VALCOR REPORTS FIRST QUARTER RESULTS
DALLAS, TEXAS . . April 23, 1996 . . Valcor, Inc. reported a net loss of
$13.2 million for the first quarter of 1996, which includes a previously-
announced charge of approximately $15 million after-tax to close Medite's New
Mexico medium density fiberboard (`MDF'') plant. Net income was $6.7 million
in the first quarter of 1995.
Industry capacity additions, particularly in Europe, and slow economic
activity in markets where Medite sells MDF contributed to lower MDF selling
prices, which for the first quarter of 1996 were approximately 17% lower than
the first quarter of last year and 5% lower than the fourth quarter of 1995.
Changes in product mix contributed to lower hardware products earnings while a
3% increase in comparable store sales improved fast food results.
SUMMARY OF OPERATIONS
(Unaudited)
Quarters ended March 31, 1995 and 1996
(In millions)
1995 1996
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NET SALES
Building products $ 58.6 $ 46.5
Hardware products 20.1 21.2
Fast food 26.8 27.6
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$105.5 $ 95.3
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OPERATING INCOME
Building products:
Before restructuring charge $ 10.3 $ 1.5
Plant closure charge - (24.0)
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10.3 (22.5)
Hardware products 5.5 4.4
Fast food 1.1 1.6
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TOTAL OPERATING INCOME (LOSS) 16.9 (16.5)
Interest expense 5.0 4.9
Corporate items, net .9 -
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2 of 1
Income (loss) before income taxes 11.0 (21.4)
Income taxes (benefit) 4.3 (8.2)
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NET INCOME (LOSS) $ 6.7 $(13.2)
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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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