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SAFETY-KLEEN REPORTS SECOND QUARTER REVENUE, 11 PERCENT GAIN IN NET EARNINGS

 SAFETY-KLEEN REPORTS SECOND QUARTER REVENUE,
 11 PERCENT GAIN IN NET EARNINGS
 ELGIN, Ill., July 1 /PRNewswire/ -- Donald W. Brinckman, chairman and chief executive officer of Safety-Kleen Corp., (NYSE: SK) announced today that Safety-Kleen achieved record revenue and an increase in net earnings for its second interim reporting period of 1992.
 Revenue for the twelve weeks ended June 13, 1992 was $184,099,000, an increase of 16 percent over 1991. Net earnings increased 11 percent to $14,459,000. Earnings per share were 25 cents, compared to 23 cents last year.
 Year-to-date revenue increased 15 percent to $358,038,000. Net earnings, before the cumulative effect of a change in accounting principle, increased 9 percent to $26,554,000. The company adopted Statement of Financial Accounting Standards No. 109 on accounting for income taxes in the first interim period of 1992. Earnings per share, before the cumulative effect of the accounting change, were 46 cents, compared to 43 cents last year. The cumulative effect of the change increased net earnings by $3.2 million, or 6 cents per share.
 Brinckman said, ''Revenue of our North American Automotive/Retail Repair Parts Cleaner Service was $113,243,000 year-to-date, up 5 percent from 1991. Parts cleaner units in service in this market totaled 481,000 units worldwide at the end of the second quarter, an increase of 2 percent from the same time period last year. Revenue of our North American Industrial Parts Cleaner and Fluid Recovery Services was $86,993,000 year-to-date in 1992, an increase of 23 percent over 1991. Parts cleaner units in service worldwide in the industrial market totaled 120,000 at the end of the second quarter 1992, an increase of 13 percent from the same time period a year ago. Included in Industrial Services revenue is $37,111,000 of revenue year-to-date from the Fluid Recovery Service, an increase of 35 percent over 1991. At the start of the second quarter we increased prices for the domestic Automotive/ Retail Repair and Industrial Parts Cleaner Services by an average of approximately 5.5 percent.''
 Brinckman added, ''We have continued to see substantial improvement in operating results from our Oil Recovery Service. Revenue of this Service was $52,501,000 year-to-date, up 26 percent from last year. Although year-to-date net losses from this business are comparable to last year's results, at the end of the second quarter this business was operating at a profit.''
 Brinckman said, ''From the start of the Oil Recovery Service in 1987 through 1991, our primary emphasis was on building the used oil collection volumes and expanding our oil re-refining capacity. With the oil collection and processing capacity now in place, in 1992 we have worked on improving the efficiency of the used oil collection network and the logistics associated with transporting over 100 million gallons of used oil annually. Results of the Oil Recovery Service have also benefited from recent increases in the market price for lubricating oil base stocks. If lube oil prices remain at their current levels, the Oil Recovery Service should be profitable in the third quarter.''
 ''Our European operations continue to show improved operating results,'' Brinckman said. These operations had net earnings of $60,000 year-to-date in 1992, compared to a loss of $912,000 last year.''
 Brinckman said, ''As we noted in the first quarter, the available fuel burning capacity of the local cement kiln in Puerto Rico had been temporarily reduced as a result of conversion of the kiln to new technology. The use of an alternate kiln has resulted in significant additional transportation and other costs. We estimate these additional costs reduced 1992 year-to-date earnings by approximately $1.6 million. We expect that these added costs will decline in the second half of the year as the kiln resumes normal operations.''
 Brinckman concluded, ''We are pleased with our operating results in the second quarter in light of the current economic conditions in the United States. We expect continued improvement in year-to-year earnings comparisons for the remainder of the year. Results should benefit from improved prices and operating efficiencies in our Oil Recovery Services, continued growth in our Industrial Services and lower costs in our Puerto Rican operations. To date, we believe that most of our operations in the United States have experienced little, if any, benefit from the economic recovery. Assuming our operations begin to benefit from the U.S. economic recovery in the near future, we believe we can meet or exceed our established long-range 20 percent to 25 percent earnings growth goal in 1992.''
 Safety-Kleen Corp. is the world's largest provider of parts 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 for reuse or blended into fuels for use in industrial furnaces or cement kilns. Safety-Kleen's common stock is traded on the New York Stock Exchange.
 CONSOLIDATED STATEMENT OF EARNINGS
 (thousands, except per share amounts)
 TWELVE WEEKS ENDED TWENTY-FOUR WEEKS ENDED
 June 13, 1992 June 15, 1991 June 13, 1992 June 15, 1991
 Revenue $184,099 $159,148 $358,038 $312,343
 Operating costs
 and expenses 131,984 112,540 258,535 222,223
 Selling and
 administrative
 expenses 25,959 23,643 50,799 46,880
 Operating incom 26,156 22,965 48,704 43,240
 Interest income 300 447 603 1,076
 Interest expense (3,409) (2,645) (6,848) (5,175)
 Earnings before
 taxes and cumulative
 effect of change
 in accounting
 principle 23,047 20,767 42,459 39,141
 Income taxes 8,588 7,775 15,905 14,693
 Earnings before
 cumulative effect
 of change in
 accounting
 principle 14,459 13,012 26,554 24,448
 Cumulative effect
 of change in
 accounting for
 income taxes -- -- 3,200 --
 Net earnings $ 14,459 $ 13,012 $ 29,754 $ 24,448
 Earnings per common and
 common equivalent
 share:
 Earnings before
 cumulative effect
 of change in account
 principle $ 0.25 $ 0.23 $ 0.46 $ 0.43
 Cumulative effect
 of change in
 accounting for
 income taxes -- -- 0.06 --
 Net earnings $ 0.25 $ .023 $ 0.52 $ 0.43
 Average number of
 common and common
 equivalent shares
 outstanding 57,852 57,487 57,769 57,429
 Cash dividends
 per common
 share $ 0.085 $ 0.080 $ 0.170 $ 0.160
 1. Effective at the beginning of fiscal year 1992, the company
 purchased Niemann Chemie, a leading supplier of parts cleaner
 services to automotive repair sops in Germany, in exchange for
 446,240 shares of the company's common stock and cash for a
 combined value of approximately $13 million.
 2. The company adopted Statement of Financial Accounting Standard
 (SFAS) No. 109 on accounting for income taxes during the first
 interim period of 1992. The effect of adopting SFAS No. 109 on
 earnings before cumulative effect of change in accounting
 principle is not material. The cumulative prior year's effect of
 the change increased net earnings by $3.2 million or six cents
 per share.
 3. The company's interim reporting periods are twelve weeks each for
 the first three reporting periods of the year and seventeen weeks
 for the fourth reporting period of 1992 and sixteen weeks for the
 fourth period of 1991.
 -0- 7/1/92
 /CONTACT: Robert W. Willmschen of Safety Kleen, 708/697-8460/
 (SK) CO: Safety-Kleen Corporation ST: Illinois IN: HOU SU: ERN


LD -- NY124 -- 5965 07/01/92 19:34 EDT
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Date:Jul 1, 1992
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