DALLAS, Oct. 29 /PRNewswire/ -- Global Industrial Technologies, Inc.
(NYSE: GIX), a Dallas-based industrial manufacturing company, today reported
earnings from continuing operations for the third quarter ended September 30,
1999, of $.30 per share on revenues of $135.9 million. Earnings from
continuing operations were $3.1 million, or $.14 per share, excluding the
$5.0 million payment received in the third quarter from RHI AG (RHI) pursuant
to its merger agreement with the Company. Global also recognized in the
quarter, an extraordinary loss of $.4 million or $.02 per share, related to
the early retirement of debt. Net earnings for the quarter were $6.4 million,
or $.28 per share.
For the three months ended September 30, 1998, Global reported a loss from
continuing operations of $8.3 million, or $.37 per share, before pre-tax
charges of $54.3 million for restructuring and asset impairments. Giving
effect to these charges and discontinued operations, for the three months
ended September 30, 1998, Global reported a net loss of $54.5 million or
$2.47 per share for the quarter.
Global's earnings from continuing operations for the nine months ended
September 30, 1999, were $15.0 million, or $.67 per share, on revenues of
$409.6 million. The nine months results for discontinued operations included
an additional $24.8 million net after tax charge on the sale of the assets of
Ameri-Forge Corporation, a $13.8 million gain on the sale of APG Lime and an
additional $.9 million INTOOL charge. Earnings from discontinued operations
were $.3 million for the nine months. Net earnings for the nine months were
$3.0 million, or $.13 per share.
For the nine months ended September 30, 1998, the Company reported a loss
of $6.2 million, or $.28 per share, from continuing operations, before pre-tax
charges of $55.0 million for restructuring and asset impairments. Giving
effect to these charges and discontinued operations, Global reported net
earnings of $35.7 million or $1.62 per share, including the gain on the sale
of INTOOL.
The Refractory Products and Minerals segment reported third quarter
revenues of $127.8 million and operating profits of $13.1 million compared to
revenues of $128.4 million and operating losses of $2.6 million during the
three months ended September 30, 1998. For the first nine months of 1999, the
segment reported revenues of $375.6 million and operating profits of
$36.7 million, compared with $319.5 million and $13.9 million, respectively,
for the nine months ended September 30, 1998.
The Company's shredding and recycling businesses and Corrosion Technology
unit, which are reported under the caption "All Other", generated revenues of
$7.6 million and operating profits of $1.5 million in the third quarter of
1999, compared with revenues of $13.5 million and an operating loss of
$.1 million for the three months ended September 30, 1998. For the first nine
months of 1999, the segment reported revenues of $32.8 million and operating
profits of $5.9 million, compared with revenues of $39.4 million and an
operating loss of $.7 million for the nine months ended September 30, 1998.
As of October 28, 1999, RHI AG announced that 9,431,317 shares of common
stock of Global had been tendered and not withdrawn pursuant to the previously
announced $13.00 per share cash tender offer for all of the outstanding shares
of common stock of Global by RHI's subsidiary, Heat Acquisition Corp. This
constitutes approximately 38% of Global's outstanding shares as of the
commencement of the tender offer. The tender offer will expire at 9:00 a.m.,
New York City time, on Monday, November 15, 1999, unless extended.
RHI irrevocably waived the financing condition to the previously announced
tender offer on October 29, 1999. The tender offer remains conditioned upon,
among other things, the tender of at least a majority of the shares of
Global's common stock outstanding on a fully-diluted basis and the expiration
of any applicable waiting period under the Hart-Scott-Rodino Act.
