Printer Friendly

INDRESCO INC. ANNOUNCES MODIFICATION OF OWNERSHIP INTERESTS WITH KOMATSU DRESSER COMPANY

 DALLAS, July 20 /PRNewswire/ -- INDRESCO Inc. (NYSE: ID) announced today that it and Komatsu Ltd., Tokyo, Japan have agreed in principle to modify their relative ownership interest in their 50/50 partnership, Komatsu Dresser Company (KDC), headquartered in Lincolnshire, Illinois.
 The agreement provides for Komatsu to increase its ownership interest in the partnership to 81 percent and INDRESCO's interest to decrease to 19 percent upon execution of a definitive agreement. Additionally, under certain options, INDRESCO's remaining interest could be modified further. In consideration of the modification of its ownership interest, INDRESCO will receive the approximate pro rata book value of KDC adjusted for retiree health care obligations.
 Komatsu Dresser Company (KDC) was formed in September 1988 by combining the construction equipment and off-highway truck businesses of Dresser Industries with Komatsu construction and mining equipment businesses in the Western Hemisphere. KDC presently manufactures Dresser and Komatsu equipment in four plants in North America, employs approximately 2,800 employees, and is the second largest supplier of construction and mining equipment in the Western Hemisphere. In 1992, it reported revenues of $844 million and a net loss of $110 million. For the first six months of 1993, it reported revenues of $504 million compared with $411 million in the same prior year period and an operating loss of $12 million vs. a loss of $37 million in the same 1992 period.
 INDRESCO was formed in August 1992 by spinning-off to shareholders the former industrial businesses of Dresser Industries, Inc., including its 50 percent interest in KDC. In 1992, INDRESCO reported pro forma sales, including its 50 percent interest in KDC, of $1,024 million and a net loss of $65.7 million or $2.42 per share. For the first six months of 1993, the Company had pro forma sales of $526 million and a net loss of $0.9 million or $0.03 per share (excluding $40.6 million or $1.49 per share from the cumulative effect from the adoption of SFAS No. 106).
 Ralph W. Ytterberg, chairman and chief executive officer of INDRESCO, said that the company felt that the strategic direction and effectiveness of INDRESCO and KDC would be further enhanced through this action. He cited the disparity between the size of the partners, the lack of technology synergy, and the significant financial requirements to support the expected growth opportunities projected for KDC in the future.
 Ytterberg also stated that the modification of ownership positions is not expected to result in any material change in the KDC organization, its employees or distributors. He said that this action was one of several under consideration to enhance shareowner value and improve corporate focus.
 INDRESCO provides products essential to basic industrial production and infrastructure development through three business segments: Mining and Construction Equipment, Air Equipment, and Minerals and Refractory Products.
 -0- 7/20/93
 /CONTACT: Gene E. Leeson of INDRESCO Inc., 214-953-4505/
 (ID)


CO: INDRESCO Inc.; Komatsu Ltd.; Komatsu Dresser Company ST: Texas, Illinois IN: CST MNG SU:

WB -- NY095 -- 3495 07/20/93 15:18 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jul 20, 1993
Words:505
Previous Article:DUFF & PHELPS: SECURITY LIFE INSURANCE COMPANY OF AMERICA CLAIMS PAYING ABILITY RATING LOWERED TO 'A+'
Next Article:FOOTHILL/EASTERN TRANSPORTATION CORRIDOR AGENCY $78.6 MILLION TOLL REVENUES 'AAA/F-1+' BY FITCH -- FITCH FINANCIAL WIRE --
Topics:


Related Articles
DRESSER INDUSTRIES NAMES NEW COMPANY SPIN-OFF
DRESSER ANNOUNCES RECORD DATE FOR SPIN-OFF TO SHAREHOLDERS
INDRESCO REPORTS FINANCIAL RESULTS
INDRESCO REPORTS RE-ELECTION OF CASEY AND SHARIF TO BOARD
INDRESCO INC. MAKES ANNOUNCEMENT
INDRESCO INC. ANNOUNCES DEFINITIVE AGREEMENT WITH KOMATSU
INDRESCO INC. COMPLETES TRANSACTION WITH KOMATSU
SYMIX ANNOUNCES NEW ERP ACCOUNTS IN SINGAPORE, JAPAN, CHINA, THAILAND
Open Market Licenses Internet Software To Komatsu Soft
Komatsu Shows Technological Leadership as First Manufacturer to Deploy Fullscope, Inc.'s Global Enterprise Platform.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters