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IMO INDUSTRIES REPORTS SECOND QUARTER 1993 RESULTS

 LAWRENCEVILLE, N.J., July 21 /PRNewswire/ -- Imo Industries Inc. (NYSE: IMD) today reported income for the second quarter ended June 30, 1993, of $1.8 million, or $0.10 per share, before extraordinary item.
 This compares with $0.8 million, or $0.05 per share, for the second quarter of 1992.
 Including an extraordinary item of $11.2 million, or $0.66 per share, for fees and charges related to the restructuring of the company's senior credit facilities, there was a net loss for the current second quarter of $9.5 million, or $0.56 per share. There were no extraordinary items last year.
 Sales for the second quarter of 1993 were $209.0 million, compared with $245.5 million for the same period a year ago, a reduction of 15 percent. About one-quarter of this decline was due to unfavorable changes in foreign exchange rates.
 For the first six months of 1993, there was a loss of $0.7 million, or $0.04 per share, before the extraordinary item and change in accounting principle, compared with income of $2.1 million, or $0.13 per share for the same period last year. Including the 1993 extraordinary item, and an after-tax charge in 1992 of $27.6 million, or $1.64 per share, resulting from the adoption of FASB Statement No. 106, there was a net loss of $11.9 million, or $0.70 per share, in this year's first half compared with a net loss of $25.5 million, or $1.51 per share in the year-ago period.
 New orders booked during the second quarter of 1993 amounted to $207 million, 10 percent less than in the second quarter of 1992. Backlog at the end of the quarter was $501 million, about flat with backlog at the start of the period and 12 percent lower than at the end of the second quarter of last year. Year-to-year comparisons of both new orders booked and backlog were adversely affected by changes in foreign exchange rates.
 "Imo made good progress in the second quarter, despite the fact that worldwide economic conditions have yet to stabilize," said W.J. Holcombe, Imo chairman and CEO. "We are starting to see benefits emerge from cost-reduction and restructuring programs enacted at various of our operations during the past year and a half or so. Although business conditions in the U.S. remain somewhat uncertain, and the recession in Europe has yet to be contained, we continue to anticipate profitable operating results for the year if this situation does not degenerate.
 "After the quarter ended, Imo and its senior lenders signed the definitive documentation for our restructured credit facility. We also signed a contract for the sale of four divisions which primarily serve the aerospace industry. We expect to close on this sale before the end of the third quarter. Both of these events will reduce what has been a substantial distraction of senior management's time and energy."
 Instruments Group sales were down 18 percent in the second quarter compared with the second quarter of 1992, primarily because of Imo's decision, made earlier this year, to change production schedules for certain night vision equipment in order to utilize production facilities more efficiently over the next two years. Operating income for the quarter compared unfavorably with a year ago principally because of reduced Electro-Optical revenue and operating profit margin relating to the Omnibus II program. Excluding Electro-Optical, operating income for the rest of the Instruments Group was flat with year-earlier results on 8 percent lower revenue.
 Compared with the first quarter of this year, Instrument Group sales improved, as did operating income for both the Electro-Optical and other activities.
 Mechanical Controls Group sales were down 15 percent in the quarter compared with the second quarter last year, as the result of sharply reduced levels of activity in the Italian automobile industry continuing from last year, and adverse foreign currency exchange rates. The Group had a favorable operating income comparison for the quarter as emerging benefits from various cost-cutting and restructuring programs at Morse Controls, as well as the addition of Teleflex GmbH, more than offset the decline in automotive operations.
 Power Transmission Group operating income was up substantially in the second quarter of this year compared with that of 1992, on improved operating margins for both gear and pump activities. Gear sales were up only slightly compared with the second period of last year, while pump sales declined 10 percent as general economic conditions and Navy business remain soft. Revenue was also down from a year ago due to the sale of the Heim Bearings Division in May.
 Power Products and Services Group operating income in the second quarter was essentially flat with that of the second period last year. Sales for the quarter were down 14 percent as the result of lower turbomachinery unit and revamp completions. This comparison reflects in part that major turbomachinery unit completions last year were heaviest in the second and fourth quarters. The Group's TurboCare aftermarket maintenance business showed improvement in the second quarter, as revenue grew 20 percent year-over-year, and was 28 percent ahead of the first quarter.
 Imo, with 1992 sales of $928 million, 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 1993 1992
 Net Sales $209,048 $245,466
 Gross Profit 59,734 62,706
 Segment Operating Income 16,785 17,638
 Income (Loss) Before Income Taxes,
 Minority Interest, Extraordinary
 Item and Cumulative Effect of
 Accounting change 539 1,499
 Income Taxes (1,377) 570
 Minority Interest 166 139
 Income (Loss) Before Extraordinary
 Item and Accounting Change 1,750 790
 Extraordinary Item (A) (11,219) ---
 Cumulative Effect of Change
 in Accounting Principle (B) --- ---
 Net Income (Loss) $(9,469) $790
 Earnings (Loss) Per Share:
 Before Extraordinary Item
 and Accounting Change $0.10 $0.05
 Net Income (Loss) $(0.56) $0.05
 Average Shares Outstanding 16,881 16,867
 Bookings:
 Instruments and Controls $133,107 $126,710
 Power Systems 73,937 104,328
 Total Bookings $207,044 $231,038
 Six Months Ended June 30 1993 1992
 Net Sales $412,029 $474,660
 Gross Profit 114,929 123,579
 Segment Operating Income 28,633 34,988
 Income (Loss) Before Income Taxes,
 Minority Interest, Extraordinary
 Item and Cumulative Effect of
 Accounting change (3,339) 5,018
 Income Taxes (2,851) 1,907

