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THE FAIRCHILD CORPORATION REPORTS FISCAL 1993 SECOND QUARTER RESULTS

 CHANTILLY, Va., Feb. 5 /PRNewswire/ -- The Fairchild Corporation (NYSE: FA), a leading aerospace, industrial products and communications services company, continued to strengthen its operating performance in the second quarter of fiscal 1993, despite the sluggish economy. Although sales were $116,548,000 in the fiscal 1993 quarter, compared to $120,782,000 in the fiscal 1992 quarter, primarily due to continued softness in the aviation industry, second quarter operating income for fiscal 1993 was $4,060,000, up by 68 percent from $2,422,000 for the fiscal 1992 second quarter. This significant improvement resulted primarily from higher operating income in Fairchild's Industrial Products and Communications Services segments. The combined strong performance of these two segments was offset partially by lower operating income in the aerospace fasteners segment reflecting weaker customer demand in excess capacity impacting this business. The company recognized restructuring charges of $1,500,000 in the current quarter and $2,500,000 in the prior year quarter, in an ongoing effort to downsize its aerospace fasteners business.
 For the current six month period, sales were $234,648,000 compared to $241,744,000 in the prior year. However, operating income for the fiscal 1993 six months was up 103 percent to $13,756,000, from $6,771,000 for the fiscal 1992 six months. Again, the strong performance was due to continued growth in the industrial products and communications services segments. Lower corporate administrative expense and higher other corporate income in the current year also helped to increase operating income. Excluding the restructuring charges, operating income for both six month periods in the aerospace fasteners segment was about the same.
 The company reported a net loss for the fiscal 1993 second quarter of $7,871,000 or $.49 per share, compared to a net loss of $7,705,000 or $.47 per share for the same quarter of fiscal 1992. For the fiscal 1993 six month period, a net loss of $23,132,000 or $1.44 per share was reported, versus a net loss of $15,845,000 or $.98 per share in the fiscal 1992 six month period.
 The current year six month period included a one-time extraordinary non-cash charge of $11,400,000, net of tax, which is Fairchild's share of the extraordinary charge taken by Fairchild's 45 percent owned equity affiliate, Rexnord Corporation, as a result of premiums paid by Rexnord to repurchase its debt and the write-off of its deferred loan costs, in connection with its recent recapitalization. Although Fairchild's six months net results were affected by the one-time non recurring charge at Rexnord Corporation, Fairchild's 45 percent investment in Rexnord Corporation has an imputed market value, at today's NYSE trading price, of approximately $145 million, more than $90 million higher than the carrying value on Fairchild's books.
 Other major items reflected in the results were equity earnings which were above the prior year level in both periods, net interest expense which approximated prior year amounts, and investment income which was down due to lower investments in fiscal 1993 and gains realized in fiscal 1992.
 Commenting on the second quarter results, chairman and chief executive officer, Jeffrey J. Steiner, stated, "Operating income overall was well above second quarter levels of fiscal 1992. While sales and incoming orders at our aerospace fasteners business continue to reflect the downturn in the aerospace industry caused by a decline in defense spending and the depressed airline industry, we are committed to making ever more cuts in our operating costs and taking other measures in order to operate more profitably in the current economic climate."
 Mr. Steiner noted the continued strong performance of D-M-E Company and Fairchild Communications Services Company. He also stated that the recapitalization programs successfully completed during the first quarter by Rexnord Corporation and the company's subsidiary, Fairchild Industries, Inc., clearly strengthen the inherent value of the company and open new avenues of opportunity that will be aggressively pursued over the next several years.
 FAIRCHILD CORPORATION
 Summary Income Statement
 (In thousands, except per share data)
 Period ended Three months Six months
 12/27/92 12/29/91 12/27/92 12/29/91
 Sales by Business Segment:
 Aerospace Fasteners $ 62,913 $74,540 $130,069 $151,293
 Industrial Products 37,063 31,795 72,088 61,840
 Communications Services 16,572 14,447 32,491 28,611
 Total 116,548 120,782 234,648 241,744
 Segment Operating Income:
 Aerospace Fasteners 176 370 4,886 3,859
 Industrial Products 4,711 3,758 8,728 6,468
 Communications Services 3,649 3,358 7,123 6,362
 Total 8,536 7,486 20,737 16,689
 Corporate administrative
 expense (5,387) (5,812) (10,358) (11,165)
 Corporate income 911 748 3,377 1,247
 Total operating income 4,060 2,422 13,756 6,771
 Equity earnings 1,490 915 4,853 3,908
 Minority interest (644) (53) (1,162) (210)
 Net interest expense (17,084) (16,857) (34,207) (34,846)
 Investment income 570 3,175 437 2,492
 Loss from continuing operations
 before taxes (11,608) (10,398) (16,323) (21,885)
 Tax benefit 3,750 3,519 5,465 6,719
 Loss from cont. opers. (7,858) (6,879) (10,858) (15,166)
 Loss from discont. opers. (36) (1,127) (73) (1,039)
 Extraordinary items - net (A) 23 301 (12,201) 360
 Net loss (7,871) (7,705) (23,132) (15,845)
 Earnings (loss) per share:
 Continuing operations (.49) (.42) (.68) (.92)
 Discontinued operations -- (.07) -- (.06)
 Extraordinary items -- .02 (.76) .02
 Net loss (.49) (.47) (1.44) (.96)
 Common shares outstanding 16,095 16,274 16,114 16,484
 (A) -- Extraordinary loss for six months ended Dec. 27, 1992, is primarily attributed to Fairchild's share of an extraordinary charge taken by Fairchild's 45 percent owned affiliate, Rexnord Corporation, arising from Rexnord's recent recapitalization.
 -0- 2/5/93
 /CONTACT: Michael T. Alcox, chief financial officer, of Fairchild Corporation, 703-478-5824/
 (FA)


CO: Fairchild Corporation ST: Virginia IN: ARO SU: ERN

TS-OS -- NY055 -- 3719 02/05/93 17:10 EST
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Date:Feb 5, 1993
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