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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of May 1998
ANSALDO SIGNAL N.V.
-------------------
(Exact name of registrant as specified in its charter)
Schiphol Boulevard 267
1118 BH Schiphol
The Netherlands
(Address of principal executive office)
Indicate by check mark whether the Registrant files or will file annual reports
under cover of Form 20-F or Form 40-F:
Form 20-F [X] Form 40-F
Indicate by check mark whether the Registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:
Yes [ ] No [X]
This document contains 4 pages.
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ANSALDO SIGNAL N.V.
Contact
-------
Anthony A. Florence
Phone: (412) 688-2102
Fax: (412) 688-2518
ANSALDO SIGNAL ANNOUNCES FIRST QUARTER RESULTS
================================================================================
13 MAY, 1998 (SCHIPHOL, THE NETHERLANDS)
Ansaldo Signal N.V. (NASDAQ: ASIGF) today announced first quarter results for
1998 in line with industry expectations, showing strong improvement over first
quarter 1997 and supporting the company's expectations of profitability in the
second half of the year.
Revenues for the first quarter 1998 were US$ 72.0 million, up from the first
quarter 1997 level of US$ 69.7 million.
Gross profit for the first quarter 1998 was US$ 14.8 million, compared to US$
10.7 million for the first quarter 1997.
Gross profit as a percentage of revenues was 20.5% in the first quarter 1998,
versus 15.3% in the first quarter 1997.
Operating expenses as a percent of revenue for first quarter 1998 were 17.4%
compared to 22.8% for first quarter 1997.
Consolidated net loss for the first quarter ended March 31, 1998 was (US$ 0.5
million), or (US$ 0.02 dilutive per share), versus a net loss of (US$ 5.4
million), or (US$ 0.26 dilutive per share) in the first quarter 1997.
James N. Sanders, Ansaldo Signal president and chief executive officer, said,
"The Company's results show that we are rebounding in accordance with our plans.
While we have much work to do, we are encouraged that our results continue to
support our higher expectations for the full year 1998." The Company expects to
break even in the second quarter and to turn a profit beginning in the third
quarter.
Sanders said that the company's first quarter gross profit improvement resulted
from better contract margins in 1998.
Sanders also noted that the company continues to move forward with its
previously announced redesign initiatives at its subsidiaries Union Switch &
Signal Inc. and Ansaldo Segnalamento Ferroviario S.p.A., the streamlining of its
global marketing focus, and the deployment of group-wide technology platforms.
These activities, which began to take effect in the second half of 1997,
contributed to the operating expense improvements between first quarter 1997 and
first quarter 1998.
Ansaldo Signal N.V., a Finmeccanica/Ansaldo-affiliated company, is a leader in
the design, manufacture, and service of signaling, automation and control
equipment, and systems for the railroad and mass transit industries.
Headquartered in Schiphol, the Netherlands, it has operating subsidiaries
throughout the world.
ANSALDO SEGNALAMENTO FERROVIARIO S.p.A. - CSEE TRANSPORT S.A. - UNION SWITCH
& SIGNAL INC.
US&S PTY. LTD. - AT SIGNAL SYSTEM A.B. - ANSALDO TRASPORTI SIGNALLING
(IRELAND) LTD.
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ANSALDO SIGNAL N.V.
PRESS RELEASE PAGE 2
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ANSALDO SIGNAL N.V.
CONSOLIDATED STATEMENT OF OPERATIONS
($ IN THOUSANDS, EXCEPT SHARE AMOUNTS)
<TABLE>
<CAPTION>
UNAUDITED
MARCH 31, MARCH 31,
1998 1997
<S> <C> <C>
Revenue ........................................... $ 72,044 $ 69,728
Cost of revenue ................................... 57,255 59,038
------------ ------------
Gross profit ............................ 14,789 10,690
Operating expenses:
Selling, general and administrative .......... 10,805 13,817
Research and development - net ............... 1,741 2,097
------------ ------------
Operating expenses ...................... 12,546 15,914
------------ ------------
Operating income (loss) ................. 2,243 (5,224)
Interest expense .................................. 2,230 2,199
------------ ------------
Income (loss) before income taxes and
equity in net earnings (losses) of
affiliates ......................... 13 (7,423)
Provision for (benefit from) income taxes ......... 280 (2,052)
------------ ------------
Income (loss) before equity in net
earnings (losses) of affiliates ......... (267) (5,371)
Equity in net earnings (losses) of affiliates ..... (232) 24
------------ ------------
Net income (loss) ............................ $ (499) $ (5,395)
=========== ===========
Basic and dilutive net income (loss)
per common share ............................. $ (0.02) $ (0.26)
=========== ===========
Basic weighted average number
common shares outstanding ......................... 20,488,750 20,488,750
=========== ===========
Dilutive weighted average number
common shares outstanding ......................... 20,488,750 20,488,750
=========== ===========
</TABLE>
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ANSALDO SIGNAL N.V.
PRESS RELEASE PAGE 3
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ANSALDO SIGNAL N.V.
CONSOLIDATED BALANCE SHEET
($ IN THOUSANDS, EXCEPT SHARE AMOUNTS)
<TABLE>
<CAPTION>
UNAUDITED
MARCH 31, DECEMBER 31,
1998 1997
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents ......................................... $ 4,214 $ 4,530
Receivables - net ................................................. 65,940 95,689
Receivables from parent and affiliates ............................ 16,015 15,761
Inventory ......................................................... 50,446 44,771
Costs and estimated earnings in excess of billings
on uncompleted contracts ..................................... 173,311 157,008
Prepaid expenses and other current assets ......................... 18,656 25,646
-------- --------
Total current assets ......................................... 328,582 343,405
Contract receivables - retentions ...................................... 11,441 13,370
Property, plant and equipment - net .................................... 51,747 54,302
Intangible assets-net .................................................. 30,942 33,118
Deferred tax assets .................................................... 10,981 9,653
Other assets ........................................................... 4,958 3,318
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Total assets ................................................. $438,651 $457,166
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short term borrowings and current
obligations under capital leases ............................ $ 64,906 $ 60,129
Accounts payable .................................................. 89,597 97,844
Accounts payable-parent and affiliates ............................ 1,680 4,465
Accrued liabilities ............................................... 25,485 24,331
Reorganization costs accrued ...................................... 3,852 4,160
Billings in excess of costs and estimated earnings
on uncompleted contracts ..................................... 57,706 62,672
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Total current liabilities .................................... 243,226 253,601
Employee benefits obligations .......................................... 21,029 21,304
Contract advances from parent .......................................... 2,998 2,998
Other liabilities ...................................................... 9,658 10,329
Long-term borrowings and obligations under capital leases .............. 33,833 34,003
Payable to parent ...................................................... 27,493 32,379
-------- --------
Total liabilities ............................................ 338,237 354,614
-------- --------
Shareholders' equity:
Priority shares, NLG 0.01 par value, authorized 100
shares, no shares issued and outstanding ..................... -- --
Common share, NLG 0.01 par value, authorized 50,000,000
shares, issued and outstanding 20,448,750 and 20,448,750 ..... 120 120
Additional paid-in capital ........................................ 139,999 139,999
Foreign currency translation adjustments .......................... (12,201) (10,562)
Accumulated earnings (deficit) .................................... (27,504) (27,005)
-------- --------
Total shareholders' equity ................................... 100,414 102,552
Commitments and contingencies .......................................... -- --
-------- --------
Total liabilities and shareholders' equity ................... $438,651 $457,166
======== ========
</TABLE>
