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SOUTHDOWN REPORTS SECOND QUARTER EARNINGS

 SOUTHDOWN REPORTS SECOND QUARTER EARNINGS
 HOUSTON, Aug. 7 /PRNewswire/ -- Southdown, Inc. (NYSE: SDW) today


reported a net loss of $7 million, or $0.49 per share including $0.22 per share for unusual charges, for the three months ended June 30, 1992, compared with a loss of $2.2 million, or $0.21 per share, in the second quarter of 1991.
 For the six months ended June 30, 1992, the company's net loss was $14.4 million, or $1 per share, compared with $9.7 million, or $0.73 per share, in the first half of 1991. Earnings remain depressed because of the continued weakness in construction activity.
 Operating earnings from the cement segment were $13.9 million and $25.3 million in the second quarter and first half of 1992, respectively, compared with $16.4 million and $25.8 million, respectively, in the comparable periods a year ago. The second quarter of 1992 includes $4.8 million of previously announced unusual charges, consisting of a $3.6 million increase in the reserve for remediation of an inactive cement kiln dust disposal site at the Ohio cement facility and a $1.2 million charge related to unpaid use taxes. Excluding these unusual charges, cement operating earnings improved primarily as a result of higher volumes and lower unit costs.
 The concrete products operating loss was $2.2 million and $5.6 million in the second quarter and first half of 1992, respectively, compared with an operating loss of $1.7 million and $4.1 million, respectively, in the comparable periods a year ago. An improvement in Florida ready-mix operating results was more than offset by the decline in Southern California ready-mix results.
 The environmental services business generated an operating loss of $2.6 million and $4.9 million in the second quarter and first half of 1992, respectively, compared with an operating loss of $700,000 and $1.5 million, respectively, in the same periods a year ago.
 Corporate and other expenses were $9.1 million and $14.9 million in the second quarter and first half of 1992, respectively, compared with $6 million and $14.2 million, respectively, in the comparable periods a year ago. The 1991 numbers include $3.1 million of non-recurring income. Interest expense increased to $11.2 million and $23.5 million in the second quarter and first half of 1992, respectively, from $10.4 million and $19 million, respectively, in the same periods in 1991. The increase in interest expense is primarily a result of the issuance of $125 million of 14 percent senior subordinated notes in October 1991. In addition, in 1991, the company incurred losses related to a joint venture which was sold in January 1992.
 Southdown is one of the leading U.S. cement and ready-mixed concrete companies. The company manufactures cement in eight plant locations around the country and markets ready-mixed concrete in Florida and Southern California. In addition, the company has entered the environmental services business and is engaged in waste processing, recycling and resource recovery.
 SOUTHDOWN, INC. AND SUBSIDIARIES
 Consolidated Summary of Operations
 (In millions, except per-share amounts; unaudited)
 Periods ended June 30 Three Months Six Months
 1992 1991 1992 1991
 Revenues
 Cement $93.0 $91.3 $159.8 $153.7
 Concrete products 41.4 47.0 79.3 88.2
 Environmental services 10.8 9.0 22.0 18.0
 Corporate and other 0.2 0.5 0.3 1.1
 Intersegment sales (8.9) (10.4) (17.3) (19.7)
 Total 136.5 137.4 244.1 241.3
 Earnings (loss) from
 operations:
 Cement 13.9(A) 16.4 25.3(A) 25.8
 Concrete products (2.2) (1.7) (5.6) (4.1)
 Environmental
 services (2.6)(B) (0.7) (4.9)(B) (1.5)
 Corporate and other (9.1) (6.0)(C) (14.9) (14.2)
 Total -- 8.0 (0.1) 6.0
 Equity in net loss of
 unconsolidated joint
 venture -- (1.1) -- (3.1)
 Interest expense (11.2) (10.4) (23.5) (19.0)
 Total (11.2) (3.5) (23.6) (16.1)
 Estimated income tax
 benefit (expense) 4.2 1.3 9.2 6.4
 Net earnings (loss) (7.0) (2.2) (14.4) (9.7)
 Earnings (loss) per
 common share (D):
 Primary $(0.49) $(0.21) $(1.00) $(0.73)
 Fully diluted (0.49) (0.21) (1.00) (0.73)
 Average shares
 outstanding:
 Primary 16.9 16.9 16.9 16.9
 Fully diluted 20.4 20.4 20.4 20.4
 (A) -- Includes $3.6 million additional charge, $0.14 per share, at Fairborn, Ohio, plant for remediation of inactive cement kiln dust disposal site and $1.2 million charge, $0.05 per share, at Brooksville, Fla., plant as the estimated liability for unpaid use taxes and penalty and interest due thereon.
 (B) -- Includes a $650,000 charge, $0.03 per share, at Allworth, Tenn., facility as the estimated cost related to the decontamination of equipment and incineration of PCB materials that were accepted in error for processing from a customer and that violated the company's operating permits for that facility.
 (C) -- Includes several nonrecurring items that result in a net $3.1 million of other income.
 (D) -- During the six months ended June 30, 1992 and 1991, dividends on preferred stock amounted to $2.5 million and $2.6 million, respectively. Dividends on preferred stock for the three months ended June 30, 1992 and 1991, amounted $1.3 million.
 -0- 8/7/92
 /CONTACT: James L. Persky or Karen A. Twitchell of Southdown, 713-650-6200/
 (SDW) CO: Southdown, Inc. ST: Texas IN: CST SU: ERN


CK -- NY017 -- 7935 08/07/92 10:29 EDT
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