TROY, Mich., February 8, 1996 - Kmart Corporation
(NYSE: KM) today reported, on a comparable store basis, consolidated
sales rose 5.5% for the four-week period ended January 24, 1996 over
sales for the four weeks ended January 25, 1995. January sales in
U.S. Kmart stores increased 7.5% on a comparable store basis.
Total sales for the four week period from consolidated operations
increased 2.9%, excluding sales of the divested Borders Group,
OfficeMax and The Sports Authority operations. On that basis, sales
amounted to $1.954 billion in January 1996, versus sales of
$1.898 billion for the same period last year.
Sales from consolidated operations for the 13 weeks ended January
24, 1996 were $10.089 billion, up 2.2% from the $9.877 billion for
the prior year and excluding sales of the divested Borders Group,
OfficeMax and The Sport Authority operations. On a comparable store
basis, consolidated sales rose 3.7% for the same period.
Sales from consolidated operations for the 52 weeks ended January
24, 1996 were $33.948 billion, up 4.4% from the $32.514 billion for
the 52 weeks of 1995, excluding sales of the divested Borders Group,
OfficeMax and The Sports Authority operations. On a comparable
store basis, consolidated sales rose 4.3% for the same period.
Kmart Corporation serves America with 2,171 Kmart and 167 Builders
Square retail outlets, and operates 147 stores internationally.
Kmart Corporation common stock is listed on the New York, Pacific
and Chicago Stock Exchanges.
KMART CORPORATION
SALES BY BUSINESS
4 Weeks Ended % Change
All Comparable
(Millions U.S. $) 1-24-96 1-25-95 Stores Stores
General Merchandise
United States $ 1,706 $ 1,634 4.3 7.5
International 97 87 12.0 11.6 (a)
Total General Merchandise 1,803 1,721 4.7 7.7
Builders Square 151 177 (14.7) (14.8)
Total Kmart $ 1,954 $ 1,898 2.9 5.5
13 Weeks Ended % Change
All Comparable
(Millions U.S. $) 1-24-96 1-25-95 Stores Stores
General Merchandise
United States $ 9,075 $ 8,793 3.2 5.9
International 422 405 4.2 3.7 (a)
Total General Merchandise 9,497 9,198 3.3 5.8
Builders Square 592 679 (12.8) (10.7)
Total Kmart $10,089 $ 9,877 2.2 3.7
52 Weeks Ended % Change
All Comparable
(Millions U.S. $) 1-24-96 1-25-95 Stores Stores
General Merchandise
United States $30,037 $28,386 5.8 5.6
International 1,272 1,177 8.1 3.0 (a)
Total General Merchandise 31,309 29,563 5.9 5.5
Builders Square 2,639 2,951 (10.6) (8.7)
Total Kmart $33,948 $32,514 4.4 4.3
(a) International Comparable Store Sales Change is calculated on
sales in the applicable local currency.
PLEASANTON, Calif. -- Feb. 8, 1996 -- href="chap11.hexcel.html">Hexcel Corp.
(NYSE/PSE: HXL) today reported results for the fourth quarter and
year ended Dec. 31, 1995.
Net sales for the quarter were $92.7 million, a 21% increase
over net sales for the fourth quarter of 1994 of $76.7 million.
Gross margin was $18.4 million for the fourth quarter of 1995, or
19.8% of sales, compared with $11.0 million for the fourth quarter
1994, or 14.3% of sales.
Net income was $2.1 million or $0.11 per share for the 1995
quarter, versus a net loss of $2.6 million, or $0.35 per share for
the same period of 1994. The net loss for the fourth quarter of
1994 was reduced by a $15.9 million gain on the sale of the
Chandler, Ariz., manufacturing facility and related assets and
technology, but includes $2.9 million of bankruptcy claim
adjustments and $8.2 million of bankruptcy reorganization expenses.
There were approximately 18.1 million weighted average shares
outstanding during the fourth quarter of 1995, compared with 7.3
million in the fourth quarter of 1994, due to the completion of the
Company's equity offering during the second quarter of the year.
Net sales for 1995 totaled $350.2 million, compared with 1994
net sales of $313.8 million. Gross margin was $67.1 million for
1995, or 19.2% of sales, compared with 1994 gross margin of $48.4
million, or 15.4% of sales. Net income for 1995 was $2.7 million or
$0.17 per share, versus a 1994 net loss of $30.0 million or $4.10
per share. Results for 1995 include bankruptcy reorganization
expenses of $3.4 million. Results for 1994 include $20.2 million of
bankruptcy reorganization expenses and an $8.0 million provision
related to the Company's joint venture in Japan, as well as the
$15.9 million Chandler gain and $2.9 million of bankruptcy claim
adjustments. There were approximately 15.7 million weighted average
shares outstanding during 1995, versus 7.3 million in 1994.
