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THE FAIRCHILD CORPORATION REPORTS FISCAL 1993 THIRD QUARTER RESULTS

 CHANTILLY, Va., May 7 /PRNewswire/ -- The Fairchild Corporation (NYSE: FA) is a leading aerospace, industrial products and communications services company. For the current nine month period, sales were $349,047,000 compared to $365,973,000 in the prior year. Operating income for the fiscal 1993 nine months was up 14 percent to $17,339,000 from $15,213,000. The industrial products and communications services segments had significant increases in both sales and operating income in the fiscal 1993 year-to-date period. Lower corporate administrative expense and higher other corporate income in the current year also helped to increase operating income. However, the overall Fairchild results were severely impacted by the depressed airline and aviation industries.
 Sales were $114,399,000 in the fiscal 1993 quarter, down from $124,229,000 in the fiscal 1992 quarter. Third quarter operating income for fiscal 1993 was
$3,583,000, down 58 percent from $8,442,000 in the fiscal 1992 quarter. The aerospace fasteners segment had an operating loss of $1,394,000 in the current quarter, compared to operating income of $4,565,000 in the prior year quarter, reflecting weaker customer demand and excess capacity impacting this business. The company recognized a restructuring charge of $932,000 in the current quarter, in an ongoing effort to further downsize its aerospace fasteners business. Again, the industrial products and communications services segments achieved record high sales and earnings, which helped lessen the impact.
 The company reported a net loss for the fiscal 1993 third quarter of $10,783,000 or 67 cents per share, compared to a net loss of $1,384,000 or 8 cents per share for the same quarter of fiscal 1992. For the fiscal 1993 nine month period, a net loss of $33,915,000 or $2.10 per share was reported, versus a net loss of $17,229,000 or $1.05 per share in the fiscal 1992 nine month period.
 The current year nine 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 nine 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 $150 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 was above the prior year amounts, and the investment income, which was down due to lower investments in fiscal 1993 and gains realized in fiscal 1992.
 Commenting on the results, chairman and chief executive officer, Jeffrey J. Steiner, stated, "We are pleased to see the continued strong performance of D-M-E Company and Fairchild Communications Services Company. However, although year-to-date operating income overall was above the fiscal 1992 level, the third quarter results were disappointing due to the continuation of depressed sales and incoming orders at our aerospace fasteners business. We are committed to making further cuts in our operating costs and to taking other measures to operate more profitably in the depressed economic climate of the aviation industry."
 Mr. Steiner noted the recent hiring of Mr. Thomas Flaherty as chief operating officer of The Fairchild Corporation and stated that his many years of experience with manufacturers supplying the aviation industry will strengthen Fairchild's efforts to improve manufacturing techniques and systems and provide efficiencies that enhance Fairchild's operating performance and future growth.
 The Fairchild Corporation is a leading provider of aerospace fasteners, tooling and electronic control systems for the plastics injection molding industry, and telecommunications services for tenants in commercial office buildings. In addition, Fairchild has significant equity investments in Rexnord Corporation (NYSE: REX), a leading manufacturer of mechanical power transmission components, and Banner Aerospace, Inc. (NYSE: BAR), a leading distributor of aircraft replacement parts.
 THE FAIRCHILD CORPORATION
 Summary Income Statement
 (In thousands, except per share data)
 Three months ended Nine months ended
 3/28/93 3/29/92 3/28/93 3/29/92
 Sales by Business Segment:
 Aerospace fasteners $60,002 $74,877 $190,071 $226,170
 Industrial products 37,325 34,694 109,413 96,534
 Communications services 17,072 14,658 49,563 43,269
 Total 114,399 124,229 349,047 365,973
 Segment Operating Income:
 Aerospace fasteners (1,394) 4,565 3,492 8,424
 Industrial products 5,051 4,236 13,779 10,704
 Communications services 3,728 3,413 10,851 9,775
 Total 7,385 12,214 28,122 28,903
 Corporate administrative
 expense (4,957) (4,706) (15,315) (15,871)
 Other corporate income 1,155 934 4,532 2,181
 Total operating income 3,583 8,442 17,339 15,213
 Net interest expenses (18,428) (17,200) (52,635) (52,046)
 Investment income - net 225 7,421 662 9,913
 Equity earnings 2,552 2,251 7,405 6,159
 Minority interest (609) 17 (1,771) (193)
 Earnings (loss) from
 continuing operations
 before taxes (12,677) 931 (29,000) (20,954)
 Tax benefit (provision) 1,925 (767) 7,390 5,952
 Earnings (loss) from
 continuing operations (10,752) 164 (21,610) (51,002)
 Loss from discontinued
 operations (35) (1,517) (108) (2,556)
 Extraordinary items - net(A) 4 (31) (12,197) 329
 Net loss (10,783) (1,384) (33,915) (17,229)
 Earnings (loss) per share:
 Continuing operations ($.67) $.01 ($1.34) ($.92)
 Discontinued operations -- (.09) (.01) (.15)
 Extraordinary items -- -- (.75) .02
 Net loss ($.67) ($.08) ($2.10) ($1.05)
 Common shares outstanding 16,103 16,154 16,116 16,374
 NOTE: (A) -- Extraordinary loss for nine months ended March 28, 1993, 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- 5/7/93
 /CONTACT: Mike Alcox, chief financial officer of The Fairchild Corporation, 703-478-5824/
 (FA)


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

TM-TS -- NY066 -- 6137 05/07/93 17:08 EDT
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Date:May 7, 1993
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