Printer Friendly

ZURN ANNOUNCES FISCAL YEAR RESULTS, RESTRUCTURING CHARGE AND ACCOUNTING CHANGES

 ZURN ANNOUNCES FISCAL YEAR RESULTS,
 RESTRUCTURING CHARGE AND ACCOUNTING CHANGES
 ERIE, Pa., May 12 /PRNewswire/ -- Zurn Industries Inc. (NYSE: ZRN), a leading designer and manufacturer of power systems and equipment, and water control products for environmental applications, announced today a net loss for the fourth quarter ended March 31, 1992, of $7,395,000 ($.58 per share) compared to net income of $8,777,000 ($.70 per share) last year.
 Sales for the quarter were $151,977,000, down 6 percent from last year's $160,940,000.
 Fourth quarter results include a pretax provision of $7,581,000 ($.36 per share) for the potential loss of contract retainage due from the Exeter Energy tire burning power plant project owned principally by affiliates of The Oxford Energy Company and CMS Energy Corporation. This provision is in addition to a third-quarter pretax provision of $2,588,000 ($.13 per share) for potential loss of other amounts owed by Oxford Energy companies. Zurn has now provided for all potential losses of amounts owed by Oxford affiliates. Also included in the fourth quarter is a pretax charge of $14,700,000 ($.72 per share) for restructuring various non-strategic businesses.
 For the year ended March 31, 1992, the company reported a net loss of $5,222,000 ($.42 per share) compared to last year's net income of $30,737,000 ($2.46 per share). Income before accounting changes was $11,512,000 ($.91 per share). Sales were $596,532,000, 14 percent below last year's record sales of $696,728,000.
 The company adopted the new accounting standards for post-retirement benefits other than pensions and income taxes retroactive to the beginning of the fiscal year. The cumulative after-tax charge for the other post-retirement benefits accounting change reduced net income $16,159,000 ($1.29 per share) while the income tax accounting change reduced net income $575,000 ($.04 per share). Adopting the new rules for post-retirement benefits also required restating previously reported net income for the first nine months by $579,000 ($.06 per share) for the excess of the new accrual basis cost over the cash basis cost.
 Total orders backlog was $472,000,000 at March 31, 1992, up 40 percent from the previous year. The power systems backlog was a record $324,000,000, almost double last year's level.
 Chairman George H. Schofield stated that, "Fourth quarter results came in about as expected before the effect of the restructuring charge and the unanticipated provision for the potential loss of amounts due from the Exeter Energy project. The provision is necessary because, contrary to previously available information, further project financing will be required with no assurance that it can be obtained. Legal action for recovery of all amounts owed has commenced, but the likelihood of success cannot be determined at this time."
 Commenting on the restructuring plan, he noted that, "The strategy for businesses not meeting our growth and profitability objectives has been to downsize or dispose of them without a significant negative impact on operations. Since 1985, six businesses have been sold. We have now put in place an aggressive plan to restructure the remaining businesses which recently have been experiencing unfavorable operating results. This action will strengthen us for the future."
 Continuing, Schofield said, "It has been a difficult year. The slowed economy, which significantly affected Lynx Golf and our short-cycle industrial products businesses, and delays in receiving power plant order releases negatively impacted our sales volume and profitability in a major way. However, we enter the new fiscal year with optimism despite a first quarter that will be down somewhat from a year ago. The power systems segment has a strong orders backlog and the demand for Lynx Golf products has surged since Fred Couples began playing our clubs worldwide in January." In conclusion, he noted that, "While there are reasons to be bullish about the Power Systems and Lynx Golf segments, we remain somewhat cautious overall. Our short-cycle businesses have yet to experience any meaningful impact of an economic recovery."
 ZURN INDUSTRIES, INC.
 Condensed Statements of Consolidated Income
 (Thousands, except per share amounts)
 Period Ended Three Months Year
 March 31 1992 1991 1992 1991
 Net sales
 Environmental Technologies
 Power Systems $74,310 $73,243 $270,927 $347,465
 Water Control 56,823 64,358 253,755 252,836
 Other Technologies 20,844 23,339 71,850 96,427
 151,977 160,940 596,532 696,728
 Income (loss) before
 income taxes (12,945) 14,377 18,022 50,437
 Provison for income taxes (5,550) 5,600 6,510 19,700
 Income (loss) before
 accounting changes (7,395) 8,777 11,512 30,737
 Accounting changes -- -- (16,734) --
 Net (loss) income (7,395) 8,777 (5,222) 30,737
 Earnings per share
 Income (loss) before
 accounting changes $(.58) $.70 $.91 $2.46
 Accounting changes -- -- $(1.33) --
 Net (loss) income $(.58) $.70 $(.42) $2.46
 Average shares outstanding 12,642 12,506 12,606 12,513
 The fourth quarter of fiscal 1992 includes restructuring costs of $14,700 ($.72 per share) and an unusual provision for doubtful accounts, including related expenses, of $7,581 ($.36 per share). For the year, such provisions were $10,169 ($.49 per share).
 In the fourth quarter of fiscal 1992, the company changed its methods of accounting for post-retirement benefits other than pensions and income taxes which reduced income before accounting changes for each earlier quarter by $.02 per share.
 /delval/
 -0- 5/12/92
 /CONTACT: Steve Adams of Zurn Industries, 814-452-2111/
 (ZRN) CO: Zurn Industries, Inc. ST: Pennsylvania IN: OIL SU: ERN


JT-DM -- PG021 -- 9395 05/12/92 18:08 EDT
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:May 12, 1992
Words:937
Previous Article:PILGRIM'S PRIDE SIGNS STOCK PURCHASE AGREEMENT WITH ARCHER DANIELS MIDLAND COMPANY AND ANNOUNCES FINANCIAL RESULTS
Next Article:AMERICAN STOCK EXCHANGE DAILY REPORT
Topics:


Related Articles
ZURN ANNOUNCES THIRD QUARTER RESULTS
ZURN ANNOUNCES FIRST QUARTER EARNINGS
INTERTAN REPORTS FISCAL 1992 RESULTS
ZURN ANNOUNCES SECOND QUARTER EARNINGS
ZURN ANNOUNCES THIRD QUARTER EARNINGS
UNIVERSAL CORPORATION ANNOUNCES EARNINGS
UNIVERSAL CORPORATION ANNOUNCES EARNINGS
Zurn Industries to Sell Power Systems Businesses
Zurn Reports Earnings For Fiscal 1997 Fourth Quarter And Fiscal Year
Zurn Reports Strong Operating Performance For Fourth Quarter And 1998 Fiscal Year

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