DALLAS, May 21 /PRNewswire/ -- Global Industrial Technologies, Inc.
(NYSE: GIX), a Dallas-based manufacturing company, announced today reported
basic per share earnings for the second fiscal quarter ended April 30, 1998,
of $4.05, compared to $.45 for the same period in 1997.
Earnings for the 1998 fiscal quarter reflect a net gain of $86.1 million
on the sale of Global's Industrial Tool Division (INTOOL) for $217.5 million
that closed in March. Operating earnings for the period were $9.5 million
compared with $15.2 million last year. Consolidated revenues of $121.9 million
are in contrast to $125.0 million in second quarter 1997 revenues. This year's
second quarter was affected by a $2.4 million pre-tax charge for closing
British Jeffrey Diamond based in Wakefield, England.
J.L. Jackson, Chairman and Chief Executive Officer of Global said:
"Excluding the one time gain on the sale of INTOOL, our performance during the
second quarter was impacted negatively since earnings contributions from
INTOOL ended during the period. Lost earnings contributions from INTOOL are
expected to be more than offset once the acquisition of A. P. Green is
completed. Nevertheless, we are excited about the new strategic direction of
the Company that is focused predominately on refractories and forging
operations, along with the development of the smaller Specialty Products
division.
"Once the A.P. Green acquisition is complete," Mr. Jackson continued, "we
will hold a leading position in the refractories industry throughout the
Western Hemisphere. This will allow us to achieve significant synergies and
benefits for our customers from a greater reach and scope in the refractories
market."
The Refractory Products division reported increased sales during the
quarter reflecting the Lota Green and Aken acquisitions announced previously.
Significant progress has been made year-to-date in capacity cost reductions
and these improvements will benefit future operating results. However,
operating earnings for the segment were down from year ago levels reflecting
the lack of last year's Raytheon project and from foreign exchange losses in
Mexico and Chile.
Mr. Jackson pointed out that, "At our Ameri-Forge division, the
undercarriage business has continued to ramp up production capacity as new
equipment has been installed and put in service. We remain on track to reach
an annualized production capacity of $50 million in sales from this business
segment by fiscal year end."
"And," Mr. Jackson added, "Specialty Products' development of new
applications and products dedicated to wastewater management in highly
corrosive environments, and the reclamation of precious metals from scrapped
electronics, holds considerable promise for new and expanded business
throughout the rest of '98."
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.
GLOBAL INDUSTRIAL TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS
(In millions except per share data)
Three months ended Six months ended
April 30, April 30,
1998 1997 1998 1997
Revenues
Net sales and operating revenues $121.6 $124.7 $230.0 $233.4
Other 0.3 0.3 0.7 0.6
Total Revenues 121.9 125.0 230.7 234.0
Costs and Expenses
Cost of sales 94.6 93.1 179.4 173.6
Selling, engineering, administrative
and general expenses 20.7 22.1 44.3 43.8
Interest expense 2.5 2.5 5.1 5.1
Special charges 0.0 --- --- 20.5
Other - net 3.2 (2.0) 3.9 (0.6)
Total Costs and Expenses 121.0 115.7 232.7 242.4
Earnings (loss) from continuing
operations before income taxes 0.9 9.3 (2.0) (8.4)
Income tax (provision) benefit (0.1) (2.2) 0.6 2.2
Earnings from continuing operations 0.8 7.1 (1.4) (6.2)
Discontinued operations:
Earnings from discontinued less
applicable income taxes of
$.8, $1.1, $1.8 and $1.7 2.1 3.1 5.1 5.0
Gain on disposal of Industrial Tool
less applicable income taxes of $40.2 86.1 --- 86.1 ---
Net earnings (loss) $89.0 $10.2 $89.8 $(1.2)
Basic earnings (loss) per common share:
Continuing operations $0.03 $0.31 $(0.07) $(0.27)
Discontinued operations $4.02 $0.14 $4.16 $0.22
Net earnings (loss) $4.05 $0.45 $4.09 $(0.05)
Diluted earnings (loss) per
common share:
Continuing operations $0.03 $0.31 $(0.07) $(0.27)
Discontinued operations $3.99 $0.14 $4.16 $0.22
Net earnings (loss) $4.02 $0.45 $4.09 $(0.05)
GLOBAL INDUSTRIAL TECHNOLOGIES, INC.
