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QUAKER REPORTS 44 PERCENT HIGHER THIRD QUARTER EARNINGS PER SHARE

 CHICAGO, April 27 /PRNewswire/ -- The Quaker Oats Company (NYSE: OAT) today reported earnings per share of $1.08 for the third quarter of fiscal 1993 ended March 31, 1993, a 44 percent increase from 75 cents a year ago. Included in these results was a pretax gain of $10.4 million, or 11 cents per share after-tax, on the sale of the Sutherlands business in the United Kingdom.
 Consolidated sales for the quarter of $1.36 billion were 2 percent above last year's $1.34 billion. Consolidated operating income of $153.3 billion was 26 percent above the prior year's $121.5 million. Net income of $79.2 million was 40 percent higher than last year's $56.6 million.
 William D. Smithburg, chairman and chief executive officer, said, "The strong third-quarter performance is the result of volume gains in most of our major businesses, including Gatorade and hot and ready-to- eat cereals, as well as the continuation of improved operating margins and asset utilization from the company's supply chain initiatives. Our results illustrate why we believe that recent Wall Street concerns about the future of branded consumer product companies were overblown. Companies like Quaker that have higher quality, differentiated products and maintain a well-balanced price/value relationship with consumers will continue to be successful."
 For the first nine months of fiscal 1992, earnings per share of $2.72 were up 45 percent from $1.87 a year ago. Nine-month operating income of $406.3 million was 24 percent above the prior year's $328.1 million. Consolidated sales were $4.19 billion, up 4 percent from $4.03 billion last year.
 U.S. AND CANADIAN GROCERY PRODUCTS
 Operating income in the third quarter for U.S. and Canadian Grocery Products was $115.2 million, or 21 percent above the $95.3 million a year ago. Sales of $954.7 million were 4 percent above the prior year's $914.3 million. Unit volumes were up 5 percent in the quarter, led by double-digit increases in Gatorade, hot cereals, ready-to-eat cereals and lite snacks. Advertising and merchandising expenditures for the quarter were 3 percent below a year ago. "Another positive indicator at in the quarter our market shares for hot cereals, rice cakes, granola snacks, rice and noodle dinners were all above year-ago levels, and ready-to-eat cereals share was stable in a growing category," Smithburg said.
 INTERNATIONAL GROCERY PRODUCTS
 Operating income in the third quarter for International Grocery Products was $38.1 million, or 45 percent above last year's $26.2 million. Included in these results is the gain of $10.4 million on the sale of the Sutherlands business in the U.K. Sales of $403.4 million were 4 percent below last year's $420.9 million, reflecting the negative impact of currency exchange rates in Europe. Overall unit volumes were up 3 percent in the quarter, led by double- digit increases for Gatorade thirst quencher across Latin America, Europe and Asia.
 The average number of shares outstanding in the quarter was 72.1 million versus 73.9 million a year ago.
 Quaker is an international marketer of foods, pet foods and beverages.
 THE QUAKER OATS COMPANY AND SUBSIDIARIES


Condensed Statements of Consolidated Income and Reinvested Earnings
 (unaudited--millions of dollars except per share data)
 Three Months Ended March 31 1993 1992
 Net Sales $1,358.1 $1,335.2
 Cost of goods sold 665.7 674.6
 Gross profit 692.4 660.6
 Selling, general and
 administrative expenses 538.3 540.6
 Interest expense - net 12.7 18.4
 Other expense - net 15.0 4.8
 Income before
 income taxes 126.4 96.8
 Provision for income taxes 47.2 40.2
 Net income 79.2 56.6
 Preferred dividends - net of tax 1.1 1.1
 Net Income Available for Common $ 78.1 $ 55.5
 Per Common Share:
 Net income $ 1.08 $ .75
 Dividends declared $ .48 $ .43
 Average Number of Common
 Shares Outstanding
 (in thousands) 72,092 73,935
 Reinvested Earnings
 Balance beginning of period $1,211.3 $1,067.3
 Net income 79.2 56.6
 Dividends (35.2) (32.8)
 Common stock issued for
 stock purchase and
 incentive plans (0.2) ----
 Balance end of period $1,255.1 $1,091.1
 Nine Months Ended March 31 1993 1992
 Net Sales $4,185.0 $4,033.8
 Cost of goods sold 2,079.7 2,060.1
 Gross profit 2,105.3 1,973.7
 Selling, general and
 administrative expenses 1,671.4 1,635.4
 Interest expense - net 45.9 52.8
 Other expense - net 58.3 36.6
 Income before
 income taxes 329.7 248.9
 Provision for income taxes 129.5 105.2
 Net income 200.2 143.7
 Preferred dividends - net of tax 3.2 3.2
 Net Income Available for Common $ 197.0 $ 140.5
 Per Common Share:
 Net income $ 2.72 $ 1.87
 Dividends declared $ 1.44 $ 1.29
 Average Number of Common
 Shares Outstanding
 (in thousands) 72,318 75,284
 Reinvested Earnings
 Balance beginning of period $1,162.3 $1,047.5
 Net income 200.2 143.7
 Dividends (105.7) (100.1)
 Common stock issued for
 stock purchase and
 incentive plans (1.7) ---
 Balance end of period $1,255.1 $1,091.1
 NET SALES
 Three Months Ended March 31, Percent
 Increase
 (Decrease)
 1993 1992
 U.S. & Canadian
 Grocery Products $ 954.7 $ 914.3 4.4
 International Grocery
 Products 403.4 420.9 (4.2)
 Total Sales $1,358.1 $1,335.2 1.7
 OPERATING INCOME
 Three Months Ended March 31, Percent
 Increase
 (Decrease)
 1993 1992
 U.S. & Canadian
 Grocery Products $ 115.2 $ 95.3 20.9
 International Grocery
 Products 38.1 26.2 45.4
 Total Operating Income $ 153.3 $ 121.5 26.2
 Less: General corporate
 expenses 9.4 6.2
 Interest expense-net 12.7 18.4
 Foreign exchange
 loss-net 4.8 0.1
 Income before
 income taxes $ 126.4 $ 96.8
 NET SALES
 Nine Months Ended March 31, Percent
 Increase
 (Decrease)
 1993 1992
 U.S. & Canadian
 Grocery Products $2,847.9 $2,791.5 2.0
 International Grocery
 Products 1,337.1 1,242.3 7.6
 Total Sales $4,185.0 $4,033.8 3.7
 OPERATING INCOME
 Nine Months Ended March 31, Percent
 Increase
 1993 1992 (Decrease)
 U.S. & Canadian
 Grocery Products $ 308.7 $ 264.6 16.7
 International Grocery
 Products 97.6 63.5 53.7
 Total Operating Income $ 406.3 $ 328.1 23.8
 Less: General corporate
 expenses 23.3 21.8
 Interest expense-net 45.9 52.8
 Foreign exchange
 loss-net 7.4 4.6
 Income before
 income taxes $ 329.7 $ 248.9
 -0- 4/27/93
 /CONTACT: Ronald G. Bottrell, director - media relations of Quaker Oats Company, 312-222-7388/
 (OAT)


CO: Quaker Oats Company ST: Illinois IN: FOD SU: ERN

SH -- NY029 -- 1197 04/27/93 09:36 EDT
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Date:Apr 27, 1993
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