VALCOR ANNOUNCES THIRD QUARTER EARNINGS
DALLAS, TEXAS . .October 23, 1995 . . Valcor, Inc. reported
net income of $17.1 million for the first nine months of 1995
compared to net income of $22.3 million for the first nine months
of 1994. Third quarter net income was $3.6 million, down from net
income of $9 million in 1994. Average selling prices for medium
density fiberboard ("MDF") during the quarter were up 4% from the
1994 period but were down 7% from the second quarter of this
year. Increases in industry capacity, particularly in Europe, and
slower economic growth in North America and Europe are
contributing to lower MDF selling prices and operating rates.
Hardware products margins were impacted by higher costs
associated with product mix. Fast food comparable store sales
increased slightly in the third quarter, however promotional
sales continued to hamper margins.
SUMMARY OF OPERATIONS
(Unaudited)
(In millions)
Three months Nine months
ended ended
September 30, September 30,
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1994 1995 1994 1995
---- ---- ---- ----
Net sales
Building products $49.6 $46.2 $143.0 $154.2
Hardware products 17.0 19.4 52.5 58.8
Fast food 28.6 29.5 82.9 85.1
----- ----- ------ ------
$95.2 $95.1 $278.4 $298.1
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Operating income
Building products $10.8 $ 4.5 $ 27.5 $ 23.1
Hardware products 4.6 4.5 14.7 15.1
Fast food 2.2 2.0 6.1 4.9
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Total operating 17.6 11.0 48.3 43.1
income
Interest expense (4.3) (5.0) (12.9) (14.9)
Corporate, net (.1) (.2) (.1) (.8)
----- ----- ------ ------
Income before income 13.2 5.8 35.3 27.4
taxes
Income taxes 4.2 2.2 13.0 10.3
----- ----- ------ ------
Net income $ 9.0 $ 3.6 $ 22.3 $ 17.1
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Valcor Inc., a wholly-owned subsidiary of publicly-traded
Valhi, Inc. (NYSE: VHI), is engaged in the building products,
hardware products and fast food industries. In connection with
the registration of its 9 5/8% Senior Notes due 2003, Valcor
files periodic reports with the Securities and Exchange
Commission.
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