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Sunbeam posts 4Q loss
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April 21, 1999: 10:29 a.m. ET
Deficit totals $311M, but analysts question undisclosed charges
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NEW YORK (CNNfn) - Sunbeam Corp. Wednesday posted a fourth-quarter loss of $311 million, or $3.09 a diluted share, compared with a profit of $9.5 million, or 11 cents a share, in the year-ago period.
Fourth-quarter sales rose to $515 million from $292 million a year ago.
The latest results, which Sunbeam said include the cost of several one-time items, come 10 months after the company fired its chief executive officer, Albert Dunlap, after alleging that the success of Dunlap's turnaround strategy resulted from exaggerated revenue claims and misinterpreted fiscal data.
The Boca Raton, Fla.-based company, maker of Mr. Coffee and other consumer products, on Wednesday alluded to the incident, saying results were driven by a series of non-recurring items including "restatement of the company's historical financial statements."
For the year, Sunbeam (SOC) reported a loss of $898 million, or $9.25 per diluted share, compared with a profit of $38.3 million, or 44 cents a share, in the 1997. Sales rose to $1.8 billion from $1.07 billion in 1997.
Analysts surveyed by First Call Corp. expected a 14 cent a share loss for the quarter and 95 cents for the year.
But First Call said Wednesday these consensus estimates, which exclude one-time charges, can't be compared to the results Sunbeam released.
While Sunbeam said its results include non-recurring items like write-offs, litigation, and the working-down of excess inventory, the company didn't break down these charges.
David Leibowitz, equity analyst at Burnham Securities, said the early results don't paint a complete picture. But he expected the company to elaborate in a conference call Wednesday.
"The numbers weren't presented with the full financials," he said. "I will wait to interpret them. The smoke will clear."
Another analyst, Justin Maurer of McDonald & Co., called the charges "legacy issues" related to Sunbeam's past troubles.
While Maurer expects a difficult 1999 for Sunbeam, he envisions an eventual turnaround based on the fourth-quarter's positive cash flow.
Sunbeam shares, down 83 percent in the last 52 weeks, were off 1/16 at 5-1/2 early Wednesday. 
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Sunbeam
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