KROLL-O’GARA REPORTS $7.2M LOSS; SECURITY SEGMENTS SUFFERING
The Kroll-O’Gara Co. announces net sales of $88.4 million for the third quarter of 2000, an increase of 900,000, or 1 percent, compared to $87.5 million in net sales in the third quarter of 1999. Operating loss before nonrecurring charges (expenses associated with the proposed separation of the company’s principal operating segments, expenses associated with the terminated Blackstone Group transaction, merger-related expenses and restructuring expense) was $800,000 in the third quarter of 2000. In the third quarter of 1999, operating income before nonrecurring charges (merger-related expenses) was $7.8 million.
The third quarter of 2000 included an operating loss of approximately $4 million from Securify (Information Security Group) and additional costs of approximately $3.3 million in the Security Products and Services Group due to higher-than-expected operating costs, physical inventory write-downs and the impact of the group’s previously announced restructuring. Securify had an operating loss of $800,000 in the third quarter of 1999.
Overall, Kroll-O’Gara reports a loss of $7.2 million, or 32 cents per diluted share, for the third quarter of 2000, compared with net income of $3.7 million, or 16 cents per diluted share, in the third quarter of 1999. Kroll-O’Gara is a global provider of a broad range of specialized products and services designed to supply solutions to a variety of security needs.
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