Printer Friendly

ITEL REPORTS LOSS FROM CONTINUING OPERATIONS

 ITEL REPORTS LOSS FROM CONTINUING OPERATIONS
 CHICAGO, March 27 /PRNewswire/ -- Itel Corp. (NYSE: ITL) today


reported a 1991 loss from continuing operations of ($2.41) per share, compared with a loss from continuing operations of (65 cents) per share during 1990. These financial results include Itel Rail's results as a continuing operation of Itel Corp. As previously reported, Itel Rail has entered into an agreement for the long-term lease of substantially all of its rail car fleet to a subsidiary of General Electric Capital Corp. This transaction, which is contingent upon, among other things, financing that would provide approximately $400 million of net cash available to Itel, is expected to close shortly.
 Included in the 1991 loss are the effects of several special items, the most significant of which is a $30 million net loss on the sale of Itel's stock position in Santa Fe Pacific Corp. Itel also recorded a $33 million net loss in the fourth quarter of 1991 arising from a revaluation of the company's remaining marketable securities. The company believes the revaluation does not necessarily reflect the amount it ultimately will realize on these equity investments.
 Per share results for 1991 reflect approximately 12 million fewer shares of common stock outstanding compared to a year earlier.
 Net loss was ($114.2 million) in 1991, compared with net income of $132.4 million in 1990. In 1991, results were negatively affected by the losses on the marketable securities and a net loss from discontinued operations of ($46 million) consisting primarily of the net loss on the sale of the company's dredging business and on the sale of its investment in American President Companies. Net income for 1990 included income from discontinued operations, net of related taxes, of $157.2 million, resulting mainly from the net gain on the sale of Itel's container assets.
 Results reflect Itel's continuing actions to reduce debt, which were initiated in 1990 and continued in 1991.
 Rod Dammeyer, Itel president, said the company's operating results also were negatively affected by interest expense related to the company's investments in marketable securities. The carrying costs of these investments reduced net income by approximately $36 million in 1991 and $50 million in 1990. The year-to-year reduction in carrying costs is primarily a result of the sale of Itel's Santa Fe Pacific and American President Companies securities during 1991.
 "We have significantly reduced debt over the last two years. The decisions we've made, including the recently announced decision to lease our entire rail car fleet to GECC and thereby further reduce our debt substantially, have allowed the company to move rapidly toward its objective of maximizing shareholder value by focusing on Anixter's substantial opportunities to create value. The performance of the company's debt and equity securities in the markets reflect confidence in our actions," Dammeyer said.
 "Revenues, including Rail, were $1.7 billion in 1991, about the same as a year earlier.
 "Anixter's U.S. distribution business continued its good earnings growth in 1991, especially in the voice and data markets. This earnings strength helped to partially offset the continued weakness in the U.S. cable TV market and the ongoing start-up costs associated with strong momentum, produced an increase in European sales of 70 percent compared to 1990."
 Revenues of the rail car leasing and other transportation services segments rose to $405 million for 1991 compared to $387 million in 1990. The increase in year-to-year revenues was caused by increased volume at the company's short-line railroads and maintenance shops, which was partially offset by continued softness in demand for grain cars in the leasing segment.
 For the fourth quarter ended Dec. 31, 1991, Itel revenues including Rail were $435 million, compared to $410 million in the same quarter of 1990. The quarterly loss from continuing operations was ($34.8 million) or ($1.13) per share, compared to a loss of ($15.2 million) or (38 cents) per share in the fourth quarter of 1990.
