WYNN'S INTERNATIONAL INC. REPORTS RESULTS
WYNN'S INTERNATIONAL INC. REPORTS RESULTS ORANGE, Calif., Jan. 30 /PRNewswire/ -- Wynn's International Inc.
(NYSE: WN) reported today a net loss of $14,016,000 or $3.90 per share in the fourth quarter ended Dec. 31, 1991 compared to net income of $1,458,000 or $.38 per share in the 1990 fourth quarter. The 1991 fourth quarter results include the previously announced after tax charge of $14,930,000 ($4.15 per share) for restructuring and further downsizing of its Wynn's Climate Systems subsidiary. Excluding this charge, income after tax for the quarter was $914,000 or $.25 per share. Net sales for the quarter ended Dec. 31, 1991 decreased 11 percent to $64,729,000 compared to $72,407,000 a year ago.
The net loss for the year ended Dec. 31, 1991 was $11,200,000 or $3.09 per share compared to net income of $6,354,000 or $1.65 per share a year ago. Net sales for the 12 months ended Dec. 31, 1991 were $273,963,000 compared to $285,123,000 for the same period in 1990. Excluding the unusual charge in the fourth quarter, 1991 net income was $3,730,000 or $1.03 per share. The effective tax rate benefit for 1991 was only 20 percent due to the restructuring charge, which included the write-off of $4,913,000 of nondeductible goodwill. Wynn's Climate Systems (WCS), which designs and manufactures automotive air conditioning systems for sale to original equipment manufacturers (OEM) and through the aftermarket, experienced a 24 percent decline in revenues during the fourth quarter of 1991 compared to the 1990 fourth quarter. This decline is attributable to a 27 percent drop in revenues from OEM customers, principally Mazda and Chrysler, offset by new sales in 1991 to Rover. Aftermarket sales to independent distributors increased 33 percent during the most recent quarter compared to the low levels of the prior year. Wynn's-Precision Inc. (Precision), a key supplier of sealing products for automobiles and other equipment, recorded a 6 percent increase in sales in the fourth quarter compared to the fourth quarter of 1990. Operating profit increased 36 percent in the most recent quarter compared to the fourth quarter of 1990. The higher earnings were due to a change in the product mix and reduced operating expenses. Precision continues to experience severe price pressures in all of its market segments, which has caused operating profit for the year to decline by 8 percent compared to 1990. Wynn Oil Co., the petrochemical specialties division, continued to be hurt by the worldwide economic recession in several of its key international markets. Sales decreased 14 percent but operating profits declined 37 percent compared to the fourth quarter of 1990. Reduced international sales of higher margin products caused the disproportionate decline in operating profit. Robert Skeels & Co., the builders hardware and locksmith supplies subsidiary, had a small decline in sales due to the severe downturn in the Southern California building industry, but a 17 percent increase in operating profit. The improvement in operating profit was due to completing the integration of certain operating assets of two southern California distributors acquired in August 1990. James Carroll, president and chief executive officer said, "Our 1991 results reflect the impact of the severe downtown in the U.S. automotive industry and the lingering recession here and abroad. The restructuring and downsizing of Wynn's Climate Systems, together with additional cost reductions at Wynn Oil Co., should position Wynn's International Inc. to return to profitability in 1992." The company's balance sheet and overall financial condition remain strong with the current ratio at 2.64 to 1 and shareholders' equity at $75,611,000 or $21.04 per common share. Wynn's International Inc., founded in 1939, is a worldwide supplier of high quality O-rings, seals, molded rubber products, petrochemical specialties products, automotive air conditioners and builders hardware supplies. The company has 1,924 employees and is headquartered at 500 North State College Blvd., Suite 700, Orange, CA 92668, telephone: 714-938-3700. WYNN'S INTERNATIONAL INC. Highlights Operating results: Fourth Quarter Ended Dec. 31, 1991 1990 Net sales $64,729,000 $72,407,000 Income (loss) before taxes (19,085,000) 2,892,000 Provision (benefit) for taxes (5,069,000) 1,434,000 Net income (loss) ($14,016,000) $1,458,000 Income (loss) per share of common stock ($3.90)(a) $.38 Average shares outstanding 3,593,588 3,790,245 Twelve Months Ended Dec. 31, 1991 1990 Net sales $273,963,000 $285,123,000 Income (loss) before taxes (13,918,000) 12,966,000 Provision (benefit) for taxes (2,718,000) 6,612,000 Net income (loss) ($11,200,000) $6,354,000 Income (loss) per share of common stock ($3.09)(a) $1.65 Average shares outstanding 3,625,653 3,844,856 (a) Includes $4.15 loss per share for the quarter ($4.12 loss for the twelve months) due to restructuring and downsizing of a subsidiary. -0- 1/30/92 /NOTE: For 1991, the earnings per share for the quarters does not equal the earnings per share for the year because the calculations are based on the weighted average number of shares outstanding during the period. /CONTACT: James Carroll, president and chief executive officer of Wynns International Inc., 615-444-0191/ (WN) CO: Wynn's International Inc. ST: California IN: SU: ERN
EH -- LA008 -- 5076 01/30/92 08:32 EST
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|Date:||Jan 30, 1992|
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