Earnings two cents better than estimated. >>(REUTERS) THERMO ELECTRON <TMO.N> Q1 SHR DILUTED $0.17 VS $0.37 THERMO ELECTRON Q1 SALES $1.01 BLN VS $944.3 MLN
(PR NEWSWIRE) Thermo Electron Announces First Quarter Results
Thermo Electron Announces First Quarter Results
WALTHAM, Mass., May 12 /PRNewswire/ -- Thermo Electron Corporation
(NYSE: TMO) today reported that net income for the quarter ended April 3,
1999, was $28.3 million, or $.17 per diluted share, compared with
$65.5 million, or $.37 per diluted share, last year. Revenues increased to
$1.01 billion in 1999 from $944.3 million in 1998. Excluding restructuring
costs and other nonrecurring income, net, extraordinary gains, and gains on
issuance of subsidiary stock, net income would have been $26.7 million, or
$.16 per diluted share, in 1999, versus $37.6 million, or $.23 per diluted
share, in 1998.
"We are making progress in reshaping our business, and our reorganization
is progressing according to plan," said George N. Hatsopoulos, chairman and
chief executive officer of Thermo Electron. "While our first quarter financial
performance is clearly disappointing, we are starting to see encouraging
signs. We closed the quarter with a 16 percent higher backlog than a year ago.
Bookings in the quarter were $1.02 billion, slightly exceeding revenues in
what is seasonally a weak period for us."
Consolidated Statement of Income (unaudited)
(In thousands except per share amounts)
April 3, 1999 April 4, 1998
Revenues $1,009,538 $ 944,263
Costs and Operating Expenses:
Cost of product and
service revenues 582,060 533,694
Expenses for research
and development(a) 101,925 91,318
Selling, general, and
administrative expenses 257,802 226,854
941,787 851,866
Operating Income Before
Restructuring Costs and
Other Nonrecurring Income, Net 67,751 92,397
Restructuring Costs
and Other Nonrecurring Income, Net 2,967 --
Operating Income 70,718 92,397
Gain on Issuance of
Stock by Subsidiaries -- 39,605
Interest Income 17,959 23,765
Interest Expense (27,686) (25,607)
Other Income (Expense), Net 2,327 (527)
Income Before Income Taxes,
Minority Interest, and
Extraordinary Item 63,318 129,633
Provision for Income Taxes 30,899 40,794
Minority Interest Expense (b) 4,120 24,069
Income Before Extraordinary Item 28,299 64,770
Extraordinary Item, Net of Provision
for Income Taxes and Minority
Interest of $1,262 (c) -- 723
Net Income $28,299 $65,493
Earnings per Share:
Basic $.18 $.41
Diluted $.17 $.37
Weighted Average Shares:
Basic 158,045 159,131
Diluted 158,270 176,580
(a) Includes cost of research and development contracts of $41,276 and
$38,727 in the first quarter of 1999 and 1998, respectively.
(b) Includes $12,387 in the first quarter of 1998 related to gains on
issuance of stock recorded by the company's majority-owned
subsidiaries.
(c) Increased basic earnings per share by $.01 and had no impact on
diluted earnings per share in the first quarter of 1998.
Condensed Consolidated Balance Sheet (unaudited)
(In thousands) April 3, 1999 Jan. 2, 1999
ASSETS
Current Assets:
Cash and short-term investments $1,157,996 $1,547,255
Other current assets 1,909,639 1,754,074
3,067,635 3,301,329
Property, Plant, and Equipment, Net 894,030 832,962
Long-term Investments 74,287 95,537
Other Assets 276,782 186,168
Cost in Excess of Net Assets
of Acquired Companies 2,037,664 1,915,649
$6,350,398 $6,331,645
LIABILITIES AND SHAREHOLDERS' INVESTMENT
Current Liabilities $1,225,663 $1,138,323
Deferred Income Taxes and
Other Deferred Items 200,765 175,984
Long-term Obligations 2,021,986 2,025,531
Minority Interest 602,948 649,382
Common Stock of Subsidiaries
Subject to Redemption 91,446 94,301
Shareholders' Investment 2,207,590 2,248,124
$6,350,398 $6,331,645
A recording of the company's quarterly update will be available from
5:00 p.m. EST today until May 28, 1999. Please call 800-951-9642 within the
U.S., or 402-220-4249 outside the U.S.
Thermo Electron Corporation is a world leader in monitoring, analytical,
and biomedical instrumentation; biomedical products including heart-assist
devices, respiratory-care equipment, and mammography systems; and paper
recycling and papermaking equipment. The company also develops alternative-
energy systems and clean fuels, provides a range of services including
industrial outsourcing and environmental-liability management, and conducts
research and development in advanced imaging, laser, and electronic
information-management technologies. With annual worldwide sales of $3.9
billion, Thermo Electron has approximately 26,000 employees and operations in
23 countries. Headquarters are in Waltham, Massachusetts. More information is
available on the Internet at thermo.com.
The following constitutes a "Safe Harbor" statement under the Private
Securities Litigation Reform Act of 1995: This press release contains forward-
looking statements that involve a number of risks and uncertainties. Important
factors that could cause actual results to differ materially from those
indicated by such forward-looking statements are set forth under the heading
"Forward-looking Statements" in Exhibit 13 to the company's annual report on
Form 10-K for the year ended January 2, 1999. These include risks and
uncertainties relating to: the company's spinout and acquisition strategies,
competition, international operations, technological change, possible changes
in governmental regulations, capital spending and government funding policies,
dependence on intellectual property rights, and the potential impact of the
year 2000 on processing date-sensitive information.
SOURCE Thermo Electron Corporation
-0- 05/12/99
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