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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):
November 15, 1994
FIGGIE INTERNATIONAL INC.
(Exact name of registrant specified in its charter)
Delaware 1-8591 52-1297376
(State or other (Commission File (I.R.S. Employer
jurisdiction of Number) Identification No.)
incorporation)
4420 Sherwin Road, Willoughby, Ohio 44094
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:
(216) 953-2700
(not applicable)
(Former name or former address, if changed since last report)
Page 1 of 7 pages
Exhibit Index is on page 4
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Item 7. Financial Statements and Exhibits.
(c) Exhibits.
(1) Press release, dated November 15, 1994
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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 hereunto duly authorized.
FIGGIE INTERNATIONAL INC.
(Registrant)
By /s/ L.A. Harthun
L.A. Harthun
Senior Vice President
Dated: December 5, 1994
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Exhibit Index
Exhibit Page
99.1 Press release, dated November 15, 1994 5
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Keith Mabee (216)953-2810
Ira Gamm (216)953-2812
FOR IMMEDIATE RELEASE
FIGGIE INTERNATIONAL REPORTS
THIRD QUARTER SALES INCREASE OF 3%; LOSS OF $15.8 MILLION
WILLOUGHBY, Ohio -- November 15, 1994 -- Figgie International
Inc. (NASDAQ/NMS: FIGIA and FIGI) today reported a 3 percent
increase in 1994 third quarter sales of $196.2 million compared
with $190.3 million in the second quarter of 1994. The company
also announced an after-tax loss of $15.8 million for the third
quarter, or $0.89 per share, compared with a 1994 second quarter
after-tax loss of $17.9 million, or $1.00 per share. The company
had previously stated that it would report several loss quarters
in 1994 following major restructuring actions taken earlier this
year.
For the first nine months of 1994, the company reported a 2
percent sales increase, which totaled $557.7 million, compared with
$547.3 million in the same period a year ago, and net losses of
$54.1 million, or $3.04 per share, compared with $8.7 million, or
$0.49 per share, in 1993.
Commenting on third quarter results, Figgie International
Chairman Walter M. Vannoy said, "Our profitability turnaround has
progressed more slowly than we had earlier anticipated -- due in
part to customer uncertainty relating to the extended time frame
required to get our August 1 financing agreement in place.
"Sales from continuing operations have increased
progressively, and losses have declined in each successive quarter
in 1994," noted Vannoy. "Since August, bookings at our major
divisions have picked up, but the company-wide profit turnaround
still lags our expectations.
"The overall operational trend, therefore, is
unacceptable...we are not satisfied losing money. This fact,
coupled with the potential for year-end restructuring charges
associated with our current strategic deliberations, will postpone
the company's return to profitability into the first half of 1995,"
Vannoy continued. "We will be aggressive in making the decisions
required to restore the company to profitability."
Vannoy stated that Figgie International's previously
announced divestiture program is on schedule for completion by year
end.
"This year the company has sold or divested five companies -
- - Safety Supply America, Rawlings Sporting Goods, Advance Security,
CASI-RUSCO, and Essick/Mayco. We have executed a definitive
agreement to sell our Waite Hill insurance companies, subject to
regulatory approval, and we're nearing completion of the Sherwood-
Drolet sale," Vannoy noted.
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He said the board of directors and senior management are
actively engaged in an intensive review of all the company's
business units, with the objective of creating a more focused
company going into 1995. "We will not hesitate to take any action
that is needed in order to restore the company to profitability,"
Vannoy noted.
Summarizing comparable year-to-year performance for the third
quarter by segment:
Consumer Products revenues decreased slightly compared
with the third quarter of 1994. Interstate
Engineering benefited from increased sales, although
profits were tempered by costs associated with the
development and introduction of new product lines.
Profits at Taylor Environmental were affected by the
1994 expensing of world class conversion costs as they
were incurred.
Fire Protection and Safety Products sales declined
10.4%, primarily due to "Automatic" Sprinkler's lower
construction contracts and increased competition
between contractors for fewer jobs. Increased sales
were reported from Scott Aviation's Health and Safety
business. Segment profits declined primarily from
"Automatic" Sprinkler's decreased volume and increased
manufacturing costs at Fire Protection.
The Machinery and Allied Products segment's sales
increased 42.2% from the third quarter in 1993.
Snorkel's sales increased significantly due to
improved market conditions for elevated work platforms
and last year's Midwest flood that negatively impacted
the division's operations. Snorkel also benefited in
this year's third quarter from $9 million pre-tax in
proceeds from business interruption insurance. Safway
Steel's sales increases were the result of large
distributor orders for scaffolding and several
industrial maintenance contracts. Operating profit
for the segment was up significantly to $7.6 million
due to lower manufacturing conversion costs at
Packaging Systems, the proceeds from Snorkel's
insurance recovery and Snorkel's higher sales volume.
The Technical Products segment's sales decreased $2.9
million due to a reduction in airline orders at Scott
Aviation and Hartman Electrical and a decline in
government spending. Hartman Electrical's turnaround
program showed significantly improved results in the
third quarter, with the division generating a small
profit. Segment operating profit was $4.2 million,
due principally to profit improvements at Hartman and
Scott.
The Services segment's profits declined due to higher
financing costs at Financial Services.
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<CAPTION>
FIGGIE INTERNATIONAL INC.
FINANCIAL DATA
For the Periods Ended September 30, 1994 and 1993
(in thousands, except for per share data)
For the Three Months Ended September 30 For the Nine Months Ended September 30
1994 1993 1994 1993
<S> <C> <C> <C> <C>
Net Sales from Continuing Operations $ 196,225 $ 182,447 $ 557,664 $ 547,314
Loss from Continuing Operations
before Income Taxes (Benefit) $ (15,483) $ (20,954) $ (71,075) $ (19,643)
Income Taxes (Benefit) 360 (5,824) $ (18,122) (5,344)
Loss Before Discontinued Operations
and Cumulative Effect of Change in Acctg. $ (15,843) $ (15,130) $ (52,953) $ (14,299)
Loss From Discontinued Operations
Net of Tax $ - $ ( 3,719) $ ( 1,098) $ ( 231)
Loss Before Cumulative Effect of
Change in Accounting for Income Taxes $ (15,843) $ (18,849) $ (54,051) $ (14,530)
Cumulative Effect of Change in Accounting
for Income Taxes - - - 5,839
Net Loss $ (15,843) $ (18,849) $ (54,051) $ (8,691)
Weighted Average Shares 17,722 17,997 17,781 17,711
Loss per Common Share:
Continuing Operations $ (.89) $ ( .84) $ (2.98) $ (.81)
Discontinued Operations $ - $ ( .21) $ (.06) $ (.01)
Cumulative Effect of Change in Accounting - - - .33
Net Loss $ (.89) $ (1.05) $ (3.04) $ (.49)
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