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Engelhard Corporation Reports 1997 Fourth-Quarter and Year-End Results

Strategic Insights

— 1 min read

Engelhard Corporation reported audited 1997 fourth-quarter and year-end results, with a special charge of $21.3 million after tax, or 15 cents per share, related to an inventory loss from the previously announced base metal fraud in Japan. The company has not yet recorded any insurance or third-party recovery, but management is vigorously pursuing its claims for losses and expects substantial recovery. Fourth-quarter sales reached $1,014 million, up 23 percent from $825 million in the year-ago quarter, while full-year sales reached $3.63 billion, up 14 percent over $3.18 billion for 1996.

Key Takeaways:

  • Engelhard Corporation reported a net loss of $72.8 million, or 50 cents per share, in the fourth quarter of 1997, including a special charge of $117.7 million after tax, or 81 cents per share.
  • The company's fourth-quarter net earnings before the charges totaled $44.9 million, or 31 cents per share on a diluted basis, compared with $42.9 million, or 30 cents per share for the fourth quarter of 1996.
  • Engelhard's sales for the fourth quarter reached $1,014 million, up 23 percent from $825 million in the year-ago quarter.
  • The company's full-year net earnings before the charges totaled $165.5 million, or $1.14 per share on a diluted basis, compared with $150.4 million, or $1.03 per share in 1996, an increase of 11 percent on a per share basis.
  • Engelhard's full-year sales reached $3.63 billion, up 14 percent over $3.18 billion for 1996.
  • The company has not yet recorded any insurance or third-party recovery due to the complexity of the fraud, the ongoing nature of the investigation and the period in which the claims may be realized.

Statistics:

  • Fourth-quarter net earnings: $44.9 million
  • Fourth-quarter net loss: $72.8 million
  • Special charge for 1997: $117.7 million after tax, or 81 cents per share
  • Full-year net earnings: $165.5 million
  • Full-year sales: $3.63 billion
  • Increase in fourth-quarter sales: 23 percent
  • Increase in full-year sales: 14 percent
  • Per-share earnings for the fourth quarter: 31 cents
  • Per-share earnings for the year: $1.14
  • Employee count: Not disclosed

Sources:

  • BUSINESS WIRE, "Engelhard Corporation Reports Audited 1997 Fourth-Quarter and Year-End Results," March 10, 1998.
  • Engelhard Corporation, "Fourth Quarter and Year-End 1997 Earnings Release," March 10, 1998.

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