Printer Friendly


 NEWTOWN, Pa., July 29 /PRNewswire/ -- SPS Technologies (NYSE: ST) today reported second quarter 1993 net earnings of $1.4 million, or $.27 per share, compared to net earnings for the second quarter of 1992 of $1.3 million, or $.26 per share.
 The slight profit improvement was achieved despite 10 percent lower sales.
 Net sales for the second quarter were $77.3 million, compared to $85.9 million for the second quarter of 1992.
 The improvement in profits on lower sales resulted from reductions in operating costs and overhead, and improvements gained from the consolidation of manufacturing operations. The second quarter performance also reflects continued economic recovery since the end of last year by the company's automotive and industrial fastener markets, traditionally the first indication of an upturn in its fastener business.
 Net earnings for the first six months of 1993 were $3.0 million, compared to earnings of $2.9 million in 1992 prior to a retroactive charge for the adoption of new accounting standards. The cumulative effect of changes in accounting policies for postretirement benefits other than pensions, and for income taxes, resulted in a net loss for the first six months of 1992 of $10.5 million.
 Net sales for the first six months of 1993 were $155.9 million, compared to $169.9 million for the same period in 1992.
 Incoming orders for the second quarter of 1993 were $75.3 million compared to $78.3 million in 1992, a 3.8 percent decrease. Increased orders from the transportation and farm machinery markets, which were up 9.4 percent, as well as for magnetic materials and tightening equipment, were offset by decreased orders in other businesses. The largest decrease was a 10.4 percent drop in aerospace fastener orders.
 Orders for the six month period improved in all markets compared to 1992 except for aerospace fasteners, which declined by 11.2 percent.
 The backlog in orders at June 30, 1993, was $79.7 million compared to $88.3 million on the same date a year ago and $78.8 million at Dec. 31, 1992.
 Second quarter sales declined in all of the company's businesses from the same period a year ago except for magnetic materials and tightening equipment. The largest change was a 22.3 percent decrease in aerospace faster sales compared to 1992 due to continued weakness in commercial jet aircraft production and cutbacks in defense spending. Sales of superalloys were lower in part due to reduced demand by aerospace customers for vacuum-melted products and a reduction in the price of cobalt metal.
 Compared to the first quarter of 1993, sales to the transportation and farm machinery market increased, as did sales of magnetic materials and tightening equipment. Aerospace fastener sales decreased by 6.3 percent, while sales declined slightly in all other businesses.
 As part of its restructuring program, the company sold Unbrako S.R.L., its marketing subsidiary in Milan, Italy, in the second quarter.
 According to John R. Selby, chairman and chief executive officer, "We are encouraged by the continued improvement in our automotive and industrial markets. The more efficient utilization of our Cleveland, Ohio, plant, made possible by the consolidation there of all domestic industrial fastener production, is helping us take best advantage of the opportunities created by the increased demand in these markets.
 "The aerospace industry remains depressed. To maximize performance and protect our earnings flow on reduced volume, we are continuing to implement cost reduction programs and productivity improvements, the most important of which is the consolidation of domestic aerospace fastener manufacturing operations from three plants into two while retaining sufficient capacity for future growth. In addition to the savings that result, we are positioning SPS to take full advantage of the upturn in this key business when it eventually occurs."
 Statements of Consolidated Operations
 (Unaudited; thousands of dollars except per-share data)
 Periods ended Second quarter Six months
 June 30 1993 1992 1993 1992
 Net sales $77,249 $85,851 $155,873 $169,896
 Cost of goods sold 63,104 70,955 128,259 139,707
 Gross profit 14,145 14,896 27,614 30,189
 Selling, general and
 administrative expense 10,982 11,306 21,262 22,547
 Restructuring charge --- 145 --- 203
 Operating earnings 3,163 3,445 6,352 7,439
 Other income (expense):
 Interest income 65 148 269 300
 Interest expense (1,332) (1,453) (2,761) (2,868)
 Equity in earnings
 (loss) of affiliates 7 (80) (143) (263)
 Other, net 215 221 471 250
 Earnings before income taxes and
 cumulative effect of changes
 in accounting policies 2,118 2,281 4,188 4,858
 Provision for income taxes 740 938 1,180 1,943
 Earnings before cumulative
 effect of changes in
 accounting policies 1,378 1,343 3,008 2,915
 Cumulative effect of changes
 in accounting policies:
 Income taxes --- --- --- (2,400)
 Postretirement benefits --- --- --- (11,000)
 Net earnings (loss) 1,378 1,343 3,008 (10,485)
 Per-share data:
 Continuing operations $.27 $.26 $.59 $.57
 Accounting changes --- --- --- (2.63)
 Net earnings (loss) .27 .26 .59 (2.06)
 The 1992 amounts have been reclassified for comparative purposes to reflect the fourth quarter 1992 decision to retain the fastener manufacturing plant in Shannon, Ireland, and the Unbrako fastener distribution business in West Bromwich (Birmingham), England.
 For the six months ended June 30, 1993, the effective tax rate is lower than the statutory tax rate due to the tax benefits realized from the settlement of a long-term receivable in the first quarter of 1993.
 -0- 7/29/93
 /CONTACT: Arthur B. Belden, vp-Finance of SPS Technologies, 215-860-3046/

CO: SPS Technologies ST: Pennsylvania IN: SU: ERN

MK-CC -- PH021 -- 7313 07/29/93 14:48 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jul 29, 1993

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters