DALLAS, March 29 /PRNewswire/ -- Global Industrial Technologies
(NYSE: GIX) today reported its results for 1998, commented on its expected
first quarter 1999 performance, and announced that its Board of Directors has
authorized a review of all strategic alternatives for further enhancing
stockholder value.
Revenues for 1998 from continuing operations were $496.0 million. Loss
from continuing operations, before charges, was ($6.5) million or ($.30) per
fully diluted share. Including $15.0 million income from discontinued
operations, and restructuring charges and write downs from continuing
operations of $44.5 million (net of tax), Global reported a net loss of
($36.0) million or ($1.64) per fully diluted share for 1998.
For the fiscal period ending October 31, 1997, Global's revenues from
continuing operations were $435.1 million and its income from continuing
operations, before charges, was $11.4 million. Including $20.2 million income
from discontinued operations and special charges and writedowns of
$36.0 million (net of tax), Global's net loss for 1997 was ($4.4) million or
($.20) per fully diluted share.
Rawles Fulgham, Global Chairman and Chief Executive Officer, said,
"Strategically, 1998 and the early part of this year have been very important
for Global's future growth. We have taken a number of aggressive steps to
improve our business going forward in accordance with our strategic plan of
building a focused and world-class refractories business. For example, the
recently announced agreement for the sale of our lime business and the
decision to sell our Ameri-Forge operation are integral parts of our program
for enhancing stockholder value.
"However, 1998 was a complex year for Global. Poor world-wide market
conditions, the process of integrating A. P. Green into our Harbison-Walker
operations, and charges relating to restructuring and discontinued operations
combined to make 1998 a very difficult year for Global financially.
"The proceeds from these sales, and the cost savings and synergies we have
gained from the restructuring and integration of our refractories operations,
are expected to produce improved operating margins and reduced interest
expenses. For stockholders, this is expected to yield improved financial
results in 1999. Moreover, I am convinced that we will beat the goal we
stated in December of becoming profitable by the first half of 1999. In fact,
the improvement will become visible in the first quarter of this year, which
is now expected to be profitable.
"Our overriding commitment is to enhancing stockholder value. While we
believe that we will be able to fulfill that commitment by achieving stronger
results this year, we are not content to stop there. That is why we are
asking our financial advisors to help us explore and evaluate a number of
alternatives to generate stockholder value that may be greater than that which
our business plan can create. Such alternatives could include a possible
merger or strategic combination," Mr. Fulgham concluded. There can be no
assurance that any such transaction will be proposed, authorized by the Board
or consummated.
Statements the Company may publish, including those in this announcement,
that are not strictly historical are "forward-looking" statements under the
safe harbor provisions of the Private Securities Litigation Reform Act of
1995. Although the Company believes the expectations reflected in such
forward-looking statements are based on reasonable assumptions, it can give no
assurance that its expectations will be realized. Forward-looking statements
involve known and unknown risks which may cause the Company's actual results
and corporate developments to differ materially from those expected. Factors
that could cause results and developments to differ materially from the
Company's expectations include, without limitation, changes in manufacturing
and shipment schedules, delays in completing plant construction and
acquisitions, currency exchange rates, new product and technology
developments, competition within each business segment, cyclicity of the
markets for the products of a major segment, litigation, significant cost
variances, the effects of acquisitions, divestitures, merger, strategic
combination, and other risks described from time to time in the Company's SEC
reports including quarterly reports on Form 10-Q, annual reports on Form 10-K
and reports on Form 8-K.
CERTAIN INFORMATION CONCERNING PARTICIPANTS
Global Industrial Technologies, Inc. (the "Company") and certain other
persons named below may be deemed to be participants in the solicitations of
proxies against the proposals of WHX Corporation. The participants in this
solicitation may include (i) the directors of the Company: David H. Blake,
Richard W. Vieser, Samuel B. Casey, Jr., Rawles Fulgham and Graham L. Adelman
and (ii) the following executive officers and employees of the Company:
Rawles Fulgham (Chairman and Chief Executive Officer), Graham L. Adelman
(President and Chief Operating Officer), Alfred L. Williams (Senior Vice
President and Chief Financial Officer), Donna Reeves (Vice President and
Controller), Jeanette H. Quay (Vice President, General Counsel and Secretary),
James Alleman (Vice President-Human Resources), and George Pasley (Vice
President-Communications). As of the date of this communication, none of the
foregoing participants individually beneficially own in excess of .1% of the
Company's common stock or in the aggregate in excess of 2% of the Company's
common stock.
SOURCE Global Industrial Technologies, Inc.
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Company News On-Call:
http://www.prnewswire.com/comp/422169.html or fax,
800-758-5804, ext. 422169
CONTACT:
George Pasley, V. P. Communications of Global
Industrial Technologies, Inc., 214-953-4510
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