SAFETY-KLEEN NAMES DONALD W. BRINCKMAN TO ADDITIONAL POST OF PRESIDENT -- PROJECTS DECLINE IN FOURTH QUARTER NET EARNINGS
SAFETY-KLEEN NAMES DONALD W. BRINCKMAN TO ADDITIONAL POST
OF PRESIDENT -- PROJECTS DECLINE IN FOURTH QUARTER NET EARNINGS
ELGIN, Ill., Dec. 19 /PRNewswire/ -- Safety-Kleen Corp. (NYSE: SK) announced today that its board of directors, at a special meeting held Dec. 18, 1991, elected Donald W. Brinckman, chairman and chief executive officer of the company, to the additional post of president. Brinckman reassumed the duties of president, following the death of the company's former president, Joseph F. Knott, on Dec. 2, 1991. Knott had served as president since Aug. 10, 1990. Brinckman had previously been both president and CEO of the company since its inception in 1968.
Separately, Brinckman said that the company expects earnings per share for the full year 1991 will be approximately $.90. In 1990, the company reported earnings per share of $1.05. If the company reports $.90 earnings per share for the full year 1991, fourth quarter earnings per share would be $.24, down approximately 35 percent from $.37 reported in the fourth quarter of 1990.
Brinckman said that the company will report a net charge of approximately $1.2 million in the fourth quarter of 1991, related to the previously announced settlement of an action brought by the state of California in April, 1991, alleging violations of the state's Hazardous Waste Act. He said the company will also record a net charge of approximately $800,000 to write-off costs incurred attempting to permit a site in North Las Vegas, Nev. for construction of a new solvent recycling plant. He said the company believes it is unlikely that the necessary permits will be issued and will terminate its permitting efforts at this site. Instead, the company will expand its Denton, Texas plant to handle the waste streams that would have gone to the North Las Vegas site. Brinckman said the net effect of these two charges represent approximately three and one-half cents per share reduction in net earnings in the fourth quarter.
Brinckman said, "Even without these two unusual charges, we expect net earnings in the fourth quarter will be down approximately 18-20 percent from year-ago levels, on approximately a 17 percent increase in revenue. Although we are continuing to see strong growth in our Fluid Recovery Service and Industrial Parts Cleaner Service, substantially all of our businesses have been negatively affected by the recession, particularly our Automotive Parts Cleaner, Oil Recovery and Dry Cleaner Services. To-date, we have seen no signs of improvement from an economic recovery."
Brinckman added, "Throughout the recession we have continued to make significant investments to provide for future growth, including expansion of our branch facilities, construction of the new oil re- refining plant in East Chicago, Indiana and expansion of several of our solvent recycling plants to handle increased quantities of drums from the Fluid Recovery Service.
"In 1990 and 1991, we also added over 150 branch automotive managers and branch industrial managers to provide the field management support necessary for future growth of our Industrial Services, Automotive Parts Cleaner Services and Oil Recovery Services. We also made a number of acquisitions in Europe over the last year and placed increased emphasis on development of our European operations. While these investments, coupled with the economic recession, have penalized earnings in 1991, we believe that they have placed us in an excellent position to return to our more traditional rate of earnings growth as we enter an economic recovery."
Brinckman concluded, "Although we are disappointed in our operating results this year, we feel they are satisfactory given our continuing substantial commitments to build for the future."
Safety-Kleen Corp. is the world's largest provider of part cleaner services and related solvent recycling. The company also collects a variety of hazardous and quasi-hazardous liquid wastes from automotive repair outlets, industrial plants, dry cleaners and other waste generators. The fluids are recycled or re-refined for reuse or blended into fuels for use in industrial furnaces or cement kilns.
/CONTACT: Robert W. Willmschen of Safety-Kleen, 708/697-8460/
(SK) CO: Safety-Kleen Corp. ST: Illinois IN: SU: PER SM -- NY052 -- 3927 12/19/91 13:02 EST