Robbins & Myers Sees Solid Earnings Improvement For Third Quarter And Nine Months

DAYTON, Ohio (ots-PRNewswire) - Robbins & Myers, Inc. (NYSE: RBN) today announced a strong earnings improvement for the third quarter ended May 31, 2000 and also for the first nine months of the fiscal year. Sales and earnings for the quarter also reflected a positive increase sequentially over second quarter results.

Sales for the third quarter were $104.3 million versus $103.8 million reported for the same period in fiscal 1999. IBIT for the quarter increased 19% to $12.3 million from $10.3 million in fiscal 1999. Fiscal 2000 third quarter net income was $5.4 million compared to $4.4 million for last year. Quarterly diluted earnings per share were up 22% to $.45 from the $.37 reported last year.

Nine months sales were $293.6 million compared to $297.0 million for the first nine months of fiscal 1999. This year's IBIT was $30.1 million compared to $28.7 million (before one-time charges for plant closing) last year. Net income was $11.9 million and $8.2 million for fiscal year 2000 and 1999, respectively. Year-to-date diluted earnings per share of $1.02 increased over the $.74 reported for the previous fiscal year.

Gerald L. Connelly, President, and CEO of Robbins & Myers, Inc, stated, "The Company's earnings improvement reflects cost control initiatives implemented, enhanced productivity as well as recovery in the energy markets. We are pleased with the improvement despite market price pressures in our Process Systems segment. Going forward, the rate of further improvement will directly relate to recovery in the chemical processing, pharmaceutical and other processing markets."

Results for this year are driven primarily by recovery in the Company's Energy Systems business. Segment sales for the quarter increased 59% over the same period in fiscal 1999 while IBIT margin dramatically improved to 20%. This segment also witnessed a sales increase of 18% over second quarter levels. Current strong oil and natural gas prices have boosted capital spending in this sector. Indications are that this condition should continue through the balance of calendar 2000. Energy Systems' sales for nine months are 31% above last year with an improvement in IBIT margin to 16%

Quarterly sales for the Process Systems segment declined due to continued softness in the chemical processing market coupled with the negative translation impact of Euro based currencies. The weakness of the Euro is also imposing market price pressure, which has impacted UK operations in particular. While year-to-date sales for this segment are down, IBIT margin has remained constant at approximately 12%. The Company's industrial pump unit, Moyno, Inc., has posted solid year-to-year improvement in both sales and earnings.

Connelly concluded, "We remain cautiously optimistic regarding the balance of the year. With continued strength of the energy sector and recovery in our other primary markets, we will achieve expectations. Actions taken in fiscal 1999 will allow the Company to capitalize on improving market fundamentals."

Robbins & Myers, Inc. is an international manufacturer and marketer of superior quality fluid management products and systems serving the process industries including: specialty chemicals, pharmaceuticals, oil and gas exploration, production and pipeline, water treatment, food and beverage, pulp and paper, and mining. Headquartered in Dayton, Ohio, the Company has facilities in the United States, Canada, Europe, Brazil, Mexico, Singapore and joint ventures in China, India, and Taiwan.

In addition to historical information, this release contains forward- looking statements and performance trends, which are subject to certain risks, and uncertainties that could cause actual results to differ materially from these statements and trends. Such factors include, but are not limited to, a significant decline in capital expenditures in specialty chemicals and pharmaceutical industries, a major decline in oil and natural gas prices, foreign exchange rate fluctuations, continued availability of acceptable acquisition candidates and general economic conditions that can affect demand in the process industries.

The Company's common stock trades on the New York Stock Exchange under the symbol RBN.

