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ROCKWELL REPORTS FY92 THIRD QUARTER FINANCIAL RESULTS

      ROCKWELL REPORTS FY92 THIRD QUARTER FINANCIAL RESULTS
    SEAL BEACH, Calif., July 20 /PRNewswire/ -- Along with the announcement of its 1992 third quarter earnings, which were lower than last year's third quarter but in line with previous forecasts, Rockwell International Corporation (NYSE: ROK) today reported indications of strengthening business activity in the markets served by its Automotive, Industrial Automation and Digital Communications businesses.  The company also said future earnings are expected to benefit from both new business opportunities in its commercial and government markets and its continued stringent internal actions to reduce costs.
    The company reported net income of $122.6 million for its third fiscal 1992 quarter, ended June 30, 1992, a decrease of 19 percent from last year's third quarter net income of $151.4 million.
    Earnings per share for this year's third quarter of 55 cents were down 15 percent from 1991's third quarter of 65 cents per share.  The lower percentage reduction in earnings per share results from the company's continuing stock repurchase program.
    Sales of $2.7 billion in the third quarter were down nine percent from last year's third quarter sales of nearly $3 billion.
    Donald R. Beall, chairman and chief executive officer, said, "Although our third quarter earnings were down from the same period in fiscal 1991, we are now seeing improved business conditions in several of our served markets.  Our third quarter net income is up 24 percent over this year's second fiscal quarter and two of our major commercial businesses, Automotive and Industrial Automation, whose markets have been weak achieved improved earnings levels from last year's third quarter."
    Beall stated when comparing this quarter's earnings to 1991's third quarter, "It is important to note that last year's results included 10 cents per share of unusual items, primarily a gain from the sale of an Automotive product line and a favorable B-1B Program contract adjustment."
    "Based upon a number of positive indicators resulting from internal management initiatives and aggressive business development actions, and assuming a continuing moderate improvement in the economy, we see renewed prospects in fiscal 1993 for meeting our long-term goal of double-digit earnings per share growth," Beall commented.  "In addition to the earnings growth we expect from our Automotive, Industrial Automation and Digital Communications businesses, 1993 earnings should benefit from numerous new product introductions, our extensive programs to reduce costs throughout the company and the opportunities we see for Rockwell as a prime competitor for several major government contracts."
    For the first nine months of fiscal 1992, the company had a net loss of $1,174.1 million, or $5.24 per share, after adoption in the second quarter of the postretirement benefit accounting change (SFAS 106).  Excluding the one-time charge resulting from the accounting change, the company had net income for the first nine months of 1992 of $344.9 million, a decrease of 23 percent from 1991's nine-month net income, while earnings per share of $1.54 for the first nine months of 1992 decreased 19 percent from the comparable 1991 period.  Sales for the first nine months of 1992 totaled $8 billion, down 10 percent from 1991's nine month sales.
    For the remainder of fiscal 1992 Beall stated, "We expect continued improvement in our fourth quarter earnings and believe 1992 full year earnings per share will be about 15 percent below those in 1991, before the effect of adopting SFAS 106 in this fiscal year."
    In the third quarter, earnings of Electronics were down seven percent from 1991's third quarter as a result of lower earnings in the company's Avionics business reflecting product mix and higher new product development expenditures.  The current quarter sales and earnings of the Industrial Automation and Telecommunications businesses were up from last year's third quarter while sales and earnings of Defense Electronics were down slightly.
    Third quarter earnings of our Aerospace business decreased 35 percent from the comparable 1991 quarter principally due to the favorable B-1B Program contract adjustment last year and lower Space Shuttle Program volume resulting from the delivery of the orbiter Endeavour in 1991.
    Automotive's current quarter earnings increased 28 percent from 1991 even though last year's earnings included a sizeable gain from the sale of a product line.  Higher volume and improved profitability resulting from continuing cost containment programs and the benefits of last year's major restructuring actions are the primary reasons for the substantial earnings increase.
    Earnings of the Graphics business decreased significantly from last year principally due to the major decline in the newspaper printing press market.
