Printer Friendly

KEENE REPORTS FIRST QUARTER RESULTS

 NEW YORK, April 8 /PRNewswire/ -- Keene Corporation (NASDAQ: KEEN) announced first quarter results today. Investment income in the first quarter of 1993 declined 25 percent to $1,637,000 compared with $2,188,000 in the first quarter of 1992 as a result of a smaller investment portfolio coupled with lower interest rates. During the first quarter of 1993, the average yield on investments was 6.7 percent compared with 7.1 percent for 1992's first quarter. General and administrative expenses increased 3 percent to $1,220,000 in the first quarter of 1993 compared with general and administrative expenses of $1,181,000 in the comparable quarter of 1992.
 As a result of utilizing a portion of the 1992 net operating loss carryforward, the income tax provision for the first quarter of 1993 was $30,000. By comparison, 1992's first quarter income tax provision was $397,000. Income from continuing operations totalled $387,000, or $.04 per share, in 1993's first quarter compared with $610,000, or $.06 per share, in the prior year first quarter.
 As previously reported, Keene has consumed substantially all of its bodily injury products liability insurance coverage. Because substantially all of the asbestos-related expenses are now being paid directly by Keene, no dividend was declared for the first quarter of 1993.
 REINHOLD INDUSTRIES, INC.
 As previously reported, Keene anticipates completing the sale of its Reinhold Industries, Inc. subsidiary, a custom manufacturer of advanced composite components and sheet molding compounds for a variety of defense, aerospace and commercial applications, in the first half of 1993. Consequently, Reinhold has been accounted for as an operation to be sold and Reinhold's results are not included in Keene's income from continuing operations. Reinhold's actual results for the first quarter of 1993 included a 29 percent sales increase to $3,268,000 and a 242 percent improvement in net income to $270,000, when compared with the first quarter of 1992.
 ASBESTOS LITIGATION
 Keene continued to adhere to the Asbestos Compensation Program it launched in July 1990 by paying settlements only on meritorious cases in amounts based upon specific disease ailments and geographic locations.
 During the first quarter of 1993, approximately $16.3 million in asbestos-related expenditures were incurred, of which $11.7 million were for indemnity costs and $4.6 million were for defense legal costs. Approximately $14.3 million of these costs were paid directly by Keene and charged to the asbestos-related contingent liability recorded in the fourth quarter of 1992. Approximately $2.0 million of these costs were paid by Keene's insurers.
 In the first quarter of 1992, approximately $13.5 million in asbestos-related expenditures were incurred, of which $6.1 million were for indemnity costs and $7.4 million were for defense legal costs. Substantially all of these costs were paid by Keene's insurers.
 The change in the direction and amount of the components of asbestos-related expenditures reflects an increasing acceptance of the Asbestos Compensation Program and the payment of a few large verdicts in certain jurisdictions after unsuccessful appeals offset by continued substantial reductions in defense legal fees.
 At March 31, 1993, approximately $65 million of jury verdicts were outstanding against Keene and on appeal to higher courts. During the appeals process, Keene is required to secure these verdicts by pledging marketable securities approximately equal to the verdict amounts. Keene's capacity to continue paying asbestos-related expenses and to secure potential future verdicts it may seek to appeal is limited to those assets not currently pledged to secure appeals. Unpledged assets totalled approximately $11 million at March 31, 1993.
 Keene continues to actively seek and support solutions to asbestos litigation that would provide fair and prompt compensation to those who are really sick from significant exposure to asbestos, reduce the high transaction costs (especially lawyers' fees and punitive damages) and preserve the businesses of the companies involved, the jobs of their employees and the investments of their stockholders.
 KEENE CORPORATION
 (Statement of income, in thousands except per share data)
 Three months ended March 31 1993 1992
 Investment income $1,637 $2,188
 General and administrative expenses 1,220 1,181
 Income before taxes 417 1,007
 Income tax provision 30 397
 Income from continuing operations 387 610
 Income from operation to be sold,
 net of tax -- 79
 Income before cumulative effect
 of change in accounting principle 387 689
 Cumulative effect of change in
 accounting principle (SFAS No. 109) -- 2,445
 Net income $387 $3,134
 Earnings per share:
 Continuing operations 0.04 0.06
 Discontinued operations -- 0.01
 Change in accounting principle -- 0.23
 Net income $0.04 $0.30
 Shares outstanding 10,442 10,442
 -0- 4/8/93
 /CONTACT: Timothy E. Coyne of Keene Corporation, 212-557-1900/
 (KEEN)


CO: Keene Corporation ST: New York IN: SU: ERN

AH-OS -- NY063 -- 4380 04/08/93 16:16 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:Apr 8, 1993
Words:802
Previous Article:COMPANIA DE TELEFONOS DE CHILE S.A. ANNOUNCES OFFERING OF CONVERTIBLE DEBENTURES
Next Article:FIRST CASH ANNOUNCES A STORE ACQUISITION IN ARLINGTON, TEXAS
Topics:


Related Articles
KEENE REPORTS LOWER FIRST QUARTER SALES AND EARNINGS
KEENE REPORTS IMPROVED THIRD QUARTER OPERATING RESULTS
KEENE REPORTS 1992 RESULTS
SUPREME COURT TO DECIDE WHETHER KEENE CORPORATION CAN PURSUE EFFORTS TO HOLD GOVERNMENT RESPONSIBLE FOR ASBESTOS-RELATED INJURIES
KEENE SHAREHOLDERS RATIFY SALE OF OPERATING COMPANY TO FUND GOAL OF FINDING ASBESTOS-LITIGATION SOLUTION
KEENE REPORTS SECOND QUARTER RESULTS
KEENE REPORTS THIRD QUARTER RESULTS
Revenue Up Thirty Percent for Reinhold Industries
Third Quarter Revenue Up Forty Six Percent for Reinhold Industries

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