DALLAS, July 21 /PRNewswire/ -- Global Industrial Technologies, Inc.
(NYSE: GIX), a Dallas-based industrial manufacturing company, today reported
net earnings from continuing operations for the second quarter ended
June 30, 1999, of $4.8 million, or $.22 per basic share, on revenues of
$131.6 million. Global also recognized in the quarter, a one-time gain of
$13.8 million, or $.62 per basic share, on the sale of its Lime business and
an additional $.9 million loss when the Company revised its estimate of
liabilities retained in the sale of INTOOL in 1998. Net earnings for the
quarter, including the effect of discontinued operations, were
$17.9 million, or $.81 per basic share.
For the three months ended April 30, 1998, Global had net earnings of
$.5 million, or $.02 per basic share, on revenues of $106.9 million from
continuing operations. On its discontinued operations, Global recorded a
$86.1 million gain on the sale of INTOOL, and net earnings of $2.4 million.
Global's net earnings from continuing operations, for the six months
ended June 30, 1999, were $8.2 million, or $.37 per basic share, on revenues
of $273.7 million. The six months results for discontinued operations included
an additional $24.8 million net after tax charge on the sale of Ameri-Forge
Corporation, in addition to the $13.8 million gain on the sale of Lime and
the $.9 million INTOOL charge. Discontinued operations net earnings were
$.3 million for the six months.
For the six months ended April 30, 1998, Global incurred a net loss from
continuing operations of $1.3 million, or $.06 per basic share, on revenues of
$204.2 million.
The Refractory Products and Minerals segment reported second quarter
revenues of $121.4 million and operating profits of $12.4 million compared to
revenues of $94.7 million and operating profits of $8.7 million during the
three months ended April 30, 1998. For the first half of 1999, the segment
reported revenues of $247.8 million and operating profits of $23.6 million,
compared with $179.2 million and $12.5 million, respectively, for the six
months ended April 30, 1998.
The company's shredding and recycling businesses and Corrosion Technology
unit, which are reported under All Other, generated revenues of $9.8 million
and operating profits of $1.9 million in the second quarter of 1999, compared
with revenues of $11.1 million and an operating loss of $1.3 million for the
three months ended April 30, 1998. For the first six months of 1999, the
segment reported revenues of $25.2 million and operating profits of
$4.4 million, compared with revenues of $22.8 million and an operating loss of
$1.4 million for the six months ended April 30, 1998.
In the second quarter of 1999, Global recorded a $1.4 million gain on the
sale of Refractory Product and Mineral assets which had already been written
off as part of the restructuring charges taken in the third quarter of 1998.
On July 12, 1999, Global entered into a definitive agreement with RHI AG
under which a subsidiary of RHI has made a cash tender offer to purchase all
outstanding shares of Global for $13 per share, or approximately $300 million.
The total transaction value, including Global's indebtedness, will be over
$500 million. The completion of the tender offer is conditioned on at least a
majority of the outstanding Global shares having been tendered and not
withdrawn, RHI's obtaining arrangement of financing and regulatory and other
customary conditions.
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.
