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PECHINEY GROUP 1991 CONSOLIDATED RESULTS SHOW NET INCOME OF FF 820 MILLION

 PECHINEY GROUP
 1991 CONSOLIDATED RESULTS SHOW NET INCOME OF FF 820 MILLION
 GREENWICH, Conn., April 23 /PRNewswire/ -- The following statement is being issued by the Pechiney Group in Paris today, April 23, 1992.
 The Pechiney Group today reported consolidated net income for 1991 of FF 820 million, or FF 16.20 per share, compared with 1990 net income of FF 2,225 million, or FF 44 per share, before a capital gain from the sale of the Paris headquarters building. Income before goodwill amortization reached FF 1,025 million, or FF 20.30 per share, versus FF 2,415 million, or FF 47.80 per share, in 1990.
 The 1991 results were strongly impacted by unfavorable worldwide economic worldwide economic conditions and by market imbalances caused by upheavals in the former Soviet Union. The effect of these difficult economic conditions on Pechiney's profitability, nevertheless, was moderated by the Group's solid positions in packaging and its emphasis on cost reduction efforts.
 The principal consolidated figures, in millions of French francs, are as follows:
 PECHINEY GROUP
 (In millions of French francs)
 1991 1990
 Total sales 74,425 76,869
 Manufacturing sales 66,661 66,452
 International trade sales 7,764 10,417
 Earnings from operations before
 financial expense 5,119 6,688(A)
 Packaging 2,584 2,288
 Aluminum 1,489 2,501
 Engineered products 733 979
 Related industrial activities 190 577
 International trade 270 466
 Holding company (147) (123)
 Net financial expense 2,699 2,586
 Income before goodwill
 amortization 1,025 2,415
 Net income after goodwill
 amortization 820 2,225
 (A) -- 1990 figures by sector have been restated to reflect changes made in 1991 to the Group's organization.
 Operating profit (earnings from operations before financial expense) declined by 23 percent, to FF 5,119 million. A sector-by-sector analysis shows that the packaging sector's performance contrasted with that of most of the other activities:
 -- The Packaging sector's contribution represented 50 percent of total operationg profit, and rose 13 percent over 1990. If the effect of exchange rate fluctuations is excluded, the sector's contribution increased by 9.4 percent. Those businesses serving the beverage market again experienced sustained growth. Total beverage can sales rose 6.7 percent, excluding the effect of variations in the exchange rate. The increase was 5.1 percent in the United States and 10.7 percent in Europe.
 -- The Aluminum sector reported a major decline in its contribution to consolidated operating profit, which decreased by some FF 1 billion -- from FF 2,501 million in 1990 to FF 1,489 million in 1991 -- primarily due to upstream activities. As happens periodically in the aluminum market, prices have been depressed for more than a year. This time, the situation has been worsened by an inflow into western markets of metal from the countries of the former Soviet Union. Downstream mill product activities, on the other hand, maintained profits at the good level seen in 1990.
 -- In the Engineered Products sector, the Turbine Components business was affected by weak economic conditions in its principal market, the commercial jet aircraft engine industry. Profitability, however, remained satisfactory as a result of sustained demand from the industrial gas turbine market, growth in the refurbishment of engine-run components, and continued process improvement. Operating profit amounted to FF 675 million, representing 12 percent of sales, compared with FF 818 million, or 14 percent of sales, in 1990.
 -- For the Related Industrial Activities sector, earnings were heavily impacted by worsening conditions in markets for ferroalloys, and graphite and titanium products. Businesses involved in the nuclear fuel cycle, on the other hand, showed an excellent performance.
 -- Worldwide economic conditions also were responsible for a decline in the International Trade department's contribution to operating profit, following two years of very high earnings. Operating profit for the department amounted to FF 270 million, compared with FF 466 million in 1990.
 Dividends
 At the annual meeting, the Pechiney board of directors will recommend a dividend of FF 13 -- FF 19.50 including a tax credit -- for each non-voting preferred share (C.I.P.), compared with a dividend of FF 15 -- FF 22.50 including a tax credit -- for 1990. The FF 13 dividend includes a statutory dividend of FF 9.50 and a supplementary dividend of FF 3.50.
 Acquisition by Pechiney of Pechiney International's Aluminum and
 International Trade Activities
 At a meeting on April 22, 1992, the Pechiney board of directors approved the principal of an acquisition by the Group of Pechiney International's aluminum and international trade activities. The board approved the financial terms of the transaction, following recommendations by Lazard & Cie., an investment firm engaged by Pechiney to render an opinion concerning the market value of the assets acquired as though the seller and buyer were unrelated parties. The acquisition will be made on the basis of an assets value of FF 6,051 million, from which will be deducted transferred liabilities amounting to FF 2,206 million. The transaction price of FF 3,845 million will be paid in full to Pechiney International on the date the transaction is completed.
 The transaction related to activities already consolidated in the group's financial statements; it thus will not change the amount of consolidated debt, and it will have only a limited recurring effect on earnings primarily connected with changes in the share of earnings allocated to Pechiney International's minority shareholders.
 Outlook
 Uncertainty regarding worldwide economic developments makes 1992 forecasts particularly difficult. The outlook for Packaging is good and should lead to significant new growth in earnings from this sector. Prospects are similarly good for the Nuclear Fuel department. On the other hand, the situation remains difficult for Aluminum, Engineered Products and other Related Industrial Activities. Under those conditions, operating profit for the first half of 1992 is expected to be lower than for the same period last year. A recovery in demand for aluminum in the United States and a recent gain in aluminum price quotations raise the possibility of improvement during the second half of 1992.
 -0- 4/23/92
 /CONTACT: Brian Wilson of Pechiney, 203-625-8833/ CO: Pechiney Group ST: Connecticut IN: SU: ERN


TS-TM -- NY015 -- 1682 04/23/92 09:17 EDT
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Date:Apr 23, 1992
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