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Harmon Industries, Inc. NASDAQ: HRMN For Immediate Release |
Charles M. Foudree (816) 229-3345 |
Harmon Industries Announces 1995 Results
BLUE SPRINGS, Mo. (Wednesday, February 7, 1996) -- Harmon Industries, Inc. today announced financial results for 1995.
In the fourth quarter, sales increased 13 percent to $36.5 million compared with $32.2 million in 1994. Net earnings increased 11 percent to $1.84 million for the quarter compared with $1.66 million in 1994. Earnings per share increased eight percent to $0.27, from $0.25 in 1994.
Sales increased 14 percent in fiscal year 1995 to $137 million from $120 million in 1994. Net earnings for the year were $6.9 million compared with $7.6 million in 1994, a decrease of ten percent. Earnings per share were $1.01 in 1995, compared with $1.16 in 1994, a decrease of 13 percent.
"Earnings are certainly below our expectations for the year," said Björn Olsson, president and chief executive officer. "This is mainly due to a slowdown in orders caused by continued reorganization of the railroad industry and the difficulties we've experienced integrating last year's acquisition of Servo's Transportation Division. However, we believe that Harmon is in an excellent position to achieve both short and long-term growth, and that we will fully benefit from the changes and acquisitions we have made."
Harmon's backlog is strong at $49 million entering 1996. Harmon also recently delivered a $13 million system to the Chicago Transit Authority to renovate their Green Line route.
Research and development remains a core component of Harmon's strategy. Harmon committed more than $5 million toward research and development in 1995, and will continue to work with freight and transit customers to develop new technology. Harmon will participate in at least two significant test projects in 1996:
- The company's Incremental Train Control System (ITCS) technology is currently being installed as part of a Federal Railroad Administration (FRA) project in Michigan. This new technology will allow trains to run at higher operating speeds with enhanced safety features.
- Harmon will participate in a Toronto Transit Commission project that will showcase a prototype of Harmon's UltraBlock System that allows trains to operate more efficiently with increased safety measures. This demonstration is being closely watched by transit authorities in other cities as they move toward communication-based systems.
Harmon Industries, Inc., is a leading supplier of signal and train control products to railroads and transit systems throughout North America and the world. Its stock is traded on the Nasdaq Stock Market under the symbol "HRMN." For further information, please contact Charles M. Foudree, executive vice president-finance and chief financial officer, Harmon Industries, Inc., 1300 Jefferson Court, Blue Springs, MO 64015. The telephone number is (816) 229-3345.
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