Global Industrial Technologies, Inc. and Subsidiaries
Consolidated Condensed Statements of Earnings
(In millions except per share data)
Three months ended Six months ended
June 30, April 30, June 30, April 30,
1999 1998 1999 1998
(Unaudited) (Unaudited)
Revenues
Net sales and
operating revenues $ 131.2 $ 106.6 $ 273.0 $ 203.5
Other 0.4 0.3 0.7 0.7
Total Revenues 131.6 106.9 273.7 204.2
Costs and Expenses
Cost of sales 97.3 81.3 204.3 156.3
Selling, engineering,
administrative and
General expenses 26.8 19.5 53.0 42.5
Restructuring expenses (1.4) (1.4)
Interest expense 3.6 1.6 7.9 3.3
Other - net (0.8) 3.2 (0.4) 3.9
Total Costs and Expenses 125.5 105.6 263.4 206.0
Earnings (loss) from
continuing operations
before income taxes 6.1 1.3 10.3 (1.8)
Income tax benefit (expense)(1.3) (0.8) (2.1) 0.5
Earnings (loss) from
continuing operations 4.8 0.5 8.2 (1.3)
Discontinued operations:
Gain (loss) on sale of
discontinued operations
less applicable
Income taxes of $23.9,
$40.2, $8.7 and $40.2 12.9 86.1 (11.9) 86.1
Earnings (loss) from
discontinued operations
less applicable
Income taxes of $.2, $.1,
$.2 and $1.7 0.2 2.4 0.3 5.0
Net earnings (loss) $ 17.9 $ 89.0 $ (3.4) $ 89.8
Basic earnings (loss)
per common share:
Continuing operations $ 0.22 $ 0.02 $ 0.37 $ (0.06)
Discontinued operations$ 0.59 $ 4.03 $ (0.52) $ 4.15
Net earnings (loss) $ 0.81 $ 4.05 $ (0.15) $ 4.09
Diluted earnings (loss) per
common share:
Continuing operations $ 0.21 $ 0.02 $ 0.36 $ (0.06)
Discontinued operations$ 0.58 $ 4.00 $ (0.51) $ 4.15
Net earnings (loss) $ 0.79 $ 4.02 $ (0.15) $ 4.09
GLOBAL INDUSTRIAL TECHNOLOGIES, INC.
1999 VS. 1998 SEGMENT
(In millions except per share data)
1999 1998
3 Months 6 Months 3 Months 6 Months
June 30 Mar 31 June 30 April 30 Jan 31 April 30
Refractory Products
and Minerals
Sales and Operating
Revenues $ 121.4 $ 126.4 $ 247.8 $ 94.7 $ 84.5 $ 179.2
Operating Profit
(Loss) 12.4 11.2 23.6 8.7 3.8 12.5
All Other
Sales and
Operating
Revenues 9.8 15.4 25.2 11.1 11.7 22.8
Operating Profit
(Loss) 1.9 2.5 4.4 (1.3) (0.1) (1.4)
Divested Operations
Sales and
Operating
Revenues 0.8 0.7 1.5
Operating Profit
(Loss) 0.0 0.0 0.0 (0.3) (0.1) (0.4)
Partnership Operations
Operating Profit
(Loss) 0.0 0.0 0.0 (0.5) 0.0 (0.5)
Total Continuing
Operations
Sales and
Operating
Revenues 131.2 141.8 273.0 106.6 96.9 203.5
Inter-Segment
Sales 0.0 0.0 0.0 0.0 0.0 0.0
Consolidated
Sales 131.2 141.8 273.0 106.6 96.9 203.5
Other Revenues 0.4 0.3 0.7 0.3 0.4 0.7
Consolidated
Revenues 131.6 142.1 273.7 106.9 97.3 204.2
Operating
Profit 14.3 13.7 28.0 6.6 3.6 10.2
General
Corporate
Expense (6.0) (5.2) (11.2) (3.7) (5.0) (8.7)
Interest
Expense (3.6) (4.3) (7.9) (1.6) (1.7) (3.3)
Restructuring
Charges 1.4 0.0 1.4 0.0 0.0 0.0
Continuing
Operations
Earnings
(Loss) Before
Taxes 6.1 4.2 10.3 1.3 (3.1) (1.8)
Income
Tax Benefit
(Expense) (1.3) (0.8) (2.1) (0.8) 1.3 0.5
Net Earnings
(Loss) From
Continuing
Operations $ 4.8 $ 3.4 $ 8.2 $ 0.5 $ (1.8) $(1.3)
Continuing Operations
Basic Earnings
(Loss) Per
Share $ 0.22 $ 0.15 $ 0.37 $ 0.02 $ (0.08) $ (0.06)
Basic Average
Shares
Outstanding 22,341 22,260 22,301 21,961 21,920 21,940
SOURCE Global Industrial Technologies, Inc.
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CONTACT:
George Pasley, Vice President, Communications
of Global Industrial Technologies, Inc., 214-953-4510
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