The improvement in 1995 fourth quarter sales over the same
period of 1994 continued a trend which began in the first quarter of
the year, and culminated in a 12% revenue increase from 1994 to
1995. Sales of advanced composites and reinforcement fabrics were
higher throughout 1995 than in 1994, in both the U.S. and Europe.
The Company benefited from increased sales to recreation and general
industrial markets, and from a significant military contract for
advanced composites. Sales of honeycomb were slightly higher in the
fourth quarter of 1995 than in the comparable quarter of 1994, due
to increased aerospace sales, but slightly lower for the year,
primarily as a result of the divestiture of the Company's Chandler
operations. Changes in currency exchange rates also contributed to
the overall sales increase, as more than 40% of the Company's sales
are to international markets.
The increase in 1995 fourth quarter gross margin reflects the
impact of both higher sales and certain manufacturing cost
reductions. Gross margin improvement was experienced in all three
of the Company's businesses. Fourth quarter and full year
marketing, general and administrative expenses were higher for 1995
than for the comparable periods of 1994, but were slightly lower as
a percentage of sales. The increase in marketing, general and
administrative expenses was largely attributable to higher sales
levels, changes in currency exchange rates, and certain costs
incurred in connection with the proposed acquisition of the
worldwide Composites Business of Ciba-Geigy Limited (the "Ciba
Composites Business").
John J. Lee, Chief Executive Officer of the Company, stated,
"1995 was a significant year for Hexcel. The Company successfully
emerged from bankruptcy reorganization proceedings, completed a $50
million equity recapitalization, and improved both sales and
operating results. In addition, the Company signed definitive
agreements to acquire the Ciba Composites Business. Although much
work remains to be done, Hexcel has taken some important steps in
the right direction. Our challenge is to build on the
accomplishments of the past year, and to position Hexcel for long-
term success in the structural materials industry."
As previously reported, the acquisition of the Ciba Composites
Business is subject to various conditions, including the approval of
certain matters by Hexcel's stockholders. The combined company
would specialize in lightweight, high-performance structural
materials, composite parts, and structures for aerospace,
recreation, and general industrial markets. Hexcel has fixed
December 27, 1995 as the record date for determining stockholders
entitled to notice of and to vote at a meeting of stockholders, to
be held on February 21, 1996, for purposes of approving, among other
things, certain matters relating to the Company's proposed
acquisition of the Ciba Composites Business. Subject to such
approval and the satisfaction of certain other conditions, the
acquisition is expected to be completed at the end of February.
Hexcel Corporation is an international developer and
manufacturer of honeycomb, advanced composites, and reinforcement
fabrics used in the commercial aerospace, space and defense,
recreation, and general industrial markets.
Hexcel Corporation and Subsidiaries
Consolidated Statements of Operations
Unaudited
The Quarter Ended The Year Ended
December 31, December 31,
1995 1994 1995 1994
(In thousands except
per share data)
Net sales $92,694 $76,715 $350,238 $313,795
Cost of sales (74,342) (65,736) (283,148)
(265,367)
Gross margin 18,352 10,979 67,090 48,428
Marketing, general
and administrative
expenses (13,637) (11,344) (49,324)
(45,785)
Other income, net 134 13,007 791 4,861
Operating income 4,849 12,642 18,557 7,504
Interest Expenses (1,980) (4,760) (8,682)
(11,846)
Bankruptcy reorganization
expenses -- (8,207) (3,361) (20,152)
Income (loss) from
continuing operations
before income taxes 2,869 (325) 6,514
(24,494)
Provision for
income taxes (810) (2,217) (3,313)
(3,586)
Income (loss) from
continuing operations 2,059 (2,542) 3,201
(28,080)
Discontinued operations:
Income from operations,
net of provision for
income taxes of $441 in
1994 -- -- -- 989
Losses during phase-out
period, net of provision
for income taxes of
$136 in 1994 -- (43) (468)
(2,879)
Net income (loss) $ 2,059 $ (2,585) $ 2,733
$(29,970)
Net income (loss) per
share and equivalent
share:
Primary and fully
diluted:
Continuing operations $ 0.11 $ (0.34) $ 0.20 $
(3.84)
Discontinued
operations -- (0.01) (0.03)
(0.26)
Net income (loss) $ 0.11 $ (0.35) $ 0.17 $
(4.10)
Weighted average
shares and equivalent
shares 18,092 7,310 15,742 7,310