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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 August 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 5 pages.
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ANSALDO SIGNAL N.V.
Contact
-------
Anthony A. Florence
Phone: (412) 688-2102
Fax: (412) 688-2518
ANSALDO SIGNAL ANNOUNCES SECOND QUARTER RESULTS
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12 AUGUST, 1998 (AMSTERDAM, THE NETHERLANDS):
Ansaldo Signal N.V. (Nasdaq: ASIGF) today announced its unaudited results for
the second quarter and six months ended June 30, 1998. The company said that the
results confirmed its expectations of improving performance and achieving a
break-even quarter by mid-year 1998.
Net income in the second quarter was $115,000 or $0.01 per share, compared to a
loss of ($638,000) or ($0.03) per share for the second quarter ended June 30,
1997. In the first six months of 1998, net income was a loss of ($384,000) or
($0.02) per share, compared to a 1997 loss of ($6,033,000) or ($0.29) per share.
Income from operations in the second quarter of 1998 was $2,735,000, compared to
a loss of ($710,000) for the second quarter 1997. In the first six months of
this year, income from operations was $4,813,000 versus a loss of ($5,958,000)
in 1997.
Second quarter revenues were $90,660,000 compared to $85,783,000 for the second
quarter 1997. In the first six months of 1998, revenues were $162,705,000 versus
$155,511,000.
Backlog on June 30, 1998 was $761,289,000 compared to $773,062,000 at
end-of-year 1997.
Commenting on the second quarter and first half of 1998, Ansaldo Signal's
president and chief executive officer James Sanders said, "The results confirm
the credibility of our forecasts through mid-year and position us well to
achieve expectations for the full year 1998, both in terms of market presence
and profitability."
Sanders noted that Ansaldo Signal's subsidiaries experienced continuing success
in new orders during the first six months of 1998. New order intake totaled
$170,591,000 from a wide variety of customers in Europe, North America and Asia.
Sanders noted that Ansaldo Segnalamento Ferroviario ("ASF"), the Italian
subsidiary, won several contracts from the Italian State Railways, while the
French subsidiary CSEE Transport S.A. ("CSEE") won contracts from the Hong Kong
Mass Transit Railway Corporation and the Shenyang Railway Administration in
China. AT Signal System AB ("ATSS"), the Scandinavian subsidiary, won contracts
from the Danish and Swedish Railways and from the Norwegian Railways, while
Union Switch &
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.
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Signal ("US&S"), the North American subsidiary, won contracts from the
Metropolitan Atlanta Rapid Transit Authority, the Metro-Dade County Transit
Authority and the Delaware River Port Authority. The Australasian subsidiary
Union Switch & Signal Pty. Ltd. ("US&S PTY") won contracts from Hamersley Iron
and Queensland Rail Ltd.
Sanders also noted that the company's mid-year results included two
non-recurring items.
In June 1998, in order to reduce debt and improve the balance sheet, the Company
restructured the financing of the Union Switch & Signal Systems and Research
Center in Pittsburgh. This resulted in the Company realizing a $980,000 gain on
the restructuring. The Company will continue to occupy the building under the
terms of a long term operating lease.
The company's performance this year also benefited from a one-time gain realized
in the French operations of $989,000 due to forgiveness of an R&D related loan
which was accounted for as a reduction to the Company's R&D expenses.
Sanders said that the company undertook several initiatives to improve its
regional market penetration. Ansaldo Signal opened a representative office in
Korea and increased the company's focus on the Scandinavian market, naming Paolo
Bianchi to the newly created position of Vice President, Scandinavian Region.
Sanders also noted that Sergio De Luca had been named managing director of the
Italian region which includes Ansaldo Segnalamento Ferroviario, and that John
Mandelli had been named president and chief operating officer of the North
American region, including Union Switch & Signal Inc. These appointments are
expected to be confirmed at the next meeting of the Boards of Directors of the
respective companies.
Ansaldo Signal (Nasdaq: ASIGF) offers signaling automation and control systems,
products, services and maintenance to rail-based customers around the world.
Based in Schiphol, The Netherlands, it is affiliated with Finmeccanica/Ansaldo
Trasporti.
THE STATEMENTS IN THIS RELEASE RELATING TO MATTERS THAT ARE NOT HISTORICAL FACTS
ARE FORWARD LOOKING STATEMENTS THAT INVOLVE RISKS AND UNCERTAINTIES, INCLUDING,
BUT NOT LIMITED TO, THE ITEMS WHICH HAVE PREVIOUSLY BEEN INCLUDED IN THE
COMPANY'S FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION.
# # #
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ANSALDO SIGNAL N.V.
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<TABLE>
<CAPTION>
ANSALDO SIGNAL N.V.
