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TRINOVA ANNOUNCES SPECIAL CHARGES

 TRINOVA ANNOUNCES SPECIAL CHARGES
 MAUMEE, Ohio, Dec. 18 /PRNewswire/ -- TRINOVA (NYSE: TNV) announced


today that it will record a special charge for the write-off of certain intangibles (primarily goodwill) and other charges in the 1991 fourth quarter amounting to $5.54 per share.
 "TRINOVA remains steadfast in its focus on enhancing cash flow and improving asset efficiency. Since we began our program to streamline, consolidate and improve operations in January 1989, we have closed 21 facilities; sold six businesses, including one small unit in November; and reduced inventories through November by $122 million over the last 26 months," said Darryl F. Allen, chairman, president and chief executive officer. "The program continues, and we find that there are also new downsizing initiatives to be taken in 1992." Write-off to reflect our future market conditions
 "During the last several years, we have been part of explosive changes in the markets in which we operate," said Allen. "Our customers continue to change the way they do business; geographic shifts in the marketplace continue to influence all components manufacturers; and, generally, industrial businesses and property valuations have softened.
 "TRINOVA's balance sheet has included the goodwill from 20 businesses acquired since 1970. Several of these were in our aerospace & defense business with a heavy predominance in the defense sector. The end of the cold war has caused a major redirection of these businesses toward commercial aerospace, which will result in a significant shift in our sales mix in the future.
 "Another group of acquired companies serves the automotive and industrial markets which have seen changes in customers' sourcing policies, locations and ways of doing business. The intensity of international competition and deteriorating OEM profitability have significantly altered these markets.
 "These changes have caused us to alter the way we run the companies that we have acquired over the last several years. These businesses today are not the companies we bought. We are refocusing them to respond to the ever-changing future needs of our customers. After careful analysis we have concluded that much of the goodwill purchased from the previous owners no longer has value. Today, we are the builders of value in these businesses as we change and redirect them for the business environment of the future."
 These factors will result in a special non-cash charge which will be recorded in the fourth quarter for the write-off of certain intangibles (primarily goodwill) and other adjustments amounting to $105.3 million, or $3.73 per share.
 "This move, affecting our balance sheet, in no way impairs the key to our future--the enhanced generation of cash flow," said Allen. "We intend to create shareholder value through the enhancement of cash flow streams as we move forward." Restructuring Program Adjustments and New Initiatives
 "We have also found that because of the worldwide slump in business and property values during the past two years, we are unable to sell certain properties for anticipated prices," said Allen. "These were properties we planned to sell as part of our restructuring initiatives. We also find that changing markets and customers, changing geopolitical situations and reduced staffing needs brought about by successes and anticipated successes in our restructuring efforts lead to new initiatives beyond those we had previously anticipated. In 1992, we will reduce headcount by an additional 800 people, primarily in the U.S. and Europe. These factors will result in a special charge which will be recorded in the 1991 fourth quarter amounting to $61.1 million pretax ($51.1 million after-tax, or $1.81 per share)." Expectations for the 1991 fourth quarter
 The company also stated that it will post a loss from operations in the 1991 fourth quarter.
 "These results reflect the continued weakening of our industrial markets in Europe, weak automotive production around the world, and the stretch out of aerospace orders and cancellation of defense orders," said Allen. "We are pleased to note that our North American industrial orders are showing some signs of stability, our aerospace & defense margins are improving from third-quarter 1991 levels, and we continue to record new business with our customers around the world. We are also excited about the high level of new products coming out of all segments for both Aeroquip and Vickers and the market potential for them.
 "We anticipate that 1992 will show the benefits of our downsizing and restructuring initiatives and that we will show improved results. The move to focused and flexible manufacturing, the consolidation of facilities and the reduction of inventory will continue in 1992." Special conference call
 In an effort to answer investors' questions, a conference call will be held at 4:30 p.m. Eastern Standard Time on Dec. 18, 1991 with Darryl F. Allen, chairman, president and chief executive officer, and Warren N. Bimblick, vice president - corporate communications. To be included in this call, please call 303-436-1003 no later than 4:15 p.m. Eastern Standard Time.
 TRINOVA is a world leader in the manufacture and distribution of engineered components and systems for industry. Its components and systems are sold through its operating companies, Aeroquip and Vickers, to the industrial, aerospace & defense, and automotive markets.
 -0- 12/18/91
 /CONTACT: Warren N. Bimblick of TRINOVA, 419-867-2290/
 (TNV) CO: TRINOVA Corporation ST: Ohio IN: ARO TRN SU:


KK -- CL002 -- 3250 12/18/91 08:16 EST
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Date:Dec 18, 1991
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