Sunbeam Reports First Quarter 2000 Results
Revenues and Operating Results Continue to Improve
BOCA RATON, Fla., May 10 /PRNewswire/ -- Sunbeam Corporation (NYSE: SOC - news) today reported continued improvement in its operating results. Year on year, net sales increased 3% to $539 million for the quarter ended March 31, 2000, and operating results narrowed to a loss of $3 million.
Jerry W. Levin, Chairman and Chief Executive Officer, said, ``While the first quarter is the Company's slowest sales season and operationally its least profitable, the results for the quarter are encouraging and represent ongoing improvement in the performance of our businesses. Most encouraging was the exceptional performance of our Outdoor Cooking business -- which was among our most severely under-performing units in recent years. Such improvements, combined with continued strong performance at Coleman, more than offset weak performance at our Powermate unit, whose results were impacted by lower year-on-year generator sales. Powermate's results in the quarter were reflective of factors that impacted the portable generator category generally, including a lack of storm activity nationwide, as well as effects from Y2K sales in the prior year. Excluding the Powermate generator shortfall, total Company revenues and operating results were substantially improved.''
After interest, taxes, other income and expenses and minority interest expense, Sunbeam's first quarter net loss was $59 million, or $0.55 per basic and diluted share, compared with a net loss of $61 million, or $0.60 per basic and diluted share for the prior year. Current year net results were affected by foreign currency translation and by additional interest expense related to higher average borrowing levels, interest rates and loan amendment fees. Prior year results were affected by expenses related to Y2K compliance efforts.
Levin added, ``These results, though improved, are not indicative of the value we have created and will continue to create for Sunbeam's shareholders. Looking forward, we expect operating results to further improve as we execute our long-range strategy that focuses on consumer-oriented new products. We can already see that this strategy is yielding rewards, as the Outdoor Cooking increase is directly attributable to the success of our recently launched Coleman grill and accessories lines which were among the first products to emerge from our new product development efforts. Such favorable results reaffirm our belief in our three-year objectives of averaging double-digit annualized revenue growth and achieving double-digit EBITDA margins by the end of fiscal year 2002, after taking into account the effects of divestitures.'' |