    The company's backlog was $14.8 billion on June 30, 1992, compared to $16.5 billion at its September 30, 1991 fiscal year- end.  The backlog includes $3.5 billion of commercial orders, $3.1 billion of funded government orders and $8.2 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 CORPORATION
                  SALES AND EARNINGS INFORMATION
                       Quarter Ended        Nine Months Ended
                          June 30              June 30
                       1992       1991        1992     1991
                      (in millions, except per share amounts)
    Sales
     Electronics
      A-B Industrial
       Automation   $   369    $  351     $   1,058  $ 1,056
       Avionics         337       337           961      972
       Telecommuni-
        cations         115       102 (a)       328      303 (a)
       Defense
        Electronics     317       389           988    1,057
             Total    1,138     1,179         3,335    3,388
     Aerospace
      Space Systems     577       645         1,787    2,003
      Aircraft          175       212           570      667
        Total           752       857         2,357    2,670
     Automotive
      Heavy Vehicles    356       345         1,014    1,072
      Light Vehicles    290       242           792      726
        Total           646       587         1,806    1,798
     Graphics           167       239           523      694
     Divested Business  ---       116           ---      356
    Total Sales     $ 2,703   $ 2,978        $8,021  $ 8,906
    Operating Earnings
     Electronics    $ 121.2   $ 129.9 (a) $   380.6  $ 410.9 (a)
     Aerospace         69.7     107.7         225.4    328.7
     Automotive        35.3      27.6          75.4     53.5
     Graphics           1.5      23.2           7.4     78.6
     Divested Business  ---       6.9           ---     25.6
    Total Operating
     Earnings         227.7     295.3         688.8    897.3
    General Corporate
     - Net            (10.7)    (10.7)        (41.2)   (47.2)
    Interest Expense  (26.7)    (32.6)        (79.5)  (104.1)
    Provision for
     Income Taxes     (67.7)   (100.6)       (223.2)  (297.9)
    Income Before
     Change in
     Accounting       122.6     151.4         344.9    448.1
    Cumulative Effect
     of Change in
     Accounting
     for Nonpension
     Postretirement
     Benefits           ---       ---      (1,519.0)    ---
    Net Income
     (Loss)          $122.6    $151.4     $(1,174.1)  $448.1
    Earnings per
    Common Share
     Primary:
      Before Change
       in Accounting  $.55       $.65         $1.54    $1.91
      Cumulative
       Effect of
       Change in
       Accounting
       for Nonpension
       Postretirement
       Benefits        ---        ---         (6.78)     ---
    Net Income
     (Loss)           $.55       $.65        $(5.24)   $1.91
    Fully Diluted:
     Before Change
      in Accounting   $.55       $.64         $1.52    $1.88
     Cumulative Effect
      of Change in
      Accounting for
      Nonpension
      Postretirement
      Benefits         ---         ---       (6.70)      ---
    Net Income
     (Loss)           $.55       $.64       $(5.18)    $1.88
    (a) Amounts have been restated to exclude divested business.
    (See additional notes below.)
                 ROCKWELL INTERNATIONAL CORPORATION
    NOTES TO SALES AND EARNINGS INFORMATION
    (1) Divested business is comprised of the Network Transmission Systems Division which the company sold in August 1991.
    (2) Amortization of intangible assets related to Allen-Bradley reduced Electronics earnings for the quarter and nine months ended June 30, 1992 by $12 million and $45 million, respectively, as compared with $16 million and $50 million, respectively, for the comparable 1991 periods.
    (3) The cumulative effect of change in accounting for nonpension postretirement 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.
                        COMPOSITION OF SALES
                            (in billions)
                     Three Months Ended       Nine Months Ended
                           June 30                   June 30
                      1992        1991         1992     1991
    U.S. Commercial    $.8        $1.0 (a)     $2.3     $2.8 (a)
    International,
     Primarily
      Commercial        .8          .7          2.2      2.3
    U.S. Government:
     Department
      of Defense        .7          .8          2.2      2.3
     NASA               .4          .5          1.3      1.5
       Total          $2.7        $3.0         $8.0     $8.9
    (a)  Includes $.1 billion and $.4 billion of sales of divested business for the quarter and nine months ended June 30, 1992, respectively.
                          BACKLOG INFORMATION
                             (in billions)
                                 June 30             September 30
                                  1992                  1991
    Aerospace
     Space Systems                 $8.9                 $9.2
     Aircraft                       1.5                  1.8
        Total                      10.4                 11.0
    Defense Electronics             2.5                  3.4
    Other                           1.9                  2.1
     Total Backlog                $14.8                $16.5
    -0-                    7/20/92
    /CONTACT:  William D. Mellon of Rockwell, 310-797-5819/
    (ROK) CO:  Rockwell International ST:  California IN:  ARO SU:  ERN CH -- LA013 -- 0734 07/20/92 12:29 EDT
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Copyright 1992 Gale, Cengage Learning. All rights reserved.

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Date:Jul 20, 1992
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