DALLAS, Oct. 21 /PRNewswire/ -- Global Industrial Technologies, Inc.,
(NYSE: GIX) said today that earnings for the year are expected to be below
Wall Street estimates. The decline in projected results is due to several
operating issues, as well as a charge to fourth quarter earnings that relates
to a reorganization announced today at the Corporation's largest operating
unit, Harbison-Walker Refractories. Global will report audited financial
results on or about December 18, 1997.
Global Chairman and Chief Executive Officer J.L. Jackson says some of the
factors negatively impacting the fourth quarter (as described below) will
carry over into the first quarter of 1998. However, the effect of the
Harbison-Walker reorganization, cost cutting, together with growing production
at Ameri-Forge in Houston, "should improve 1998 operating earnings
significantly over 1997."
Jackson explains that while "we are confident that Global's businesses are
capable of providing our shareholders with above average returns over time, a
delayed start-up in our new Ameri-Forge undercarriage venture, currency issues
(primarily European currencies and the Peso), as well as lower operating
margins in the North American refractories business due to unanticipated
changes in sales mix, continue to temporarily hinder our earnings growth.
"We are dealing aggressively with all of these issues, and that includes"
Jackson said, "a significant realignment of our Harbison-Walker Refractories
business management team, and their worldwide responsibilities."
Forward-looking statements concerning earnings and results from operations
are contained in this announcement. The following important factors could
cause actual results to differ materially from those described in such
statements: recouping delayed business on a schedule different than
anticipated; development of new products; changes in currency exchange rates;
litigation; timing of additions to manufacturing capacity; unanticipated
production or shipment delays; and significant variances in sales or
costs at a major business unit.
Global Industrial Technologies is a major manufacturer of technologically
advanced industrial products that support high-growth markets around the
world.
SOURCE Global Industrial Technologies, Inc.
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CONTACT:
Investor: George Pasley, V.P. Communications,
214-953-4510, or Media: Larry Nance, Manager, Corporate
Relations/Public Affairs, 214-953-4518, both of Global Industrial
Technologies, Inc.
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