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SAFETY-KLEEN REPORTS REVENUE, DECLINE IN FIRST QUARTER 1993 EARNINGS

 ELGIN, Ill., April 16 /PRNewswire/ -- Donald W. Brinckman, chairman and chief executive officer of Safety-Kleen Corp. (NYSE: SK), announced today that Safety-Kleen achieved record revenue but a 29 percent decline in earnings for its first interim reporting period of 1993.
 Revenue for the twelve weeks ended March 27, 1993 was $181,818,000, an increase of $7,879,000 or 5 percent over 1992. Net earnings of $8,635,000 declined 29 percent from 1992 earnings before the cumulative effect of changes in accounting principles in 1992. On this basis, earnings per share were $.15 compared to $.21 last year. The cumulative effect of changes in accounting principles adopted as of the first quarter of 1992 increased 1992 net earnings by $300,000 or $.01 per share.
 Brinckman said, "Our operating results in 1993 continue to be adversely effected by constraints at cement kilns used as outlets for waste-derived fuels in the U.S. and Puerto Rico. All U.S. and Puerto Rico cement kilns that burn waste-derived fuels will have to meet the new Boiler and Industrial Furnace (BIF) regulations. Our Puerto Rico operations incurred a net loss of $785,000 in the first quarter of 1993, compared to $336,000 earned in the comparable period of 1992. During the first twelve weeks of 1993 these operations continued to be adversely affected by the added costs to transport a majority of the waste-derived fuel produced at our Manati, Puerto Rico plant to the U.S. mainland."
 Brinckman added, "BIF requirements have also caused one of the kilns we use domestically to burn waste-derived fuels at reduced rates, resulting in higher costs to utilize alternative kilns. These higher costs reduced first quarter net earnings by approximately $1.1 million. Additional BIF tests are planned for mid-June at the affected U.S. kiln. If these tests are successful, we expect the kiln to return to normal burn rates within a reasonable time thereafter."
 Brinckman said, "So far in 1993 we have continued to feel the lingering effects of the recession. Revenue of our North American Automotive/Retail Repair Services was up only 3 percent over 1992 to $57.1 million. Revenue from the Oil Recovery Service was down slightly to $25.2 million. While revenue of our North American Industrial Services grew 14 percent to $48.1 million, we had anticipated stronger growth in an economic recovery."
 Brinckman said, "At the start of the second quarter we increased prices for the domestic Automotive/Retail Repair and Industrial Parts Cleaner Services. Prices were increased by an average of approximately 6 percent for customers who are not on annual contracts. Those who are on annual contracts will be subject to the price increase as their contracts expire.''
 "Revenue of our European operations totaled $18.9 million in the current quarter, an increase of 10 percent over 1992,'' Brinckman said. "These operations incurred net losses of $200,000 in the first twelve weeks of 1993 as compared to breakeven results in 1992."
 Brinckman said, "In 1992, we began test marketing two new types of parts cleaner services aimed at companies who want to reduce or eliminate the amount of hazardous wastes they generate. To-date, customer reaction to the test units has been favorable and we are expanding the scope of the test market. If results continue to be favorable, we expect to offer the new services on a nationwide basis by yearend."
 "Although we are disappointed with our current level of earnings," Brinckman concluded, "we are optimistic about our long-term growth prospects.''
 Safety-Kleen Corp. is the world's largest recycler of automotive and industrial hazardous and non-hazardous fluids. Safety-Kleen's common stock is traded on the New York Stock Exchange under the trading symbol SK.
 SAFETY-KLEEN CORPORATION
 Consolidated Statement of Earnings
 (thousands, except per share amounts)
 Twelve Weeks Ended
 March 27, 1993 March 21, 1992
 Revenues $ 181,818 $ 173,939
 Operating costs and expenses 138,767 126,551
 Selling and administrative
 expenses 26,914 24,840
 Operating income 16,137 22,548
 Interest income 267 303
 Interest expense (2,342) (3,439)
 Earnings before taxes and cumulative
 effect of changes in
 accounting principles 14,062 19,412
 Income Taxes 5,427 7,317
 Earnings before cumulative effect
 of changes principles 8,635 12,095
 Cumulative effect of changes
 in accounting principles --- 300
 Net Earnings $ 8,635 $ 12,395
 Earnings per common and common equivalent share:
 Earnings before cumulative effect
 of changes in accounting principles $0.15 $0.21
 Cumulative effect of changes in
 accounting principles -- $0.01
 Net earnings $0.15 $0.22
 Average number of common and
 common equivalent shares
 outstanding 57,886 57,673
 Cash dividends per common share $0.090 $0.085
 NOTE: (1) -- The company adopted Statement of Financial Accounting Standards (SFAS) No. 109 on accounting for income taxes during the first interim period of 1992. The cumulative prior years' effect of the change increased net earnings by $3.2 million or $.06 per share. The company also adopted SFAS No. 106 on accounting for employee post retirement benefits. The cumulative prior years' effect of the change reduced net earnings by $2.9 million or $.05 per share.
 (2) -- The company's interim reporting periods are twelve weeks each for the first three reporting periods of the year, sixteen weeks for the fourth period of 1993 and seventeen weeks for the fourth period of 1992.
 -0- 4/16/93
 /CONTACT: Robert W. Willmschen of Safety-Kleen Corp., 708-697-8460/
 (SK)


CO: Safety-Kleen Corporation ST: Illinois IN: ENV SU: ERN

TM -- NY089 -- 7024 04/16/93 19:46 EDT
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