OMC CLARIFIES NEWS STORY
OMC CLARIFIES NEWS STORY WAUKEGAN, Ill., Dec. 20 /PRNewswire/ -- Outboard Marine Corp.
(OMC) (NYSE: OM) today issued clarifications of statements made about the company in a news story carried by Reuters news service on Dec. 18, 1991. The news story, which dealt with the marine products manufacturer's expected financial performance, followed a presentation made by officers of the company to the Atlanta Society of Financial Analysts on Dec. 18.
The news story incorrectly stated that OMC's sales for the current quarter "are off 11 to 12 percent" from their level during the same period of the December quarter a year ago. It is OMC's policy not to disclose sales figures until the completion of the quarter. At the meeting, OMC management representatives actually said that OMC's U.S. warranty registrations for outboard motors were running 11 to 12 percent below their level for the same period of last year's December quarter. Outboard motor warranty registrations are returned to the company for the majority of its outboard motors sold at retail in the United States. The registrations provide a general indication of domestic retail sales activity, measured in outboard motor unit sales, by OMC's independent dealers. The registrations of outboard motor units sold by the company's U.S. dealers do not necessarily equate with OMC's dollar sales of outboards sold at wholesale to its domestic dealer network. In addition to its outboard motor sales, OMC achieves revenues from the sale of boat, stern drive marine power systems and parts and accessories, both in the United States and in international markets. In its last fiscal year, which ended Sept. 30, 35 percent of OMC's dollar sales came from outside the United States. The Dec. 18 news story also stated that OMC was comfortable with analysts' estimates of fiscal 1992 profits ranging from 75 cents to $1.50 per share. Estimates made by various securities analysts are based on a variety of economic scenarios and other business conditions considered likely by those individual analysts. However, OMC's goal is to break even in fiscal 1992, given a sales level equivalent to that achieved in fiscal 1991. OMC believes that, without further sales erosion, it can break even in fiscal 1992 because of its extensive restructuring program implemented over the past two years to reduce costs and improve operating efficiencies. The restructuring program included the closing or mothballing of 15 of 49 OMC facilities. The company also reduced its indirect work force by 34 percent and its total work force by 42 percent. Expenses were reduced by $70 million to $80 million. The company recorded net losses for its past two fiscal years as a result of the industry-wide depression in the U.S. marine products marketplace. -0- 12/20/91 /CONTACT: Ronald C. Kuykendall of Outboard Marine Corp., 708-689-5642/ (OM) CO: Outboard Marine Corp. ST: Illinois IN: SU:
AL -- LA023 -- 4636 12/20/91 19:39 EST
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|Date:||Dec 20, 1991|
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