U.S. Industries Announces Third-Quarter Income Increase
U.S. Industries Inc., parent company of Jacuzzi, Zurn and Eljer, reported an earnings increase of $7 million (9 cents per diluted share) in the third quarter of 2002 ended June 30, compared to a loss of $115 million ($1.57 per diluted share) in 2001’s third quarter. Included in these figures are restructuring charges of $6.4 million within the bath and plumbing segment.
Sales for the third quarter were $319 million, compared to $308.1 million in 2001. The increases in the third quarter are attributable to the acquisition of Rexair, which was partially offset by a decrease in sales in the bath and plumbing segment. The decrease in sales for bath and plumbing is partly related to decreased sales in the nonpremium spa and whirlpool bath businesses, which was affected by reduced sales of certain product lines for which the company declined requests for price and service concessions.
This decrease is partially offset by sales increases in the United Kingdom bath and sink business, which experienced improved weather conditions and implemented customer programs, and the domestic premium spa business, which was successful in adding new products and dealers.
Through operating cash flows and its plan to sell noncore assets, U.S. Industries has made nearly $523 million of amortization payments, including amounts deposited into escrow for the holders of the company’s senior notes and certain other creditors.