Hi Scotty, i am still with you on MDT.
missed opportunity on CCI and Driller puts.
Do you think PHB will have dollar and earning problems.
they do business world wide.
(see below)
Tuesday January 6, 8:19 am Eastern Time
Company Press Release
SOURCE: Pioneer Hi-Bred International, Inc.
Pioneer Announces First Quarter Results
DES MOINES, Iowa, Jan. 6 /PRNewswire/ -- Pioneer Hi-Bred International, Inc. (NYSE: PHB - news) today announced that operations for the first quarter of fiscal 1998, ended November 30, 1997, resulted in a loss of $51 million on sales of $79 million. After payment of dividends on preferred stock, the net loss attributable to common shareholders totaled $55 million, or $.73 a share. In the first quarter of 1997, the Company recorded a loss of $45 million, or $.55 per share, on sales of $90 million.
Because of the seasonality of the seed business, first quarter losses are typical for Pioneer and seldom are an indicator of year-end results. A large portion of the Company's sales and profits are generated and recorded in the third quarter of the fiscal year, which ends May 31.
Results during the first quarter were affected by the completion of an agreement with DuPont. Under terms of the agreement, DuPont purchased, at a cost of $1.7 billion, Pioneer preferred voting shares which are convertible into 16.4 million common shares. Pioneer used most of the proceeds to purchase approximately the same number of common shares through a Dutch auction self-tender. As a result of those two actions, DuPont's ownership interest in Pioneer stands at approximately 20 percent.
Pioneer and DuPont also created a broad research alliance and a separate joint venture company to speed the discovery, development, and delivery of new crops with value to farmers, livestock producers, and consumers worldwide.
Current year first quarter results, excluding the impact from the above equity transactions, were a loss of $58 million, or $.70 a share. Interest income earned on the proceeds from the sale of preferred stock to DuPont, reduced the current loss by $7 million. This, together with the preferred dividends of $4 million paid to DuPont and a lower number of average shares outstanding from repurchasing the Company's common stock through the Dutch auction, had the effect of increasing the Company's loss per common share by $.03. The result was a loss of $.73 per share in the first quarter.
Operating results in the first quarter were affected by lower sales and margins on operations in Latin America and by the effects of adverse weather in Asia, said Charles S. Johnson, chairman, president, and chief executive officer. In addition, results were affected by planned increases in investments in research and development, sales, and marketing, as the Company continued its unprecedented launch of new corn hybrids and soybean varieties for the North American market, he said.
''We are very excited about the prospects for 1998 and believe our earnings will be in the $3.20 to $3.60 per share range that we indicated earlier,'' Johnson said. ''We have seen outstanding performance in our new products, and we are particularly excited about the performance of our Bt corn hybrids,'' he said.
The entire Pioneer lineup had performed well during the 1997 harvest, Johnson said. After approximately 280,000 side-by-side comparisons conducted by the Company during the 1997 harvest, Pioneer corn hybrids had a 6.4 bushel per acre advantage over the average of the competitors' products. That compares to a 5.9 bushel yield advantage a year earlier.
The hybrids expected to be the Company's top 10 sellers for the 1998 growing season had a yield advantage of approximately 10 bushels per acre higher than the average of the competitors' products. Pioneer corn hybrids with the Bt gene are showing a yield advantage of nearly 12 bushels over the average of competitors' Bt products and a 17 bushel advantage over the average of competitors' non-Bt products.
Johnson noted that farmers planting Pioneer (R) brand hybrids won 23 of 27 national awards in the National Corn Growers Association yield contests, as well as 321 of 489 state awards. The 1997 harvest marked the third consecutive year that farmers planting Pioneer hybrids have won two-thirds of all national and state awards in the yield contests.
Some of the important factors that could cause actual results to vary significantly from management's expectations noted in these forward looking statements include the weather, government programs/approvals, commodity prices, changes in corn acreage, intellectual property positions, product performance, customer preferences, currency fluctuations, and costs.
Pioneer Hi-Bred International, Inc. is the world's leading supplier of agricultural genetics and is a leading integrator of agricultural technology. Headquartered in Des Moines, Iowa, Pioneer develops, produces, and markets a full line of seeds, microbial products, and services to farmers, grain processors, and other customers worldwide.
Pioneer Hi-Bred International, Inc.
(Unaudited, in Millions, Except for Per Share Amounts)
Quarter Ended
November 30
1997 1996
Net Sales $79 $90
(Loss) Before Taxes $(78) $(72)
Provision For Income Taxes $27 $27
Net (Loss) $(51) $(45)
Preferred Dividends Paid $4 $0
Net (Loss) Applicable to Common $(55) $(45)
Net (Loss) Per Common Share $(.73) $(.55)
Average Common Shares Outstanding 75.3 82.4
SOURCE: Pioneer Hi-Bred International, Inc.
off to an NBA game, ag |
