FORT WAYNE, Ind.--Apr. 3--Increased sales and progress in its consolidation with an acquired European gas pump maker enabled Tokheim Corp. to post first-quarter profits of $100,000 today.
It was the first time in six years that the Fort Wayne-based gas pump manufacturer reported a first-quarter profit, said Douglas K. Pinner, chairman, president, and chief executive officer.
Last year, the company reported a first-quarter loss of $700,000.
After preferred dividends, the Fort Wayne-based gas pump manufacturer saw a loss per share of 3 cents for the quarter ended Feb. 28, compared with a loss of 13 cents a share for the year-ago period.
First-quarter earnings before interest, depreciation, amortization and taxes totaled $5.7 million vs. $1.3 million last year.
Sales typically slow for gas dispensing equipment during the quarter as service station construction drops during cold weather, Pinner said.
Operating profit showed substantial gains at $3.8 million for the quarter vs. a loss of $400,000 last year. Those operating profits were more than 1.5 times interest expense for the quarter.
Tokheim reported first-quarter sales of $92 million, 85 percent more than the $49.5 million reported first quarter of 1996. This is the first full quarter including the results of Sofitam International, the French-based service station equipment manufacturer acquired last year.
Pinner said its first-quarter results were particularly gratifying considering the cold winter that hit Europe. The weather delayed construction activity and hurt sales in that important market, he said.
Sogen, the merged European operations of Tokheim and the French- based Sofitam, saw a loss in sales in the quarter because of adverse weather.
With that exception, sales across all other areas of the Tokheim's businesses were in line with expectations, Pinner said. Domestic sales and operating performance continued to improve, he said.
The company's balance sheet at the end of the quarter showed marked improvement, Pinner said, as initiatives to increase efficiency of the merged businesses began to yield early results.
Those included inventory reductions and improved receivables management, which contributed to improved cash flow.
Looking forward, Tokheim officials expect to increase penetration of the major oil company community through growth from the Sofitam acquisition.
The companies' combined strengths in technology, product offerings, service capabilities and geographic presence will give it an edge in competition for that business, Pinner said.
Growth with major oil companies will complement Tokheim's strength in the distributor sales segment of the market, he said.
"All the benefits we anticipated from the merger have not only been met but exceeded."
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(c) 1997, The (Fort Wayne, Ind.) News-Sentinel. Distributed by Knight-Ridder/Tribune Business News.
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