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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) August 11, 1999
GenCorp Inc.
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(Exact name of registrant as specified in its charter)
Ohio 1-1520 34-0244000
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(State of (Commission File Number) (IRS Employer
incorporation) Identification No.)
175 Ghent Road, Fairlawn, Ohio 44333-3300
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(Address of principal executive offices) (Zip Code)
330-869-4200
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(Registrant's telephone number, including area code)
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Item 5. Other Events
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Attached hereto as Exhibit 99 and incorporated herein by this reference
is the text of the registrant's press release which was made on August 11, 1999.
In its press release dated August 11, 1999 GenCorp announced that while
it expects diluted earnings per share for the third quarter ending August 31,
1999 to increase 25% or more compared to $0.41 per diluted share from the same
period a year ago, earnings are expected to be approximately 10% below current
Wall Street consensus estimates as published by First Call.
Item 7. Exhibits
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Table Exhibit
Item No. Exhibit Description Number
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99 Press release dated August 11, 1999 regarding 99
third quarter earnings outlook.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
GENCORP INC.
By: /s/ Michael E. Hicks
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Name: Michael E. Hicks
Title: Senior Vice President and
Chief Financial Officer
Dated: August 11, 1999
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EXHIBIT 99
FOR IMMEDIATE RELEASE
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GENCORP DISCUSSES THIRD QUARTER EARNINGS OUTLOOK
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FAIRLAWN, OHIO, AUGUST 11, 1999 (NYSE:GY) - GenCorp said today that
while it expects diluted earnings per share for the third quarter ending August
31, 1999 to increase 25% or more compared to $0.41 per diluted share from the
same period a year ago, earnings are expected to be approximately 10% below
current Wall Street consensus estimates as published by First Call.
While there was no one single factor which caused the change in
estimate, several issues across the business units are contributing to the
shortfall. Vehicle Sealing continues to be challenged by aggressive customer
build schedules, which have resulted in higher overtime, premium freight, and
scrap. Additionally, record high temperatures during the month of July
negatively affected manufacturing efficiency. In the Performance Chemicals
business, customer deferral of planned volume increases of styrene butadiene
latex for the residential carpet industry, and lower average unit selling prices
across carpet and paper product lines are resulting in lower than expected
margins. In Decorative & Building Products, commercial wallcovering volumes are
lower than expected as market softness continues in the U.S. and U.K.
Additionally, the business experienced higher costs related to equipment
startups for a new coating line that will enhance future competitiveness, and
higher expenses associated with the conversion of manufacturing processes to
comply with new clean air standards.
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GenCorp Ad 1
"The projected modest shortfall in earnings for the third quarter
reflects the occurrence of several situations which we expect will begin to
improve as we enter the fourth quarter", said John B. Yasinsky, Chairman and
Chief Executive Officer. "We are aggressively addressing each of these issues,
and our business units are allocating the necessary resources to take corrective
actions."
This earnings release contains forward-looking statements as defined by
the Private Securities Litigation Reform Act of 1995. All statements in this
release and in subsequent discussions with the Company's management, other than
historical information, are forward-looking statements. A variety of factors,
which are listed in the Forward-Looking Statements section of Management's
Discussion and Analysis in the Company's 1998 annual report and in the annual
report on Form 10K and the Definitive Proxy Statement dated July 2, 1999, filed
with the Securities and Exchange Commission, could cause actual results or
outcomes to differ materially from those expected by the Company and expressed
in the Company's forward-looking statements.
GenCorp is a $1.7 billion technology-based manufacturer with leading
positions in numerous markets served by its Performance Chemicals, Decorative &
Building Products and Vehicle Sealing businesses, and its aerospace and defense
segment, Aerojet.
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Company News On-Call: http://www.prnewswire.com
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For a fax call 800-758-5804, ext. 347350
Web site: http://www.gencorp.com
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