Power Transmission 49,964 51,390 Power Products and Services 42,635 48,337 Total 92,599 99,727 Total Net Sales 245,466 253,801 Segment Operating Income: Instruments and Controls: Instruments 5,402 3,327 Mechanical Controls 5,075 5,160 Total 10,477 8,487 Power Systems: Power Transmission 3,741 4,811 Power Products and Services 3,420 6,747 Total 7,161 11,558 Total Segment Operating Income 17,638 20,045 Equity in Income of Unconsolidated Companies 778 917 Net Interest Expense (14,451) (14,051) Corporate Expense (2,466) (1,866) Income Before Income Taxes and Minority Interest $1,499 $5,045 Six Months Ended June 30 1992 1991 Net Sales: Instruments and Controls: Instruments $172,856 $192,603 Mechanical Controls 128,087 126,962 Total 300,943 319,565 Power Systems: Power Transmission 99,113 103,580 Power Products and Services 74,604 91,831 Total 173,717 195,411 Total Net Sales 474,660 514,976 Segment Operating Income: Instruments and Controls: Instruments 10,310 8,815 Mechanical Controls 10,280 9,388 Total 20,590 18,203 Power Systems: Power Transmission 8,079 10,647 Power Products and Services 6,319 13,920 Total 14,398 24,567 Total Segment Operating Income 34,988 42,770 Equity in Income of Unconsolidated Companies 3,687 2,314 Net Interest Expense (29,028) (29,143) Corporate Expense (4,629) (3,550) Income Before Income Taxes and Minority Interest $5,018 $12,391 /delval/ -0- 7/22/92 /CONTACT: Paul B. Lazovick, director of investor relations for Imo Industries, 609-896-7615/ CO: Imo Industries Inc. ST: New Jersey IN: SU: ERN
LJ-MJ -- PH041 -- 2097 07/22/92 16:21 EDT
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|Date:||Jul 22, 1992|
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