Printer Friendly

TRINOVA REPORTS SUBSTANTIAL IMPROVEMENT IN FIRST-QUARTER RESULTS

 MAUMEE, Ohio, April 18 /PRNewswire/ --- TRINOVA (NYSE: TNV) today announced that net income and income per share more than doubled from the 1993 first quarter. First-quarter 1994 net income was $13.3 million, or 46 cents per share, compared with income of $5.6 million, or 20 cents per share, in the 1993 first quarter (1993 first-quarter income is before a deduction for a change in accounting (FAS 106) equal to $70.2 million net, or $2.48 per share). Sales were $439.8 million in the 1994 first quarter, compared with $429.2 million a year earlier.
 "1994 first-quarter sales, operating income and operating margin improved for both our industrial and automotive segments compared with a year ago. Aerospace & defense operating margin also improved over year- earlier results in spite of lower sales," said Darryl F. Allen, TRINOVA chairman, president and chief executive officer. "The improvement in total sales was achieved even though we lost shipping days in January to severe weather and the California earthquake. Our sales to U.S. industrial and automotive markets, which improved in the 1993 fourth quarter, strengthened even further over the course of the 1994 first quarter. Our European industrial and automotive volumes, though below year-ago levels, seem to have stabilized.
 "We continued to see results from our internal initiatives. Some highlights include:
 -- Manufacturing margin increased to 24.7 percent from 22.9 percent in the 1993 first quarter.
 -- Selling and general administrative and engineering, research and development expenses were reduced to 17.3 percent of sales from 18.6 percent of sales a year earlier.
 -- Worldwide employment was 14,761 at March 31, 1994, compared with 15,779 at March 31, 1993.
 -- Cash provided by operations resulted in a decrease in debt of $13.5 million since year end.
 "This quarter clearly demonstrated the result of our commitment to improve TRINOVA's bottom line through our ongoing efforts to reduce our cost base. At the same time, we received a boost from increased sales. We are optimistic about our prospects for the near future as our U.S. industrial sales continue to strengthen and our European markets stabilize."
 Quarterly Results
 (dollars in millions, except per share data)
 1Q 94 1Q 93 4Q 93 3Q 93 2Q 93
 Sales 439.8 429.2 401.7 393.3 419.7
 Special
 Charge --- --- --- --- (26.0)
 Operating
 Income 32.4 18.5 27.7 23.2 25.4(C)
 Operating
 Margin
 (percentage) 7.4 4.3 6.9 5.9 6.1(C)
 Net Income 13.3 5.6(A) 9.2(B) 9.5 9.1(C)
 Net Income
 Per Share .46 .20(A) .33(B) .33 .32(C)
 (A) Before deducting $70.2 million net, or $2.48 per share, for a change in accounting (FAS 106).
 (B) Before deducting $4.7 million net, or $.17 per share, for a provision related to Brazil.
 (C) Before deducting the special charge of $26 million, $18.2 million net, or $.64 per share, for personnel-related costs.
 Segment Analysis
 Industrial
 Quarterly Results
 (dollars in millions)
 1Q 94 1Q 93 4Q 93 3Q 93 2Q 93
 Sales 232.8 221.8 210.4 210.2 222.2
 Special Charge --- --- --- --- (19.2)
 Operating
 Income 16.8 4.4 10.4 11.7 9.8(A)
 Operating
 Margin
 (percentage) 7.2 2.0 4.9 5.6 4.4(A)
 (A) Before deducting the special charge.
 "1994 first-quarter industrial operating income increased more than $12 million over the 1993 first quarter," Mr. Allen said. "Sales increased 5 percent due to the continued strengthening in the U.S., especially with off-highway equipment manufacturers and distributors. Europe was down from a year earlier, and we expect a slow recovery there."
 Automotive
 Quarterly Results
 (dollars in millions)
 1Q 94 1Q 93 4Q 93 3Q 93 2Q 93
 Sales 128.6 117.6 117.1 103.2 114.8
 Special
 Charge --- --- --- --- (2.6)
 Operating
 Income 13.9 11.8 14.4 9.6 12.4(A)
 Operating
 Margin
 (percentage) 10.8 10.1 12.3 9.3 10.8(A)
 (A) Before deducting the special charge.
 "Our automotive segment continued strong, with sales at a record level," Mr. Allen said. "Operating income increased from a year ago but was down from the strong fourth quarter. Operating margin improved as the 1994 first quarter progressed. The North American auto market has been especially strong, led by record-setting sales of trucks, vans and sport utility vehicles. European car sales remain weak except in the U.K. where sales have been improving."
 Aerospace & Defense
 Quarterly Results
 (dollars in millions)
 1Q 94 1Q 93 4Q 93 3Q 93 2Q 93
 Sales 78.5 89.8 74.2 79.9 82.8
 Special Charge --- --- --- -- (3.6)
 Operating
 Income 6.5 7.0 7.9 6.9 7.8(A)
 Operating
 Margin
 (percentage) 8.3 7.8 10.7 8.6 9.4(A)
 (A) Before deducting the special charge.
 "1994 first-quarter aerospace & defense sales were down from a year ago, but improved from the 1993 fourth quarter," Mr. Allen said. "Operating margin was up from the 1993 first quarter, but below the 1993 fourth quarter. The consolidations and initiatives we have undertaken are keeping our margins at a good level, and indications are that the aerospace & defense markets may be stabilizing."
 Special Conference Call
 In an effort to answer investors' questions, a conference call will be held at 2:00 p.m. Eastern Daylight Time on Monday, April 18, 1994, with Warren N. Bimblick, vice president - corporate communications. To be included, please call 212-346-0340 no later than 1:45 p.m. Eastern Daylight Time.
