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 WINNIPEG, Manitoba, Nov. 11 /PRNewswire/ -- Motor Coach Industries Limited, a Canadian company, today announced revenues and net income for the nine months ended Sept. 30, 1993. On April 30, 1993, Motor Coach Industries Limited was spun-off from Greyhound Lines of Canada, Ltd., and is now traded on the Toronto Stock Exchange under the symbol MC. This is the company's second earnings report since the April 30, 1993, spin-off.
 Net income for the nine months ended Sept. 30, 1993, was $5.9 million, or $.70 per share, while revenues for the comparable period were $96.1 million. Revenues and net income for the prior year period are not presented because the company was a subsidiary of Greyhound Lines of Canada last year.
 In coach operations, revenues were $89.0 million, an increase of 8.3 percent over the same period last year due primarily to an increase in unit sales of coach shells to MCI (USA), which has experienced increased sales to Greyhound Lines, Inc. and other coach operators in the United States. Additionally, the new 45-foot coach introduced in late 1992, made a significant contribution to the increase in unit sales of coach shells. According to John Nasi, president and chief operating officer, the coach operations have also experienced improved profitability as a result of the larger unit volume and improved mix due to higher customer demand for options and specials, au well as cost reduction programs implemented by the company during the period.
 In the service parts unit, revenues for the nine months ended Sept. 30, were $7.1 million, down 14.6 percent compared to the same period last year. The decrease was due primarily to the current recession in Canada, which has caused a reduction in ridership miles and bookings by coach operators. This, in turn, has caused the removal of older coaches from service and the deferral of normal maintenance.
 Mr. Nasi also advised that although the company increased its coach production line rate in September by an additional unit per day to meet its customer delivery requirements, due to an adverse product mix which includes a high number of lower margin units, MCI does not anticipate achieving the same earnings levels in the fourth quarter as realized in the same quarter of 1992. The fourth quarter of 1992 reflected significant positive physical inventory and other year end adjustments while similar adjustments for 1993 are expected to have a neutral to negative impact on earnings. Revenues from the Service Parts Operations are anticipated to continue to be down from 1993 due to the continuing recession in Canada. In addition, there will be higher corporate charges allocated to the company from its parent, Motor Coach Industries International, Inc., (NYSE: MCO), which became public in August of 1993.
 Consolidated Statements of Income
 (Dollars in Thousands, Unaudited)
 Nine months ended Sept. 30, 1993
 Sales $94,670
 Other 1,380
 Operating costs and expenses 84,094
 Depreciation and amortization 1,330
 Interest 675
 Income before income taxes 9,951
 Provision for income taxes 4,098
 Net income $5,853
 Net income per share $ 0.70
 Average number of common shares outstanding 8,398
 -0- 11/11/93
 /CONTACT: Craig R. Lentzsch of Motor Coach Industries Limited, 602- 207-5318/

CO: Motor Coach Industries Limited ST: Manitoba IN: TRN SU: ERN

LD -- NY082 -- 3463 11/11/93 19:06 EST
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Publication:PR Newswire
Date:Nov 11, 1993

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