Printer Friendly

LTV ANNOUNCES PROFIT IN THIRD QUARTER

 CLEVELAND, Oct. 18 /PRNewswire/ -- The LTV Corporation (NYSE: LTV) today announced net income of $0.4 million for the third quarter ended Sept. 30, 1993. This compares to the third quarter of 1992 when the company recorded income and gains of $647.0 million from divestiture of its aerospace and defense business and $38.1 million from the collection of a note while reporting net income of $632.4 million.
 Operating income in the 1993 third quarter was $2.0 million, an improvement of $51.6 million from the loss of $49.6 million reported in the third quarter of 1992. The improvement in operating performance reflects continued cost reduction measures and improved steel pricing in increased shipments.
 Consolidated sales for the third quarter 1993 were $1.053 billion, an increase of $109 million, or 12 percent, over third quarter 1992 sales of $944 million. The LTV Corporation's Chairman and Chief Executive Officer, David H. Hoag, said, "We are pleased that in our first full quarter after reorganization, we reported positive operating income. This is the third consecutive quarter of improved operating results."
 For the nine-month period ending Sept. 30, 1993, LTV reported operating income of $118.7 million, which included a special credit of $191.0 million, compared with an operating loss of $135.4 million in the first nine months of 1992. The 1993 improvement was achieved not withstanding scheduled production interruptions for the reline of a blast furnace and modifications to one of LTV's Cleveland steelmaking facilities as part of the installation of a new continuous casting complex. The new continuous casting complex began operations on Sept. 7, 1993, which was sooner than originally planned.
 Net income of $4.068 billion for the first nine months of 1993 included a $3.928 billion extraordinary gain from the discharge of the company's debt and other bankruptcy claims as well as income totaling $30.7 million from reorganization items. This compares with net income of $727.7 million for the same period of 1992, which included income and gains of $828.8 million from the company's divested aerospace and defense businesses and $38.1 million from the collection of a note receivable.
 Consolidated sales of $3.046 billion for the first nine months of 1993 increased by 6 percent over sales of $2.879 billion for the same period of 1992, reflecting higher shipments and a more favorable product mix. Steel selling prices have partially recovered during 1993 and average selling prices for the third quarter of 1993 were slightly higher than those in the third quarter of 1992. Nine-month results reflect increased sales and operating income at the energy products groups.
 Steel Operations
 LTV's steel business recorded third quarter operating income of $0.7 million, compared with a loss of $48.1 million in the same period of 1992. This $48.8 million improvement was the result of increased shipments, slightly higher selling prices and lower costs.
 For the nine month period ending Sept. 30, 1993, LTV Steel reported an operating loss of $75.5 million, compared with an operating loss of $129.1 million in the first nine months of 1992. Raw steel production of 2.070 million tons during the third quarter of 1993 approximated production in the same quarter of 1992. Raw steel production for the first nine months of 1993 was 5.889 million tons or 5 percent lower than the same period of 1992. This reduced production level, representing an 81 percent operating rate, was due to scheduled production interruptions during the second and third quarters of 1993 for a major blast furnace reline and modifications related to the new continuous caster complex at the Cleveland Works. The new $312 million continuous casting complex has surpassed planned output at this stage of start up and is expected to be up to full production during the first half of 1994. The company expects steel production will be 100 percent continuous cast by the end of 1993.
 Even with these scheduled production interruptions, steel shipments increased by 121,000 tons during the third quarter and 203,000 tons during the first nine months of 1993 compared with the prior year periods. Shipments were 1.885 million tons for the 1993 third quarter and 5.596 million tons for the 1993 nine months.
 Energy Products
 LTV's energy products business operating income of $1.3 million for the third quarter of 1993 improved by $2.8 million from a loss of $1.5 million in the third quarter of 1992. The improvement reflects increased levels of drilling in the U.S. and Canada, which resulted in higher volume and stronger prices. Domestic and Canadian sales of tubular goods and general merchandise increased by 27 percent over last year's third quarter. An average of 795 domestic drilling rigs operated during the third quarter -- up from an average of 693 rigs operating in the 1992 quarter. The increase in the average number of rigs is responsible, in part, for the increase in the level of business activity.
 For the first nine months of the year, energy products recorded operating income of $3.2 million compared with an operating loss of $6.3 million in 1992. The improvement resulted from higher sales of tubular goods and general merchandise and improved year-to-year selling prices, along with reduced selling and general expenses.
 Other Matters
 On July 27, 1993, the International Trade Commission ruled favorably on approximately 50 percent of the domestic steel industry's petitions alleging unfair trading practices by foreign producers. In early October, substantially all of the trade decisions were appealed to the U.S. Court of International Trade.
 The company has announced price increases for selected steel products scheduled to take place in January and July 1994.
 SUMMARY OF CONSOLIDATED OPERATIONS
 The LTV Corporation and Subsidiaries
 (dollars in millions, except per share data)
 Three Months Ended Nine Months Ended
 Sept. 30, Sept. 30,
 1993 1992 1993 1992
 Sales:
 Steel $ 975.3 $ 873.6 $2,833.0 $2,690.4
 Energy Products 78.9 71.0 214.5 188.9
 Sales between segments (1.0) (0.4) (1.7) (0.6)
 Total $1,053.2 $ 944.2 $3,045.8 $2,878.7
 Operating Income (Loss):
 Steel $ 0.7 $ (48.1) $ (75.5) $ (129.1)
 Energy Products 1.3 (1.5) 3.2 (6.3)
 Special credit(A) --- --- 191.0 ---
 Total 2.0 (49.6) 118.7 (135.4)
 Interest and other
 income (expense)(B) (0.7) 32.4 (6.2) 25.5
 Income (loss) before
 reorganization items,
 income taxes,
 discontinued operations
 and extraordinary item 1.3 (17.2) 112.5 (109.9)
 Reorganization items(C) --- 4.1 30.7 12.8
 Total 1.3 (13.1) 143.2 (97.1)
 Income tax provision (0.9) (1.5) (3.1) (4.0)
 Income (loss) before
 discontinued operations
 and extraordinary item 0.4 (14.6) 140.1 (101.1)
 Discontinued operations(D):
 Income from operations
 of aerospace and
 defense businesses --- 65.0 --- 96.8
 Gain on disposal of
 aerospace and defense
 businesses --- 582.0 --- 732.0
 Extraordinary item-gain
 on debt discharge(C) --- --- 3,928.0 ---
 Net Income $ 0.4 $ 632.4 $4,068.1 $ 727.7
 Earnings Per Share(E)
 Fully diluted $ 0.00 --- --- ---
 Primary $ 0.00 --- --- ---
 Average number of common
 shares used in per
 share calculation
 (thousands):
 Fully diluted 72,283 --- --- ---
 Primary 72,283 --- --- ---
 Raw steel production -
 tons (millions) 2.070 2.060 5.889 6.203
 Steel plant operating
 rate (pct) 84 84 81 85
 Steel shipments -
 tons (millions) 1.885 1.764 5.596 5.393
 Drilling rigs operating
 in U.S. (average) 795 693 720 668
 The summaries of the consolidated operations for the three months ended Sept. 30, 1993 and 1992, are not comparable because the company was in Chapter 11 during the 1992 period. The summary of consolidated operations for the nine months ended Sept. 30, 1993 include both pre- and post-reorganization results.
 (A) -- During the second quarter of 1993, the company reversed previously recorded reserves of $191.0 million which were established in connection with the sale of the steel group's bar division in 1989.
 (B) -- Interest and other income, net for the three and nine months ended Sept. 30, 1992, includes $38.1 million of income related to the collection of the Gulf States Steel note receivable.
 (C) -- The company's Joint Plan of Reorganization was confirmed on May 26, 1993, and the company emerged from bankruptcy on June 28, 1993 (the "Effective Date"). Reorganization items for the three months ended Sept. 30, 1992, and the nine months ended Sept. 30, 1993 and 1992, consist of the following (in millions):
 Three Months Ended Nine Months Ended
 Sept. 30, Sept. 30,
 1992 1993 1992
 Allowed claims in
 excess of recorded
 liabilities --- $(1,002.0) ---
 Fresh start reporting
 adjustments --- 1,143.0 ---
 Professional fees and
 expenses $ (8.3) (132.6) $ (24.8)
 Interest earned on
 accumulated cash 12.4 22.3 37.6
 Total $ 4.1 $ 30.7 $ 12.8
 Allowed claims in excess of recorded liabilities relate to the company's settlement under the PBGC Agreement. The agreement provided for the restoration of three previously terminated steel group pension plans along with their related liability of $928.6 million and the issuance of zero coupon notes to the PBGC with an aggregate present value of $73.4 million.
 The company has adopted "fresh start" reporting in which the company's assets and liabilities were adjusted to reflect their estimated fair values and the remaining accumulated retained deficit was eliminated.
 Also, as of the Effective Date, the company recorded an extraordinary gain of $3,928.0 million on the discharge of recorded claims and liabilities, because the total consideration of cash, other assets and the issuance of new LTV Common Stock and Warrants was less than the recorded liabilities.
 (D) -- All of the operating businesses of the aerospace and defense group were sold in 1992 and the results of their businesses are reported as discontinued operations.
 (E) -- Earnings per share data prior to emergence from Chapter 11 proceedings are not presented for the company due to the general lack of comparability and because the revised capital structure of the company consists of entirely new issues of common and preferred stock.
 -0- 10/18/93
 /CONTACT: Mark R. Tomasch, media, 216-622-4635, or Eric W. Evans, analysts, 216-622-5680, both of LTV Corporation/
 (LTV)


CO: The LTV Corporation ST: Ohio IN: MNG SU: ERN

BM-AR -- CL030 -- 3568 10/18/93 16:32 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:Oct 18, 1993
Words:1741
Previous Article:FIRST UNION REAL ESTATE INVESTMENTS ANNOUNCES THIRD QUARTER RESULTS
Next Article:ICI LAUNCHES WATERBORNE AUTOMOTIVE REFINISH PAINT FRIENDLIER FOR THE ENVIRONMENT
Topics:

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