Restructured UNC gears up for growth

April 27, 1991|By Ted Shelsby

UNC Inc. -- the Annapolis-based company that has just completed an extensive five-year restructuring that involved the divestment or closing of 21 businesses and the purchase of seven new ones -- is geared for significant growth over the next five years, its chairman and chief executive told shareholders yesterday.

Dan A. Colussy told investors attending the annual stockholder's meeting at Baltimore's Harbor Court Hotel that the company is also in line to pick up part of a new contract related to the Air Force's new $70 billion Advanced Tactical Fighter program.

Looking farther ahead, Mr. Colussy said that the company's five-year objectives call for 8 percent annual growth in revenues; 12 percent annual growth in operating earnings; and 15 percent to 20 percent growth

per year in net income.

"These are not promises," he stressed several times, but objectives that the company believes can be met.

UNC's restructuring has eliminated a number of unprofitable operations, including uranium mining, shipbuilding and environmental cleanup, and left the company focused on the growing commercial aviation industry.

It posted revenues of $356.2 million last year, up from $305.2 million in 1989. Last year saw the company post a profit of $5 million, compared with a break-even year in 1989.

Mr. Colussy told shareholders the company also intends to reduce its debt-to-capitalization ratio from the current 58 percent to less than 50 percent and to get the stock price above $10 a share.

UNC stock closed yesterday at $4.75.

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