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LUKENS INC. REPORTS SECOND QUARTER SALES UP 21 PERCENT DUE TO STRONG STEEL SHIPMENTS

 Washington Stainless Continues to Post Excellent Results
 COATESVILLE, Pa., July 13 /PRNewswire/ -- Lukens Inc. (NYSE: LUC) today reported second quarter sales of $226.9 million, up 21 percent from sales of $187.5 million in the comparable 1992 quarter. Sales figures have been restated to reflect the presentation of essentially all of the company's industrial operation subsidiaries as discontinued operations.
 Net earnings of $9.5 million were down 6 percent from 1992 second quarter earnings of $10.1 million. Earnings from continuing operations totaled $8.0 million in the second quarter of this year, up from $6.6 million a year earlier. The increase was due primarily to higher results from the Washington Stainless Group, which was acquired in April 1992, and offset by increased health care expense created by the adoption of SFAS No. 106. Earnings from discontinued operations of $1.5 million were down from $3.5 million in the second quarter of 1992.
 Primary earnings per share were $.61 for the 1993 second quarter with $.51 earnings per share attributable to earnings from operations and $.10 per share from discontinued operations. In the second quarter of 1992, primary earnings per share were $.76 with $.49 per share coming from earnings from operations and $.27 from discontinued operations.
 "Shipments of carbon, alloy and stainless were strong during the second quarter. Increased stainless prices helped second quarter performance with a portion of the May 1 stainless price increase being realized during the period. Prices for carbon and alloy plate also improved over first quarter levels, but remain below 1992 levels on a year-to-year basis," said R. W. Van Sant, chairman and chief executive officer of Lukens Inc. "A $20 per ton increase on alloy plate went into effect June 27, while a $10 per ton increase on carbon and high-strength low-alloy plate became effective July 4."
 "On July 1, we announced an agreement in principle to sell our corrosion protection subsidiaries, Energy Coatings Co. and Cathodic Protection Services Co., to Ontario-based Shaw Industries Ltd. This is the first step in a program to divest our industrial operations and focus the company's resources on our core steel businesses," Van Sant said.
 Lukens Steel Sales Up 8 Percent
 Sales of carbon and alloy steel by the Lukens Steel Group hit $116.7 million during the second quarter, an increase of 8 percent compared to 1992 second quarter sales of $108.4 million. The higher revenues refle cted a rise in steel shipment levels to 184,700 tons, up 13 percent from 164,100 tons in the previous year's quarter, despite an 11-day unplanned outage at the company's rolling mill in Conshohocken, Pa.
 Operating earnings for the quarter were $10.6 million, compared to $12.6 million in the second quarter of 1992, a decline of 15 percent due to increased energy and raw material costs and lagging selling prices. Shipment backlog of $65.9 million at the end of the second quarter was down slightly from the beginning of the year.
 Washington Stainless Posts Strong Sales, Earnings
 Acquired by Lukens on April 24, 1992, the Washington Stainless Group, including Washington Steel Corporation and Washington Specialty Metals Corporation, continued its high level of performance.
 The group posted second quarter sales of $110.2 million and operating earnings of $10.8 million. Last year, the group generated operating earnings of $4.9 million on sales of $79.1 million for the shortened quarter following the acquisition. Mill group shipments, including shipments to Washington's service center operations, were 47,700 tons. At quarter's end, backlog for the group was $54.7 million, up 18 percent from the beginning of the year.
 Discontinued Operations Results
 Second quarter earnings (after tax) from discontinued operations of $1.5 million were down from the $3.5 million recorded from the second quarter of 1992. The drop was primarily due to lower demand for large pipe-coating orders. Additionally, market conditions remain relatively soft in the safety products lines.
