United Dominion Earns $95 Million in 2000; $2.42 Per Share Before Non-Recurring Charges
CHARLOTTE, N.C., Feb 1 /PRNewswire/ --
United Dominion Industries Ltd. (NYSE, TSE: UDI) today announced 2000 net income, before non-recurring items, totaled $94.7 million ($2.42 per share) on sales of $2.4 billion. Earnings per share before non-recurring charges were flat year-over-year on a 10% increase in sales. Per share results for the year were calculated on 39.1 million shares outstanding, compared to 39.6 million shares last year.
Earnings per share before goodwill amortization and non-recurring items
were $3.01, a 3% year-over-year increase. Non-recurring items totaled $38.2
million, net of tax, and included restructuring charges, expenses related to
actions involving the possible sale of the company, and costs associated with
the December retirement of the company's long-time chief executive officer,
William R. Holland. After non-recurring charges, the company reported net
income of $56.6 million, or $1.45 per share. This compares to reported net
income in 1999 of $86.3 million, or $2.18 per share.
"2000 was a challenging year for the company," said Glenn A. Eisenberg,
president and chief operating officer. "Poor results at Marley Pump were
exacerbated by our inability to address its operating issues on a timely basis
due to an extended dispute with the U.S. Justice Department over its efforts
to block a planned joint venture. Combined with the impact of the weak Euro,
these factors accounted for a 30-cents per share decline in earnings. Even
though we did experience some softness in the petrochemical and infrastructure
markets, we were very pleased with strong results at most of our larger
divisions including Marley Engineered Products, Weil-McLain, Waukesha
Cherry-Burrell, Lunaire/LDS, Test Measurement, and Dock Products. Results in
local currencies for our Compaction Equipment and Bran+Luebbe divisions were
excellent as well, but the weak Euro depressed those results when translated
into U.S. dollars."
Outlook for 2001
"The market outlook for 2001 remains uncertain," Eisenberg said. "The
slowing of the U.S. economy will impact many manufacturers including United
Dominion. We expect to see continued softness in the petrochemical and
infrastructure markets in particular. However, the reduction in U.S. interest
rates, stabilizing oil prices, and strength in some of our diverse niche
markets including power generation, HVAC, pharmaceutical and
telecommunications should soften the impact of a declining U.S. economy. In
addition, United Dominion's geographic and product diversity and its strong
aftermarket and replacement business also will help mitigate a softening
economy."
The company previously announced the planned divestiture of five
businesses: TMI, Fenn Manufacturing, Door Products, Agricultural Equipment,
and the water division of Marley Pump. It recently completed the sale of TMI
and is in active discussions involving Door Products and Marley's water pump
business. Proceeds from the divestitures initially will be used to pay down
debt, but may ultimately be used for investment in its platform businesses and
potentially for share repurchases.
United Dominion is a diversified manufacturer of proprietary engineered
products in four business segments - Flow Technology, Machinery, Specialty
Engineered Products, and Test Instrumentation. It has annual sales of $2.4
billion and 14,000 employees in 20 countries. More information about the
company can be found on its website -
Source: SPX Corporation
