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TEXTRON REPORTS RECORD 1992 INCOME BEFORE ACCOUNTING CHANGES

 PROVIDENCE, R.I., Feb. 4 /PRNewswire/ -- Textron's income for 1992 before the one-time cumulative effect of accounting changes rose a record $324.1 million, $3.66 per share, James F. Hardymon, chairman, president and chief executive officer reported today. Earnings per share would have been up an additional 20 cents, an overall improvement of 13 percent over last year, had it not been for the accounting changes. Revenues were up 6 percent to $8.3 billion.
 Hardymon said, "These results show that Textron's program aimed at achieving continuous improvement in operating results and increased shareholder value is working." He added that "Based on the current economic outlook, 1993 is expected to show even better results than last year's record performance." He also noted that the company has reported 13 consecutive quarters of year to year improvement.
 As previously announced, in 1992 Textron adopted two mandated, non- cash accounting changes related to U.S. retiree benefits other than pensions and income taxes, resulting in one-time catch-up charges to income aggregating $679.5 million. These charges were recorded as of the beginning of 1992, and resulted in a net loss of $610.1 million ($6.90 per share) for the first quarter of 1992 and a net loss of $355.4 million ($4.01 per share) for the full year of 1992.
 Textron's fourth quarter net income increased to $90.4 million, $1.02 per share. Earnings per share would have been up an additional 5 cents, an overall improvement of 13 percent over last year, had it not been for the accounting changes. Fourth quarter revenues were up 7 percent to $2.2 billion.
 Textron is a multi-industry company with operations focused in three business sectors -- Aerospace Technology, Commercial Products and Financial Services.
 TEXTRON INC.
 Fourth Quarter and Year
 (dollars in millions, except per share amounts)
 Fourth Quarter Year
 Jan. 2, Dec. 28, Jan. 2, Dec. 28,
 1993-(a) 1991 1993-(a) 1991
 Revenues $2,159.7 $2,016.0 $8,347.5 $7,840.1
 Income before income taxes 143.8 133.4 527.0 495.0
 Income taxes 53.4 50.1 202.9 195.5
 Inome before cumulative effect
 of changes in accounting
 principles 90.4 83.3 324.1 299.5
 Cumulative effect of changes
 in accounting principles --- --- (679.5) ---
 Net income (loss) $90.4 $83.3 $(355.4) $299.5
 Income (loss) per common
 share:
 Income before cumulative
 effect of changes in
 accounting principles $1.02 $0.95 $3.66 $3.42
 Cumulative effect of
 changes in accounting
 principles --- --- (7.67) ---
 Net income (loss) $1.02 $0.95 $(4.01) $3.42
 Average shares
 outstanding 88,881,000 88,088,000 88,580,000 87,563,000
 NOTE (a): In the fourth quarter of 1992, Textron adopted, retroactively to the beginning of 1992, Statements of Financial Accounting Standards No. 106, "Employers' Accounting for Postretirement Benefits Other Than Pensions" (FAS 106), with respect to its U.S. retiree health care and life insurance benefits, and No. 109, "Accounting for Income Taxes" (FAS 109). Textron recorded the cumulative effect of these changes in accounting prinicples as one time charges in the first quarter of 1992 and restated previously reported 1992 interim results. The impact of adopting FAS 106 on Textron's income before cumulative effect of changes in accounting principles for the fourth quarter of 1992 and the full year 1992 was to reduce such income by $4.6 million (5 cents per share) and $17.8 million (20 cents per share), respectively. There was no impact on Textron's income for 1992 due to the adoption of FAS 109 other than the cumulative effect of the change in accounting principle
 TEXTRON INC.
 Revenues and Income By Business Segment
 Fourth Quarter and Year
 (in millions)
 Fourth Quarter Year
 Jan. 2, Dec. 28, Jan. 2, Dec. 28,
 1993-(a) 1991 1993-(a) 1991
 REVENUES
 Aerospace Technology:
 Aircraft $439.6 $305.9 $1,520.6 $1,255.3
 Propulsion 281.9 289.3 1,073.7 1,221.4
 Systems 250.0 262.8 1,048.2 947.2
 Total 971.5 858.0 3,642.5 3,423.9
 Commercial Products 491.2 477.9 1,974.2 1,786.6
 Financial Services:
 Finance and related
 insurance 366.9 341.9 1,442.8 1,354.7
 Other insurance 329.5 335.9 1,284.7 1,257.3
 Total 696.4 677.8 2,727.5 2,612.0
 Total revenues-(b) $2,159.1 $2,013.7 $8,344.2 $7,822.5
 INCOME
 Aerospace Technology:
 Aircraft $35.0 $24.2 $128.0 $112.7
 Propulsion 15.9 32.1 58.9 134.0
 Systems 29.6 23.1 122.9 88.8
 Total 80.5 79.4 309.8 335.5
 Commercial Products: 45.8 50.7 170.9 137.9
 Financial Services:
 Finance and related
 insurance 63.6 51.5 244.0 210.1
 Other insurance 32.9 29.6 120.8 113.6
 Total 96.5 81.1 364.8 323.7
 Segment operating income 222.8 211.2 845.5 797.1
 Corporate expenses and
 other - net (20.6) (21.6) (68.7) (75.7)
 Interest expense - net (58.4) (56.2) (249.8) (226.4)
 Income before income taxes $143.8 $133.4 $527.0 $495.0
 NOTE(a): The results of operations of Cessna are included from Feb. 29, 1992. The revenues and income of Cessna's manufacturing operations are included with those of Bell Helicopter in the Aircraft segment. Cessna's finance operations are included in the Finance and related insurance agent.
 Note(b): Revenues by business segment exclude interest income of the Textron Parent Company Borrowing Group.
 TEXTRON, INC.
 RESTATED QUARTERLY RESULTS FOR 1992
 (Dollars in millions except per share amounts)
 In the fourth quarter of 1992, Textron adopted, retroactively to the beginning of 1992, Statements of Financial Accounting Standards No. 106, "Employers' Accounting for Postretirement Benefits Other Than Pensions" (FAS 106) with respect to its U.S. retiree health care and life insurance benefits, and No. 109, "Accounting for Income Taxes" (FAS 109). Textron recorded the cumulative effect of these changes in accounting principles as one-time charges in the first quarter of 1992 and restated previously reported 1992 interim results.
 The following table presents 1992 quarterly financial results as previoulsy reported and now restated:
 1st Quarter 2nd Quarter 3rd Quarter
 Net income as previously
 reported $76.0 $84.1 $86.8
 Effect of changes in accounting
 principles (6.6) (3.3) (3.3)
 Income before cumulative effect
 of changes in accounting
 principles $69.4(a) $80.8 $83.5
 Income per common share as
 previously reported $0.86 $0.95 $0.98
 Effect of changes in accounting
 principles (0.07) (0.04) (0.04)
 Income per common share before
 cumulative effect of changes in
 accounting principles $0.79(a) $0.91 $0.94
 NOTE(a): Textron's net loss (after the one-time charges of $679.5 million applicable to the cumulative effect of changes in accounting principles) for the first quarter of 1992 was $610.1 million ($6.90 per share).
 -0- 2/4/93
 /CONTACT: Raymond W. Caine, Jr., vice president-corporate communications, of Textron, 401-421-2800/
 (TXT)


CO: Textron Inc. ST: Rhode Island IN: ARO SU: ERN

CH -- NE007 -- 2859 02/04/93 10:08 EST
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