UNITED WESTBURNE POSTS PROFITABLE THIRD QUARTER;
RESTRUCTURING AND COST-CUTTING OVERCOME FLAT DEMAND
MONTREAL, Nov. 5 /PRNewswire/ -- United Westburne Inc. (Toronto: UWB) in the third quarter of 1991 returned net earnings of $2,713,000 on sales of $612,418,000 for the three months ended Sept. 30, 1991, it was announced today.
Contributing to profitability were benefits realized through the company's corporate rationalization program as well as reduced costs and efficiencies resulting from the company's ongoing restructuring.
United Westburne Vice Chairman and Chief Executive Officer Michel Vennat, said prudent management practices and favorable seasonal trends played a key role in the company's performance this quarter, but that economic conditions remain sub-optimal.
"The anticipated economic recovery has not yet materialized, and there is little promise of significant improvement in the next several quarters. While the poor economic conditions have adversely affected every sector of our markets, United Westburne will concentrate on instituting a number of firm measures including further corporate restructuring and rationalization," Vennat explained.
For the three months ended Sept. 30, 1991, revenues were $612,418,000 compared with $634,823,000 for the same period in 1990. Pretax earnings were $6,857,000 vs. $13,143,000. Net earnings totalled $2,713,000 against $7,183,000 for the same period in 1990. On a per- share basis, this is equivalent to $0.07 per common share against $0.20 last year. On a fully diluted per share basis, net earnings were $0.07 compared to $0.20 for the quarter last year.
For the nine-month period ended Sept. 30, 1991, revenues were $1,667,653,000 compared with $1,844,164,000 for the same period in the previous year. Pretax loss amounted to $3,327,000 as compared to earnings of $27,854,000. Net results totalled ($4,046,000) vs. $14,823,000. Net earnings per share were $0.11 on 37,335,279 shares outstanding compared to $0.40 (at 37,332,446 shares) for the same period last year. On a fully diluted per share basis, net earnings amounted to $0.11 vs. $0.40 for the same period one year previous.
United Westburne Inc., with 1990 sales in excess of $2.5 billion, is North America's largest integrated wholesale distributor of electrical, plumbing and heating, refrigeration, air conditioning, electronics and telecommunication supplies. The company has 391 branches across Canada and 97 branches in 20 states in the United States. United Westburne's common shares are traded on the Toronto Stock Exchange and the Montreal Exchange (UWB).
/CONTACT: Michel Vennat, vice chairman and CEO of United Westburne, 514-342-5181/
(UWB.) CO: United Westburne Inc. ST: Quebec IN: SU: ERN CK -- NY083 -- 1447 11/05/91 17:53 EST