DALLAS, Feb. 19 /PRNewswire/ -- Global Industrial Technologies, Inc.,
(NYSE: GIX), a Dallas-based industrial manufacturing company, announced today
reported earnings for the first quarter of $0.04 per share on revenues of
$137.5 million and operating profits of $8.7 million. For the same period a
year ago, Global reported a loss of $0.50 per share. That loss included a
$20.5 million pre-tax charge to earnings related to the divestiture of three
operating units sold later in the year. Excluding the effects of that charge-
off, Global reported $0.18 per share first quarter 1997 earnings on revenues
of $132.3 million and operating profits of $12.0 million.
Global's Chairman and Chief Executive Officer, J. L. Jackson, said, "We
are encouraged by our recent strategic planning effort that led to the
decision to sell our INTOOL operation and direct the proceeds from the sale to
further investments in our core refractories operation and other opportunities
that will lead to long-term profit growth. We believe that by playing a key
role in the consolidation of the refractories industry we will be able to
achieve significant synergies, efficiencies and savings as well as an expanded
product mix and geographic reach that will facilitate our ability to generate
increasing value from this business.
"Our first quarter performance continued to reflect several business
issues that affected our results negatively in 1997," Mr. Jackson said. "The
impact of these issues -- unfavorable foreign currency exchange rates, loss of
production at Ameri-Forge and declining non-ferrous metals pricing -- should
be reduced in future quarters as a result of a number of steps taken last
year.
"We now have in place an expanded equipment maintenance program at Ameri-
Forge which will help us maintain a more stable rate of production, and the
costs associated with the start-up of our new Undercarriage product line have
resulted in the first stage of production which commenced late last year. We
believe this new venture holds excellent potential for sales and earnings
growth.
"Although there has been a dramatic drop in international copper prices,
which has slowed our Corrosion Technology International unit's refining
equipment sales," Mr. Jackson continued, "other product diversification
opportunities are being explored. We are also pleased with the early results
from Magnesitwerk Aken GmbH, our recent refractory acquisition in Germany.
Contributions from this new unit should help mitigate some of the currency
problems we have faced, and open new markets for Global in Europe, Russia, the
Middle East, and the Confederation of Independent States.
"Finally, at our U.S. Harbison-Walker operation," Mr. Jackson concluded,
"we have seen the successful introduction of a new spinel refractories product
for sale here and abroad which is growing both our domestic and international
markets significantly."
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.
GLOBAL INDUSTRIAL TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS
(in millions except per share data)
Three months
ended
January 31,
1998 1997
(Unaudited)
Revenues
Net sales and operating revenues $137.1 $132.0
Other 0.4 0.3
Total Revenues 137.5 132.3
Costs and Expenses
Cost of sales 100.6 93.2
Selling, engineering, administrative
and general expenses 32.5 29.8
Interest expense 2.6 2.6
Special charges --- 20.5
Other - net 0.7 1.4
Total Costs and Expenses 136.4 147.5
Earnings (loss) before income taxes 1.1 (15.2)
Income tax (provision) benefit (0.3) 3.8
Net earnings (loss) $ 0.8 $(11.4)
Basic earnings (loss) per common share $ 0.04 $(0.50)
Diluted earnings (loss) per common share $ 0.04 $(0.50)
Average common shares outstanding 21.9 22.7
Depreciation, Depletion & Amortization $ 6.3 $ 5.5
Capital Expenditures $ 15.0 $ 12.4
GLOBAL INDUSTRIAL TECHNOLOGIES, INC.
1998 VS. 1997 ACTUAL
MILLIONS
1997
1st 2nd 3rd 4th TOTAL
Quarter Quarter Quarter Quarter 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
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 (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 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
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)
EARNINGS (LOSS) 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 (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)
AVERAGE SHARES OUTSTANDING 22,690 22,547 22,429 22,127 22,448
1998
1st TOTAL
Quarter YEAR
Refractory Products
Sales and Operating Revenues 77.5 77.5
Operating Profit 4.3 4.3
Minerals
Sales and Operating Revenues 9.9 9.9
Operating Profit (Loss) (0.5) (0.5)
Industrial Tool
Sales and Operating Revenues 28.7 28.7
Operating Profit 4.0 4.0
Specialty Equipment Products
Sales and Operating Revenues 12.4 12.4
Operating Profit (Loss) (0.2) (0.2)
Forged Products
Sales and Operating Revenues 11.5 11.5
Operating Profit 1.1 1.1
Total Continuing Operations
Sales and Operating Revenues 140.0 140.0
Inter-Segment Sales (2.9) (2.9)
Consolidated Sales 137.1 137.1
Other Revenues 0.4 0.4
Consolidated Revenues 137.5 137.5
Operating Profit 8.7 8.7
GENERAL CORPORATE EXPENSE (7.6) (7.6)
SPECIAL CHARGE 0.0 0.0
EARNINGS (LOSS) BEFORE TAXES 1.1 1.1
INCOME TAX (PROVISION) BENEFIT (0.3) (0.3)
NET EARNINGS (LOSS) 0.8 0.8
BASIC EARNINGS (LOSS) PER SHARE $ 0.04 $ 0.04
AVERAGE SHARES OUTSTANDING 21,919 21,919
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.
CNOC: http://www.prnewswire.com or fax, 800-758-5804, ext.
422169
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