Robbins & Myers Reports Second Quarter Results

Dayton, Ohio (ots-PRNewswire) - Robbins & Myers, Inc. (NYSE: RBN) today reported sales and earnings for the second quarter ended February 28, 1999, were in line with expectations. The Company previously announced that second quarter results would be lower than the second quarter of fiscal 1998 due to continued weakness in the specialty chemicals, oil and gas markets and some softness in the pharmaceutical market. Sales for the second quarter were $94.9 million compared to $108.4 million reported for the second quarter of fiscal 1998. The Company recorded a previously announced one-time charge of $5 million in this quarter primarily for the closure of its Fairfield, California manufacturing facility. This charge decreased net income for the quarter by $3.3 million and diluted earnings per share by $.30 ($.25 due to the one-time charge and $.05 due to the anti-dilutive effect of the convertible note) to a loss of $.3 million and $.03 diluted earnings per share. Net income and diluted earnings per share in the same period of the prior fiscal year were $7.9 million and $.62, respectively. For the first half of the fiscal year, sales were $193.2 million versus $212.5 million for the same period in 1998. Net income was $3.7 million and $16.1 million for the first six months of fiscal 1999 and fiscal 1998, respectively. Year-to-date diluted earnings per share were $.34 versus $1.24 for the comparable period last year. On a year-to-date basis, the $3.3 million one-time charge decreased diluted earnings per share by $.27 ($.25 due to the one-time charge and $.02 due to the anti- dilutive effect of the convertible note). Gerald L. Connelly, President and Chief Executive Officer, said, "The major event impacting results for the quarter was the continued weakness in our key end markets. Capital spending in the specialty chemicals sector is down significantly and the low price of oil continues to depress all activity in that sector." Connelly continued, "Closure of the Fairfield, California facility and the consolidation of power sections and down-hole pump manufacturing into Houston allows us to size the Energy Systems business unit appropriately for today's oil and gas sector environment and permits us to better serve our customers. In addition, we have initiated actions to strengthen profitability in this down cycle. These include further staff reductions, stringent controls on costs and a reduction in planned capital spending." "The work stoppage at our Moyno Industrial Products facility in Springfield, Ohio, continues with economics the main issue," stated Connelly. "However, we are meeting customer requirements due to the contribution of our salaried workforce, our distributors and also outsourcing of manufacturing." Connelly concluded, "The current global business climate has created a difficult period for the Company. We are encouraged by strong marketplace acceptance of recent new product introductions and we believe the actions undertaken will help stabilize our performance for the balance of this fiscal year and position Robbins & Myers well to maximize results in the long-term." Robbins & Myers, Inc. is an international manufacturer and marketer of superior quality fluids management products and systems serving the process industries: specialty chemicals, pharmaceutical, oil and gas exploration, production and pipeline, wastewater treatment, food and beverage, and pulp and paper. Headquartered in Dayton, Ohio, the Company has facilities in the United States, Canada, Europe, Brazil, Mexico, Singapore and joint ventures in China, India and Taiwan. In addition to historical information, this news release contains forward- looking statements and performance trends which are subject to certain risks and uncertainties that could cause actual results to differ materially from these statements and trends. Such factors include, but are not limited to, a significant decline in capital expenditures in the specialty chemicals and pharmaceutical industries, a major decline in oil and gas prices, foreign exchange rate fluctuations, continued availability of acceptable acquisition candidates, and general economic conditions that can affect demand in the process industries. The Company's common stock trades on the New York Stock Exchange under the symbol RBN. ROBBINS & MYERS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED INCOME STATEMENT

Three Months Ended Six Months Ended

Feb. 28, Feb. 28, Feb. 28, Feb. 28,

1999 1998 1999 1998

(in thousands, except per share data) Net sales $94,876 $108,372 $193,142 $212,530 Cost of sales 63,193(A) 68,797 127,957(A) 134,477 Gross profit 31,683 39,575 65,185 78,053 Operating expenses 23,204 24,407 47,454 48,733 Other expense (income)

4,708(A) (516) 4,285(A) (988) Operating income 3,771 15,684 13,446 30,308 Interest expense 3,614 3,664 7,154 5,882 Income before income taxes

157 12,020 6,292 24,426 Income taxes 54 4,086 2,140 8,304 Minority interest, net

of taxes 405 -- 405 - - Net income ($302) $7,934 $3,747 $16,122 Net Income Per Share:

Basic ($0.03) $0.72 $0.34 $1.47

Diluted ($0.03) $0.61 $0.34 $1.24 Weighted Average Common

Shares Outstanding:

Basic 10,914 11,025 10,925 10,995

Diluted 13,529 13,985 13,548 13,976 Unfilled Orders $96,310 $109,000 $96,310 $109,000

(A) -- In the three month and six month periods of fiscal 1999, cost of sales and other expense include one-time charges of $400,000 and $4,600,000, respectively, primarily for the closure of the Company's Fairfield, California Manufacturing Facility.

Note: All known adjustments have been reflected in this report, but the information is subject to annual audit and year- end adjustments which are estimated to be insignificant. ROBBINS & MYERS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited) (in thousands) February 28, 1999 February 28, 1998 ASSETS

Current Assets

Cash and cash equivalents $8,240 $12,067

Accounts receivable 65,590 77,494

Inventories 58,515 62,019

Other current assets 3,169 3,902

Deferred taxes 9,627 6,257

Total Current Assets 145,141 161,739

Goodwill & Other Intangible

Assets, Net 218,489 219,068

Other Assets 11,239 4,824

Property, Plant & Equipment, Net

116,506 117,531

Total $491,375 $503,162 LIABILITIES AND SHAREHOLDERS' EQUITY

Current Liabilities

Accounts payable $23,656 $25,319

Accrued expenses 55,513 49,607

Current portion of long-term debt

3,844 3,821

Total Current Liabilities 83,013 78,747

Long-Term Debt - Less Current Portion

198,251 227,375

Other Long-Term Liabilities 61,104 53,544

Shareholders' Equity 149,007 143,496

Total $491,375 $503,162 ots Original Text Service: Robbins & Myers, Inc. Internet: http://www.newsaktuell.de Contact: Hugh E. Becker, Vice President Investor Relations, of Robbins & Myers (USA) 937-225- 3335 Web site: http://www.robn.com

Keywords Robbins & Myers

Region
USA, Canada, U.N.

Category
Chemical and pharmaceutical industries

RECEIVING PRESS RELEASES
Subscribe for free

Important notice:
Subscribers please note that material bearing the label "PROTEXT" is not part of CTK's news service and is not to be published under the "CTK" label. Protext is a commercial service providing distribution of press releases from clients, who are identified in the text of Protext reports and who bear full responsibility for their contents.