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VALHI REPORTS THIRD QUARTER RESULTS

 VALHI REPORTS THIRD QUARTER RESULTS
 DALLAS, Oct. 28 /PRNewswire/ -- Valhi Inc. (NYSE: VHI) reported


net income for the third quarter of 1992 of $.2 million, or nil per share, on revenues and other income of $205.8 million, compared to a net loss of $5.0 million, or $.04 per share, on revenues of $210.8 million in the third quarter of 1991.
 For the first nine months of 1992, Valhi reported a net loss of $2.2 million, or $.02 per share, on revenues of $601.5 million, compared to net income of $27.1 million, or $.24 per share, on revenues of $638.8 million in the first nine months of 1991. The 1991 year-to-date results included pre-tax gains of $64 million from securities transactions.
 Operating income increased 22 percent to $20.2 million in the third quarter, and increased 31 percent to $61.5 million in the first nine months of 1992, while sales declined 3 percent to $207.5 million in the third quarter, and increased 6 percent to $612.7 million in the first nine months of 1992. Refined sugar sales volume increased in the 1992 year-to-date period while average selling prices declined 5 percent. Additionally, the relative timing of sugar sales during the respective crop years contributed significantly to the decline in third quarter sales compared to 1991. Record medium density fiberboard volume and higher selling prices contributed to the forest products segment improvements. Fast food results approximated those of the prior year, while higher volume contributed to the improved results of the hardware products segment.
 Interest expense declined $20.4 million, or 35 percent, in the first nine months of 1992 because of reduced borrowing levels and lower interest rates.
 While the company's consolidated subsidiaries reported improved operating results in 1992, the operations of the company's unconsolidated affiliates, NL Industries Inc. (NYSE: NL) and Tremont Corp. (NYSE: TRE), continue to be adversely affected by, among other things, declining selling prices and industry overcapacity in their respective businesses. The company's equity in earnings of NL, a 49 percent-owned affiliate, was a loss of $20.3 million in the first nine months of 1992, compared to a loss of $15.7 million in 1991. NL reported significantly lower earnings from its chemicals operations in 1992, which decline, along with higher net interest expense, more than offset the effect of losses from securities transactions included in NL's 1991 results. The company's equity in earnings of Tremont, a 48 percent-owned affiliate, was a loss of $8.1 million in the first nine months of 1992, compared to income of $.8 million in 1991.
 The gain from business unit disposition in 1992 consists of an insurance gain relating to a forest products plant destroyed by fire and a loss relating to the scheduled permanent closure of a forest products plywood plant.
 The 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 a portion of Valhi's 12.5 percent senior subordinated notes due 1998, and in 1991 consist of the company's equity in extraordinary items reported by NL, principally 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 publicly traded 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 Nine months ended
 Sept. 30, Sept. 30,
 1992 1991 1992 1991
 Revenues and other
 income:
 Net sales $207.5 $214.5 $612.7 $579.3
 Equity in earnings
 (loss) of:
 NL Industries Inc. (7.7) (2.1) (20.3) (15.7)
 Tremont Corp. (2.6) .2 (8.1) .8
 Securities
 transactions --- (3.6) .2 63.7
 Reduction in interest
 in NL --- (.8) --- (.8)
 Business unit
 dispositions, net 3.5 --- 3.5 ---
 Interest and other, net 5.1 2.6 13.5 11.5
 Total $205.8 $210.8 $601.5 $638.8
 Income (loss) before
 income taxes and
 extraordinary
 items $1.2 ($7.2) $.6 $39.2
 Income tax benefit
 (expense) (1.0) 2.2 (2.6) (16.7)
 Income (loss) before
 extraordinary items .2 (5.0) (2.0) 22.5
 Extraordinary items --- --- (.2) 4.6
 Net income (loss) $.2 ($5.0) ($2.2) $27.1
 Income (loss) per
 common share:
 Before extraordinary
 items --- ($.04) ($.02) $.20
 Extraordinary items --- --- --- .04
 Net income (loss) --- ($.04) ($.02) $.24
 Weighted average
 common shares
 outstanding 113.9 113.7 113.9 113.5
 VALHI INC. AND SUBSIDIARIES
 Business Segment Information
 (unaudited)
 (In millions)
 Three months ended Nine months ended
 Sept. 30, Sept. 30,
 1992 1991 1992 1991
 Net sales:
 Refined sugar $118.0 $133.3 $349.7 $334.3
 Forest products 49.6 45.0 148.7 136.5
 Fast food 24.9 25.7 75.0 74.3
 Hardware products 15.0 10.5 39.3 34.2
 Total $207.5 $214.5 $612.7 $579.3
 Operating income:
 Refined sugar $9.6 $11.7 $32.0 $32.9
 Forest products 6.0 1.4 17.0 3.6
 Fast food 1.7 1.8 5.3 5.0
 Hardware products 2.9 1.6 7.2 5.5
 Total operating income 20.2 16.5 61.5 47.0
 Equity in earnings
 (loss) of:
 NL Industries (7.7) (2.1) (20.3) (15.7)
 Tremont Corp. (2.6) .2 (8.1) .8
 Reduction in
 interest in NL --- (.8) --- (.8)
 Business unit
 dispositions, net 3.5 --- 3.5 ---
 General corporate
 income (expense):
 Securities transactions --- (3.6) .2 63.7
 Interest and dividend
 income 2.3 1.2 6.8 4.4
 General expenses (2.2) (1.2) (5.4) (5.1)
 Other, net (.3) .1 .8 3.7
 Interest expense (12.0) (17.5) (38.4) (58.8)
 Income (loss) before
 income taxes and
 extraordinary items $1.2 ($7.2) $.6 $39.2
 VALHI INC. AND SUBSIDIARIES
 Condensed Consolidated Balance Sheets
 (In millions)
 Sept. 30, 1992 Dec. 31, 1991
 (Unaudited)
 Current assets $343.1 $496.5
 Investment in NL and Tremont 365.9 410.6
 Other noncurrent assets 78.5 75.6
 Property and equipment 189.3 194.4
 Total $976.8 $1,177.1
 Current liabilities $226.6 $378.1
 Long-term debt 343.1 352.7
 Other noncurrent liabilities 46.3 60.8
 Stockholders' equity 360.8 385.5
 Total $976.8 $1,177.1
 Common shares outstanding 113.9 113.9
 Summary of Consolidated Stockholders' Equity
 Nine months ended Sept. 30, 1992
 (Unaudited)
 (In millions)
 Stockholders' equity at Dec. 31, 1991 $385.5
 Net loss (2.2)
 Dividends - $.15 per share (17.1)
 Currency translation and other, net (5.4)
 Stockholders' equity at Sept. 30, 1992 $360.8
 -0- 10/28/92 R
 /CONTACT: William C. Timm, VP-finance and administration of Valhi, 214-450-4212/
 (VHI) CO: Valhi Inc. ST: Texas IN: PAP FOD CHM SU: ERN


KD-JL -- LA040 -- 6321 10/28/92 18:03 EST
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Date:Oct 28, 1992
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