WOLVERINE WORLD WIDE REPORTS SECOND QUARTER RESULTS
WOLVERINE WORLD WIDE REPORTS SECOND QUARTER RESULTS ROCKFORD, Mich., July 29 /PRNewswire/ -- Wolverine World Wide Inc.
(NYSE: WWW), reported a net loss for the 12-week period ended June 13, 1992, of $2,170,000, or $0.33 per share, versus net earnings of $298,000 or $0.05 per share for the second quarter of 1991.
Sales increased to $71.9 million from $65.9 million in the comparable period a year ago. Increases in international sales (reflecting the acquisition of the Brooks Europe subsidiary and the restructuring of Brooks licensees to distributors) and strong domestic Wolverine Work and Outdoor Footwear Group shipments more than offset lower Hush Puppies sales. A loss of $0.42 per share was reported for the first half of 1992 compared with net earnings per share of $0.11 for the first six months of 1991. Net sales for the current half exceeded prior year by $9.1 million. Thomas D. Gleason, Wolverine World Wide chairman and CEO, attributed the second quarter loss to a continuation of the problems encountered in the first quarter in the U.K and France by Brooks Europe subsidiary as well as provisions for consolidation of a domestic factory and a marketing unit into other operations. He noted that the company would have shown a small profit in the quarter except for the losses in the Brooks Europe subsidiary and the provisions for consolidation. Gleason said, "Stringent measures are being taken to eliminate the earnings drain from Brooks in the U.K. and France, including substantial personnel reductions and sell-off of excess inventories. Encouragingly, the German operation was profitable in the quarter." Action to consolidate two domestic operations also was taken during the quarter. The Little Falls Footwear factory in New York State is scheduled to be closing during the third quarter and its production of approximately a half-million pairs of women's sandals will be transferred to other company factories in Arkansas, thereby increasing utilization at those facilities. Additionally, the Town & Country brand sales and marketing functions were consolidated into the Hush Puppies Women's organization. "Hush Puppies sales and earnings were down for the quarter compared to last year's comparable quarter. The decline, however, was considerably less than in the first quarter despite the fact that the non-athletic segment of the footwear industry shows little sign of coming out of the lingering recession," Gleason said. "The growing world-wide consumer emphasis on comfort and value is ideally suited to the growth of well established global brands like Hush Puppies," he said. Wolverine World Wide Inc. manufacturers and markets a wide variety of branded footwear and pigskin leather. Major brands include Hush Puppies(R) shoes, Wolverine(R) work and sport footwear, Wolverine Wilderness(R) footgear, clothing and accessories, Coleman(R) footgear, Brooks(R) athletic footwear, clothing and accessories, Bates(R) uniform footwear and Bates Floaters(R), French Toast children's shoes, Tru Stitch(R) slippers, Sioux-Mox(R) moccasins, Wimzees(R) casual footwear, Town and Country(R) women's shoes, Kroupana(R) sueded pigskin and Breathin' Brushed Pigskin(R) leathers. WOLVERINE WORLD WIDE, INC. Consolidated Statement of Operations ($000's, except share and per share data, unaudited) 12 Weeks Ended 24 Weeks Ended 6/13/92 6/15/91 6/13/92 6/15/91 Net sales and other operating income $71,870 $65,851 $138,396 $129,257 Earnings (loss) before taxes (3,034) 352 (3,873) 807 Income tax (Credit) (864) 54 (1,085) 108 Net earnings (loss) (2,170) 298 (2,788) 699 Earnings (loss) per share $ (.33) $ .05 $ (.42) $ .11 Shares used for computing earnings per share 6,630,134 6,549,820 6,601,095 6,541,759 Condensed Balance Sheet 6/13/92 6/15/91 ASSETS: Cash & securities $ 3,341 $ 2,009 Receivables 66,009 56,728 Inventories 92,249 81,982 Other current assets 9,070 5,679 Total current assets 170,669 146,398 Plant & Equipment, net 32,810 32,040 Other Assets 20,841 16,413 Total Assets $224,320 $194,851 Liabilities & Equity: Notes payable 18,109 -- Current maturities on long-term debt 5,776 2,504 Accounts payable, trade 13,743 11,920 Accrued expenses 17,810 21,888 Dividend payable 266 -- Total current liabilities 50,204 36,312 Long-term debt 61,582 47,018 Other non-current liabilities 4,544 3,691 Stockholders' equity 107,990 107,830 Total Liabilities & Equity $224,320 $194,851 -0- 7/29/92 R /CONTACT: Jim Lovejoy of Wolverine World Wide Inc., 616-866-5539/ (WWW) CO: Wolverine World Wide, Inc. ST: Michigan IN: TEX SU: ERN
LD -- NY120R -- 4920 07/30/92 08:44 EDT
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|Date:||Jul 30, 1992|
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