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MORRISON KNUDSEN REPORTS AN 8-PERCENT BOOST IN DIVIDEND; PROPOSED 2-FOR-1 STOCK SPLIT AND RECORD BACKLOG AT YEAR-END

 MORRISON KNUDSEN REPORTS AN 8-PERCENT BOOST IN DIVIDEND;
 PROPOSED 2-FOR-1 STOCK SPLIT AND RECORD BACKLOG AT YEAR-END
 BOISE, Idaho, Feb. 7 /PRNewswire/ -- Morrison Knudsen Corp. (MK) (NYSE: MRN) announced today that its board of directors approved an 8-percent increase in the cash dividend payment for the first quarter of 1992 and a 2-for-1 stock split for consideration at the company's annual meeting on April 24.
 William J. Agee, chairman and chief executive officer, reported that the company's quarterly cash dividend will be increased for the first time since 1985 to 40 cents per share, up from 37 cents per share.
 A resolution adopted by the board of directors for approval by stockholders at the annual meeting on April 24 calls for the company's common stock to be split on a 2-for-1 basis.
 The company today reported 1991 net income of $35.1 million ($2.60 primary earnings per share) on revenue of $2.0 billion. This compares to 1990 net income of $34.5 million which, restated for the acquisition of Motor Coils Manufacturing Co., is $36.5 million ($2.93 primary earnings per share), on revenue of $1.7 billion.
 Backlog at the end of 1991 set a record at $4.250 billion, up from $3.924 billion at the end of 1990. MK expects a further increase in first-quarter 1992 backlog due to recent major awards in the transportation market.
 Net income for the fourth quarter of 1991 was $5.8 million (41 cents primary earnings per share) on revenue of $527 million.
 "In terms of continued profitability, record backlog, substantial cash and equivalents, and historic business achievements, 1991 was one of MK's most successful years ever," said Agee. "The company's strong financial position and record backlog are the foundation for us to achieve the aggressive goals we have set for 1992 and beyond."
 Transportation-related projects were bench marks for the company in 1991. In May, the Texas High Speed Rail Authority selected an MK-led international consortium for a 50-year franchise to build, own and operate a $5.7-billion very-high-speed-rail system serving Dallas- Fort Worth, Houston, Austin and San Antonio. Later in the year, another MK-led team was selected to design, build and operate a $1.1-billion rapid transit system serving Honolulu. Neither of these two jobs are in backlog. In September, a $227-million contract was awarded to an MK-sponsored joint venture to build an underwater highway link in Boston Harbor.
 A notable example of MK's achievements in the power industry is its unique role in development of the Summit pumped-storage hydroelectric project in Ohio. The company signed a Memorandum of Understanding to participate as designer, builder and limited equity partner in the billion-dollar-plus project in Ohio. The first power sales agreement for the project was signed late in the year. The project is on track and has great long-term potential for MK.
 Another major highlight of 1991 was the signing of a joint-venture contract to provide architectural, engineering and construction- management services on the $1.25-billion construction of the Superconducting Super Collider in Texas.
 MK's continuing international growth was increased in May by the acquisition of 49 percent of McConnell Dowell Corp., a large Australia- and New Zealand-based civil and commercial construction company. In December, MK agreed to purchase all of McConnell Dowell's operations in Hawaii, Guam, Saipan and Indonesia. The purchase, subject to McConnell Dowell shareholder and regulatory approvals, is expected to be completed near the end of the first quarter of 1992.
 Other international developments included the award of a $137-million contract to MK and a joint-venture partner for construction of a subway line and station in Taiwan, and three water- distribution contracts in Cairo exceeding $100 million. The company and joint-venture partners also received air base construction contracts worth a total of $70 million in Saudi Arabia and Kuwait.
 MK purchased Motor Coils Manufacturing Co., a manufacturer of rotating electrical components for the railroad industry, broadening MK's services to the nation's railroads and transit agencies.
 In the environmental market, the company was selected for a $50-million hazardous-waste clean-up at an operating Alcoa aluminum facility in New York, and MK's CF Systems began commercial operations, treating waste with its proprietary technology at a large Texas refinery.
 Other 1991 highlights included a contract from Ford Motor Co. (NYSE: F) to provide contract management on a $530-million project at a Ford plant in Ohio; a long-term partnering agreement for MK and two associates to provide modifications and maintenance services on electrical generating facilities of the Tennessee Valley Authority; an award to manage construction of a $150-million water system in San Diego; and an award from Boeing (NYSE: BA) to design and build a 400,000-square-foot jetliner components manufacturing facility in Washington.
 Agee concluded by saying that 1992's earnings should show marked improvement over 1991's earnings. Most of the improvement will occur in the last half of the year.
 Morrison Knudsen Corp. is an international company serving the environmental, industrial process, power and transportation markets with complete development, design/engineering, construction, operating and financial services.
 MORRISON KNUDSEN CORP.
 FINANCIAL INFORMATION
 (Thousands of dollars except share data)
 Three Months Year
 Ended Dec. 31: 1991 1990(a) 1991 1990(a)
 Revenue:
 Engineering and
 construction $456,097 $341,773 $1,554,628 $1,373,734
 Rail systems 70,738 126,411 425,358 332,801
 Total revenue $526,835 $468,184 $1,979,986 $1,706,535
 Operating income:
 Engineering and
 construction $ 12,255 $ 18,292 $ 56,172 $ 85,894
 Rail systems 2,428 4,115 20,339 5,672
 Total operating
 income 14,683 22,407 76,511 91,566
 Equity in earnings and
 interest earned from
 McConnell Dowell and
 other affiliates 2,948 230 5,545 1,218
 Other income-net 9,236 10,351 36,534 21,838
 General and adminis-
 trative expense (13,150) (10,697) (44,658) (41,687)
 Interest expense (4,202) (3,685) (16,020) (11,172)
 Income before
 income taxes 9,515 18,606 57,912 61,763
 Income tax expense (3,701) (7,261) (22,767) (25,282)
 Net income $ 5,814 $ 11,345 $ 35,145 $ 36,481
 Earnings per share:
 Primary $ 0.41 $ 0.92 $ 2.60 $ 2.93
 Fully Diluted 0.41 0.86 2.59 $ 2.85
 Shares used in computing
 earnings per share:
 Primary 14,235,626 12,365,616 13,542,222 12,453,179
 Fully diluted 17,396,214 15,502,618 16,672,941 14,535,622
 New business
 booked in period:
 Engineering and
 construction $488,200 $446,300 $2,169,500 $2,745,100
 Rail system 40,000 66,000 136,400 301,800
 Total new business $528,200 $512,300 $2,305,900 $3,046,900
 Backlog at Dec. 31: 1991 1990
 Engineering and
 construction $3,845,700 $3,230,800
 Rail systems 404,300 693,300
 Total backlog $4,250,000 $3,924,100
 (a) Restated to include the results of operations of a business
 acquired in October 1991 accounted for as a pooling-of-
 interests and to conform to 1991 financial statement
 presentation.
 -0- 2/7/92
 /CONTACT: Jess Hawley of Morrison Knudsen, 208-386-5000/
 (MRN F BA) CO: Morrison Knudsen Corp. ST: Idaho IN: CST TRN SU: ERN


SC-LM -- SE011 -- 7847 02/07/92 14:35 EST
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