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PITT-DES MOINES, INC. ANNOUNCES THIRD QUARTER RESULTS

 PITTSBURGH, Nov. 9 /PRNewswire/ -- Pitt-Des Moines, Inc. (AMEX: PDM) today reported net income of $2.8 million, or $1.22 per share, on earned revenue of $92.3 million for the quarter ended Sept. 30, 1993. These results compare with net income of $1.3 million, or $.53 per share, on earned revenue of $99.6 million for the quarter ended Sept. 30, 1992.
 During the third quarter of 1993, Steel Construction and Steel Service Centers continued to record increases in both earned revenue and profitability as compared with the same period in 1992. The increases in earned revenue were offset, to a greater extent, by declines in earned revenue realized by the Engineered Construction Division and CVI. Operating profitability also declined for these two business segments during the current quarter. Poor economic conditions significantly reduced new awards and profit margins for the water tank and industrial tank markets in the second half of 1992. Contracts now being completed by the Engineered Construction Division have resulted in declines in both earned revenue and operating profitability for this Division in 1993.
 Other income increased approximately $2.9 million in the third quarter of 1993 compared with the same period in 1992 primarily due to gains on the sales of property.
 For the nine months ended Sept. 30, 1993, the company reported net income of $880,000, or $.38 per share, on earned revenue of $264.6 million. These results compare with net income of $4.1 million, or $1.65 per share, on earned revenue of $297.8 million for the nine months ended Sept. 30, 1992. Steel Construction, Steel Service Centers and CVI increased earned revenue in the first nine months of 1993 as compared with 1992 which was offset, to a greater extent, by a decline in earned revenue by the Engineered Construction Division. Operating profitability continued to improve for Steel Construction and Steel Service Centers during this same period. CVI experienced a slight decline in profitability in addition to a significant decrease realized by the Engineered Construction Division as a result of lower profit margins on work completed.
 New awards for the nine months ended Sept. 30, 1993 were $320.1 million compared with $274.9 million for the same period in 1992. The company's backlog was $197.2 million on Sept. 30, 1993.
 The company's Des Moines Steel Construction plant, along with the Engineered Construction Division headquarters office building, both located in Des Moines, Iowa, were severely damaged on July 11, 1993, by the devastating flood in the Midwest. The company has completed the cleanup of both facilities and is continuing to evaluate the future costs of the flood. All work which was in process at the Des Moines Steel Construction plant was completed or transferred to other locations. All significant operations at that plant will have ceased, temporarily, by the end of 1993. The company is presently evaluating several alternatives for the long term disposition of the Des Moines facility. The headquarters personnel for the Engineered Construction Division continue to operate from temporary quarters at that Division's plant in Clive, Iowa. Actual costs incurred through Sept. 30, 1993 were $3.2 million with estimated future costs of approximately $6.8 million. The total actual and estimated costs of $10.0 million are fully recoverable under the company's insurance policy. Through Sept. 30, 1993, $4.3 million had been received from the insurance carrier and the remaining $5.7 million was received in October 1993.
 On Nov. 3, 1993, an accident occurred at the construction site of a new United States Post Office in downtown Chicago where the company's Steel Construction business segment is in the process of fabricating and erecting the steel structure of the building. Two men were killed and five seriously injured, when a portion of the erected steel collapsed. An investigation of the cause of the accident is being conducted by the Federal Occupational Safety and Health Administration. The company and its insurance carriers are assessing the damages and related policy coverages.
 PITT-DES MOINES, INC.
 CONSOLIDATED STATEMENTS OF INCOME
 (UNAUDITED)
 For the three months ended
 Sept. 30
 1993 1992
 (in thousands, except per share amounts)
 Earned revenue $92,320 $99,617
 Cost of earned revenue (81,604) (87,848)
 Gross profit from operations 10,716 11,769
 Selling, general & admin. expenses (8,760) (9,585)
 Income from operations 1,956 2,184
 Other income/(expense):
 Interest income 98 27
 Interest expense (117) (116)
 Gain(loss) on sale of assets 2,882 (24)
 Miscellaneous, net (46) 77
 2,817 (36)
 Income before income taxes 4,773 2,148
 Income taxes 1,927 845
 Net income $ 2,846 $ 1,303
 Per Share
 Net income $ 1.22 $ .53
 Cash dividend $ .225 $ .225
 Average common shares
 outstanding (in 000's) 2,324 2,437
 PITT-DES MOINES, INC.
 CONSOLIDATED STATEMENTS OF INCOME
 (UNAUDITED)
 For the nine months ended
 Sept. 30,
 (in thousands, except per share amounts) 1993 1992
 Earned revenue $264,603 $297,753
 Cost of earned revenue (238,426) (263,416)
 Gross profit from operations 26,177 34,337
 Selling, general & admin. expenses (28,288) (28,768)
 (Loss)income from operations (2,111) 5,569
 Other income/(expense):
 Interest income 377 533
 Interest expense (145) (371)
 Gain on sale of assets 3,478 931
 Miscellaneous, net (102) 5
 3,608 1,098
 Income before income taxes 1,497 6,667
 Income taxes 617 2,600
 Net income $ 880 $ 4,067
 Per Share
 Net income $ .38 $ 1.65
 Cash dividends $ .675 $ .675
 Average common shares
 outstanding (in 000's) 2,324 2,446
 -0- 11/9/93
 /CONTACT: R.A. Byers of Pitt-Des Moines, 412-331-3000/
 (PDM)


CO: Pitt-Des Moines, Inc. ST: Pennsylvania IN: MNG SU: ERN

KC -- PG008 -- 2318 11/09/93 13:51 EST
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Publication:PR Newswire
Date:Nov 9, 1993
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