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MORRISON KNUDSEN POSTS THIRD QUARTER NET INCOME OF $9.2 MILLION BEST QUARTER IN TWO YEARS

 BOISE, Idaho, Oct. 15 /PRNewswire/ --Morrison Knudsen Corp., (MK) (NYSE: MRN) today reported 1993 third quarter net income of $9.2 million ($.30 per share) compared to a loss of $(7.1) million, $(0.24) per share, before extraordinary charge for write-off of unamortized debt issue cost, reported for the third quarter of last year. MK's current third quarter performance was the best posted by the company in two years.
 "MK's marked improvement in the third quarter is due to a significant turnaround in our Heavy Civil Construction Group," said William J. Agee, MK chairman and chief executive officer. "These operating results, together with continued improvement in Rail Systems segment earnings and further reductions in general and administrative expenses, laid the foundation for an outstanding third quarter," Agee added.
 For the nine months ended Sept. 30, 1993, MK reported net income of $25.3 million, ($.82 per share), compared to net income before cumulative effect of an accounting change for postretirement health care costs of $6.6 million, $0.22 per share.
 Revenue for the third quarter of 1993 was $734 million, compared to $585 million during the corresponding quarter of 1992. MK's backlog at the end of the third quarter is $4.5 billion. Backlog at Sept. 30, 1992 was $4.6 billion.
 Morrison Knudsen Corp. serves the international, construction, transportation, environmental, industrial, and power markets as an engineer, contractor and manufacturer, offering complete development, operations and financial services.
 MORRISON KNUDSEN CORP.
 CONSOLIDATED FINANCIAL DATA
 THREE AND NINE MONTHS ENDED SEPT. 30, 1993 AND 1992
 (Thousands of dollars except per share data)
 Three Months Ended Nine Months Ended
 Sept. 30, Sept. 30,
 1993 1992(A) 1993 1992(A)
 Revenue
 Engineering and
 construction $635,971 $522,359 $1,661,884 $1,440,389
 Rail systems 97,869 62,291 287,543 177,872
 Total revenue $733,840 $584,650 $1,949,427 $1,618,261
 Operating income
 Engineering and
 construction $14,466 $(2,693) $44,257 $ 26,158
 Rail systems 7,030 1,718 12,958 2,007
 Total operating
 income 21,496 (975) 57,215 28,165
 Equity in net
 earnings (loss)
 and interest
 earned from
 unconsolidated
 affiliates (1,943) 507 (6,233) 4,117
 Other income - net 5,414 2,122 20,722 19,365
 General and
 administrative
 expense (7,909) (8,691) (25,565) (27,580)
 Interest expense (1,035) (4,000) (1,646) (11,990)
 Income before income
 taxes, minority
 interests,
 extraordinary
 charge, and
 cumulative effect
 of accounting
 change 16,023 (11,037) 44,493 12,077
 Income tax expense (6,663) 3,966 (18,714) (5,424)
 Minority interests
 in earnings of
 subsidiaries (110) (74) (439) (74)
 Income before
 extraordinary
 charge and
 cumulative effect
 of accounting change 9,250 (7,145) 25,340 6,579
 Extraordinary charge
 from write-off of
 unamortized debt
 issue cost - net
 of tax (B) - (3,096) - (3,096)
 Cumulative effect of
 accounting change
 for postretirement
 health care costs
 - net of tax (C) - - - (17,403)
 Net income (loss) $9,250 $(10,241) $25,340 $(13,920)
 Earnings (loss) per
 common and common
 equivalent share
 Before
 extraordinary
 charge and
 cumulative effect
 of accounting
 change $.30 $(.24) $.82 $.22
 Extraordinary
 charge - (.10) - (.10)
 Cumulative effect
 of accounting
 change - - - (.57)
 Net income (loss) $.30 $(.34) $.82 $(.46)
 New business booked
 in period
 Engineering and
 construction $541,800 $517,600 $1,538,900 $1,111,600
 Rail systems 123,500 (6,200) 250,900 864,000
 Total new business $665,300 $511,400 $1,789,800 $1,975,600
 Backlog at
 Sept. 30, 1993 1992
 Engineering and
 construction $3,370,200 $3,516,900
 Rail systems 1,120,900 1,090,400
 Total backlog $4,491,100 $4,607,300
 (A) Restated to include the results of operations of businesses acquired in December 1992 accounted for as poolings-of-interests. Cost and expenses of certain corporate centralized service functions were reclassified from general and administrative expense to cost of revenue.
 (B) The extraordinary charge represents the unamortized issue costs of the Liquid Yield Option Notes redeemed on Sept. 30, 1992.
 (C) The corporation changed to the accrual method of accounting for postretirement health care costs effective Jan. 1, 1992. The cumulative after-tax effect of the change, representing unfunded prior service cost at Dec. 31, 1991, was recognized as a restatement of the 1992 first quarter's results of operations.
 -0- 10/15/93
 /CONTACT: Brent Brandon of Morrison Knudsen, 208-386-5387/
 (MRN)


CO: Morrison Knudsen Corp. ST: Idaho IN: CST TRN SU: ERN

RB -- SE008 -- 2817 10/15/93 14:52 EDT
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Date:Oct 15, 1993
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