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VALHI REPORTS SECOND QUARTER RESULTS

                VALHI REPORTS SECOND QUARTER RESULTS
    DALLAS, July 23 /PRNewswire/ -- Valhi Inc. (NYSE: VHI) reported


net income for the second quarter of 1992 of $.5 million, or $.01 per share, on revenues of $203.5 million, compared to net income of $51.5 million, or $.45 per share, on revenues of $268.5 million in the second quarter of 1991. Second quarter 1991 results included pre-tax gains of $67 million from securities transactions primarily related to the company's sale of Baroid Corp. common stock.
    For the first half of 1992, Valhi reported a net loss of $2.4 million, or $.02 per share, on revenues of $395.7 million, compared to net income of $32.1 million, or $.28 per share, on revenues of $428 million in the first half of 1991.
    Sales increased 9 percent to $209.6 million in the second quarter and increased 11 percent to $405.2 million in the first half of 1992 primarily as a result of higher refined sugar and forest products volume, and higher forest products selling prices.  Led by the improvements in the forest products segment, operating income increased 35 percent to $23 million in the second quarter, and increased 36 percent to $41.3 million in the first half of 1992 as all four of thegar processing costs reduced margins of this segment.
    The company's equity in earnings of NL Industries Inc., its 49 percent-owned chemicals affiliate, was a loss of $12.6 million in the first half of 1992 compared to a loss of $13.6 million in 1991. However, excluding NL's losses from securities transactions, NL reported significantly lower earnings in 1992.  The company's equity in earnings of Tremont Corp., a 48 percent-owned affiliate, was a loss of $5.5 million in the first half of 1992 compared to income of $.6 million in 1991.
    Interest expense declined $14.9 million, or 36 percent, in the first half of 1992 due to reduced borrowing levels and lower interest rates.
    The company's provision for income taxes varies from a normally expected rate primarily because deferred tax benefits on the company's equity in losses of NL and Tremont are available at less than the statutory rate.
    Extraordinary items in 1992 relate to early extinguishment of indebtedness during the first quarter, and in 1991, consist of the company's equity in extraordinary items reported by NL relating to income tax benefits of tax loss and tax credit carryforwards.
    Valhi Inc., headquartered in Dallas, is a diversified company engaged in the refined sugar, forest products, fast food and hardware products industries and, indirectly through NL and Tremont, in the chemicals, titanium metals and bentonite mining 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
                             (Unaudited)
                (In millions, except per share data)
                          Three months ended   Six months ended
                               June 30,            June 30,
                            1991(a)   1992      1991(a)     1992
      Revenues and other
      income:
    Net sales             $191.7    $209.6    $364.8    $405.2
      Equity in earnings
      (loss) of:
    NL Industries Inc.       6.7      (6.6)    (13.6)    (12.6)
    Tremont Corp.            (.8)     (3.1)       .6      (5.5)
    Securities
     transactions           67.0        .2      67.3        .2
    Interest and other,
     net                     3.9       3.4       8.9       8.4
    Total                 $268.5    $203.5    $428.0    $395.7
    Income (loss) before
     income taxes and
     extraordinary items   $71.6      $1.0     $26.4      ($.6)
    Provision for income
     taxes                  20.7        .5      18.9       1.6
    Income (loss) before
     extraordinary items    50.9        .5      27.5      (2.2)
    Extraordinary items       .6       ---       4.6       (.2)
    Net income (loss)      $51.5       $.5     $32.1     ($2.4)
      Income (loss) per
      common share:
    Before extraordinary
     items                  $.45      $.01      $.24     ($.02)
    Extraordinary items      ---       ---       .04       ---
    Net income (loss)       $.45      $.01      $.28     ($.02)
    Weighted average
     common shares
     outstanding           113.4     113.9     113.4     113.9
    (a) Reclassified to deconsolidate the operations of NL Industries.
                     VALHI INC. AND SUBSIDIARIES
                    Business Segment Information
                             (unaudited)
                            (in millions)
                           Three months ended  Six months ended
                               June 30,            June 30,
                            1991(a)   1992      1991      1992
      Net sales:
    Refined sugar         $103.9    $119.1    $201.0    $231.7
    Forest products         51.1      52.2      91.5      99.1
    Fast food               24.8      25.7      48.6      50.1
    Hardware products       11.9      12.6      23.7      24.3
    Total                 $191.7    $209.6    $364.8    $405.2
      Operating income:
    Refined sugar          $10.9     $11.7     $21.2     $22.4
    Forest products          2.4       7.0       2.2      11.0
    Fast food                1.7       2.0       3.2       3.6
    Hardware products        2.0       2.3       3.9       4.3
    Total operating income  17.0      23.0      30.5      41.3
      Equity in earnings
      (loss) of:
    NL Industries            6.7      (6.6)    (13.6)    (12.6)
    Tremont Corp.            (.8)     (3.1)       .6      (5.5)
    General corporate items:
     Securities
      transactions          67.0        .2      67.3        .2
     Interest and dividend
      income                 1.1       2.2       3.2       4.5
     General expenses       (2.1)     (1.9)     (3.9)     (3.2)
     Other, net              2.1       (.2)      3.6       1.1
    Interest expense       (19.4)    (12.6)    (41.3)    (26.4)
     Income (loss) before
      income taxes and
      extraordinary items  $71.6      $1.0     $46.4      ($.6)
    (a)  Reclassified to deconsolidate the operations of NL Industries.
                     VALHI INC. AND SUBSIDIARIES
                Condensed Consolidated Balance Sheets
                            (In millions)
                                   Dec. 31, 1991    June 30, 1992
                                                     (Unaudited)
    Current assets                      $496.5         $366.4
    Investment in NL and Tremont         410.6          389.2
    Other noncurrent assets               75.6           73.3
    Property and equipment               194.4          192.7
      Total                           $1,177.1       $1,021.6
    Current liabilities                 $378.1         $259.4
    Long-term debt                       352.7          338.3
    Other noncurrent liabilities          60.8           51.6
    Stockholders' equity                 385.5          372.3
    Total                             $1,177.1       $1,021.6
    Common shares outstanding            113.9          113.9
            Summary of Consolidated Stockholders' Equity
                   Six months ended June 30, 1992
                             (Unaudited)
                            (In millions)
    Stockholders' equity at Dec. 31, 1991             $385.5
    Net loss                                            (2.4)
    Dividends - $.10 per share                         (11.4)
    Other, net                                            .6
    Stockholders' equity at June 30, 1991             $372.3
    -0-                  7/23/92
    /CONTACT:  William C. Timm, VP-Finance and Administration of Valhi, 214-450-4212/
    (VHI) CO:  Valhi Inc. ST:  Texas IN: SU:  ERN 1181 07-23-92 12:08 EDT AL-CH -- LA017 -- 2522 07/23/92 12:21 EDT
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Date:Jul 23, 1992
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