ROBBINS & MYERS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED INCOME STATEMENT
(Unaudited)

Three Months Ended Nine Months Ended
May 31, May 31, May 31, May 31,
2000 1999 2000 1999

(in thousands, except per share data)

Sales $104,303 $103,829 $293,568 $296,971
Cost of sales 67,218 68,979 191,227 196,936(a)
Gross profit 37,085 34,850 102,341 100,035 Operating expenses 22,661 22,440 65,890 66,143
Total 14,424 12,410 36,451 33,892

Amortization
expense 2,045 1,984 6,006 5,874
Other 102 143 395 4,289(a) Income before
interest and
income taxes 12,277 10,283 30,050 23,729
Interest expense 3,478 3,175 10,034 10,329
Income before
income taxes
and minority
interest 8,799 7,108 20,016 13,400
Income tax expense 3,168 2,417 7,212 4,557
Minority interest 257 275 933 680
Net income $5,374 $4,416 $11,871 $8,163

Net Income Per Share:
Basic $0.49 $0.40 $1.08 $0.75
Diluted $0.45 $0.37 $1.02 $0.74

Weighted Average Common Shares Outstanding:
Basic 10,948 10,938 10,944 10,929
Diluted 13,424 13,521 13,446 13,537

Backlog $93,635 $84,860 $93,635 $84,860
Orders $103,053 $93,229 $313,244 $288,063

(a) -- In the nine month period of fiscal 1999, cost of sales and other expenses include one-time charges of $400,000 and $4,600,000, respectively, primarily for the closure of the Company's Fairfield, California Manufacturing Facility.

Note: All known adjustments have been reflected in this report, but the information is subject to annual audit and year-end adjustments which are estimated to be insignificant.

ROBBINS & MYERS, INC. AND SUBSIDIARIES
CONDENSED BUSINESS SEGMENT INFORMATION
(Unaudited)

Three Months Ended Nine Months Ended May 31, May 31, May 31, May 31, (in thousands) 2000 1999 2000 1999

Sales
Process Systems $80,305 $88,693 $231,533 $249,708 Energy Systems 23,998 15,136 62,035 47,263 Total $104,303 $103,829 $293,568 $296,971

IBIT Before Amortization
and Other
Process Systems $10,821 $13,129 $30,439 $34,204 Energy Systems 5,334 1,956 11,818 5,661(a) Corporate and
Eliminations (1,731) (2,675) (5,806) (5,973) Total $14,424 $12,410 $36,451 $33,892

IBIT
Process Systems $9,495 $11,877 $26,531 $30,738 Energy Systems 4,707 1,173 9,884 (329)(a) Corporate and
Eliminations (1,925) (2,767) (6,365) (6,680) Total $12,277 $10,283 $30,050 $23,729

Depreciation and
Amortization
Process Systems $4,034 $4,189 $12,796 $12,649 Energy Systems 1,745 1,835 5,369 5,481 Corporate and
Eliminations 222 257 647 734 Total $6,001 $6,281 $18,812 $18,864

Orders
Process Systems $80,357 $77,899 $247,349 $240,794 Energy Systems 22,696 15,330 65,895 47,269 Total $103,053 $93,229 $313,244 $288,063

Backlog
Process Systems $86,356 $81,867 $86,356 $81,867 Energy Systems 7,279 2,993 7,279 2,993 Total $93,635 $84,860 $93,635 $84,860

(a) -- In the nine month periods of fiscal 1999, cost of sales and other expenses include one-time charges of $400,000 and $4,600,000, respectively, primarily for the closure of the Company's Fairfield, California Manufacturing Facility.

ROBBINS & MYERS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(Unaudited)

(in thousands) May 31, 2000 August 31, 1999
ASSETS
Current Assets:
Cash and cash equivalents $10,975 $8,901 Accounts receivable 74,324 74,900 Inventories 62,049 53,747 Other current assets 7,160 12,824 Deferred taxes 5,369 5,470 Total Current Assets 159,877 155,842

Goodwill & Other Intangible Assets 206,394 214,100 Other Assets 14,560 6,641 Property, Plant & Equipment 114,557 117,269 Total $495,388 $493,852

LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $29,097 $27,949 Accrued expenses 51,912 54,935 Current portion of long-term debt 548 121 Total Current Liabilities 81,557 83,005

Long-Term Debt - Less Current Portion 184,557 191,151 Other Long-Term Liabilities 68,584 65,470 Shareholders' Equity 160,690 154,226 Total $495,388 $493,852

ots Original Text Service: Robbins & Myers, Inc.
Internet: http://recherche.newsaktuell.de

Contact: Hugh E. Becker, Vice President, Investor Relations of Robbins & Myers, Inc., 937-225-3335

Web site: http://www.robn.com

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