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POLAROID POSTS HIGHER SALES FOR FOURTH QUARTER 1991 AND FULL YEAR

 POLAROID POSTS HIGHER SALES FOR FOURTH QUARTER 1991 AND FULL YEAR
 CAMBRIDGE, Mass., Jan. 30 /PRNewswire/ -- Polaroid Corporation (NYSE: PRD) reported today higher worldwide sales and net earnings for both the total year and the fourth quarter of 1991. Profit from operations decreased 13 percent for the full year, but showed a 4 percent increase in the 1991 fourth quarter, compared with the same periods last year.
 "In the face of a struggling worldwide economy, we managed to achieve positive sales growth in 1991," said I. MacAllister Booth, chairman, president and chief executive officer of Polaroid. "We feel good about these sales results and are especially gratified with our success in selling instant cameras this past year, shipping about 3.9 million cameras, or 25 percent more than in 1990."
 Worldwide sales for 1991 totaled $2.07 billion, compared with $1.97 billion in 1990. Sales revenues for the fourth quarter of 1991 increased to $633 million, compared with $596 million in the fourth quarter of the previous year.
 Net earnings for the total year were $684 million, compared with $151 million in 1990. Net earnings for the year include a pretax amount of $925 million received by the company from Kodak in settlement of Polaroid's patent infringement litigation. As a result, 1991 primary earnings per common share were $12.54 compared with $2.20 per common share in 1990.
 Net earnings for the 1991 fourth quarter were $58.5 million, compared with $55.0 million in the fourth quarter of 1990. Effective Oct. 7, 1991, Polaroid retired the preferred stock held by the Corporate Partners Group in exchange for $280 million in cash and the issuance of $140 million principal amount of convertible debentures. This step served to reduce the dilution associated with the Corporate Partners pay-in-kind preferred dividend and simultaneously to eliminate the preferred cash dividend. As a result, after deducting a small residual dividend on preferred stock in the fourth quarter of 1991, primary earnings per common share were $1.16, compared with 90 cents per common share in the fourth quarter of 1990.
 The company reported increased worldwide shipments across all of its major product lines, which include instant cameras and film, conventional film, and videotape, during the final quarter of 1991.
 Operating profit for the fourth quarter of 1991 was $96.2 million, compared with $92.5 million for the fourth quarter of 1990. This improvement in operating profit for the quarter was due mainly to higher worldwide sales, especially instant film, which served to offset costs associated with the start-up of new products, the negative impact of a stronger U.S. dollar overseas, and higher marketing expenses. Operating profit for 1991 totalled $246.6 million, compared with $284.3 million for 1990.
 "Continuing economic uncertainty, both in the U.S. and abroad, along with our plans to incur significant manufacturing scale-up costs for important new products, such as our Helios medical imaging system and Joshua, our new compact instant consumer camera system, will present serious challenges for us in 1992," Booth said.
 The effective tax rate for the fourth quarter of 1991 was 31 percent, compared with 30 percent for the same period last year. The effective tax rate for the full year was 37 percent, vs. 31 percent in 1990.
 On Jan. 15, 1992, the company issued $150 million 7-1/4 percent notes due Jan. 15, 1997. The proceeds will be used to retire all of the company's outstanding $150 million 8-7/8 percent notes.
 Polaroid Corporation is the worldwide leader in instant imaging. The company supplies instant photographic cameras and films, conventional films, videotapes and electronic visual communication products to family, business and technical and industrial markets.
