VALCOR REPORTS LOWER EARNINGS FOR 1995
DALLAS, TEXAS . . January 29, 1996 . . Valcor, Inc. reported net income of
$19.5 million for 1995 compared to net income of $31.1 million in 1994. Fourth
quarter net income was $2.4 million, down from $8.8 million in the fourth
quarter of 1994. Average selling prices for medium density fiberboard (`MDF'')
generally peaked early in 1995 as increases in industry capacity and lower
demand contributed to lower MDF selling prices and operating rates during the
second half of the year. Hardware products overall margins were impacted by
product mix and the lower margins associated with the integration of certain
operations acquired in August 1995. Lower comparable store sales, increased
promotions and higher labor costs all negatively impacted fast food results.
SUMMARY OF OPERATIONS
THREE MONTHS ENDED YEARS ENDED
DECEMBER 31, DECEMBER 31,
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1994 1995 1994 1995
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(IN MILLIONS)
NET SALES
Building products $46.9 $45.8 $189.9 $200.0
Hardware products 17.5 21.4 70.0 80.2
Fast food 32.6 30.3 115.5 115.4
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$97.0 $97.5 $375.4 $395.6
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OPERATING INCOME
Building products $ 8.9 $ 2.1 $ 36.4 $ 25.2
Hardware products 6.2 4.8 20.9 19.9
Fast food 2.9 2.6 9.0 7.5
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TOTAL OPERATING INCOME 18.0 9.5 66.3 52.6
Interest expense 4.7 4.9 17.6 19.8
Corporate expenses (income), net .4 (.3) .5 .5
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Income before income taxes 12.9 4.9 48.2 32.3
Provision for income taxes 4.1 2.5 17.1 12.8
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NET INCOME $ 8.8 $ 2.4 $ 31.1 $ 19.5
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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