 Net loss for the fourth quarter of 1991 was ($1.29) per share, compared with net income of $2.53 per share in the same quarter of 1990. Quarterly results for 1991 reflect the impact of the net charge of ($33 million), or ($1.03) per share, related to the revaluation of marketable securities, as well as interest carrying charges on remaining marketable securities. Fourth quarter 1990 results also include a loss on the sale of marketable securities. In addition, 1990 quarterly results included income from discontinued operations of $127.4 million, or $2.91 per share, resulting primarily from the gain on the sale of Itel's container leasing assets and a provision for loss on assets held for sale.
 ITEL CORP.
 Consolidated Statement of Operations
 (in millions, except per share amounts)
 Periods ended Three month Years
 Dec. 31, 1991 1990 1991 1990
 Revenues $434.7 $410.1 $1,689.1 $1,695.3
 Cost of operations (380.2) (361.6) (1,497.2) (1,500.0)
 Goodwill amortization (2.1) (2.1) (8.6) (8.6)
 Operation Income 52.4 46.4 183.3 186.7
 Int. exp. & other, net (46.3) (40.4) (187.5) (184.8)
 Non-recurring items -
 marketing securities (50.0) (31.7) (79.4) (31.7)
 Loss from cont. opers.
 before income taxes (43.9) (25.7) (83.6) (29.8)
 Income tax benefit:
 Provision in lieu of
 Federal tax -- 7.6 -- 3.6
 Other, including foreign
 and state taxes 9.1 2.9 6.6 1.4
 Loss from cont. opers. (34.8) (15.2) (77.0) (24.8)
 Inc. (loss) from discont.
 opers. (net of related
 taxes) (5.0) 127.4 (46.0) 157.2
 Income (loss) before
 extraordinary item (39.8) 112.2 (123.0) 132.4
 Extraordinary item
 (net of related taxes) (0.1) -- 8.8 --
 Net income (loss) 39.9 112.2 (114.2) 132.4
 Pfd. stock dividends &
 amortization (1.5) (1.5) (6.1) (6.1)
 Income (loss) applicable to
 common stock ($41.4) $110.7 $120.3 $126.3
 Inc. (loss) per common &
 common equivalent share
 Continuing operations ($1.13) ($0.38) ($2.41) ($0.65)
 Before extraord. item ($1.29) $2.53 ($3.75) $2.68
 Net income (loss) ($1.29) $2.53 ($3.49) $2.68
 Wtd. avg. common & common
 equivalent shares 32.1 43.7 34.4 47.2
 ITEL CORP.
 Segment Information
 (in millions)
 Periods ended Three month Years
 Dec. 31, 1991 1990 1991 1990
 Segment Information
 Revenues
 Anixter $328.4 $313.8 $1,284.1 $1,308.2
 Rail car leasing 80.4 76.3 307.0 309.2
 Other transportation
 services 25.9 20.0 98.0 77.9
 Total $434.7 $410.1 $1,689.1 $1,695.3
 Operating income (expense)
 Anixter (A) (B) $10.6 $13.3 $43.4 $50.0
 Rail car leasing 38.5 32.1 137.0 135.1
 Other transportation
 services 6.0 3.6 13.5 13.8
 Corporate (2.7) (2.6) (10.6) (12.2)
 Total $52.4 $46.4 $183.3 $186.7
 (A) Includes start up expenses from increased European expansion of approximately $2.4 and $2.0 million for the three-month periods ended Dec. 31, 1991 and 1990, respectively, and $9.0 and $9.8 million for the twelve-month periods ended Dec. 31, 1991 and 1990, respectively.
 (B) After goodwill amortization of $2.1 and $8.6 million for the respective three-month and twelve-month periods ended Dec. 31, 1991 and 1990, respectively.
 -0- 3/27/92
 /CONTACT: Kirk Brewer or Gloria Waber of Itel, 312-902-1515/
 (ITL) CO: Itel Corp. ST: Illinois IN: TRN SU: ERN


SH -- NY021 -- 2302 03/27/92 10:39 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Mar 27, 1992
Words:1274
Previous Article:COMCOA REPORTS YEAR-END RESULTS
Next Article:100TH COMMERCIAL BANK JOINS FHLB OF CINCINNATI; VALUE OF MMA CREDIT PRODUCT CITED
Topics:


Related Articles
GE CAPITAL RAILCAR SERVICES PLANS LEASE OF ITEL RAIL FLEET
ITEL TO OFFER NEW DEBT ISSUE
WISCONSIN CENTRAL SUBSIDIARY TO PURCHASE THREE LINES FROM ITEL RAIL CORPORATION
SHIPPERS HEAR PLANS FOR NEW FOX VALLEY RAIL LINE
ITEL REPORTS FIRST QUARTER RESULTS
WISCONSIN CENTRAL URGES RAIL USERS TO BE WARY OF CNW CAMPAIGN
ITEL REPORTS YEAR-END RESULTS; ANIXTER POSTS RECORD OPERATING RESULTS
ITEL REPORTS IMPROVED FIRST QUARTER RESULTS
FOX VALLEY & WESTERN BEGINS RAIL OPERATIONS IN WISCONSIN

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