De Kalb Corp. said that because of several nonrecurring charges, earnings from continuing operations for its third quarter ended May 31 ”will approximate” the $2.9 million, or 24 cents a share, the company reported a year earlier.
The company also said it plans an initial public offering of its Lindsay Manufacturing Co. unit, which makes and markets irrigation systems.
The company said results for the latest period will include $7 million in special charges relating to a recent restructuring of long-term debt and about $3.5 million in costs related to its previously announced reorganization.
These charges will be offset by several one-time credits, including a gain on the sale of a stock investment made as part of oil and gas acquisition efforts, De Kalb said.
De Kalb said the net charge for unusual items in the third quarter will be about $6 million, or 35 cents a share.
The company also said it is proceeding with its plan to establish two public corporations through a tax-free distribution of stock to shareholders. Shareholders are to receive one-half share in a newly created agricultural genetics company and one share in a newly created oil well services company for each share owned in the original company. De Kalb said it expects the distributions to occur Aug. 31.