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 OPERATIONS
(In millions except per share data)
Three months ended Nine months ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
1999 1998 1999 1998
(Unaudited) (Unaudited)
Revenues
Net sales and operating
revenues $ 135.4 $ 141.9 $ 408.4 $ 358.9
Other 0.5 0.5 1.2 1.5
Total Revenues 135.9 142.4 409.6 360.4
Costs and Expenses
Cost of sales 104.1 118.8 308.4 284.1
Selling, engineering,
administrative and
general expenses 25.4 30.9 78.4 74.2
Interest expense 4.9 5.0 12.8 7.9
Restructuring charges 0.0 31.0 (1.4) 31.7
Impairment of long-lived assets --- 23.3 --- 23.3
Other - net (7.0) 1.0 (7.4) 4.3
Total Costs and Expenses 127.4 210.0 390.8 425.5
Earnings (loss) from continuing
operations before income taxes 8.5 (67.6) 18.8 (65.1)
Income tax benefit (expense) (1.7) 25.4 (3.8) 25.0
Earnings (loss) from continuing
operations 6.8 (42.2) 15.0 (40.1)
Discontinued operations:
Gain (loss) on sale of discontinued
operations less applicable income
taxes of $9.2, $8.7 and $49.4 --- (9.2) (11.9) 76.9
Earnings (loss) from discontinued
operations less applicable income
taxes of $2.2, $.2 and $.5 --- (3.1) 0.3 (1.1)
Earnings (loss) before
extraordinary item 6.8 (54.5) 3.4 35.7
Extraordinary item less applicable
income taxes of $.1 (0.4) --- (0.4) ---
Net earnings (loss) $ 6.4 $ (54.5) $ 3.0 $ 35.7
Basic earnings (loss) per common share:
Continuing operations $ 0.30 $ (1.91) $ 0.67 $ (1.82)
Discontinued operations $ 0.00 $ (0.56) $ (0.52) $ 3.44
Extraordinary item $ (0.02) $ 0.00 $ (0.02) $ 0.00
Net earnings (loss) $ 0.28 $ (2.47) $ 0.13 $ 1.62
Diluted earnings (loss) per common share:
Continuing operations $ 0.30 $ (1.91) $ 0.65 $ (1.82)
Discontinued operations $ 0.00 $ (0.56) $ (0.50) $ 3.44
Extraordinary item $ (0.02) $ 0.00 $ (0.02) $ 0.00
Net earnings (loss) $ 0.28 $ (2.47) $ 0.13 $ 1.62
GLOBAL INDUSTRIAL TECHNOLOGIES, INC.
1999 VS. 1998 SEGMENT
MILLIONS
Three Months Nine Months
Sept. 30, Sept. 30, Sept. 30 Sept. 30
1999 1998 1999 1998
Refractory Products and Minerals
Sales and Operating Revenues $127.8 $128.4 $375.6 $319.5
Operating Profit (Loss) 13.1 (2.6) 36.7 13.9
All Other
Sales and Operating Revenues 7.6 13.5 32.8 39.4
Operating Profit (Loss) 1.5 (0.1) 5.9 (0.7)
Divested Operations
Sales and Operating Revenues
Operating Profit (Loss) 0.0 0.0 0.0 0.0
Partnership Operations
Operating Profit (Loss) 0.0 (0.6) 0.0 (1.2)
Total Continuing Operations
Sales and Operating Revenues 135.4 141.9 408.4 358.9
Inter-Segment Sales 0.0 0.0 0.0 0.0
Consolidated Sales 135.4 141.9 408.4 358.9
Other Revenues 0.5 0.5 1.2 1.5
Consolidated Revenues 135.9 142.4 409.6 360.4
Operating Profit 14.6 (3.3) 42.6 12.0
GENERAL CORPORATE EXPENSE (1.2) (5.0) (12.4) (14.2)
INTEREST EXPENSE (4.9) (5.0) (12.8) (7.9)
RESTRUCTURING CHARGES 0.0 (31.0) 1.4 (31.7)
IMPAIRMENT OF LONG LIVED ASSETS 0.0 (23.3) 0.0 (23.3)
CONTINUING OPERATIONS EARNINGS
(LOSS) BEFORE TAXES 8.5 (67.6) 18.8 (65.1)
INCOME TAX BENEFIT (EXPENSE) (1.7) 25.4 (3.8) 25.0
EARNINGS (LOSS) FROM
CONTINUING OPERATIONS 6.8 (42.2) 15.0 (40.1)
CONTINUING OPERATIONS
BASIC EARNINGS (LOSS) PER SHARE $0.30 ($1.91) $0.67 ($1.82)
BASIC AVERAGE SHARES
OUTSTANDING 22,420 22,039 22,423 21,979
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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