 Statement of Financial Position
 TRINOVA Corporation
 (Dollars in thousands, except per share data)
 March 31 December 31
 1994 1993
 Assets
 Current assets
 Cash 18,962 20,534
 Receivables 232,032 200,340
 Inventories 206,414 212,346
 Other current assets 57,457 54,011
 Total current assets 514,865 487,231
 Plants and properties 831,189 826,100
 Less accumulated depreciation 449,679 439,281
 Total 381,510 386,819
 Other assets 93,786 98,151
 Total assets 990,161 972,201
 Liabilities and shareholders' equity
 Current liabilities
 Notes payable 47,337 60,539
 Accounts payable 91,653 81,133
 Income taxes 36,544 27,364
 Other current liabilities 141,729 151,469
 Current maturities of
 long-term debt 3,515 4,257
 Total current liabilities 320,778 324,762
 Long-term debt 246,135 246,214
 Postretirement benefits other
 than pensions 120,856 120,058
 Deferred credits and other
 liabilities 24,572 22,558
 Deferred income taxes 5,321 5,377
 Shareholders' equity
 Common stock - par value $5 a share
 Authorized - 100,000,000 shares
 Outstanding - 28,740,929 and
 28,405,880 shares, respectively (after
 deducting 5,468,967 and 5,804,016 shares,
 respectively, in treasury) 143,704 142,029
 Additional paid-in capital 9,137 2,157
 Retained earnings 147,023 138,628
 Currency translation adjustments (27,365) (29,582)
 Total shareholders' equity 272,499 253,232
 Total liabilities and
 shareholders' equity 990,161 972,201
 Condensed Statement of Operations
 TRINOVA Corporation
 (In thousands, except per share data)
 Three months ended
 March 31
 1994 1993
 Net sales 439,831 429,169
 Cost of products sold 331,366 330,938
 Manufacturing income 108,465 98,231
 Selling and general
 administrative expenses 62,047 64,672
 Engineering, research and
 development expenses 14,026 15,053
 Operating income 32,392 18,506
 Interest expense (5,741) (6,730)
 Other-net (6,177) (2,442)
 Income before income taxes and
 cumulative effect of accounting
 change 20,474 9,334
 Income taxes " 7,200 3,700
 Income before cumulative effect
 of accounting change 13,274 5,634
 Cumulative effect to January 1, 1993,
 of accounting change, net of income
 tax benefit -- (70,229)
 Net income (loss) 13,274 (64,595)
 Net income (loss) per share
 Income before cumulative effect
 of accounting change .46 .20
 Cumulative effect of accounting
 change, net of income tax benefit -- (2.48)
 Net income (loss) per share .46 (2.28)
 Cash dividends per common share .17 .17
 Average shares outstanding 30,745 28,296
 Notes:
 Income (loss) per share is computed using the average number of common shares outstanding, including common stock equivalents. The assumed conversion of the Company's 6 percent convertible debentures was included in average shares outstanding for the three months ended March 31, 1994, increasing the average number of shares outstanding by 1,904,762 shares. The assumed conversion of the 6 percent convertible debentures was not included in average shares outstanding for the three months ended March 31, 1993, because the effect of the inclusion would have been anti-dilutive.
 The Company adopted Statment of Financial Accounting Standards No. 106, "Employers' Accounting for Postretirement Benefits Other than Pensions," in the 1993 first quarter and recognized the transition obligation as the cumulative effect of a change in accounting principle resulting in a non-cash charge to income of $113.2 million pretax, $70.2 million after tax, or $2.48 per share.
 Condensed Statement of Cash Flows
 TRINOVA Corporation
 (In thousands)
 Three months ended
 March 31
 1994 1993
 Cash Flows from operating activities
 Net Income (loss) 13,274 (64,595)
 Adjustments to reconcile net
 income (loss) to net cash provided
 by operating activities:
 Cumulative effect of accounting
 change net of deferred
 income tax benefit -- 70,229
 Depreciation 15,158 15,295
 Changes in working capital
 elements, other than debt (16,608) (7,611)
 Restructuring proceeds (payments) 3,287 (4,829)
 Other 5,313 3,263
 Net cash provided by
 operating activities 20,424 11,752
 Cash flows from investing
 activities
 Capital expenditures (11,718) (13,120)
 Other 834 (676)
 Net cash used by investing
 activities (10,884) (13,796)
 Cash flows from financing
 activities
 Net increase (decrease) in
 short- and long-term debt (13,541) 3,481
 Cash dividends (4,879) (4,803)
 Stock issuance 8,655 183
 Net cash used by
 financing activities (9,765) (1,139)
 Effect of exchange rate changes
 on cash (1,347) (1,614)
 Decrease in cash (1,572) (4,797)
 Cash at beginning of period 20,534 26,269
 Cash at end of period 18,962 21,472
 TRINOVA, with 1993 sales of $1.64 billion, 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, automotive, and aerospace and defense markets.
 -0- 4/18/94
 /CONTACT: Warren N. Bimblick of TRINOVA, 419-867-2290/
 (TNV)


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

BM -- CL005 -- 7547 04/18/94 09:10 EDT
COPYRIGHT 1994 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1994 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 18, 1994
Words:1763
Previous Article:RESOURCE PARTNERS INTRODUCES NEW BANYAN VINES MAIL GATEWAY FOR FAX RESOURCE NETWORK FAX
Next Article:WORKING FROM HOME: THE NEW AMERICAN DREAM
Topics:

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters