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SPRINGS INDUSTRIES REPORTS RESULTS

 FORT MILL, S.C., April 19 /PRNewswire/ -- Springs Industries (NYSE: SMI) today reported increased 1993 first quarter sales and strong earnings improvement before one-time charges related to the adoption of two new financial accounting standards.
 Net sales for the first quarter were $501.8 million, up 8 percent from net sales of $462.9 million in the first quarter of 1992. Earnings, excluding the one-time charges, were $9.1 million, or $.51 per share, up 70 percent from net income of $5.3 million, or $.30 per share, in the first quarter a year ago.
 The company announced the adoption of the Statements of Financial Accounting Standards relating to postretirement health care benefits and income taxes, effective Jan. 3, 1993. A combined, one-time after-tax charge to earnings of $72.5 million, or $4.07 per share, was recorded in the first quarter relating to these accounting standards. After these accounting charges, the net loss for the first quarter was $63.4 million, or $3.56 per share.
 Walter Y. Elisha, Springs chairman and chief executive officer, said: "We are pleased to get these required accounting changes behind us. The company is in excellent financial health with over $500 million in equity. Neither our cash flow nor dividends will be impacted by the adoption of these changes, and the future annual impact of these standards on earnings is not expected to be material."
 The company also announced a change from a three-segment to a two- segment reporting format to align its reporting with the current organizational structure. Elisha said: "The changing nature of our business has also caused a change in the way we serve the fabrics market. Realignment of our operations to better serve this market has resulted in the formation of the specialty fabrics segment, which is a combination of the previous finished fabrics and industrial fabrics segments." The home furnishings segment, which accounted for 65 percent of total sales in 1992, remains the same as previously reported.
 Elisha said: "Our first quarter operating profits, excluding the special accounting charges, increased by $7.8 million, or 46 percent, primarily as a result of the home furnishings segment achieving sales growth of 17 percent during the period. Without our Canadian operations which were acquired in 1992, home furnishings sales would have increased 9 percent in the quarter. Earnings improvements from the consolidation of Springs window fashions business also contributed to the first quarter home furnishings results.
 "The specialty fabrics segment reported first quarter sales 4 percent below last year, primarily reflecting softer sales of apparel and piece goods at retail. However, the fiberglass portion of our fabric business is showing improvement in sales as a result of a strengthening electronics market, especially in the United States.
 "We are pleased with the first quarter results which are in line with our plan and expect continued improvement during the second quarter. While the U.S. economy continues to improve slowly, we are confident that the steps we have taken to position our brands with our customers, to restructure our businesses, and to reduce our European fiberglass losses will help us achieve our aggressive goals for 1993."
 Springs Industries is a major manufacturer and marketer of home furnishings and specialty fabrics with headquarters in Fort Mill, S.C. The company employs about 20,000 people and operates 40 manufacturing facilities in nine U.S. states, with minority investments in businesses in Japan and Europe.
 SPRINGS INDUSTRIES, INC.
 Condensed Consolidated Balance Sheet
 (In thousands except share data)
 (Unaudited)
 April 3, March 28,
 1993 1992
 Assets
 Current assets:
 Cash and cash equivalents $ 3,749 $ 4,161
 Accounts receivable 308,604 307,078
 Inventories 276,976 273,412
 Other 39,021 48,207
 Total current assets 628,350 632,858
 Property, plant and equipment 1,143,070 1,138,299
 Accumulated depreciation (604,541) (569,113)
 Property, plant, and
 equipment, net 538,529 569,186
 Other assets and deferred charges 115,093 81,391
 Total $1,281,972 $1,283,435
 LIABILITIES AND SHAREHOLDERS' EQUITY
 Current liabilities:
 Short-term borrowings $ 107,300 $ 76,500
 Current maturities of
 long-term debt 20,908 23,071
 Accounts payable 67,047 88,894
 Accrued restructuring costs 12,175 22,004
 Other accrued liabilities 103,146 89,848
 Total current liabilities 310,576 300,317
 Noncurrent liabilities:
 Long-term debt 273,294 286,510
 Accrued restructuring costs 6,069 20,218
 Deferred Compensation and
 Benefit Plans 133,923 59,410
 Deferred income taxes and
 other deferred credits 38,207 50,527
 Total noncurrent liabilities 451,493 416,665
 Shareholders' equity:
 Class A common stock- $.25 par
 value (9,801,340 and 9,733,810
 shares issued in 1993 and 1992,
 respectively) 2,450 2,433
 Class B common stock- $.25 par
 value (7,907,591 and 7,971,180
 shares issued in 1993 and 1992,
 respectively) 1,977 1,993
 Additional paid-in capital 10,954 10,672
 Retained earnings 503,443 547,778
 Cost of Class A shares in
 treasury (April 3, 1993-
 130,037 shares; March 28,
 1992 - 139,314 shares) (2,783) (2,977)
 Currency translation adjustment 3,862 6,554
 Shareholders' equity 519,903 566,453
 Total $1,281,972 $1,283,435
 Consolidated Statements of Operations and Retained Earnings
 (In thousands except per share data)
 (unaudited)
 Thirteen Weeks Ended
 April 3, Maost and expenses:
 Cost of goods sold 404,809 378,083
 Selling, general and
 administrative expenses 72,162 67,813
 Interest expense 8,041 7,659
 Other (income) expense 230 (38)
 Total 485,242 453,517
 Income before income taxes 16,512 9,351
 Income taxes 7,355 4,005
 Income before cumulative effects
 of changes in accounting
 principles 9,157 5,346
 Cumulative effects of changes
 in accounting principles (72,543) --
 Net income (loss) $(63,386) $ 5,346
 Per Share:
 Income before cumulative effects
 of changes in accounting
 principles $ .51 $ .30
 Cumulative effects of changes
 in accounting principles (4.07) --
 Net income (loss) $ (3.56) $ .30
 Cash dividends - Class A shares $ .30 $ .30
 Cash dividends - Class B shares $ .27 $ .27
 Weighted average shares of
 common stock 17,827 17,794
 RETAINED EARNINGS
 Retained earnings beginning
 of year $571,864 $547,463
 Net income (loss) (63,386) 5,346
 Cash dividends (5,035) (5,031)
 Retained earnings at end
 of period $503,443 $547,778
 -0- 4/19/93
 /CONTACT: Robert E. Slough, Director of Public Relations, Springs Industries, 803-547-3738/
 (SMI)


CO: Springs Industries, Inc. ST: South Carolina IN: TEX SU: ERN

CM-BN -- CH003 -- 7200 04/19/93 09:14 EDT
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Publication:PR Newswire
Date:Apr 19, 1993
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