Printer Friendly

SUNDSTRAND REVIEWS 1992 RESULTS AND ACTIVITIES

 ROCKFORD, Ill., Feb. 1 /PRNewswire/ -- Sundstrand Corporation (NYSE: SNS) today reported a net loss in 1992 of $121.7 million, or $3.37 per share, compared with net earnings in 1991 of $108.8 million, or $3.02 per share. Excluding the impact of adopting SFAS No. 106 in 1992 and aerospace restructuring charges in both years, 1992 earnings were $120.0 million, or $3.33 per share, and 1991 earnings were $116.4 million, or $3.32 per share.
 Sales in 1992 were $1,672.7 million, including $59.4 million for the former Westinghouse Electrical Systems Division (ESD), which was acquired during the second quarter, and $193.6 million for Sundstrand Data Control, which the company has agreed in principle to sell to Rockwell International's Collins Commercial Avionics business. Sales in 1991 were $1,669.2 million.
 Harry C. Stonecipher, chairman, president and chief executive officer, said, "During the past year, we have taken a number of actions to enhance our future profitability and improve our strategic position, including the launch of a major restructuring in our aerospace business, the acquisition of the Westinghouse Electrical Systems Division, the agreement to sell Sundstrand Data Control, and the adoption of SFAS No. 106. We are encouraged by our financial performance during the year given the scope of these activities and the economic conditions shaping the markets we serve."
 Fourth quarter 1992 sales were $459.7 million, including $19.7 million from the ESD acquisition, compared with fourth quarter 1991 sales of $453.7 million. Net earnings in the fourth quarter of 1992 were $39.2 million, or $1.09 per share, compared with fourth quarter 1991 net earnings of $49.0 million, or $1.36 per share.
 Without the ESD acquisition, commercial aerospace sales to original equipment manufacturers decreased for both the fourth quarter and total year 1992 as airlines delayed or canceled deliveries of new aircraft. Commercial aftermarket sales increased as airlines with depleted inventories resumed the purchase of spare parts and replacement units for ongoing maintenance requirements. As expected, military aerospace sales continued their decline under reduced defense spending linked to changes in the world political and economic situation. Operating profit in the aerospace segment was reduced by the 1992 strategic actions noted above as well as the integration of ESD into the Company's Electric Power Systems division. Excluding the acquired backlog of $113.5 million and new orders of $31.6 million contributed by the ESD acquisition, incoming orders in the aerospace segment increased slightly to $893.4 million in 1992 from $868.1 million in 1991.
 In the industrial segment, sales were generally flat reflecting the slow growth in the economy. Operating profit, however, increased moderately as a result of ongoing cost reductions. Industrial segment incoming orders also increased moderately in 1992 to $641.6 million from $602.1 million in 1991, which excluded the acquired backlog of $23.7 million from the 1991 Milton Roy acquisition.
 Total unfilled orders on Dec. 31, 1992, were $1,015.6 million, including $85.7 million for the ESD acquisition, compared to $1,008.2 million on Dec. 31, 1991.
 In June 1992, the company stated that it expected 1992 earnings per share, excluding the impact of the adoption of SFAS No. 106 and the $.67 per share restructuring charges recorded in 1992, to be in line with $3.23 per share the company would have earned in 1991 prior to a $.21 per share restructuring charge. It further stated that it expected its 1993 earnings, excluding the effects of SFAS No. 106, to be more than $.60 per share higher than the adjusted 1992 earnings discussed above. Assuming a continued economic recovery, the company's 1993 industrial segment sales are expected to increase slightly with a material increase in operating profit compared to 1992. However, due to further unanticipated declines in the commercial aerospace markets resulting from production cutbacks at the original equipment manufacturers and the continued deterioration in the financial health of the airlines, the company now feels that it will not be possible to achieve the level of earnings previously forecast for 1993.
 Sundstrand Corporation is an international market leader in the design, manufacture and sale of a variety of proprietary, technology- based components and subsystems for aerospace (62 percent of 1992 sales) and industrial (38 percent of 1992 sales) markets. Sundstrand's common stock is listed on the New York, Midwest and Pacific stock exchanges under the symbol SNS.
 SUNDSTRAND CORPORATION AND SUBSIDIARIES
 Condensed Consolidated Statement of Earnings
 (Unaudited; amounts in millions, except per-share data)
 Periods ended Quarter Year
 Dec. 31 1992(A) 1991 1992(A) 1991
 Net sales $459.7 $453.7 $1,672.7 $1,669.2
 Costs, expenses and other income:
 Costs of products (B) 296.2 272.5 1,077.9 1,042.5
 Marketing and administration
