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 OGDEN, Utah, Aug. 4 /PRNewswire/ -- Today Thiokol Corp. reported for its fiscal year ended June 30, 1993, net income of $63.8 million, or $3.13 per share, an increase of 1 percent compared to $63 million, or $3.12 per share, for the prior year. Operating results for the year were favorably affected by certain tax related items.
 Annual sales were $1,201.7 million, an 8 percent decrease from $1,311.7 million last year. A 13 percent decline in aerospace sales was partially offset by an increase of Huck fastening systems sales due to the inclusion of 12 months of sales this year compared to eight months of sales in fiscal year 1992. Huck was purchased on Nov. 1, 1991.
 Fourth quarter income of $20.3 million, or $.98 per share, increased slightly from last year's $20 million, or $.99 per share. Sales for the fourth quarter decreased 7 percent to $327.3 million.
 John R. Myers, president and chief executive officer, said, "We are pleased with FY 1993 results. We were able to maintain our net income in a difficult industry environment through continued emphasis on improved productivity, cost reduction and quality."
 Space sales of $519.3 million were 7 percent lower than last year, resulting primarily from slightly lower production on the Space Shuttle solid rocket motors and reduced ASRM nozzle development activity. Operating income increased 5 percent to $61.5 million as a result of higher margins on the Space Shuttle solid rocket motor program.
 Strategic sales declined 11 percent to $267.1 million from $300.6 million last year; however, operating income increased 17 percent to $45.8 million. The sales decrease was attributed to a cost underrun on the Peacekeeper program, reduced Peacekeeper component deliveries, and reduced sales on the SICBM and Trident programs. The SICBM program was terminated during the third quarter of the prior fiscal year. Higher operating margins realized on the Peacekeeper and Trident programs offset the sales decrease.
 Tactical sales of $92 million declined 29 percent from last year while operating income of $.4 million compares to income of $8.2 million last year. The sales decline was caused principally by a decrease in HARM and Mark 70 deliveries. Reduced program operating margins also contributed to the decrease in operating income.
 Ordnance sales of $164.4 million decreased 25 percent and related operating income decreased 27 percent to $10.1 million. The decline in sales and income resulted from lower operating levels at the Louisiana plant and significantly reduced flare deliveries.
 The company's results in each of its propulsion systems businesses were favorably affected during the year by recoveries in U.S. Government revenues of approximately $13 million of tax related costs expensed in prior years. Approximately $3.4 million relates to the fourth quarter.
 Huck's fastening systems sales of $158.9 million for the 12-month period ended June 30, 1993, compare to sales of $106.9 million for the eight-month period ended June 30, 1992. Fastening systems income for the current 12-month period of $7.8 million, after deducting a $2.3 million charge for severance and restructuring costs, decreased in comparison to income of $8.7 million for the eight-month period last year. Fastening systems income does not include an allocation of corporate expense. Significantly higher industrial sales offset reduced aerospace sales. Income from international operations continues to be negatively affected by the recession in Europe.
 General and administrative expense for the year of $70.2 million increased $10.6 million, all of which was due to the inclusion of 12 months of Huck general and administrative expense vs. eight months of Huck expense in fiscal year 1992. For comparative purposes general and administrative expense for 1993, excluding Huck, was $32.5 million, a 6 percent decrease from 1992. The increase in interest expense and research and development costs are attributed to Huck operations.
 During the fourth quarter the company repurchased 505,600 shares of its common stock under the 2.5 million share repurchase authorization announced in April 1993.
 Fiscal Year 1994 Outlook
 Sales in FY 1994 are expected to decline due principally to further reductions in Department of Defense business. The Peacekeeper program is concluding in the first quarter of FY 1994 and activity at the government-owned ordnance facilities continues to decrease.
 Operating income in FY 1994 will be negatively impacted by the reductions in defense sales and by the absence of certain nonrecurring tax recoveries which benefited FY 1993 income. Earnings may also be negatively impacted by the proposed federal income tax rate increases currently being considered by Congress. Offsetting these factors is the potential for higher profit margins on continuing space and defense programs, improved performance of the fastening systems business and the impact of continued company-wide cost reduction efforts. Interest expense is also expected to be lower in FY 1994.
 Effective July 1, 1993, the company has adopted new methods of accounting for certain post-retirement and post-employment benefits as required by Statement of Financial Accounting Standards (SFAS) No. 106 and No. 112. In the first quarter of FY 1994, the company expects to record a one-time, after-tax charge of approximately $60 million to $65 million to reflect the accrual of these liabilities.
 Thiokol is a major producer of solid propulsion systems, ordnance and composite products for the space and defense industries, and high technology, proprietary fastening systems.
 Below are unaudited comparative results for the fourth quarter of fiscal year 1993 (in thousands, except per share data).
 Consolidated Statements of Income
 Fiscal Years 1993-1992
 Three Months Ended Year Ended
 June 30, June 30,
 1993 1992 1993 1992
 Net sales $327,294 $352,090 $1,201,706 $1,311,661
 Interest and other income 2,294 2,002 7,836 10,562
 Total 329,588 354,092 1,209,542 1,322,223
 Deductions from income:
 Cost of sales 268,364 293,543 996,395 1,122,419
 General and administrative
 expense 19,120 18,142 70,223 59,584
 Research and development
 expense 3,414 4,111 15,716 14,254
 Interest expense 6,312 6,372 25,459 24,172
 Total 297,210 322,168 1,107,793 1,220,429
 Income before income taxes: 32,378 31,924 101,749 101,794
 Income taxes 12,076 11,946 37,952 38,805
 Net income $20,302 $19,978 $63,797 $62,989
 Net income per share $.98 $.99 $3.13 $3.12
 Average number of common and
 common equivalent shares
 outstanding 20,737 20,123 20,384 20,151
 -0- 8/4/93
 /CONTACT: Steve Lawson of Thiokol, 801-629-2257/

CO: Thiokol Corp. ST: Utah IN: ARO SU: ERN

JB-MF -- LA003 -- 9181 08/04/93 08:05 EDT
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Publication:PR Newswire
Date:Aug 4, 1993

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