Printer Friendly

VALHI REPORTS 1991 RESULTS

 VALHI REPORTS 1991 RESULTS
 DALLAS, Feb. 5 /PRNewswire/ -- Valhi Inc. (NYSE: VHI) announced


net income for 1991 of $24.8 million, or $.22 per share, on revenues of $823.9 million, compared to net income of $74.6 million, or $.66 per share, on revenues of $876.8 million in 1990.
 For the fourth quarter of 1991, Valhi reported a net loss of $2.3 million, or $.02 per share, on revenues of $185.1 million, compared to net income of $13.7 million, or $.12 per share, on revenues of $227.2 million in 1990.
 Results of operations continue to be adversely affected by recessionary economic conditions and resulting cyclical business declines in certain of the company's businesses, and comparability of results was also impacted by significant non-operating transactions in both 1991 and 1990.
 Consolidating operating income for the fourth quarter was $18.7 million, the highest quarter of calendar 1991, but was 13 percent lower than the fourth quarter of 1990. For the full year, operating income declined 26 percent to $65.7 million. Refined sugar sales volume increased 8 percent for the year as a result of a larger sugarbeet crop, however, slightly lower sales prices and increased sugar processing costs, which were in part due to adverse weather conditions, reduced margins. The company's forest products segment reported significantly lower annual earnings in 1991 and hardware and fast food earnings also declined, but by lesser amounts.
 The company's equity in the 1991 earnings of NL Industries Inc. (NYSE: NL), a 48 percent-owned affiliate, declined due to NL's loss resulting primarily from the disposition of NL's interest in Lockheed Corp. and significantly lower earnings of NL's chemicals operations. The company's equity in 1991 earnings of Tremont Corp. (NYSE: TRE), a 44 percent-owned affiliate, declined due primarily to significantly lower earnings of Tremont's titanium metals operations.
 Other items affecting the comparability of annual results include: (i) net pre-tax gains from securities transactions of $64 million in 1991, principally gains from Valhi's sale of Baroid Corp. common stock, which reduced Valhi's interest in Baroid from 42 percent to 16 percent; (ii) a $28 million pre-tax gain in 1990 related to a reduction in the company's ownership of Baroid from 51 percent to 42 percent; (iii) a small pre-tax loss in 1991 related to the aggregate reduction in the company's direct ownership of NL from 69 percent to 48 percent; and, (iv) pre-tax gains aggregating more than $13 million on the fourth quarter 1990 sale of certain business units.
 Interest expense was lower in 1991 because of reduced borrowing levels and interest rates. The company's effective income tax rate for 1991 increased to 49 percent from 22 percent in 1990 primarily because of changes in the amounts and mix of pre-tax items on which taxes are provided at regular vs. preferential rates, principally the company's equity in NL's losses for which deferred tax benefits were available at less than the statutory rate.
 Extraordinary items consist of the company's equity in extraordinary items reported by unconsolidated affiliates and relate primarily to income tax benefits of tax loss and tax credit carryforwards.
 Valhi's 1991 results are subject to final audit.
 Valhi Inc., headquartered in Dallas, is a diversified company engaged, through wholly owned subsidiaries, in the refined sugar, forest products, fast food and hardware products industries and, through NL and Tremont, in the chemicals and titanium metals industries. Valhi's common stock is traded on the New York and Pacific Stock Exchanges under the symbol "VHI."
 VALHI INC. AND SUBSIDIARIES
 Summary of Consolidated Operations