1997 AND 1998 SEGMENT INFORMATION
MILLIONS
1997
1st 2nd 3rd 4th TOTAL
Qtr Qtr Qtr Qtr YEAR
Refractory Products
Sales and Operating Revenues 73.7 84.0 88.8 89.0 335.5
Operating Profit 4.8 8.6 8.9 3.9 26.2
Minerals
Sales and Operating Revenues 13.1 13.6 12.3 11.0 50.0
Operating Profit (Loss) 1.9 1.7 1.3 0.8 5.7
Specialty Equipment Products
Sales and Operating Revenues 13.2 18.7 18.6 18.3 68.8
Operating Profit (Loss) (0.1) 1.6 (1.2) 1.1 1.4
Forged Products
Sales and Operating Revenues 12.7 14.8 12.1 14.5 54.1
Operating Profit 2.9 3.3 2.0 1.7 9.9
Total Continuing Operations
Sales and Operating Revenues 112.7 131.1 131.8 132.8 508.4
Inter-Segment Sales (4.0) (6.4) (5.8) (4.2) (20.4)
Consolidated Sales 108.7 124.7 126.0 128.6 488.0
Other Revenues 0.3 0.3 0.4 0.2 1.2
Consolidated Revenues 109.0 125.0 126.4 128.8 489.2
Equity Company Earnings (Loss) --- --- --- --- ---
Operating Profit 9.5 15.2 11.0 7.5 43.2
GENERAL CORPORATE EXPENSE (6.7) (5.9) (6.5) (7.0) (26.1)
SPECIAL CHARGES (20.5) 0.0 (23.0) 0.0 (43.5)
CONTINUING OPERATIONS EBT (LOSS) (17.7) 9.3 (18.5) 0.5 26.4)
INCOME TAX (PROVISION) BENEFIT 4.4 (2.2) 0.6 4.4 7.2
EARNINGS FROM CONTINUING
OPERATIONS (13.3) 7.1 (17.9) 4.9 (19.2)
DIVESTED OPERATIONS:
GAIN ON SALE NET OF TAX --- --- --- --- ---
EARNINGS NET OF TAX 1.9 3.1 3.5 6.3 14.8
NET EARNINGS (LOSS) (11.4) 10.2 (14.4) 11.2 (4.4)
BASIC EARNINGS/(LOSS) PER SHARE $ (0.50) $ 0.45 $ (0.64) $ 0.51 $ 0.20)
BASIC AVERAGE SHARES OUTSTANDING 22,690 22,547 22,4 22,127 22,448
GLOBAL INDUSTRIAL TECHNOLOGIES, INC.
CONTINUED 1997 AND 1998 SEGMENT INFORMATION
MILLIONS
1997
1st 2nd 3rd 4th TOTAL
Qtr Qtr Qtr Qtr YEAR
Refractory Products
Sales and Operating
Revenues 77.5 87.6 --- --- 165.1
Operating Profit 4.3 8.2 --- --- 12.5
Minerals
Sales and Operating
Revenue 9.9 11.3 --- --- 21.2
and Operating Revenues
Operating Profit (Loss) (0.5) 0.5 --- --- 0.0
Specialty Equipment
Products
Sales and Operating
Revenues 12.4 11.9 --- --- 24.3
Operating Profit (Loss) (0.2) 0.8 --- --- 0.6
Forged Products
Sales and Operating
Revenues 11.5 15.0 --- --- 26.5
Operating Profit 1.1 0.5 --- --- 1.6
Total Continuing Operations
Sales and Operating
Revenues 111.3 125.8 0.0 0.0 237.1
Inter-Segment Sales (2.9) (4.2) --- --- (7.1)
Consolidated Sales 108.4 121.6 0.0 0.0 230.0
Other Revenues 0.4 0.3 --- --- 0.7
Consolidated Revenues 108.8 121.9 0.0 0.0 230.7
Equity Company Earnings
(Loss) --- (0.5) --- --- (0.5)
Operating Profit 4.7 9.5 0.0 0.0 14.2
GENERAL CORPORATE
EXPENSE (7.6) (8.6) --- --- (16.2)
SPECIAL CHARGES 0.0 0.0 0.0 0.0 0.0
CONTINUING OPERATIONS
EBT (LOSS) (2.9) 0.9 0.0 0.0 (2.0)
INCOME TAX (PROVISION)
BENEFIT 0.7 (0.1) 0.0 0.0 0.6
EARNINGS FROM CONTINUING
OPERATIONS (2.2) 0.8 0.0 0.0 (1.4)
DIVESTED OPERATIONS:
GAIN ON SALE NET OF TAX --- 86.1 --- --- 86.1
EARNINGS NET OF TAX 3.0 2.1 --- --- 5.1
NET EARNINGS (LOSS) 0.8 89.0 0.0 0.0 89.8
BASIC EARNINGS/(LOSS)
PER SHARE $ 0.04 $ 4.05 $ 0.00 $ 0.00 $ 4.09
BASIC AVERAGE SHARES
OUTSTANDING 21,919 21,961 --- --- 21,919
SOURCE Global Industrial Technologies, Inc.
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