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TELEDYNE ANNOUNCES THIRD QUARTER RESULTS

 LOS ANGELES, Oct. 14 /PRNewswire/ -- Teledyne Inc. (NYSE: TDY) announced today that net income for the three months ended Sept. 30, 1993, was $15.2 million or $0.27 per share compared to $16.3 million or $0.29 per share for the same period in 1992. Sales were $597.9 million for the third quarter of 1993, compared to $708.6 million for the third quarter of 1992.
 Net loss for the nine months ended Sept. 30, 1993, was ($132.2) million or ($2.39) per share compared to net income of $22.8 million or $0.41 per share for the same period in 1992. Excluding accounting changes, gain on sale of Litton Industries Inc. common stock and loss on redemption of debt, income was $32.9 million or $0.59 per share in 1993 compared to $35.5 million or $0.64 per share in 1992. Sales were $1.86 billion for the nine months ended Sept. 30, 1993, compared to $2.17 billion for the same period in 1992.
 Results of Operations
 As announced in July 1993, the board of directors approved a realignment, consolidating Teledyne's operating companies to 21 from 65. Income before tax for the nine months ended Sept. 30, 1993, was reduced by a charge of $8.2 million for estimated costs of realignment of $26.4 million, net of adjustments of $18.2 million to the estimated costs of the 1991-1992 restructuring. Income before tax for the nine months of 1992 included $16.0 million related to gains on sales of operations and adjustments to restructuring. In addition, income before tax increased as a result of an increase in pension income of $8.0 million for the three months and $24.6 million for the nine months of 1993 as compared to 1992 due primarily to a change in the discount rate used to calculate the pension benefit obligation. Sales and operating profit by business segment are discussed below.
 Aviation and Electronics
 Sales decreased $84.2 million for the three months and $178.3 million for the nine months ended Sept. 30, 1993, primarily as a result of the winding down of certain U.S. and foreign military programs, reduced government spending, the depressed aerospace market and companies sold or closed in 1992. Sales declined $14.0 million for the three months and $60.6 million for the nine months of 1993 compared to 1992 as a result of selling or closing companies in 1992.
 Operating profit decreased $26.4 million for the three months and $43.7 million for the nine months ended Sept. 30, 1993, primarily as a result of the decrease in sales and increased costs related to government investigations initiated by the company or by the government. Operating profit for the nine months of 1993 included a charge of $10.0 million for the settlement of certain issues raised by the company's initial voluntary disclosure report to the government relating to its Teledyne Electronics unit. Operating profit and net income for the three and nine months ended Sept. 30, 1992, included a charge of $5.5 million and $17.5 million, respectively, recorded in connection with the resolution of a criminal investigation of the company's Teledyne Relays unit.
 In addition, the 1993 nine-month results included a charge for the company's previously announced realignment, net of adjustments for restructuring of $9.8 million. The three and nine months ended Sept. 30, 1992, included income of $14.5 million related to gains on sales of operations and adjustments for restructuring. Pension income for the three and nine months ended Sept. 30, 1993, increased over 1992 by $3.7 million and $11.9 million, respectively.
 Specialty Metals
 Sales were comparable for the three and nine months ended Sept. 30, 1993 and 1992. Higher sales of zirconium for naval ship propulsion programs and increased activity from automotive related customers were partially offset by the depressed aerospace market, reduced sales of niobium related to superconducting applications and companies sold or closed in 1992. Sales declined $3.6 million for the three months and $11.3 million for the nine months of 1993 compared to 1992 as a result of selling or closing companies in 1992.
 Operating profit increased $12.5 million for the three months and $15.6 million for the nine months of 1993 primarily as a result of reduced plant start-up costs. In addition, the 1992 third quarter and nine month results included a charge of $5.0 million related to restructuring. Pension income for the three and nine months ended Sept. 30, 1993, increased over 1992 by $2.0 million and $4.5 million, respectively.
 Industrial
 Sales decreased $31.0 million for the three months and $134.2 million for the nine months ended Sept. 30, 1993, primarily as a result of companies sold or closed in 1992, partially offset by increased sales of tank engines and sales related to military vehicle development. Sales declined $40.1 million for the three months and $173.3 million for the nine months of 1993 compared to 1992 as a result of selling or closing companies in 1992.
