Printer Friendly

NEWCOR REPORTS THIRD-QUARTER EARNINGS

 NEWCOR REPORTS THIRD-QUARTER EARNINGS
 TROY, Mich., Aug. 27 /PRNewswire/ -- Richard A. Smith, president and


chief executive officer of Newcor, Inc. (NASDAQ: NEWC), announced that Newcor reported net income of $990,000, or $0.32 per share, on sales of $19.8 million for the quarter ended July 31, 1992, compared with net income of $1,668,000, or $0.51 per share on sales of $21.0 million for the same period one year ago. The strong results reported in the third quarter of 1991 reflected the conclusion of important contracts in progress at that time, whereas similar major contracts currently in progress are scheduled for completion during the fourth quarter of 1992 and the first half of 1993.
 Mr. Smith said, "The continuing quarterly improvement in net earnings per share, $0.10, $0.12, and $0.32, respectively, for the first three quarters, was expected, and the fourth quarter is anticipated to result in further significant improvement. The recently announced acquisition of Midwest Rubber will also begin to contribute to sales and earnings during the fourth quarter. Consequently, full-year results could surpass the record earnings achieved in 1991 of $1.19 per share."
 The company's backlog of $70.7 million as of July 31, 1992, was up 115 percent compared to $32.8 million one year ago. Customer requests for new order quotations remained active, and as a result, the outlook for new orders continues to be very good.
 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 under the symbol NEWC.
 NEWCOR, INC.
 CONSOLIDATED STATEMENTS OF INCOME
 (In thousands, except per-share amounts)
 (Results are unaudited)
 Nine Months Ended
 7/31/92 7/31/91 Percent
 (As restated) (1) Change
 Sales $53,106 $73,707 - 28
 Cost and expenses:
 Cost of sales 41,001 57,066 - 28
 Selling, general and
 administrative 9,528 9,507 ---
 Interest 500 1,956 - 74
 Other income (434) (2) --- ---
 50,595 68,529 - 26
 Income before income taxes 2,511 5,178 - 52
 Provision for income taxes 826 1,601 - 48
 Net income $1,685 $3,577 - 53
 Net income per share of
 common stock $0.54 $1.10
 Dividends per share of
 common stock $0.18 $0.15
 Weighted average common
 stock shares outstanding 3,109,141 3,242,389
 Three Months Ended
 7/31/92 7/31/91 Percent
 (As restated) (1) Change
 Sales $19,872 $21,038 - 6
 Cost and expenses:
 Cost of sales 15,485 14,844 4
 Selling, general and
 administrative 3,127 3,326 - 6
 Interest 198 581 - 66
 Other income (434) (2) --- ---
 18,376 18,751 - 2
 Income before income taxes 1,496 2,287 - 36
 Provision for income taxes 506 619 - 18
 Net income $990 $1,668 - 41
 Net income per share of
 common stock $0.32 $0.51
 Dividends per share of
 common stock $0.06 $0.05
 Weighted average common
 stock shares outstanding 3,056,577 3,242,596
 NEWCOR, INC.
 CONSOLIDATED, CONDENSED BALANCE SHEET
 (In thousands)
 7/31/92 (As restated) (1)
 Assets
 Current assets $36,231 $29,142
 Property, plant and equipment,
 net of accumulated depreciation 11,786 11,456
 Other assets 5,840 6,452
 53,857 47,050
 Liabilities
 Current liabilities $11,141 $12,310
 Long-term debt 15,000 6,500
 Other liabilities 1,601 1,617
 27,742 20,427
 Shareholders' equity
 Common stock 3,255 3,252
 Capital in excess of par 2,696 2,661
 Unfunded pension liability (59) (59)
 Treasury stock (1,717) (48)
 Retained earnings 21,940 20,817
 26,115 26,623
 $53,857 $47,050
 (1) Effective Nov. 1, 1991, the company adopted the percentage of completion method of accounting for the revenue and costs associated with long-term contracts within the company's special machinery segment. The financial statements of prior periods have been restated to apply the percentage of completion method retroactively.
 (2) Other income of $434,000 represents proceeds on a life insurance contract in which the company was the beneficiary.
 -0- 8/27/92
 /CONTACT: Marjorie H. Edwards, corporate secretary, Newcor, 313-643-7730/
 (NEWC) CO: Newcor, Inc. ST: Michigan IN: MAC SU: ERN


DH -- DE007 -- 3865 08/27/92 10:34 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Aug 27, 1992
Words:706
Previous Article:DOMINO'S PIZZA, INC. REORGANIZES: COMPANY AND FRANCHISE STORES TO OPERATE INDEPENDENTLY UNDER TWO NEW VICE PRESIDENTS
Next Article:WXYT NEWS TALK RADIO AM 1270 ADDS TALK HOST RONNA ROMNEY TO SUNDAY EVENING LINEUP, 9-11 P.M.
Topics:


Related Articles
?BUSINESS EDITOR:
NEWCOR ANNOUNCES STOCK PURCHASE
NEWCOR REPORTS CHANGE IN ACCOUNTING METHOD
NEWCOR REPORTS FIRST-QUARTER EARNINGS
NEWCOR REPORTS SECOND-QUARTER EARNINGS
NEWCOR ANNOUNCES QUARTERLY DIVIDEND
NEWCOR ANNOUNCES QUARTERLY DIVIDEND
Newcor Reports Third Quarter Results
Newcor Reports Fourth Quarter and Full Year Results
Newcor Announces the Signing of a Definitive Agreement To Purchase the Deco Group

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters