Pacific Scientific : NEWPORT BEACH
Nature of business: Develops, makes and sells electrical and aircraft safety equipment
Total employees: 1,320
In Orange County: 156
Stock listing in The Times: On NYSE “PacSci”
Ticker symbol: “PSX”
Friday’s stock close: $14.25
One-week change: Down $1.25
Analyst review: “In the ‘70s, Pacific Scientific dominated the market in hydraulic cushions for nuclear reactors and piping systems. But with the end of the reactor building program, the company started to go downhill somewhat. Chairman Ed Brower took over the company in the ‘80s and began a six-year restructing program. He discontinued some operations, bought and sold others and streamlined the work force. The sad part, in a way, is that by the time he had completed 80% of this major job, the economy promptly fell off the edge of the table, so I don’t think we’ve really seen the full value of what he’s done. Earnings have rebounded over the last two years, and I think we’re going to see greater increases in ’93 and ’94.”
--John Ball, analyst, JBL/New England Ltd., Concord, Mass. Dollar amounts in millions
1988 1989 1990 1991 1992 Revenue 180.9 169.6 183.9 173.0 172.7 Profit -4.1 4.4 1.5 8.0* $5.4
Corporate outlook: “Excluding a one-time gain during fiscal 1991 from a divestiture, 1992 earnings were more than 185% greater. We believe the coming fiscal year will see continued growth in revenue and market share, especially in electrical motor controls. We are also looking for appropriate acquisitions to help us grow.”
--Edgar S. Brower, chairman/CEO RETURN ON INVESTMENT: 5-YEAR SUMMARY
Fiscal year ending Dec. 30 Dec. 29 Dec. 28 Dec. 27 1988 1989 1990 1991* 52-week high $15.00 $18.50 $16.38 $12.50 52-week low $9.00 $9.75 $7.38 $8.00 Book value per share $10.12 $10.91 $11.19 $12.65 Price per share $9.75 $15.13 $8.00 $9.38 Net earnings (loss) per share ($0.74) $0.74 $0.20 $1.46 Price-to-earnings ratio N/A 20:1 40:1 6:1 Average return on investor equity N/A 7% 2% 12%
Fiscal year ending Dec. 25 1992 52-week high $16.00 52-week low $9.25 Book value per share $13.66 Price per share $16.00 Net earnings (loss) per share $1.00 Price-to-earnings ratio 16:1 Average return on investor equity 7%
* Includes one-time gain from a corporate diverstiture. For information, write Pacific Scientific: 620 Newport Center Dr., Newport Beach, Calif. 92660. (714) 720-1714. Source: Pacific Scientific Co.
