DALLAS, April 14 /PRNewswire/ -- Global Industrial Technologies, Inc.
(NYSE: GIX), a Dallas-based industrial manufacturing company, today reported
net operating earnings for the first quarter ended March 31, 1999, of
$3.5 million on revenues of $142.1 million. Net income from continuing
operations was $3.4 million or $0.15 per share. For the first quarter of
1998, Global had revenues of $97.3 million and net loss from continuing
operations of ($1.8) million or ($0.08) per share. EBITDA from continuing
operations for the quarter was $15.4 million versus $2.5 million for the first
quarter of fiscal 1998.
Global's Chairman and Chief Executive Officer, Rawles Fulgham, said, "We
are extremely pleased that our renewed strategic focus, determined cost
cutting efforts and successful integration of A. P. Green into our Harbison-
Walker refractories business has resulted in the Company's return to
meaningful profitability a quarter earlier than previously anticipated, and
this is in spite of continuing difficult industry conditions in steel and
copper.
"We have already achieved many of our objectives related to the
acquisition of A. P. Green. Some $30 million of annual cost reductions have
been realized at the end of March, only nine months after completing the
purchase. This acquisition has allowed us to diversify our product mix and
reduce our dependence on the steel market. We have increased the utilization
of our plant capacity achieving significant manufacturing efficiencies. This
helped us to actually improve our operating profit margins despite the
extended period of record level steel imports into the United States. We see
additional opportunities in this segment to further improve margins as we go
forward," Mr. Fulgham said.
The Refractory Products and Minerals segment reported first quarter
revenues of $126.4 million and operating profits of $11.2 million compared to
revenues of $84.5 million and operating profits of $3.8 million during the
first quarter of fiscal 1998.
"Our shredding and recycling businesses have shown good performance in the
first quarter as sales have reflected a broad mix of products. Our Shred-Tech
unit posted very strong results that included the sale of its second ESR6000
system, a unique product used to shred, sort and capture precious metals and
other materials from obsolete or surplus computer and electronics equipment.
Bookings and shipments were up substantially versus year ago levels. In spite
of continued pressure due to depressed copper prices, our Corrosion Technology
unit has recently seen an increase in requests for quotation. We are not,
however, counting on a near-term rebound in prices and have cut costs by
shutting down plants and reducing staff, thereby minimizing the negative
impact of lower sales volumes. These businesses, which are reported under All
Other, generated revenues of $15.4 million and $11.7 million and operating
profits of $2.5 million and ($0.1) million in the first quarters of 1999 and
1998, respectively.
"Finally, we have completed the sale of our Lime business for $130
million. The proceeds will be used primarily to pay down debt, returning our
balance sheet to a strong financial position. We are enthusiastic about our
progress so far and anticipate growing sales and operating earnings in the
second quarter and throughout the balance of the year," Mr. Fulgham concluded.
Global is a major manufacturer of technologically advanced industrial
products that support high-growth markets around the world. Products include
modular cells for refining nonferrous metals; premium refractories for lining
heat-containing industrial vessels such as steel furnaces; raw materials used
to make refractory products; processing and recycling equipment.
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 and divestitures, 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), Juan M. Bravo (Vice President). 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.
GLOBAL INDUSTRIAL TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS
(In millions except per share data)
Three months ended
March 31, January 31,
1999 1998
(Unaudited)
Revenues
Net sales and operating revenues $141.8 $96.9
Other 0.3 0.4
Total Revenues 142.1 97.3
Costs and Expenses
Cost of sales 107.0 75.0
Selling, engineering,
administrative and general expenses 26.2 23.0
Interest expense 4.3 1.7
Other - net 0.4 0.7
Total Costs and Expenses 137.9 100.4
Earnings (loss) from continuing
operations before income taxes 4.2 (3.1)
Income tax benefit (expense) (0.8) 1.3
Earnings (loss) from
continuing operations 3.4 (1.8)
Discontinued operations:
Earnings from discontinued
operations less applicable
income taxes of $.0 and $ 1.6 0.1 2.6
Net earnings $3.5 $0.8
Basic earnings (loss) per
common share:
Continuing operations $0.15 $(0.08)
Discontinued operations $0.01 $0.12
Net earnings $0.16 $0.04
Diluted earnings (loss) per
common share:
Continuing operations $0.15 $(0.08)
Discontinued operations $0.01 $0.12
Net earnings $0.16 $0.04
GLOBAL INDUSTRIAL TECHNOLOGIES, INC.
1999 VS. 1998 ACTUAL
MILLIONS
Three Months Ended
Mar. 31, Jan. 31,
1999 1998
Refractory Products and Minerals
Sales and Operating Revenues 126.4 84.5
Operating Profit (Loss) 11.2 3.8
All Other
Sales and Operating Revenues 15.4 11.7
Operating Profit 2.5 (0.1)
Divested Operations
Sales and Operating Revenues 0.0 0.7
Operating Profit (Loss) 0.0 (0.1)
Partnership Operations
Operating Profit 0.0 0.0
Total Continuing Operations
Sales and Operating Revenues 141.8 96.9
Inter-Segment Sales 0.0 0.0
Consolidated Sales 141.8 96.9
Other Revenues 0.3 0.4
Consolidated Revenues 142.1 97.3
Operating Profit 13.7 3.6
GENERAL CORPORATE EXPENSE (5.2) (5.0)
INTEREST EXPENSE (4.3) (1.7)
CONTINUING OPERATIONS EARNINGS
(LOSS) BEFORE TAXES 4.2 (3.1)
INCOME TAX BENEFIT (EXPENSE) (0.8) 1.3
EARNINGS (LOSS) FROM CONTINUING OPERATIONS 3.4 (1.8)
CONTINUING OPERATIONS
BASIC EARNINGS (LOSS) PER SHARE $0.15 ($0.08)
BASIC AVERAGE SHARES OUTSTANDING 22,260 21,900
SOURCE Global Industrial Technologies, Inc.
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CONTACT:
George Pasley, V. P. Communications of Global
Industrial Technologies, Inc., 214-953-4510
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