 POLAROID CORPORATION AND SUBSIDIARY COMPANIES
 Consolidated Statement of Earnings
 Periods ended Dec. 31, 1991 and 1990
 (in millions, except per share data)
 Fourth Quarter Full Year
 1991 1990 1991 1990
 Net sales:
 United States $341.2 $326.9 $1,113.6 $1,058.3
 International 292.2 269.3 957.0 913.4
 Total net sales 633.4 596.2 2,070.6 1,971.7
 Cost of sales 327.2 309.6 1,082.5 1,011.8
 Marketing, research,
 engineering and
 administrative expenses 210.0 194.1 741.5 675.6
 Total costs 537.2 503.7 1,824.0 1,687.4
 Profit from
 operations 96.2 92.5 246.6 284.3
 Litigation settlement, net
 of employee incentives (1.5) --- 871.6 ---
 Other income 3.8 5.7 23.4 15.0
 Interest expense 13.7 19.8 58.4 81.3
 Earnings before income
 taxes 84.8 78.4 1,083.2 218.0
 Federal, state and foreign
 income taxes 26.3 23.4 399.5 67.0
 Net earnings $58.5 $55.0 $683.7 $151.0
 Earnings available to
 common stockholders
 used for primary
 earnings per share
 calculation $57.7 $45.3 $675.2 $113.3
 Primary earnings per
 common share $1.16 90 cents $12.54 $2.20
 Fully diluted earnings
 per common share $1.10 83 cents $10.88 (b)
 Cash dividends per
 common share 15 cents 15 cents 60 cents 60 cents
 Weighted avg. common
 shares used for
 primary earnings
 per share calculation
 (in thousands) 49,571 50,317 53,860(a) 51,519
 Common shares outstanding
 at end of period
 (in thousands) 48,919 50,070 48,919 50,070
 ---
 NOTES:
 (a)-The weighted average shares used to calculate primary earnings per common share included assumed conversion of series C preferred stock.
 (b)-Fully diluted earnings per share are not disclosed as the effect was antidilutive.
 Supplementary Financial Information
 (in millions, except per share data)
 Years Ended Dec. 31
 1991 1990
 Elements of Revenue and Expense:
 Net sales in United States $1,113.6 $1,058.3
 Net sales in Europe 624.6 598.5
 Net sales in Asia/Pacific/
 Western Hemisphere 332.4 314.9
 Total net sales worldwide $2,070.6 $1,971.7
 Advertising 109.0 104.2
 Research and development 153.8 141.8
 After-tax foreign currency exchange
 gain/(loss) $(0.5) $4.6
 Changes in Financial Position Data
 Additions to property, plant and
 equipment $175.8 $120.9
 Depreciation $85.5 $87.2
 Balance Sheet Dec. 31
 1991 1990
 Current Assets:
 Cash and short-term investments $245.2 $198.0
 Receivables 476.1 441.6
 Inventories:
 Raw materials 107.3 123.9
 Work-in process 220.2 209.9
 Finished goods 196.8 185.2
 Total inventories 524.3 519.0
 Prepaid expenses 94.3 81.7
 Total current assets 1,339.9 1,240.3
 Net property, plant and equipment 549.4 461.0
 Total assets $1,889.3 $1,701.3
 Current liabilities:
 Short-term debt 172.6 248.0
 Payables and accruals 237.4 218.4
 Compensation and benefits 131.8 123.8
 Federal, state and foreign
 income taxes 102.8 41.0
 Total current liabilities 644.6 631.2
 Long-term debt 471.8 513.8
 Redeemable preferred stock equity,
 series B and C --- 348.6
 Common stockholders' equity:
 Common stock, $1 par value, issued 75.4 75.4
 Additional paid-in capital 379.5 379.5
 Retained earnings 1,609.9 1,038.3
 Sub-Total 2,064.8 1,493.2
 Less: Treasury stock at cost 1,083.7 1,053.1
 Deferred compensation 208.2 232.4
 Total common stockholders' equity 772.9 207.7
 Total liabiliities and
 stockholders' equity $1,889.3 $1,701.3
 -0- 1/30/92
 /CONTACT: Samuel A. Yanes, 617-577-4191, or James F. Murphy, 617-577-3124, of Polaroid/
 (PRD) CO: Polaroid Corporation ST: Massachusetts IN: HOU SU: ERN


DD-SD -- NE016 -- 5427 01/30/92 16:21 EST
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