REVELL-MONOGRAM LOWERS FOURTH QUARTER ESTIMATE
REVELL-MONOGRAM LOWERS FOURTH QUARTER ESTIMATE MORTON GROVE, Ill., Dec. 13 /PRNewswire/ -- Revell-Monogram, Inc.
(AMEX: RVL) announced today that it currently expects fourth quarter earnings will be in the range of $.25 to $.32 per share, up from the pro forma loss of $.11 in 1990 but below analysts' expectations of $.45 to $.50. As a result, the company currently anticipates fiscal 1991 pro forma results of $.63 to $.70 per share, versus a year ago loss of $.81.
"Although our turnaround from last year continues, retailers are being extremely cautious with reorders in the latter part of the fourth quarter," said Chief Executive Tim Cawley. "We now expect fourth quarter sales increases versus last year of approximately 30 percent in our U.S. business and approximately 14 percent overall, below our targets of 68 percent and 35 percent, respectively. With our high contribution margin, particularly in the domestic business, this sales shortfall of approximately $5 to $6 million significantly reduces the earnings improvement." Revell-Monogram has been implementing new marketing initiatives which include better retail merchandising, in-store service, new packaging, improved catalogs and special promotions. Cawley continued: "These results do not suggest any flaw in our new approach to the business, as we are witnessing dramatic increases in sell-through at those top retailers that have implemented our marketing and merchandising improvements. However, these new marketing initiatives and entry into new distribution channels have not occurred as quickly as we anticipated, a situation compounded by extremely cautious inventory management by our customers." Cawley concluded: "Nevertheless, early response to our 1992 product introductions and the success of the marketing initiatives to date indicate that our plans for continued growth in 1992 are sound. Our outlook for next year is cautious, but we continue to believe Revell- Monogram is on track for solid earnings growth next year." Revell-Monogram is the world's leading manufacturer of plastic model kits. -0- 12/13/91 /CONTACT: Ted Eischeid of Revell-Monogram, 708-966-3500/ (RVL) CO: Revell-Monogram, Inc. ST: Illinois IN: HOU SU: ERN SH -- NY009 -- 2260 12/13/91 09:05 EST
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|Date:||Dec 13, 1991|
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