 Minority Interest 188 990
 Income (Loss) Before Extraordinary
 Item and Accounting Change (676) 2,121
 Extraordinary Item (A) (11,219) ---
 Cumulative Effect of Change
 in Accounting Principle (B) --- (27,590)
 Net Income (Loss) $(11,895) $(25,469)
 Earnings (Loss) Per Share:
 Before Extraordinary Item
 and Accounting Change $(0.04) $0.13
 Net Income (Loss) $(0.70) $(1.51)
 Average Shares Outstanding 16,881 16,867
 Bookings:
 Instruments and Controls $279,501 $313,006
 Power Systems 153,863 190,305
 Total Bookings $433,364 $503,311
 Backlog $501,222 $567,867
 Segment Information (Unaudited)
 (Dollars in thousands)
 Three Months Ended June 30 1993 1992
 Net Sales:
 Instruments and Controls:
 Instruments $72,688 $88,826
 Mechanical Controls 54,671 64,041
 127,359 152,867
 Power Systems:
 Power Transmission 45,153 49,964
 Power Products and Services 36,536 42,635
 81,689 92,599
 Total Net Sales 209,048 245,466
 Segment Operating Income:
 Instruments and Controls:
 Instruments 2,282 5,402
 Mechanical Controls 5,817 5,075
 8,099 10,477
 Power Systems:
 Power Transmission 5,235 3,741
 Power Products and Services 3,451 3,420
 8,686 7,161
 Total Segment Operating Income 16,785 17,638
 Equity in Income of
 Unconsolidated Companies (150) 778
 Net Interest Expense (14,507) (14,451)
 Corporate Expense (1,589) (2,466)
 Income (Loss) Before Income Taxes,
 Minority Interest, Extraordinary
 Item and Cumulative Effect of
 Accounting Change $539 $1,499
 Six Months Ended June 30 1993 1992
 Net Sales:
 Instruments and Controls:
 Instruments $140,805 $172,856
 Mechanical Controls 107,228 128,087
 248,033 300,943
 Power Systems:
 Power Transmission 92,356 99,113
 Power Products and Services 71,640 74,604
 163,996 173,717
 Total Net Sales 412,029 474,660
 Segment Operating Income:
 Instruments and Controls:
 Instruments 2,389 10,310
 Mechanical Controls 9,397 10,280
 11,786 20,590
 Power Systems:
 Power Transmission 9,690 8,079
 Power Products and Services 7,157 6,319
 16,847 14,398
 Total Segment Operating Income 28,633 34,988
 Equity in Income of
 Unconsolidated Companies 643 3,687
 Net Interest Expense (28,941) (29,028)
 Corporate Expense (3,674) (4,629)
 Income (Loss) Before Income Taxes,
 Minority Interest, Extraordinary
 Item and Cumulative Effect of
 Accounting Change $(3,339) $5,018
 (A) The three- and six-month periods ended June 30, 1993, include an extraordinary charge of $11.2 million after-tax ($.66 per share) representing fees and charges related to the restructuring of the Company's senior credit facilities.
 (B) The six months ended June 30, 1992, include a charge related to the adoption of Financial Accounting Standards Board Statement No. 106 "Employer's Accounting for Postretirement Benefits Other Than Pensions." This charge has been reported as a cumulative effect of a change in accounting principle and was adopted and retroactively applied as of Jan. 1, 1992.
 /delval/
 -0- 7/21/93
 /CONTACT: Paul B. Lazovick, director of Investor Relations for Imo Industries, 609-896-7615/
 (IMD)


CO: Imo Industries Inc. ST: New Jersey IN: SU: ERN

MK -- PH038 -- 4108 07/21/93 16:08 EDT
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