CONSOLIDATED STATEMENT OF OPERATIONS
($ IN THOUSANDS, EXCEPT SHARE AMOUNTS)
UNAUDITED
---------
THREE MONTHS ENDED SIX MONTHS ENDED
------------------ ----------------
JUNE 30, JUNE 30, JUNE 30, JUNE 30,
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Revenue .................................................... $ 90,660 $ 85,783 $ 162,705 $ 155,511
Cost of revenue ............................................ 72,720 68,754 129,975 127,792
------------ ------------ ------------ ------------
Gross profit ...................................... 17,940 17,029 32,730 27,719
Operating expenses:
Selling, general and administrative ................... 11,824 13,889 22,795 27,730
Research and development - net ........................ 3,381 3,850 5,122 5,947
------------ ------------ ------------ ------------
Operating expenses ................................ 15,205 17,739 27,917 33,677
------------ ------------ ------------ ------------
Operating income (loss) ........................... 2,735 (710) 4,813 (5,958)
Interest expense ........................................... 2,519 2,352 4,749 4,444
Other non-operating (income) expense ....................... (2,148) (1,955) (1,850) (1,848)
------------ ------------ ------------ ------------
Income (loss) before income taxes and equity in net
earnings (losses) of affiliates .............. 2,364 (1,107) 1,914 (8,554)
Provision for (benefit from) income taxes .................. 2,329 (245) 2,610 (2,297)
------------ ------------ ------------ ------------
Income (loss) before equity in net
earnings (losses) of affiliates .............. 35 (862) (696) (6,257)
Equity in net earnings of affiliates ....................... 80 224 312 224
------------ ------------ ------------ ------------
Net income (loss) ................................. $ 115 $ (638) $ (384) $ (6,033)
============ ============ ============ ============
Basic and dilutive net income (loss)
per common share ............................. $ 0.01 $ (0.03) $ (0.02) $ (0.29)
============ ============ ============ ============
Basic weighted average number
common shares outstanding ............................. 20,488,750 20,488,750 20,488,750 20,488,750
============ ============ ============ ============
Dilutive weighted average number
common shares outstanding ............................. 20,488,750 20,488,750 20,488,750 20,488,750
============ ============ ============ ============
</TABLE>
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ANSALDO SIGNAL N.V.
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<TABLE>
<CAPTION>
ANSALDO SIGNAL N.V.
CONSOLIDATED BALANCE SHEET
($ IN THOUSANDS, EXCEPT SHARE AMOUNTS)
UNAUDITED
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JUNE 30, DECEMBER 31,
1998 1997
--------- ---------
ASSETS
Current assets:
<S> <C> <C>
Cash and cash equivalents ........................................ $ 4,895 $ 4,530
Receivables - net ................................................ 74,990 95,689
Receivables from parent and affiliates ........................... 10,748 15,761
Inventory ........................................................ 50,917 44,771
Costs and estimated earnings in excess of billings
on uncompleted contracts ..................................... 185,385 157,008
Prepaid expenses and other current assets ........................ 19,756 25,646
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Total current assets .................................... 346,691 343,405
Contract receivables - retentions ..................................... 9,963 13,370
Property, plant and equipment - net ................................... 34,018 54,302
Intangible assets - net ............................................... 31,473 33,118
Deferred tax asset .................................................... 9,989 9,653
Other assets .......................................................... 4,165 3,318
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Total assets ............................................ $ 436,299 $ 457,166
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short term borrowings and current obligations under capital leases $ 70,304 $ 60,129
Accounts payable ................................................. 82,550 97,844
Accounts payable - parent and affiliates ......................... 2,725 4,465
Accrued liabilities .............................................. 25,515 24,331
Reorganization costs accrued ..................................... 3,852 4,160
Billings in excess of costs and estimated earnings
on uncompleted contracts ..................................... 58,780 62,672
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Total current liabilities ............................... 243,726 253,601
Employee benefits obligations ......................................... 21,212 21,304
Contract advances from parent ......................................... 2,998 2,998
Other liabilities ..................................................... 8,414 10,329
Long-term borrowings and obligations under capital leases ............. 27,522 34,003
Payable to parent ..................................................... 31,276 32,379
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Total liabilities ....................................... 335,148 354,614
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Shareholders' equity:
Priority shares, NLG 0.01 par value, authorized 100
shares, no shares issued and outstanding ..................... -- --
Common stock, 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 ......................... (11,578) (10,562)
Accumulated earnings (deficit) ................................... (27,390) (27,005)
--------- ---------
Total shareholders' equity .............................. 101,151 102,552
Commitments and contingencies ......................................... -- --
--------- ---------
Total liabilities and shareholders' equity .............. $ 436,299 $ 457,166
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