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ROCKWELL'S FY 93 FIRST QUARTER NET INCOME UP

 SEAL BEACH, Calif., Jan. 18 /PRNewswire/ -- Rockwell International Corp. (NYSE: ROK) today reported its fiscal 1993 first quarter net income and earnings per share were higher than the first quarter a year ago while sales were down slightly.
 Fiscal 1993 first quarter net income totaled $127.8 million, up 4 percent from last year's first quarter comparable income of $123.3 million. Earnings per share for the current year's first quarter were 58 cents, up 7 percent from 1992's comparable 54 cents per share.
 Sales totaled $2.49 billion in 1993's first quarter, compared to $2.56 billion in the same period last year.
 Donald R. Beall, chairman and chief executive officer, said, "Our fiscal 1993 first quarter earnings increase was particularly significant considering that last year's first quarter included an 8 cents per share gain from the sale of an Allen-Bradley product line. Excluding that gain, Rockwell's 1993 first quarter saw a 22 percent increase in net income and a 26 percent increase in earnings per share over 1992."
 "Our higher first quarter results reflect the continued strengthening we began to see in the latter part of our fiscal 1992 in the markets served by our Industrial Automation, Automotive and Telecommunications businesses," Beall stated, "as well as profit margin improvements we are achieving in all our businesses through continuous restructuring and cost containment programs."
 In commenting on the outlook for 1993's full-year earnings, Beall added, "Our first quarter results are a strong indication that we can achieve our goal of double-digit earnings per share growth for the fiscal year."
 In the 1993 fiscal first quarter, earnings of the Electronics businesses were up 31 percent from last year's first quarter primarily due to substantial earnings increases in the Industrial Automation and Telecommunications businesses. Earnings of Avionics were also up for the quarter while Defense Electronics earnings were slightly below 1992's first quarter, both excellent performances considering the adverse external market conditions faced by these businesses.
 Aerospace 1993 first quarter earnings were 7 percent lower than 1992's first quarter as a result of lower Space Shuttle program sales. Importantly, Aerospace's return on sales performance in the current quarter increased to 13.4 percent from 11.6 percent in the year-earlier quarter.
 Automotive first quarter earnings increased 50 percent from last year's first quarter reflecting strengthening markets in North America and the continuing benefits of its major restructuring and cost containment programs. "Although Automotive's earnings are up substantially," Beall said, "its profit margins have not reached our longer-term expectations primarily due to weak European passenger car and truck markets, poor economic conditions in Brazil and continuing development of new product lines."
 For the current quarter, Graphics results were approximately break-even, an improvement over last year's first quarter loss. The business continues to be depressed, as expected, by the soft newspaper printing press market. The current quarter results did show improved sales and earnings from the commercial printing press segment of the business.
 In fiscal 1992, as previously reported, the company adopted Statement of Financial Accounting Standards No. 106, "Employers' Accounting for Postretirement Benefits Other Than Pensions." This adoption reduced 1992 first quarter net income by a one-time charge of $1,519 million, or $6.78 per share, resulting in a 1992 first quarter net loss of $1,395.7 million, or $6.24 per share. The earnings comparisons in this release exclude the one-time effect of adopting this new standard.
 The company's backlog was $14.2 billion on Dec. 31, 1992, compared to $14.6 billion at its Sept. 30, 1992 fiscal year-end. The backlog includes $3.7 billion of commercial orders, $2.7 billion of funded government orders and $7.8 billion of unfunded government orders.
 Rockwell International is a multi-industry company applying advanced technology to a wide range of products in its electronics, aerospace, automotive and graphics businesses.
 ROCKWELL INTERNATIONAL CORP.
 Sales and Earnings Information
 (In millions, except per share amounts)
 Quarter Ended
 Dec. 31,
 1992 1991
 Sales
 Electronics
 Industrial Automation $380 $332
 Avionics 289 290
 Telecommunications 114 106
 Defense Electronics 295 320
 Total 1,078 1,048
 Aerospace
 Space Systems 495 606
 Aircraft 149 186
 Total 644 792
 Automotive
 Heavy Vehicles 334 323
 Light Vehicles 281 235
 Total 615 558
 Graphics 152 162
 Total Sales $2,489 $2,560
 Operating Earnings
 Electronics $139.9 $106.6(a)
 Aerospace 86.2 92.2
 Automotive 26.2 17.5
 Graphics (0.5) (1.5)
 Total Operating Earnings 251.8 214.8
 Divested Business --- 30.0
 General Corporate - Net (14.4) (9.2)
 Interest Expense (25.6) (26.1)
 Provision for Income Taxes (84.0) (86.2)
 Income Before Change In Accounting 127.8 123.3
 Cumulative Effect of Change
 in Accounting for Retirement
 Medical Benefits --- (1,519.0)
 Net Income (Loss) $127.8 ($1,395.7)
 Earnings per Common Share
 Primary:
 Before Change in Accounting $.58 $.54
 Cumulative Effect of Change
 in Accounting for Retirement
 Medical Benefits --- (6.78)
 Net Income (Loss) $.58 ($6.24)
 Fully Diluted:
 Before Change in Accounting $.57 $.54
 Cumulative Effect of Change
 in Accounting for Retirement
 Medical Benefits --- (6.70)
 Net Income (Loss) $.57 ($6.16)
 (a) Amount has been restated to exclude divested business.
 ROCKWELL INTERNATIONAL CORP.
 Notes to Sales and Earnings Information
 (1) Divested business is comprised of the Flame Safeguard Controls product line sold in October 1991.
 (2) Amortization of intangible assets related to Allen-Bradley reduced Electronics earnings for the quarters ended Dec. 31, 1992 and 1991 by $6 million and $17 million, respectively.
 (3) The cumulative effect of change in accounting for retirement medical benefits results from the company's adoption of Statement of Financial Accounting Standards No. 106 and represents the impact on net income of the immediate recognition of the previously unrecognized prior service cost of such benefits.
 ROCKWELL INTERNATIONAL CORP.
 Composition of Sales
 (In billions)
 Three Months Ended
 Dec. 31,
 1992 1991
 U.S. Commercial $0.8 $0.7
 International 0.7 0.7
 U.S. Government:
 Department of Defense 0.6 0.7
 NASA 0.4 0.5
 Total $2.5 $2.6
 Backlog Information
 (in billions)
 Dec. 31, Sept. 30,
 1992 1992
 Aerospace
 Space Systems $8.2 $8.4
 Aircraft 2.1 2.0
 Total 10.3 10.4
 Defense Electronics 1.5 1.7
 Other 2.4 2.5
 Total Backlog $14.2 $14.6
 ROCKWELL INTERNATIONAL CORP.
 Summary Balance Sheet
 (In millions)
 Dec. 31, Sept. 30,
 1992 1992
 (unaudited)
 Assets
 Cash $505 $603
 Other Current Assets 4,042 4,286
 Net Property 2,291 2,375
 Other Assets 2,474 2,467
 Total Assets $9,312 $9,731
 Liabilities and Shareowners' Equity
 Short-term Debt $167 $161
 Other Current Liabilities 2,579 2,951
 Long-term Debt 1,025 1,035
 Other Liabilities 2,793 2,806
 Shareowners' Equity 2,748 2,778
 Total Liabilities and
 Shareowners' Equity $9,312 $9,731
 -0- 1/18/93
 /CONTACT: William D. Mellon of Rockwell International, 310-797-5819/
 (ROK)


CO: Rockwell International Corp. ST: California IN: ARO SU: ERN

KJ-JL -- LA007 -- 5855 01/18/93 11:35 EST
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Date:Jan 18, 1993
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