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SPS TECHNOLOGIES REPORTS THIRD QUARTER RESULTS

 SPS TECHNOLOGIES REPORTS THIRD QUARTER RESULTS
 NEWTOWN, Pa., Nov. 3 /PRNewswire/ -- SPS Technologies (NYSE: ST)


has reported a third quarter net loss of $479,000 or $.09 per share compared to net earnings of $2.0 million or $.40 per share reported for the third quarter of 1991.
 The company emphasized its commitment to maintaining a sound financial condition through cost reduction actions while positioning itself for strong earnings performance in improved markets.
 Net sales for the third quarter were $72.7 million, compared to $83.3 million for the third quarter of 1991.
 Net earnings for the nine months were $2.4 million or $.48 per share compared to $5.9 million or $1.17 per share for the nine months of 1991.
 Net sales for the nine months were $234.9 million, compared to $296.2 million for the same period in 1991.
 The third quarter and nine-month results do not include sales and earnings after May 3, 1991, of businesses to be divested under the company's restructuring plan announced on that date and subsequently modified. Under the current plan, the company said it intends to divest certain real estate assets and industrial fastener operations in Europe and the Far East.
 Incoming orders for continuing businesses in the third quarter of 1992 were $70.4 million, compared to 1991 orders for continuing businesses of $75 million. Backlog for continuing businesses at Sept. 30, 1992, was $81.2 million compared to $98.6 million for continuing businesses a year ago.
 Sales in all markets of the company's fastener business were down for the third quarter and nine months compared to the same periods in 1991 because of poor business conditions. The largest decline was in aerospace fastener sales due to reductions in defense spending, the depressed market for commercial aircraft and fastener inventory reductions by aircraft manufacturers.
 Sales of industrial fasteners were lower in the machine tool, industrial machinery, transportation and farm machinery markets.
 Third quarter orders were down in all fastener markets when compared to a year ago, with the largest decline occurring in the aerospace fastener market.
 Weakness in the automotive market also resulted in reduced third quarter sales and orders of computer-controlled tightening equipment by the Assembly Systems Division compared to 1991.
 Cannon-Muskegon Corporation and The Arnold Engineering Co. both reported improved sales and profitability for the third quarter compared to a year ago due to strong demand for cobalt-base medical alloys and high-value, proprietary single-crystal superalloys, and higher sales of rare earth magnets. Third quarter orders also increased for both superalloys and magnetic materials.
 The company's continued emphasis on working capital management has resulted in a further reduction of net debt (total debt less cash) in the third quarter of $2.5 million, bringing net debt at the end of the nine months to $58.7 million, down 5 percent from $61.9 million at Dec. 31, 1991.
 As previously announced, the company is closing its fastener manufacturing facilities in Puerto Rico and Santa Ana, Calif., and transferring their production capacity to its Cleveland, Salt Lake City, and Jenkintown, Pa., plants. This consolidation will reduce facility costs and overhead, and permit more effective utilization of the remaining plants.
 Consistent with the lower levels of business activity, the company has reduced employment in all areas. Since the end of 1989, the workforce employed in continuing businesses has been reduced by 1,566 employees, or 31.5 percent. Through the first nine months of 1992, employment in continuing businesses has been reduced by 507 employees, or 12.9 percent with all attendant termination costs of approximately $1.1 million being absorbed in that period. In addition, several plants have implemented employee furloughs and other measures to balance human resources with required production levels.
 According to John R. Selby, chairman of the board and chief executive officer, "In response to the difficult operating environment confronting our company, which will persist until an economic recovery in our served markets is well underway, we are continuing to take those actions necessary to assure maintenance of a sound financial condition while positioning the company for strong earnings performance in improved markets.
 "The consolidation of our domestic fastener manufacturing operations, which will result in the elimination of two plants, will utilize our human resources and production capacity more effectively, reduce costs over the entire manufacturing cycle, and improve our ability to maintain strong positions in our traditional fastener markets."
 SPS TECHNOLOGIES, INC.
 Summary of Sales and Operations
 (Thousands of dollars except per-share data)
 Periods ended Third quarter Nine months
 Sept. 30 1992 1991 1992 1991
 Net sales $72,691 $83,259 $234,941 $296,156
 Earnings from continuing
 operations before income taxes (702) 4,021 4,156 8,824
 Provision for income taxes (223) 1,490 1,720 3,890
 Earnings from
 continuing operations (479) 2,531 2,436 4,934
 Discontinued operations-
 Adjustment of estimated
 loss on disposal --- (510) --- 990
 Net earnings (479) 2,021 2,436 5,924
 Per-share data:
 Earnings from
 continuing operations $(.09) $.50 $.48 $.97
 Discontinued operations --- (.10) --- .20
 Net earnings (.09) .40 .48 1.17
 Cash dividends per share .32 .32 .96 .96
 Average shares
 outstanding 5,104,989 5,083,275 5,095,764 5,070,955
 The Summary of Sales and Operations does not include the operating results after May 3, 1991, of businesses to be divested. The operating results prior to May 3, 1991, of businesses to be divested which are included in the Summary of Sales and Operations for the nine-month period ended Sept. 30, 1991, are sales of $24,510 and a net loss of $480.
 During the third quarter of 1991, the company revised its outlook for income taxes, resulting in a reclassification of income tax expense of $510,000 from continuing operations to discontinued operations.
 /delval/
 -0- 11/3/92
 /CONTACT: Peter Lawton, manager, corporate advertising and public relations of SPS Technologies, 215-860-3038/
 (ST) CO: SPS Technologies ST: Pennsylvania IN: SU: ERN


MP-LJ -- PH018 -- 2130 11/03/92 14:54 EST
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