Whitman Corporation Announces Third Quarter Earnings
23 October 1997
Whitman Corporation Announces Third Quarter Earnings
CHICAGO, Oct. 23 -- Whitman Corporation reported
sales of $898.4 million for the third quarter of 1997, up nearly five percent
from the third quarter of 1996.
As previously announced, the company recorded special charges in the third
quarter relating to each of its three business units and the corporate office.
These charges totaled $83.5 million after tax or 81 cents per share.
The company also recorded an after-tax charge of $2.9 million to
discontinued operations related to the settlement of tax issues for the years
1988 - 1991.
Including all charges, the company reported a net loss for the quarter or
$33.8 million or 33 cents a share.
Income from continuing operations, excluding the special charges, totaled
$52.6 million, compared to $52.9 million in the third quarter of last year.
On a per share basis, this amounted to 51 cents for the quarter, up from
50 cents in the third quarter of 1996.
On a pretax basis, the special charges totaled $107.7 million.
Approximately $3.4 million of these charges were recorded by Pepsi-Cola
General Bottlers, $67.6 million by Midas, $30.7 million by Hussmann and the
remaining $6.0 million by Whitman. The company anticipates taking additional
charges of approximately $55 million in the fourth quarter.
Bruce S. Chelberg, Chairman and Chief Executive Officer, said, "Even
though our businesses were affected by some difficult issues, there were
several positive developments in the quarter. At Pepsi General, domestic soft
drink pricing showed some signs of improvement and international operations
made further progress. At Hussmann, domestic demand for supermarket equipment
continued strong, with backlogs reaching an all-time high. During the
quarter, Midas announced its intention to franchise substantially all of its
company-operated stores in the United States. Most importantly, we continued
to move forward with the planned spin-offs of Hussmann and Midas."
Nine Month Results
For first nine months of 1997, Whitman sales totaled nearly $2.4 billion,
up nearly four percent from the same period in 1996.
Including all charges, net income for the first nine months of 1997
totaled $15.4 million, or 15 cents a share.
Excluding the special charges, income from continuing operations totaled
$101.8 million, down eight percent from the same period in 1996. On a per
share basis, this amounted to 99 cents a share for the first nine months of
1997, compared to $1.04 a share for the first nine months of 1996.
Pepsi-Cola General Bottlers
Pepsi-Cola General Bottlers reported sales of $452.9 million for the third
quarter, up 6.2 percent from sales of $426.5 million for the third quarter
last year.
Domestic sales increased only 1.3 percent to $417.3 million, reflecting
continuing pricing pressures in the industry. Although pricing improved
modestly as the quarter progressed, the average net selling price for the
quarter was down nearly three percent from the third quarter of 1996. Domestic
case volume rose approximately four percent from the third quarter of 1996.
International sales increased to $35.6 million from $14.6 million in the
third quarter of 1996, reflecting Pepsi General's expansion into Russia and
the Baltics.
Pepsi General's operating profit in the third quarter, excluding special
charges, rose to $71.2 million, up from $70.2 million in the third quarter of
1996. International operations earned a small profit in the quarter, compared
to a loss of $1.4 million in the third quarter of 1996.
Midas International
Midas International's sales and revenues totaled $161.7 million for the
third quarter, down 4.1 percent from the third quarter of 1996.
Operating profit, excluding special charges, declined to $24 million from
$26.5 million in the third quarter a year ago.
Midas' results continued to reflect the ongoing industry-wide slow-down in
retail demand for automotive service, as well as a less favorable product mix
in the domestic market and a decline in product sales to Midas dealers.
Hussmann Corporation
Hussmann Corporation reported sales of $283.8 million for the third
quarter, an increase of 8.5 percent from sales of $261.5 million for the third
quarter last year.
Operating profit for the quarter, excluding special charges, totaled $31.5
million, up from $30.4 million in the third quarter of 1996.
Both the U.K. and Latin American operations showed improved sales and
earnings, although margins in Latin America were adversely affected by a less
favorable product mix in Mexico and the inclusion of the company's recent
acquisition in Brazil.
SOURCE Whitman Corporation