DALLAS, Dec. 18 /PRNewswire/ -- Global Industrial Technologies, Inc.
(NYSE: GIX) reported pre-tax earnings for its fiscal year ending October 31,
1997, of $1.64 per share before previously reported $43.5 million special
charges as the result of the sales of The Marion Power Shovel Company, British
Jeffrey Diamond of the United Kingdom, and a partnership interest in Komdresco
of South Africa. Excluding the special charges, net earnings for 1997 are
down 14% compared to 1996.
Revenues for 1997 were $602.4 million, down 7% compared to 1996. Segment
operating earnings for 1997 were $62.9 million, a 16% decline compared to
1996.
Global reported a year-to-date loss after taxes, and the special charges,
of ($4.4 million), or ($.20) per share. The $4.4 million net loss is after a
35% tax benefit for the entire year, primarily attributed to the special
charges.
Fourth Quarter 1997 earnings were $11.2 million, or $.49 per share,
compared to $.73 per share for the same time in 1996. Revenues in the fourth
quarter were $161.4 million compared to $171.7 million last year.
Global's Chairman and Chief Executive Officer J. L. Jackson said: "We have
had to deal with a number of short term business challenges during 1997 which
affected our results adversely. Those actions are largely behind us and we
see 1998 as a year of improved profitability. On the positive side, we are
pleased to report that our two largest subsidiaries, Harbison-Walker and
INTOOL, have both enjoyed record 1997 production. Our expectations for these
businesses in 1998 remain positive."
Global's 1997 business issues included the delayed start-up of the new
Ameri-Forge undercarriage venture, as well as manufacturing equipment problems
in the flange business, the strength of the U.S. dollar against European
currencies and the Peso, along with lower operating margins in the North
American refractories business, impacted overall earnings.
"We anticipate," Jackson concluded, "that our U.S. refractories cost
reduction production program, a realignment of the refractories worldwide
management structure, and Forge products enhanced production procedures and
equipment upgrades, will contribute positively to 1998's results."
Statements in this press release that are not strictly historical are
"forward-looking" statements under the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995.
Although Global 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 Global's actual results and
corporate developments to differ materially from those expected. Factors that
could cause results and developments to differ materially from Global'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, cyclicality of the markets for the products of a
major segment, litigation, significant cost variances, and other risks
described from time to time in Global's SEC reports including quarterly
reports on Form 10Q, annual reports on Form 10K and reports on Form 8K.
Global Industrial Technologies is a major manufacturer of technologically
advanced industrial products that support high-growth markets worldwide.
GLOBAL INDUSTRIAL TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS
(In millions except per share data)
Three months ended Twelve months ended
October 31, October 31,
1997 1996 1997 1996
Revenues
Net sales and operating
revenues $ 161.2 $ 171.4 $ 601.2 $ 646.3
Other 0.2 0.3 1.2 1.6
Total Revenues 161.4 171.7 602.4 647.9
Costs and Expenses
Cost of sales 113.3 117.8 427.4 461.8
Selling, engineering,
administrative and
general expenses 34.6 35.2 126.3 132.6
Interest expense 2.3 2.2 10.1 7.0
Special charges 0.0 0.0 43.5 0.0
Other -- net 2.3 (3.7) 1.8 (8.9)
Total Costs and Expenses 152.5 151.5 609.1 592.5
Earnings (loss) before
income taxes 8.9 20.2 (6.7) 55.4
Income tax (provision) benefit 2.3 (3.7) 2.3 (10.0)
Net earnings (loss) $ 11.2 $ 16.5 $ (4.4) $ 45.4
Earnings (loss) per
common share $ 0.49 $ 0.73 $ (0.20) $ 2.01
Average common shares
outstanding 22.1 22.6 22.4 22.6
Depreciation, Depletion
& Amortization 4.9 4.6 21.7 18.7
Capital Expenditures 16.4 10.1 64.0 53.7
Global Industrial Technologies, Inc.
Results of Operations By Segment
$ Millions
1996
1st 2nd 3rd 4th Total
Qtr. Qtr. Qtr. Qtr. Year
Refractory Products
Sales and Operating
Revenues 69.4 74.1 75.7 81.3 300.5
Operating Profit 4.7 7.6 7.3 8.4 28.0
Minerals
Sales and Operating
Revenues 13.9 13.4 13.4 10.9 51.6
Operating Profit 3.6 3.1 1.9 2.6 11.2
Industrial Tool
Sales and Operating
Revenues 18.8 24.2 26.6 27.6 97.2
Operating Profit 1.6 3.8 4.3 4.5 14.2
Specialty Equipment Products
Sales and Operating
Revenues 9.1 13.6 15.1 13.0 50.8
Operating Profit 0.5 1.2 1.8 1.3 4.8
Forged Products
Sales and Operating
Revenues 11.9 12.8 12.7 13.2 50.6
Operating Profit 3.1 3.2 3.7 2.9 12.9
Total Continuing Operations
Sales and Operating
Revenues 123.1 138.1 143.5 146.0 550.7
Inter-Segment Sales (5.0) (5.9) (4.9) (4.9) (20.7)
Consolidated Sales 118.1 132.2 138.6 141.1 530.0
Other Revenues 0.6 0.3 0.4 0.3 1.6
Consolidated Revenues 118.7 132.5 139.0 141.4 531.6
Operating Profit 13.5 18.9 19.0 19.7 71.1
Divested Operations (A)
Sales and Operating
Revenues 31.2 22.7 32.1 30.3 116.3
Operating Profit (0.8) (0.1) 1.2 3.4 3.7
Total Consolidated Revenues 149.9 155.2 171.1 171.7 647.9
Segment Operating Profit 12.7 18.8 20.2 23.1 74.8
50% Share of Partnerships
Sales 11.2 13.9 11.3 18.9 55.3
Operating Profit 0.2 0.1 0.7 1.3 2.3
NET OPERATING PROFIT 12.9 18.9 20.9 24.4 77.1
GENERAL CORPORATE EXPENSE (6.1) (6.4) (5.0) (4.2) (21.7)
SPECIAL CHARGE --- --- --- --- ---
EARNINGS BEFORE TAXES 6.8 12.5 15.9 20.2 55.4
INCOME TAX (PROVISION) BENEFIT (1.2) (2.3) (2.8) (3.7) (10.0)
NET EARNINGS 5.6 10.2 13.1 16.5 45.4
NET EARNINGS PER SHARE 0.25 0.45 0.58 0.73 2.01
AVERAGE SHARES OUTSTANDING 22,565 22,693 22,680 22,622 22,640
Global Industrial Technologies, Inc.
Results of Operations By Segment
$ Millions
1997
1st 2nd 3rd 4th Year to
Qtr. Qtr. Qtr. Qtr. Date
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 1.9 1.7 1.3 0.8 5.7
Industrial Tool
Sales and Operating
Revenues 23.3 28.6 28.7 32.6 113.2
Operating Profit 2.5 4.2 4.6 8.4 19.7
Specialty Equipment Products
Sales and Operating
Revenues 13.2 18.7 18.6 18.3 68.8
Operating Profit (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 136.0 159.7 160.5 165.4 621.6
Inter-Segment Sales (4.0) (6.4) (5.8) (4.2) (20.4)
Consolidated Sales 132.0 153.3 154.7 161.2 601.2
Other Revenues 0.3 0.3 0.4 0.2 1.2
Consolidated Revenues 132.3 153.6 155.1 161.4 602.4
Operating Profit 12.0 19.4 15.6 15.9 62.9
Divested Operations (A)
Sales and Operating
Revenues 0.0 0.0 0.0 0.0 0.0
Operating Profit 0.0 0.0 0.0 0.0 0.0
Total Consolidated Revenues 132.3 153.6 155.1 161.4 602.4
Segment Operating Profit 12.0 19.4 15.6 15.9 62.9
50% Share of Partnerships Sales 0.0 0.0 0.0 0.0 0.0
Operating Profit 0.0 0.0 0.0 0.0 0.0
NET OPERATING PROFIT 12.0 19.4 15.6 15.9 62.9
GENERAL CORPORATE EXPENSE (6.7) (5.9) (6.5) (7.0) (26.1)
SPECIAL CHARGE (20.5) 0.0 (23.0) 0.0 (43.5)
EARNINGS BEFORE TAXES (15.2) 13.5 (13.9) 8.9 (6.7)
INCOME TAX (PROVISION) BENEFIT 3.8 (3.3) (0.5) 2.3 2.3
NET EARNINGS (11.4) 10.2 (14.4) 11.2 (4.4)
NET EARNINGS PER SHARE (0.50) 0.45 (0.64) 0.49 (0.20)
AVERAGE SHARES OUTSTANDING 22,690 22,547 22,429 22,127 22,448
(A) Divested business consists of the Marion Surface Mining Operation and
the underground mining portion of British Jeffrey Diamond.
SOURCE Global Industrial Technologies, Inc.
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CONTACT:
Investor Contact: George Pasley, V. P.
Communications, 214-953-4510; or Media Contact: Larry Nance,
Manager, Corporate Relations/Public Affairs, 214-953-4518, both
of Global Industrial Technologies, Inc.
CNOC: http://www.prnewswire.com or fax, 800-758-5804, ext.
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