 (In millions, except per share data)
 Three months ended Year ended
 Dec. 31, Dec. 31,
 1991 1990(a) 1991 1990(a)
 Revenues and other
 income:
 Net sales $186.4 $204.3 $765.7 $764.5
 Equity in earnings of
 NL and Tremont (4.8) 5.3 (19.7) 52.9
 Securities
 transactions .3 (2.7) 64.0 (4.0)
 Sale of business units --- 13.5 --- 13.5
 Reduction in interest
 in subsidiaries --- --- (.8) 28.3
 Interest and other, net 3.2 6.8 14.7 21.6
 Total $185.1 $227.2 $823.9 $876.8
 Income before income
 taxes and
 extraordinary items $.4 $18.7 $39.6 $94.3
 Provision for income
 taxes 2.9 5.5 19.6 20.6
 Income before
 extraordinary items (2.5) 13.2 20.0 73.7
 Extraordinary items .2 .5 4.8 .9
 Net income (loss) ($2.3) $13.7 $24.8 $74.6
 Income per common
 share:
 Before extraordinary
 items ($.02) $.11 $.18 $.65
 Extraordinary items --- .01 .04 .01
 Net income (loss) ($.02) $.12 $.22 $.66
 Weighted average
 common shares
 outstanding 113.6 113.3 113.5 113.3
 (a) Reclassified
 VALHI INC. AND SUBSIDIARIES
 Business Segment Information
 (In millions)
 Three months ended Year ended
 Dec. 31, Dec. 31,
 1991 1990(a) 1991 1990(a)
 Net sales:
 Refined sugar $105.4 $121.0 $439.7 $410.9
 Forest products 43.2 43.0 179.7 197.4
 Fast food 27.2 28.3 101.5 103.6
 Hardware products 10.6 12.0 44.8 52.6
 Total $186.4 $204.3 $765.7 $764.5
 Operating income:
 Refined sugar $9.1 $12.6 $42.0 $48.0
 Forest products 4.4 3.8 8.0 22.8
 Fast food 2.8 3.0 7.8 8.6
 Hardware products 2.4 2.2 7.9 9.0
 Total operating income 18.7 21.6 65.7 88.4
 Equity in earnings of:
 NL (3.6) 2.0 (19.3) 43.2
 Tremont (1.2) 3.3 (.4) 9.7
 Sale of business units --- 13.5 --- 13.5
 Reduction in interest
 in subsidiaries --- --- (.8) 28.3
 General corporate items:
 Securities transactions .3 (2.7) 64.0 (4.0)
 Interest and dividends 1.6 2.3 6.0 7.9
 General expenses (2.5) (2.2) (7.6) (11.8)
 Other, net .5 5.2 4.2 8.5
 Interest expense (13.4) (24.3) (72.2) (89.4)
 Income before income
 taxes and
 extraordinary items $.4 $18.7 $39.6 $94.3
 (a) Reclassified
 VALHI INC. AND SUBSIDIARIES
 Condensed Consolidated Balance Sheets
 (In millions)
 Dec. 31,
 1991 1990(a)
 Current assets $496.5 $362.4
 Investment in NL and Tremont 410.6 624.1
 Other noncurrent assets 75.6 167.9
 Property and equipment 194.4 190.4
 Total $1,177.1 $1,344.8
 Current liabilities $378.1 $421.2
 Long-term debt 352.7 584.2
 Other noncurrent liabilities 60.8 44.8
 Stockholders' equity 385.5 294.6
 Total $1,177.1 $1,344.8
 Common shares outstanding 113.9 113.4
 (a) Reclassified
 Summary of Consolidated Stockholders' Equity
 (In millions)
 Year ended
 Dec. 31,
 1991 1990
 Beginning of year $294.6 $287.4
 Net income 24.8 74.6
 Dividends - $.20 per share (22.7) (22.7)
 Adjustments:
 Currency translation 8.5 2.7
 Marketable equity securities 73.1 (39.5)
 Other, net 7.2 (7.9)
 End of year $385.5 $294.6
 -0- 2/5/92
 /CONTACT: William C. Timm, VP-finance and administration of Valhi, 214-450-4212/
 (VHI NL TRE) CO: Valhi Inc. ST: Texas IN: SU: ERN


KJ-JL -- LA023 -- 7297 02/05/92 15:05 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Feb 5, 1992
Words:1200
Previous Article:RETIRED ADM. WILLIAM J. CROWE JR. JOINS GENERAL DYNAMICS BOARD
Next Article:DOUGLAS & LOMASON REPORTS FOURTH-QUARTER AND 1991 RESULTS


Related Articles
VALHI REPORTS FIRST QUARTER RESULTS
VALHI REPORTS SECOND QUARTER RESULTS
VALHI REPORTS THIRD QUARTER RESULTS
VALHI REPORTS THIRD QUARTER RESULTS
VALHI TO ADOPT NEW ACCOUNTING STANDARDS IN 1992
VALHI REPORTS 1992 RESULTS
VALHI DISTRIBUTES TREMONT INTEREST
Valhi Declares Regular Quarterly Cash Dividend and Special Dividend of TIMET Common Stock.
Valhi Completes Special Dividend of TIMET Common Stock.
Valhi, Inc. Announces Radioactive Byproduct License Decision.

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