 Operating profit increased $4.0 million for the three months and $11.9 million for the nine months ended Sept. 30, 1993, over the corresponding periods of the previous year. Operating profit for the nine months of 1993 increased as a result of an improvement in sales of continuing operations. In addition, operating profit increased $3.5 million for the nine months of 1993 due to reversal of previous restructuring reserves exceeding charges for the 1993 realignment. The 1992 results included a charge of $1.6 million for the three months, and income of $3.0 million for the nine months related to gains on sales of operations and adjustments for restructuring. Pension income for the three and nine months ended Sept. 30, 1993, increased over the same period of 1992 by $0.7 million and $6.7 million, respectively.
 Consumer
 Sales were comparable for the three and nine months ended Sept. 30, 1993 and 1992. Increased sales in 1993 of pool heaters, filtration products, promotional mugs, and oral hygiene products were offset by reduced sales due to selling or closing companies in 1992. Sales declined $7.1 million for the three months and $17.2 million for the nine months of 1993 compared to 1992 as a result of selling or closing companies in 1992.
 Operating profit decreased $0.7 million for the three months and $4.9 million for the nine months of 1993. Operating profit for 1993 was adversely affected by new product start-up costs and increased promotion expenses. Operating profit for the nine months of 1992 included income of $3.5 million related to gains on sales of operations and adjustments for restructuring.
 Teledyne Inc. Special Items
 Net loss for the nine months ended Sept. 30, 1993, included the following: a charge of $185.6 million or $3.35 per share for the cumulative effect of a change in accounting for postretirement health care benefits; a gain on sale of Litton Industries Inc. common stock of $24.2 million or $0.44 per share; and an extraordinary loss of $3.7 million or $0.07 per share on the previously announced early retirement of $100 million of the company's 10 Percent Subordinated Debentures. Net income for the nine months ended Sept. 30, 1992, included a charge of $10.0 million or $0.18 per share for the cumulative effect of a change in accounting for income taxes and an extraordinary loss of $2.7 million or $0.05 per share on the early retirement of $50 million of the company's 10 Percent Subordinated Debentures.
 The Omnibus Budget Reconciliation Act of 1993, enacted in the third quarter retroactive to Jan. 1, 1993, increased the corporate Federal income tax rate from 34 percent to 35 percent. The tax law change resulted in the recognition of $3.9 million of additional income by the company due primarily to revaluing the company's deferred tax asset.
 Cash Dividend
 A cash dividend for the quarter ended Sept. 30, 1993, of $0.20 per share was paid on Aug. 11, 1993, to shareholders of record on July 26, 1993.
 TELEDYNE INC. AND SUBSIDIARIES
 (In millions except share and per share amounts)
 Three Months Ended September 30: 1993 1992
 Sales:
 Aviation and electronics $265.2 $349.4
 Specialty metals 157.5 154.9
 Industrial 96.0 127.0
 Consumer 79.2 77.3
 Total $597.9 $708.6
 Income before Income Taxes:
 Aviation and electronics $16.2 $42.6
 Specialty metals 13.9 1.4
 Industrial 13.3 9.3
 Consumer 4.5 5.2
 Operating Profit 47.9 58.5
 Corporate expenses (17.3) (15.1)
 Interest expense (10.4) (13.4)
 Income Before Income Taxes 20.2 30.0
 Provision for Income Taxes 5.0 13.7
 Net Income $15.2 $16.3
 Net Income Per Share $0.27 $0.29
 Average shares outstanding 55,418,265 55,412,845
 Note: As a result of the 1993 realignment consolidating Teledyne's operating companies, segment sales and operating profit for 1992 have been reclassified.
 TELEDYNE INC. AND SUBSIDIARIES
 (In millions except share and per share amounts)
 Nine Months Ended September 30: 1993 1992
 Sales:
 Aviation and electronics $843.4 $1,021.7
 Specialty metals 486.4 487.9
 Industrial 294.6 428.8
 Consumer 234.4 233.5
 Total $1,858.8 $2,171.9
 Income (Loss) before Income Taxes,
 Litton Gain, Extraordinary Loss
 and Accounting Changes:
 Aviation and electronics $41.2 $84.9
 Specialty metals 36.0 20.4
 Industrial 43.3 31.4
 Consumer 12.8 17.7
 Operating Profit 133.3 154.4
 Corporate expenses (50.4) (43.6)
 Interest expense (34.5) (41.8)
 Income Before Income Taxes 48.4 69.0
 Provision for Income Taxes 15.5 33.5
 Income before Litton Gain,
 Extraordinary Loss and
 Accounting Changes 32.9 35.5
 Litton Gain, Net of Tax 24.2 ---
 Extraordinary Loss on Redemption
 of Debt (3.7) (2.7)
 Cumulative Effect of
 Accounting Changes (185.6) (10.0)
 Net Income (Loss) ($132.2) $22.8
 Income (Loss) Per Share:
 Before Litton gain, extraordinary
 loss and accounting changes $0.59 $0.64
 Litton gain, net of tax 0.44 ---
 Extraordinary loss on redemption
 of debt (0.07) (0.05)
 Cumulative effect of accounting
 changes (3.35) (0.18)
 Net income (loss) per share ($2.39) $0.41
 Average shares outstanding 55,415,000 55,412,845
 Note: Certain amounts for 1992 have been restated for a change in accounting for income taxes. As a result of the 1993 realignment consolidating Teledyne's operating companies, segment sales and operating profit for 1992 have been reclassified.
 -0- 10/14/93
 /CONTACT: Rosanne O'Brien, Teledyne, 310/551-4265/
 (TDY)


CO: Teledyne Inc. ST: California IN: SU: ERN

LS-MF -- LA015 -- 2048 10/14/93 09:13 EDT
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Date:Oct 14, 1993
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