 Lukens Inc. is a Fortune 500 company whose subsidiaries supply carbon, alloy and clad plate steels; stainless sheet, strip and continuous mill plate; and industrial products and services.
 LUKENS INC.
 CONSOLIDATED STATEMENTS OF EARNINGS
 SECOND QUARTER
 Thirteen Weeks Ended
 June 26, 1993 June 27, 1992
 Net Sales $ 226,871,000 187,495,000
 Operating Costs
 and Expenses:
 Cost of products sold 196,407,000 162,736,000
 Selling and
 administrative expenses 13,286,000 9,992,000
 Total operating costs
 and expenses 209,693,000 172,728,000
 Operating Earnings 17,178,000 14,767,000
 Interest income 16,000 146,000
 Interest expense (4,067,000) (3,887,000)
 Earnings Before Income
 Taxes 13,127,000 11,026,000
 Income tax expense 5,095,000 4,388,000
 Earnings From Continuing Operations
 - Before Cumulative Effect of
 Accounting Changes 8,032,000 6,638,000
 Discontinued Operations
 Earnings from operations, net of tax 1,497,000 3,506,000
 Earnings Before Cumulative Effect of
 Accounting Changes 9,529,000 10,144,000
 Cumulative Effect of Accounting
 Changes
 Postretirement benefits - SFAS
 No. 106 --- ---
 Income taxes - SFAS No. 109 --- ---
 Net Earnings (loss) 9,529,000 10,144,000
 Earnings (Loss) Per Common Share
 Primary .61 .76
 Fully Diluted .57 .70
 Common Shares & Equivalents
 Outstanding
 Primary 14,810,000 12,870,000
 Fully Diluted 16,439,000 14,547,000
 LUKENS INC.
 BUSINESS GROUP RESULTS
 Second Quarter
 1993 1992
 NET SALES
 Lukens Steel $ 116,721,000 108,381,000
 Washington Stainless 110,150,000 79,114,000
 Total $ 226,871,000 187,495,000
 OPERATING EARNINGS (LOSS)
 Lukens Steel $ 10,612,000 12,555,000
 Washington Stainless 10,797,000 4,852,000
 Corporate (4,231,000) (2,640,000)
 Total $ 17,178,000 14,767,000
 First Half
 1993 1992
 NET SALES
 Lukens Steel $ 227,140,000 208,741,000
 Washington Stainless 220,847,000 79,114,000
 Total $ 447,987,000 287,855,000
 OPERATING EARNINGS (LOSS)
 Lukens Steel $ 19,120,000 21,776,000
 Washington Stainless 20,188,000 4,852,000
 Corporate (7,844,000) (5,392,000)
 Total $ 31,464,000 21,236,000
 LUKENS INC. OTHER INFORMATION
 Second Quarter
 1993 1992
 Depreciation and Amortization $ 11,148,000 10,362,000
 Backlog $ 147,238,000 158,246,000
 Shipped Tons
 Lukens Steel Group 184,700 164,100
 Washington Stainless Group 54,700 45,000
 First Half
 1993 1992
 Depreciation and Amortization $ 22,467,000 17,008,000
 Shipped Tons
 Lukens Steel Group 364,800 320,600
 Washington Stainless Group (a) 110,700 45,000
 (a) First quarter 1993 shipped tons were restated to 56,000.
 LUKENS INC.
 CONSOLIDATED STATEMENTS OF EARNINGS
 FIRST HALF
 Twenty-six Weeks Ended
 June 26, 1993 June 27, 1992
 Net Sales $ 447,987,000 287,855,000
 Operating Costs and Expenses
 Cost of products sold 390,448,000 250,136,000
 Selling and administrative
 expenses 26,075,000 16,483,000
 Total 416,523,000 266,619,000
 Operating Earnings 31,464,000 21,236,000
 Interest income 25,000 709,000
 Interest expense (8,324,000) (4,287,000)
 Earnings Before Income Taxes 23,165,000 17,658,000
 Income tax expense 8,971,000 6,915,000
 Earnings From Continuing
 Operations - Before Cumulative
 Effect of Accounting Changes 14,194,000 10,743,000
 Discontinued Operations
 Earnings from operations,
 net of tax 1,513,000 4,641,000
 Earnings Before Cumulative
 Effect of Accounting Changes 15,707,000 15,384,000
 Cumulative Effect of
 Accounting Changes Postretirement
 benefits - SFAS No. 106 (67,222,000) ---
 Income taxes - SFAS No. 109 1,321,000 ---
 Net Earnings(Loss) (50,194,000) 15,384,000
 Earnings (Loss) Per Common Share
 Before Cumulative Effect of
 Accounting Changes
 Primary 1.00 1.13
 Fully Diluted .94 1.06
 After Cumulative Effect of
 Accounting Changes
 Primary (3.46) 1.13
 Fully Diluted (3.46) 1.06
 Common Shares & Equivalents
 Outstanding
 Primary 14,797,000 12,843,000
 Fully Diluted 16,427,000 14,507,000
 /delval/
 -0- 7/13/93
 /CONTACT: John Van Roden of Lukens, 215-383-2086/
 (LUC)


CO: Lukens, Inc. ST: Pennsylvania IN: MNG SU: ERN

MJ-LJ -- PH008 -- 0839 07/13/93 11:07 EDT
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Date:Jul 13, 1993
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