NEWCOR REPORTS CHANGE IN ACCOUNTING METHOD
NEWCOR REPORTS CHANGE IN ACCOUNTING METHOD TROY, Mich., Feb. 18 /PRNewswire/ -- Richard A. Smith, Newcor, Inc.
(NASDAQ: NEWC) president and chief executive officer, announced today that the company has adopted the percentage of completion method of accounting for revenue and costs associated with long-term contracts within the company's special machinery segment. In the opinion of management, with concurrence from the company's outside auditors, the percentage of completion method of accounting is the preferable method for reporting the financial results of the special machinery segment. The percentage of completion method of accounting will be implemented in the first quarter of fiscal 1992. In all prior years, the completed contract method of accounting was utilized to determine revenue and costs.
The company's operating results for the fiscal years ended 1987-1991 and the four quarters of 1991 have been restated to reflect the adoption of the percentage of completion method and follow as Table I and Table II, respectively. Newcor, Inc., headquartered in Troy, designs and manufactures custom machines and manufacturing systems as well as special precision machined parts. Newcor is listed on the NASDAQ stock market under the symbol NEWC. NEWCOR, INC. RESTATED CONSOLIDATED STATEMENTS OF INCOME, OTHER DATA 1987-1991 For the fiscal years ended Oct. 31 (B) 1991 1990 1989 Sales $89,309,000 $92,160,000 $95,974,000 Costs and expenses: Cost of sales 69,225,000 74,203,000 79,473,000 Selling, general and administrative 12,491,000 11,307,000 10,517,000 Interest 2,017,000 1,895,000 2,131,000 Closedown of operation in Canada --- 1,188,000 --- 83,733,000 88,593,000 92,121,000 Income before income taxes 5,576,000 3,567,000 3,853,000 Provision for income taxes 1,700,000 953,000 857,000 Net income $3,876,000 $2,614,000 $2,996,000 Net income per share of common stock(A) $1.19 $0.81 $0.92 Other financial data: Net orders $78,900,000 $111,200,000 $77,800,000 Order backlog at year end 44,500,000 54,900,000 35,900,000 For the fiscal years ended Oct. 31 (B) 1988 1987 Sales $70,951,000 $71,000,000 Costs and expenses: Cost of sales 58,131,000 56,636,000 Selling, general and administrative 9,952,000 10,213,000 Interest 1,378,000 1,218,000 Closedown of operation in Canada --- --- 69,416,000 68,067,000 Income before income taxes 1,490,000 2,933,000 Provision for income taxes 384,000 1,268,000 Net income $1,106,000 $1,665,000 Net income per share of common stock(A) $0.34 $0.51 Other financial data: Net orders $99,400,000 $63,000,000 Order backlog at year end 54,100,000 25,700,000 (A) Net income per share of common stock is based on shares outstanding of 3,250,386 in 1987, 3,243,555 in 1988, 3,242,286 in 1989 and 1990 and 3,242,845 in 1991. (B) In the opinion of management, the above restated consolidated statements of income for the fiscal years ended Oct. 31, 1987-1991 present fairly the company's results of operations utilizing the percentage of completion method of revenue recognition for contracts within the company's special machines segment. -0- 2/18/92 /CONTACT: Marjorie H. Edwards of Newcor, 313-643-7730/ (NEWC) CO: Newcor, Inc. ST: Michigan IN: MAC SU:
ML -- DE005 -- 9782 02/18/92 09:27 EST
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|Date:||Feb 18, 1992|
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