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MARTIN MARIETTA 1992 EARNINGS PER SHARE UP 14 PERCENT TO RECORD $7.21

 BETHESDA, Md., Jan. 21 /PRNewswire/ -- Martin Marietta Corporation (NYSE: ML) today reported 1992 earnings of $345.4 million on sales of $5.954 billion, compared with 1991 results of $313.1 million in earnings on sales of $6.075 billion. Earnings per share for 1992 reached a record $7.21, 14 percent higher than the $6.30 reported in 1991.
 "These financial results provide a solid foundation for the new Martin Marietta' that will result from the impending combination of GE Aerospace businesses with our corporation," said Norman R. Augustine, chairman and chief executive officer of Martin Marietta. The transaction, announced in November 1992, is expected to be completed early this year.
 In reviewing Martin Marietta's 1992 financial performance, Augustine noted, "While sales to the U.S. Department of Defense declined about 9 percent, mirroring decreased DoD outlays, sales to our civil government customers increased by over 20 percent and surpassed $1 billion. Our international sales were up almost 30 percent, and commercial sales increased nearly 13 percent, reflecting the initial recovery in our construction markets and continued market share gains for jet engine thrust reversers."
 For fourth quarter 1992, Martin Marietta reported net earnings of $75.7 million on sales of $1.45 billion, compared with earnings of $44 million on $1.67 billion in sales for the comparable 1991 quarter. Earnings per share for the quarter were $1.61 vs. 89 cents in 1991. Fourth-quarter 1991 results included an after-tax charge of $39 million, or 78 cents per share, relating to the discontinuance of the corporation's International Light Metals operations.
 Operating margins of 8.5 percent, compared with 8.3 percent in the previous fourth quarter, continued to illustrate the benefits of pro-active cost containment and right-sizing activities throughout the corporation.
 Net earnings were adversely impacted by a higher income tax rate than the preceding year, based upon the absence of deferred benefits under the completed contract method. The effective income tax rate for the year was 32.6 percent, compared with 25.6 percent for 1991.
 Earnings per share were positively affected by the corporation's share repurchase program, which reduced the average number of shares outstanding during 1992 by 3.5 percent to 47.9 million. Average shares during the fourth quarter declined only slightly from the third quarter, a result of suspending ongoing share repurchase programs in light of the pending GE Aerospace transaction.
 Free cash flow, defined as cash flow after taxes, interest and dividends, accelerated during the year, enabling the corporation to reduce outstanding debt by almost $200 million in addition to executing the share repurchase programs.
 For the year, Martin Marietta Astronautics Group's sales were stable, with operating margins reaching 10 percent and operating earnings up 7 percent over 1991. During the fourth quarter, the group successfully completed its sixth consecutive Titan IV space launch.
 The Electronics, Information & Missiles Group recorded a 7 percent decline in sales in 1992 vs. 1991, as reduced deliveries to the U.S. Air Force of LANTIRN night vision systems were not offset by gains in sales to civil government agencies and international customers. Group earnings were negatively impacted by investments in its Postal Systems operations.
 Materials Group sales and earnings were up approximately 10 percent for the fourth quarter and the year. Growth was due to continued strength in the group's aggregates operations, as improvements in construction markets were magnified by increased output from acquisitions and new production facilities.
 Earnings from other operations, primarily the corporation's activities on behalf of the U.S. Department of Energy, also were up for the year, increasing by nearly 35 percent over 1991 results. This improvement reflects the initial recognition of award fees from Martin Marietta Specialty Components' operation of the DoE Pinellas, Florida, plant, as well as performance under existing contracts to manage and operate DoE facilities in Tennessee, Ohio and Kentucky.
 Backlog at year's end was $8.9 billion, up from third quarter 1992, but down from $11 billion at the end of 1991. This decline primarily results from continued performance under several large multi-year contracts booked in 1989 for the Space Shuttle External Tank and Titan IV launch vehicles. The current backlog does not include $1.7 billion of unexercised program options, nor does it include the approximately $6.8 billion in equivalent backlog resulting from the corporation's DoE contracts.
 Total employment of Martin Marietta at year's end was 55,670, including 22,320 personnel at the corporation's DoE operations, vs. 60,521 and 20,813, respectively, at the end of 1991, reflecting steps to restructure the corporation to enhance efficiency, as well as the continuing decline of the U.S. defense budget.
 MARTIN MARIETTA CORPORATION
 STATEMENT OF EARNINGS
 (in millions, except per share)
 Quarter Ended Year Ended
 Dec. 31, Dec. 31,
 1992 1991 1992 1991
 Net Sales $ 1,449.6 $ 1,670.4 $ 5,954.3 $ 6,075.4
 Cost of Sales,
 Other Costs
 & Expenses 1,325.7 1,531.3 5,405.1 5,537.9
 Earnings from
 Operations 123.9 139.1 549.2 537.5
 Other Income and
 Expenses, net 0.7 (72.5) 21.1 (59.0)
 Total 124.6 66.6 570.3 478.5
 Interest Expense
 on Debt 12.9 15.4 57.9 57.7
 Earnings before
 Taxes on Income 111.7 51.2 512.4 420.8
 Taxes on Income 36.0 7.2 167.0 107.7
 Net Earnings $ 75.7 $ 44.0 $ 345.4 $ 313.1
 Earnings Per Share $ 1.61 $ 0.89 $ 7.21(A) $ 6.30
 Average Number
 of Common Shares
 Outstanding 47,170,825 49,569,099 47,934,354 49,670,605
 (A) The sum of per share earnings by quarter does not equal earnings per share for the year due to the effect of share repurchases.
 MARTIN MARIETTA CORPORATION
 CONDENSED BALANCE SHEET
 (in millions)
 Dec. 31, Dec. 31,
 1992 1991
 Cash and cash equivalents $ 239.6 $ 170.6
 Other current assets 1,194.8 1,457.0
 Current liabilities (586.2) (959.1)
 Net Working Capital 848.2 668.5
 Property, plant, and equipment, net 1,257.1 1,315.5
 Investments, other assets, intangibles 908.1 964.9
 Noncurrent deferred income taxes (297.3) (247.5)
 Other noncurrent liabilities (296.2) (301.6)
 Total $ 2,419.9 $ 2,399.8
 Long-term debt
 (excluding current maturities)(B) $ 474.7 $ 595.9
 Shareowners' equity 1,945.2 1,803.9
 Total Capitalization $ 2,419.9 $ 2,399.8
 Firm backlog was $8.9 billion at Dec. 31, 1992, compared with $11.0 billion at Dec. 31, 1991.
 (B) Long-term debt at Dec. 31, 1991, included $125 million of 9.25 percent notes and $8.2 million of Industrial Development Revenue Bonds. These debt issues were redeemed by the corporation during 1992.
 -0- 1/21/93
 /CONTACT: Charles Manor of Martin Marietta, 301-897-6258/
 (ML)


CO: Martin Marietta Corporation ST: Maryland IN: ARO SU: ERN

DC -- DC017 -- 7544 01/21/93 15:24 EST
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Date:Jan 21, 1993
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