OMC ANNOUNCES YEAR-END PROFITS
OMC ANNOUNCES YEAR-END PROFITS WAUKEGAN, Ill., Nov. 4 /PRNewswire/ -- Outboard Marine Corp. (OMC)
(NYSE: OM) today reported fourth quarter profits and a return to profitability for its full 1992 fiscal year, which ended Sept. 30. The recreational marine products manufacturer's financial results have been depressed by economic recession and a resulting industrywide drop in demand for marine engines and boats.
"Our return to profitability for 1992 owes more to success of the restructuring program we implemented in 1990 and 1991 than to any recovery in the marine products market," said OMC president and chief executive officer James C. Chapman. "We have made our company far more efficient. That efficiency positioned us to gain the full profit benefit from the relatively small sales increase we achieved in 1992." OMC reported 1992 year-end sales of $1.06 billion, up 8 percent from $983.6 million in 1991. OMC's U.S. sales increased by approximately 15 percent, while sales outside the U.S. decreased by nearly 4 percent. The company achieved net earnings for the year of $1.9 million, or 10 cents per share, compared with a net loss of $84.3 million, or $4.34 per share for 1991. Last year's results included pre-tax restructuring charges totalling $41.3 million. For its 1992 fourth quarter, OMC reported sales of $315.2 million, up nearly 22 percent from $258.7 million for last year's fourth quarter. Successful sales programs and new product introductions boosted U.S. sales by nearly 37 percent, while sales outside the U.S. fell by approximately 4 percent. Net earnings for the recently completed fourth quarter were $3 million, or 16 cents per share, compared with net loss of $15.9 million, or 82 cents per share, for the fourth quarter of 1991. OMC reported operating earnings of $31 million for 1992, compared with an operating loss of $73.5 million 1991 (a loss of $32.2 million, exclusive of restructuring charges). For its 1992 fourth quarter, the company reported operating earnings of $15.8 million, compared with an operating loss of $8.8 million for the same quarter last year. Pre-tax earnings were $12.5 million for 1992, compared with a pre tax loss of $105.9 million (a loss of $64.6 million exclusive of restructuring charges) for 1991. For its 1992 fourth quarter, OMC reported pre-tax earnings of $9.2 million, compared with a pre-tax loss of $18.4 million for its 1991 fourth quarter. Losses that could not be tax benefitted from activities outside the U.S. accounted for the unusually high 1992 tax provision, the company said. Outboard Marine Corp. (NYSE: OM) is a major manufacturer of marine engines, boats, accessories and services.
OUTBOARD MARINE CORPORATION 1992 FOURTH QUARTER FINANCIAL HIGHLIGHTS
(In millions, except per share data) Three months ended Sept. 30 1992 1991 Net sales $315.2 $258.7 Gross earnings 76.4 50.9 Earnings (loss) from operations 15.8 (8.8) Earnings (loss) before income taxes and extraordinary income 9.2 (18.4) Net earnings (loss) before extraordinary income 3.0 (15.9) Extraordinary income, early extinguishment of debt --- --- Net earnings (loss) $ 3.0 $(15.9) PER SHARE(a): Before extraordinary income (loss) $.16 $(.82) Extraordinary income --- --- Net earnings (loss) $.16 $(.82) Average number of shares outstanding 19.5 19.4 Twelve months ended Sept. 30 1992 1991 Net sales $1,064.6 $983.6 Gross earnings 247.6 191.9 Earnings (loss) from operations 31.0 (73.5) Earnings (loss) before income taxes and extraordinary income 12.5 (105.9) Net earnings (loss) before extraordinary income 1.9 (85.9) Extraordinary income, early extinguishment of debt --- 1.6 Net earnings (loss) $ 1.9 $(84.3) PER SHARE(a): Before extraordinary income (loss) $.10 $(4.42) Extraordinary income --- .08 Net earnings (loss) $.10 $(4.34) Average number of shares outstanding 19.5 19.4 (a) -- Computed on average number of shares outstanding in respective periods. -0- 11/4/92 /CONTACT: Wayne E. Jones, vice president, strategic planning and investor relations, 708-689-5246/ (OM) CO: Outboard Marine Corp. ST: Illinois IN: LEI SU: ERN
KD -- NY084 -- 2726 11/04/92 17:55 EST
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|Date:||Nov 4, 1992|
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