 (C,D,E) 89.7 92.5 385.7 404.5
 Restructuring of aerospace
 segment -- -- 34.0 --
 Interest expense 13.9 17.2 63.0 76.7
 Interest income (3.4) (8.0) (19.8) (34.9)
 Other, net (E) 2.1 1.1 1.8 6.4
 Total 398.5 375.3 1,542.6 1,495.2
 Earnings before income
 taxes and cumulative
 effect of accounting change 61.2 78.4 130.1 174.0
 Income taxes 22.0 29.4 46.8 65.2
 Earnings before cumulative
 effect of accounting change 39.2 49.0 83.3 108.8
 Cumulative effect on prior years
 of change in method of accounting
 for postretirement benefits
 other than pensions,
 net of income taxes -- -- (205.0) --
 Net earnings (loss)
 available for common shares 39.2 49.0 (121.7) 108.8
 Weighted average number of
 common shares outstanding 36.1 36.0 36.1 36.0
 Earnings (loss) per share:
 Earnings before
 cumulative effect $1.09 $1.36 $2.31 $3.02
 Cumulative effect of change
 in accounting for postretirement
 benefits other than pensions -- -- (5.68) --
 Net earnings (loss) 1.09 1.36 (3.37) 3.02
 Cash dividends per common share .30 .275 1.175 1.10
 Income orders (F,G) 340.8 354.9 1,680.1 1,493.9
 (A) -- Net sales in 1992 included sales of $19.7 million for the quarter and $59.4 million for the year ended Dec. 31, 1992, for the acquisition of the former Westinghouse Electrical Systems Division (ESD).
 (B) -- "Costs of products sold" included charges of $2.7 million for the quarter and $11.0 million for the year ended Dec. 31, 1992, associated with the adoption of SFAS No. 106. "Costs of products sold" also reflected pension expense reductions of $1.5 million for the quarter and $5.9 million for the year ended Dec. 31, 1992, related to a change in pension assumptions.
 (C) -- "Marketing and administration" included charges of $2.3 million for the quarter and $8.5 million for the year ended Dec. 31, 1992, associated with the adoption of SFAS No. 106. "Marketing and administration" also reflected pension expense reductions of $1.2 million for the quarter and $4.4 million for the year ended Dec. 31, 1992, related to a change in pension assumptions.
 (D) -- "Marketing and administration" included non-recurring charges of $3.8 million for the year ended Dec. 31, 1992, associated with reductions in employment levels.
 (E) -- "Marketing and administration" included a net $2.8 million gain for the quarter and charges of $9.0 million for the year ended Dec. 31, 1991, associated with reductions in employment levels. "Other, net" included non-recurring charges of $3.2 million for the year ended Dec. 31, 1991, associated with the relocation of an aerospace business unit.
 (F) -- Incoming orders for the year ended Dec. 31, 1991, included unfilled orders of $23.7 million from the acquisition of the Milton Roy Company.
 (G) -- Incoming orders included new orders of $14.0 million for the quarter ended Dec. 31, 1992, from the acquisition of ESD. Incoming orders included new orders of $31.6 million and unfilled orders of $113.5 million for the year ended Dec. 31, 1992, from the acquisition of ESD.
 Condensed Consolidated Balance Sheet
 (Unaudited; amounts in millions)
 Dec. 31 1992 1991
 Assets
 Current assets
 Cash and cash equivalents $5.2 $8.4
 Accounts receivable 371.6 356.7
 Inventories 410.4 429.3
 Deferred income taxes 109.3 103.3
 Other current assets 18.4 46.9
 Total current assets 914.9 944.6
 Property, plant and equipment, net 535.0 494.3
 Intangible assets 306.4 221.3
 Other assets 47.5 59.3
 Total 1,803.8 1,719.5
 Liabilities and Shareholders' Equity
 Current liabilities
 Notes payable $ 59.0 --
 Long-term debt due within one year 19.8 --
 Accounts payable 97.2 100.8
 Income taxes payable 33.4 --
 Accrued salaries, wages and commissions 27.8 40.0
 Contributions due retirement plans 11.5 21.8
 Provision for losses on
 long-term contracts 16.8 24.5
 Restructuring of aerospace segment 22.9 --
 Other accrued liabilities 136.9 114.1
 Total current liabilities 425.3 301.2
 Deferred income taxes 8.9 192.8
 Long-term debt 400.1 454.9
 Accrued postretirement benefits
 other than pensions 343.8 --
 Other liabilities 95.7 78.2
 Shareholders' Equity
 Common stock, at par value 18.9 18.9
 Other shareholders' equity 511.1 673.5
 Sub total 530.0 692.4
 Total 1,803.8 1,719.5
 Net Sales by Business Segment
 (Unaudited; amounts in millions)
 Year ended Dec. 31 1992 1991 Pct. Change
 Aerospace (exc. ESD)
 Commercial OEM $361.6 $405.3 (10.8)
 Commercial aftermarket 281.5 260.9 7.9
 Total commercial 643.1 666.2 (3.5)
 Military OEM 245.4 273.3 (10.2)
 Military aftermarket 85.3 83.7 1.9
 Total military 330.7 357.0 (7.4)
 Aerospace (exc. ESD) 973.8 1,023.2 (4.8)
 ESD 59.4 -- --
 Total aerospace (inc. ESD) 1,033.2 1,023.2 1.0
 Industrial 639.5 646.0 (1.0)
 Total 1,672.7 1,669.2 .2
 Unfilled Orders
 (Unaudited; amounts in millions)
 At Dec. 31 1992 1991 Pct. Change
 Aerospace (exc. ESD) $814.9 $895.3 (9.0)
 ESD 85.7 -- --
 Total aerospace 900.6 895.3 .6
 Industrial 115.0 112.9 1.9
 Total 1,015.6 1,008.2 .7
 -0- 2/1/93
 /CONTACT: Gary Hedges of Sundstrand Corporation, 815-226-6245/
 (SNS)


CO: Sundstrand Corporation ST: Illinois IN: ARO SU: ERN

CK-DO -- NY027 -- 1316 02/01/93 11:17 EST
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:Feb 1, 1993
Words:1752
Previous Article:DATAMARINE REPORTS FIRST QUARTER RESULTS
Next Article:ATRIX LABORATORIES ANNOUNCES REVISION TO COLGATE CONTRACT
Topics:


Related Articles
SUNDSTRAND ANNOUNCES ADDITIONAL COST-SAVING ACTIONS AND ADOPTION OF SFAS NO. 106
SUNDSTRAND ANNOUNCES EARNINGS EXPECTATIONS
SUNDSTRAND ANNOUNCES SECOND QUARTER RESULTS
SUNDSTRAND DECLARES QUARTERLY DIVIDEND
SUNDSTRAND ANNOUNCES FIRST QUARTER RESULTS
SUNDSTRAND BOARD DECLARES QUARTERLY DIVIDEND
SUNDSTRAND ANNOUNCES SECOND QUARTER RESULTS
SUNDSTRAND ANNOUNCES FOURTH QUARTER 1993 RESULTS
SUNDSTRAND ANNOUNCES FIRST QUARTER 1994 RESULTS
SUNDSTRAND ANNOUNCES FOURTH QUARTER 1994 RESULTS, FIRST QUARTER 1995 RESTRUCTURING, AND 1995 EPS FORECAST

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters