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TRINOVA REPORTS 1992 SALES AND INCOME

 MAUMEE, Ohio, Jan. 28 /PRNewswire/ -- TRINOVA Corporation (NYSE: TNV) today announced 1992 net income of $14.4 million, a $42 million turnaround from 1991's net loss (before deducting the special charge taken in 1991). For the 1992 fourth quarter, the Company achieved $6.1 million in net income compared to a loss of $18.1 million in the 1991 fourth quarter (before the 1991 special charge).
 "Our 1992 turnaround is due to our progress in reducing costs and making our operations more efficient, particularly in our industrial and aerospace & defense segments" said Darryl F. Allen, TRINOVA chairman, president and chief executive officer. "As we stated throughout the year, we did not get a boost from the economy in 1992, evidenced by the fact that our sales increased only $14 million for the year.
 "Profitability in 1992, particularly in the fourth quarter, was also aided by the balance of our three business segments -- industrial, aerospace & defense, and automotive," Allen said. "Our industrial volumes improved in the U.S., but weakened in Europe and Brazil. However, our automotive business showed renewed strength in sales and profitability in the fourth quarter, and our aerospace & defense business showed significant improvement in operating margin year-over- year as 1992 progressed in spite of a downward trend in sales.
 "Inventories were reduced another $25 million during 1992, and our number of employees was 16,000 at the end of 1992, compared with 17,700 at year-end 1991, a 10 percent reduction," Allen said. "We still have a long way to go, but our results in 1992 are a strong indication that we are on the right track, and we expect to continue to show improvement in profitability in 1993 on comparable sales."
 Quarterly Results
 (dollars in millions, except per share data)
 4Q92 4Q91 3Q92 2Q92 1Q92
 Sales $431.6 $413.6 $402.2 $439.0 $422.6
 Operating income
 (loss) 19.3 (4.8)a 12.3 18.6 8.7
 Operating margin
 (percentage) 4.5 --a 3.1 4.2 2.1
 Special charge -- (166.4) -- -- --
 Net income
 (loss) 6.1 (174.5)b 1.7 6.2 .5
 Net income (loss)
 per share .21 (6.18)b .06 .22 .02
 a -- Before deducting special charge
 b -- After deducting special charge of $156.4 million, net of tax, or $5.54 per share.
 Full-Year Results
 (dollars in millions, except per share data)
 1992 1991
 Sales $1,695.5 $1,681.2
 Operating income 59.0 10.5a
 Operating margin
 (percentage) 3.5 .6
 Special charge -- (166.4)
 Net income (loss) 14.4 (184.1)b
 Net income (loss)
 per share .51 (6.52)b
 a -- Before deducting special charge
 b -- After deducting special charge of $156.4 million, net of tax, or $5.54 per share. The 1991 net loss includes a gain of $1.4 million, or 5 cents per share, from settlement of outstanding litigation associated with the purchase and installation of automated factory equipment at one of the Company's production facilities.
 Segment Analysis
 Industrial
 Quarterly Results
 (dollars in millions)
 4Q92 4Q91 3Q92 2Q92 1Q92
 Sales $228.0 $212.6 $218.8 $235.2 $220.8
 Operating income
 (loss) 2.6 (10.8)a 6.5 6.8 .9
 Operating margin
 (percentage) 1.1 (5.1)a 3.0 2.9 .4
 Special charge -- (88.1) -- -- --
 Order intake 225.3 223.5 214.4 234.7 253.4
 Order backlog 152.2 169.5 167.8 180.8 179.2
 a -- Before deducting special charge
 Full-Year Results
 (dollars in millions)
 1992 1991
 Sales $902.8 $884.0
 Operating income
 (loss) 16.7 (8.2)a
 Operating margin
 (percentage) 1.9 (.9)a
 Special charge -- (88.1)
 Order intake 927.8 902.8
 a -- Before deducting special charge
 "Results in our industrial business turned around for both the fourth quarter and the year when compared with a year earlier," Allen said. "However, further weakening in Europe and Brazil led to a decline in operating income from the previous two quarters of 1992. Vickers' former Electric Products & Controls Group, which we have recently combined with Vickers' former Commercial Fluid Power Group into Vickers Industrial Products, was especially hard hit in Europe. Consolidating the two former Vickers groups will improve marketing and eliminate duplicate overhead costs.
 "Order intake again trended upwards in the 1992 fourth quarter, particularly in December, with the boost coming from U.S. markets. This offset a decline in European and Brazilian orders."
 Aerospace & Defense
 Quarterly Results
 (dollars in millions)
 4Q92 4Q91 3Q92 2Q92 1Q92
 Sales $93.5 $108.1 $90.9 $94.5 $98.5
 Operating income10.2 10.4a 7.0 7.4 5.2
 Operating margin
 (percentage) 10.9 9.6a 7.7 7.8 5.2
 Special charge -- (30.5) -- -- --
 Order intake 88.9 105.1 76.9 78.8 82.9
 Order backlog 321.6 383.2 331.7 346.6 361.9
 a -- Before deducting special charge
 Full-Year Results
 (dollars in millions)
 1992 1991
 Sales $377.3 $438.6
 Operating income 29.8 35.0a
 Operating margin
 (percentage) 7.9 8.0a
 Special charge -- (30.5)
 Order intake 327.5 415.3
 a -- Before deducting special charge
 "In aerospace & defense, we have made rapid progress in reducing costs and making our operations more efficient," Allen said. "Sales in the 1992 fourth quarter were comparable to the three previous quarters of 1992, but operating income and margin improved significantly.
 "Order intake also improved over the previous three quarters, but we are still expecting soft aerospace and defense markets in 1993. However, our results in the 1992 fourth quarter showed that even if our aerospace & defense markets remain soft, we are aggressively taking the action necessary to improve our profitability."
 Automotive
 Quarterly Results
 (dollars in millions)
 4Q92 4Q91 3Q92 2Q92 1Q92
 Sales $110.1 $92.8 $92.6 $109.3 $103.3
 Operating income11.4 1.3a 3.7 9.6 7.5
 Operating margin
 (percentage) 10.4 1.4a 4.0 8.8 7.3
 Special charge -- (47.8) -- -- --
 a -- Before deducting special charge
 Full-Year Results
 (dollars in millions)
 1992 1991
 Sales $415.4 $358.6
 Operating income 32.3 4.0a
 Operating margin
 (percentage) 7.8 1.1a
 Special charge -- (47.8)
 a -- Before deducting special charge
 "Our automotive business showed strong improvement in both the fourth quarter and for the year," Allen said. "Continued strong demand for our air conditioning and power steering products in Europe was the primary reason for the improvement. Although our sales were flat for the year in the U.S., European sales increased 34 percent over 1991. For the fourth quarter, U.S. sales declined 8 percent compared with last year, while sales in Europe increased nearly 50 percent. In 1992, for the first time, our European sales were greater than U.S. sales, accounting for 53 percent of total 1992 automotive sales."
 FAS 106 To Be Adopted in 1993 First Quarter
 TRINOVA will adopt Statement of Financial Accounting Standards No. 106, "Employers' Accounting for Postretirement Benefits Other than Pensions" (FAS 106) in the 1993 first quarter, effective January 1, 1993. FAS 106 specifies that the expected cost of providing postretirement benefits other than pensions must be accrued during the employees' active service period. Like most U.S. companies, until now TRINOVA has charged the cost of providing these benefits as they have been incurred.
 In adopting FAS 106, TRINOVA will recognize in the 1993 first quarter a one-time charge for benefit costs related to service up to the date of adoption. TRINOVA previously estimated this liability at between $100 million and $175 million, pretax. Due primarily to various changes the Company made in its health care plans, the liability has been reduced to the lower end of this range and is estimated to be $113.2 million pretax, $70.2 million after tax, or $2.48 per share.
 The estimated expense for 1993, exclusive of the charge for benefit costs related to service up to the date of adoption, is $12.2 million pretax, $7.6 million after tax, or $.27 per share.
 The adoption of FAS 106 will have no effect on TRINOVA's cash flow as the Company will continue its practice of paying the cost of postretirement benefits when incurred, which in 1992 totaled $5 million.
 FAS 109 Adopted in 1992
 Effective January 1, 1992, TRINOVA adopted Statement of Financial Accounting Standards No. 109, "Accounting for Income Taxes" (FAS 109), which affects the reporting of deferred taxes. Financial statements for prior years have not been restated, and there was no significant effect on TRINOVA's 1992 financial statements.
 Statement of Financial Position
 TRINOVA Corporation
 (Dollars in thousands, except per share data)
 December 31 December 31
 1992 1991
 Assets
 Current assets
 Cash $ 26,269 $ 26,597
 Receivables 202,850 194,043
 Inventories:
 In-process and finished products 217,865 243,093
 Raw materials and manufacturing
 supplies 50,163 60,139
 268,028 303,232
 Other current assets 49,588 48,880
 Total current assets 546,735 572,752
 Plants and properties 826,756 824,278
 Less accumulated depreciation 421,213 389,754
 405,543 434,524
 Other assets 65,111 63,075
 Total assets $1,017,389 $1,070,351
 Liabilities and shareholders equity
 Current liabilities
 Notes payable $ 109,549 $ 141,680
 Accounts payable 82,624 102,359
 Income taxes 25,484 24,230
 Other current liabilities 141,907 168,359
 Current maturities of
 long-term debt 8,582 12,880
 Total current liabilities 368,146 449,508
 Long-term debt 239,061 177,271
 Deferred credits and
 other liabilities 20,846 37,612
 Deferred income taxes 36,476 31,313
 Shareholders' equity
 Common stock; part value $5 a share
 Authorized - 100,000,000 shares
 Outstanding - 28,237,626 and
 28,225,970 shares, respectively (after
 deducting 5,972,270 and 5,983,926 shares,
 respectively, in treasury)
 141,188 141,130
 Additional paid-in capital 470 336
 Retained earnings 217,604 222,360
 Currency translation adjustments (6,402) 10,821
 Total shareholders' equity 352,860 374,647
 Total liabilities and
 shareholders' equity $1,017,389 $1,070,351
 Condensed Statement of Income
 TRINOVA Corporation
 (In thousands, except per share data)
 Three Months Ended Year Ended
 December 31 December 31
 1992 1991 1992 1991
 Net sales $431,636 $413,560 $1,695,512 $1,681,212
 Cost of products
 sold 332,041 322,739 1,307,357 1,309,094
 Manufacturing
 income 99,595 90,821 388,155 372,118
 Selling & gen.
 admin. expen. 64,163 76,345 263,863 286,727
 Engineering,
 research and
 development
 expenses 16,121 19,288 65,312 74,867
 Special charge - 166,400 - 166,400
 Operating
 income (loss) 19,311 (171,212) 58,980 (155,876)
 Interest expense (6,844) (6,676) (26,313) (26,453)
 Other-net (2,414) (7,444) (8,625) (12,950)
 Income (loss) before
 income taxes 10,053 (185,332) 24,042 (195,279)
 Income taxes
 credit 4,000 (10,800) 9,600 (11,200)
 Net income (loss) 6,053 (174,532) 14,442 (184,079)
 Net income (loss)
 per share 0.21 (6.18) 0.51 (6.52)
 Cash dividends per
 common share 0.17 0.17 0.68 0.68
 Average shares
 outstanding 28,264 28,244 28,259 28,242
 Notes:
 Income (loss) per share has been computed on the average number of common shares outstanding, including common stock equivalents. The assumed conversion of the Company's 6 percent convertible debentures was not included in average shares outstanding for the three months and years ended December 31, 1992 and 1991 because the effect of the inclusion would have been anti-dilutive.
 In the 1991 fourth quarter, the Company recorded a special charge of $166.4 million for the write-off of certain intangibles and other charges. The write-off of intangibles, primarily goodwill, amounted to $105.3 million. Other charges totaled $61.1 million and consisted of write-downs to anticipated sales prices for certain properties included in the 1989 provision for restructuring, as well as provisions for new initiatives for additional facility closures and personnel reductions. The special charge increased the 1991 fourth-quarter and year net loss by $156.4 million, or $5.54 per share.
 Other-net for the year ended December 31, 1991 includes a gain of $2.3 million (1.4 million after tax, or 5 cents per share) from settlement of outstanding litigation associated with the purchase and installation of automated factory equipment at one of the Company's production facilities.
 Condensed Statement of Cash Flows
 TRINOVA Corporation
 (In thousands)
 Year Ended
 December 31
 1992 1991
 Cash Flows from operating activities
 Net Income (loss) $ 14,442 $ (184,079)
 Adjustments to reconcile net
 income to net cash provided
 by operating companies:
 Depreciation 62,242 61,979
 Special charge - 166,400
 Changes in working capital
 elements, other than debt (1,822) 2,569
 Restructuring (payments) proceeds (31,749) 43,885
 Other 3,014 4,149
 Net cash provided by
 operating activities 46,127 94,903
 Cash flows from investing
 activities
 Capital expenditures (52,278) (86,366)
 Other 993 4,372
 Net cash used by investing
 activities (51,285) (81,994)
 Cash flows from financing
 activities
 Net increase in short- and
 long-term debt 29,631 11,098
 Cash dividends (19,198) (19,190)
 Other 192 107
 Net cash provided (used) by
 financing activities 10,625 (7,985)
 Effect of exchange rate changes
 on cash (5,795) (3,791)
 Increase (decrease) in cash (328) 1,133
 Cash at beginning of period 26,597 25,464
 Cash at end of period $ 26,269 $ 26,597
 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- 1/28/93
 /CONTACT: Warren N. Bimblick of TRINOVA Corporation, 419-867-2290/
 (TNV)


CO: TRINOVA Corporation ST: Ohio IN: ARO AUT SU: ERN

KK -- CL007 -- 0173 01/28/93 10:58 EST
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Date:Jan 28, 1993
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