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UNITOR REPORTS FIRST-HALF RESULTS

 UNITOR REPORTS FIRST-HALF RESULTS
 KOLBOTN, Norway, July 31 /PRNewswire/ -- Unitor Ships Service AS


(Unitor) (OTC: 3UNSSY) had a 7 percent year-over-year increase in income before taxes and minority interest to 72.7 million Norwegian krone (NOK) ($11.5 million) from NOK 67.9 million on a 6.6 percent gain in revenues for the first half ended June 30, 1992, it was announced today by Karsten Houm, managing director.
 Operating revenues for the first six months were NOK 733.1 million $116 million) as compared with NOK 687.5 million in the first half of 1991, primarily due to Unitor's gain in its customer base and market share. "The pre-tax profit margin was 9.9 percent, a satisfactory number given today's weak shipping market," Houm said. "Net income for the six month period declined 2.2 percent to NOK 53.8 million ($8.5 million) as compared with NOK 55 million in the year-ago period, partially reflecting turbulent conditions in the international shipping industry," he added.
 Net interest and other financial items produced a gain of NOK 7.8 million ($11.5 million) as compared with NOK 6.0 million of net expense in the first half of 1991. Management attributed the increase largely to foreign currency gain of NOK 8.3 million ($1.3 million) tied to the hedging of its global, multi-currency operations. Based on July's dollar exchange rate, Unitor would have currency gains of NOK 20 million ($3.2 million) during the last six months of the current year.
 Earnings per share for the first half were NOK 3.14 (50 cents per ADR), a decrease from NOK 3.33 in 1991, reflecting both the rise in the tax rate from 22 percent to 26 percent and a four percent increase in the number of average shares outstanding compared with the first half of 1991.
 Operating income for the period totaled NOK 64.9 million ($10.2 million) off 12.2 percent from NOK 73.9 million, primarily due to lower margins caused by a change in Unitor's product mix from lower chemical sales to increased project sales.
 "While the number of goods and services purchased per ship has fallen, the consequence of cost-reduction measures by the shipping companies, this has primarily affected chemical sales, which declined. However, Unitor was able to achieve growth in all of our other product groups. Because many of our products and services are a necessity to the shipping industry, we have been able to increase market share in a generally stagnant market," Houm said. "As a result, while we supply the maritime fleet, our results should not be compared directly with that industry."
 "For the short term, we expect the maritime market to continue to be uncertain but our goal is to keep the pre-tax margin at about the 10- percent level. While focusing on stringent cost containment, we intend to strengthen Unitor's maritime activity over the long run by continuing to introduce new products and service contracts and by purchasing companies in the maritime sector that are synergistic additions to the Unitor Group," Houm said.
 Houm commented further, "We have experienced a slight personnel cost increase due to the strengthening of Unitor's organizational structure to meet the needs of the maritime industry's demands for technical know- how and quality control. Our organization should now be capable of handling increased sales without significant additional overhead cost increases."
 For the second quarter of 1992, income before taxes and minority interest rose 6.5 percent to NOK 31.7 million ($5 million) from NOK 29.7 million in the prior year and operating revenues rose 2.7 percent to NOK 364.7 million ($57.7 million) compared with NOK 355 million. Operating income for the period totalled NOK 26.7 million ($4.2 million), down 22.9 percent from NOK 34.6 million reported in the second quarter of 1991.
 Net income for the quarter declined 5.4 percent to NOK 23.4 million ($3.7 million) as compared with NOK 24.8 million in the year-ago period and earnings per share decreased to NOK 1.37 (22 cents per ADR) from NOK 1.49 reported in 1991.
 Unitor supplies high-quality chemicals and related equipment to the international merchant fleet of over 23,000 vessels. It has been listed on the Oslo Stock Exchange since 1978.
 Unitor American Depositary Receipts (ADRs) began trading in the United States in April 1991. They are traded over the counter under the symbol 3UNSSY, and are quoted in the daily "pink sheets." Morgan Guaranty Trust Company of New York is the sole depository of the ADRs.
 Current exchange rate: US$1 equals NOK 6.3214.
 UNITOR GROUP
 Consolidated Statement of Operations
 (Unaudited, in 000s except per share amounts)
 Three months ended Percent
 6/30/92 6/30/91 Change
 Operating revenue NOK 364,663 $57,687 NOK 355,010 2.7
 Cost of goods sold 176,343 27,896 162,724 8.4
 Gross profit 188,320 29,791 192,286 (2.1)
 Depreciation 15,118 2,392 17,029 (11.2)
 Other operating expenses 146,498 23,175 140,642 4.2
 Operating income 26,704 4,224 34,615 (22.9)
 Interest & other financial
 expenses (income), net (4,977) (788) 4,879 N/M
 Income before taxes
 and minority interest 31,681 5,012 29,736 6.5
 Minority interest -- -- 269 --
 Income after minority
 interest 31,681 5,012 30,005 5.6
 Income taxes 8,237 1,303 5,226 57.6
 Net income NOK 23,444 $3,709 NOK 24,779 (5.4)
 Earnings per share NOK 1.37 $0.22 NOK 1.49 (8.1)
 Weighted average
 shares outstanding 17,158,820 17,158,820 16,600,000 3.4
 UNITOR GROUP
 Consolidated Statement of Operations
 (Unaudited, in 000s except per share amounts)
 Six months ended Percent
 6/30/92 6/30/91 Change
 Operating revenue NOK 733,075 $115,967 NOK 687,527 6.6
 Cost of goods sold 350,771 55,489 321,208 9.2
 Gross profit 382,304 60,478 366,319 4.4
 Depreciation 29,260 4,629 32,941 (11.2)
 Other operating expenses 288,143 45,582 259,456 11.1
 Operating income 64,901 10,267 73,922 (12.2)
 Interest & other financial
 expenses (income), net (7,811) (1,236) 5,973 N/M
 Income before taxes
 and minority interest 72,712 11,503 67,949 7.0
 Minority interest -- -- 810 --
 Income after minority
 interest 72,712 11,503 68,759 5.8
 Income taxes 18,905 2,991 13,752 37.5
 Net income NOK 53,807 $8,512 NOK 55,007 (2.2)
 Earnings per share NOK 3.14 $0.50 NOK 3.33 (5.7)
 Weighted average
 shares outstanding 17,158,820 17,158,820 16,500,031 4.0
 Current exchange rate: US$1 equals NOK 6.3214.
 -0- 7/31/92
 /CONTACT: Philip L. Thomas of the P.L. Thomas Group, 312-906-8060, for Unitor Ships Service/
 (3UNSSY) CO: Unitor Ships Service AS ST: IN: MAR SU: ERN


SM-TS -- NY010 -- 5502 07/31/92 10:24 EDT
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Date:Jul 31, 1992
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