Actuant Announces First Quarter Results.

Business Editors

MILWAUKEE--(BUSINESS WIRE)--Dec. 20, 2000

Applied Power Inc. d/b/a Actuant Corporation (NYSE:ATU) announced today results for its first quarter of fiscal 2001.

Sales in the first quarter ended November 30, 2000, totaled $117.5 million, compared to sales of $127.4 million for the same business units in the prior year. Sales in the first quarter of the prior year, including the results of businesses that were either sold or discontinued ("non-continuing businesses") in fiscal 2000, most notably, Barry Controls, Air Cargo and Norelem, were $173.0 million. Excluding the non-continuing businesses, sales declined approximately 8%, reflecting the strengthening U.S. dollar and significantly lower sales to Recreational Vehicle ("RV") OEMs. Sales declined 3% in the first quarter, excluding the effect of currency translation and the non-continuing businesses.

First quarter fiscal 2001 net earnings were $4.3 million, or $0.10 per share on a diluted basis. Prior year first quarter net earnings, pro forma for the July 31, 2000 spin-off of the Electronics segment (now known as "APW Ltd."), the removal of operating results of non-continuing businesses, contract cancellation recovery costs, and Actuant's current capitalization were $5.4 million, or $0.13 per share on a diluted basis. Net earnings for the first quarter of fiscal 2000, including the non-continuing businesses and the spun-off Electronics business were $23.7 million, or $0.59 per share on a diluted basis. Earnings before interest, taxes, depreciation and amortization ("EBITDA") was $24.4 million, or 20.8% of sales for the first quarter of the current fiscal year.

Commenting on the results, Robert C. Arzbaecher, President and CEO stated, "A comparison of our first quarter results to the prior year is not meaningful without taking into account the spin-off of our Electronics business on July 31, the sale of additional business units since the first quarter of last year, and our new capital structure. On a comparative basis, after removing the effect of the strengthening U.S. dollar, our first quarter sales and EBITDA declined approximately $3.5 million and $1.5 million, respectively from prior year levels. The previously announced weakness in the RV market impacted operating results, with our sales into the RV market down 33% or approximately $5.5 million from the robust prior year period. Offsetting some of this weakness was strong revenue growth in both businesses of our Tools & Supplies segment.

"I am pleased with our continued strong debt reduction. During the quarter, we reduced debt by an additional $11 million to total indebtedness of approximately $422 million. Since the spin-off four months ago, we have reduced debt by $29 million, or $0.69 per share. Our debt reduction focus reduces leverage, lowers our net financing costs, and creates balance sheet flexibility. It remains Actuant's highest priority."

Fiscal 2001 first quarter sales in the Tools & Supplies segment increased to $69.8 million, from $66.7 million in the comparable prior year period, excluding non-continuing businesses. Excluding the effect of the strengthening U.S. dollar, Tools & Supplies sales increased 8%, with both Enerpac and Gardner Bender reporting favorable year-on-year comparisons. Tools & Supplies EBITDA increased approximately 7% in the current fiscal quarter compared to the same period of the prior year.

Sales in the Engineered Solutions segment, excluding the non-continuing businesses, were $47.7 million, compared to $60.8 million in the prior year. The decline in Engineered Solutions revenues was attributable to both the strengthening U.S. dollar and softness in key markets, most notably RV. Excluding the effect of the strengthening U.S. dollar, Engineered Solutions sales declined 16%. EBITDA within the segment declined from $14.9 million in the first quarter of the prior year to $10.0 million in the current quarter, and was adversely impacted by foreign currency translation and lower production volumes and shipments.

Looking forward to the balance of fiscal 2001, Arzbaecher commented, "The series of interest rate hikes over the last 18 months appears to be having their intended effect on the economy, based on the slowing we are seeing in some of our key markets. Accordingly, we are lowering our guidance for fiscal 2001 to a sales range of $495 - $505 million, an EBITDA range of $105 - $109 million and a cash EPS range of $0.64 - $0.70 per share. Cash basis EPS excludes the after tax impact of amortization expense. This represents a reduction of approximately 4% in sales and 7% in EBITDA from previously endorsed ranges. While we do see the economy slowing, we also see a number of market share gains in our core markets further solidifying our existing positions. We believe our previously stated $35 million debt reduction goal for fiscal 2001 will be met and exceeded, based on aggressive cash flow management."

Actuant, headquartered in Milwaukee, Wisconsin, is a diversified industrial company with sales approximating $500 million and operations in 19 countries. The Actuant businesses are market leaders in highly engineered position and motion control systems and branded hydraulic and electrical tools. Products are offered under such established brand names as Enerpac, Gardner Bender, Mox-Med, Milwaukee Cylinder, Nielsen Sessions, Power-Packer, and Power Gear.

Safe Harbor Statement

Certain of the above comments represent forward-looking statements made pursuant to the provisions of the Private Securities Litigation Reform Act of 1995. Management cautions that these projections are based on current estimates of future performance and are highly dependent upon a variety of factors, which could cause actual results to differ from these estimates. Actuant's results are also subject to general economic conditions, continued market acceptance of the Company's new product introductions, operating margin risk due to competitive pricing, foreign currency fluctuations and interest rate risk. See the Company's Form 10-K for further information regarding risk factors.

For further information on Actuant and its business units, visit the Company's website at www.actuant.com

            Applied Power Inc. (d/b/a Actuant Corporation)
                       Comparative Balance Sheet
                        (Dollars in thousands)


                                 November 30,              August 31,
                                    2000                      2000
                                 ------------            -------------
ASSETS
Current Assets
 Cash and cash equivalents        $   3,152                $   9,896
 Trade accounts receivable           83,784                   83,553
 Inventories                         66,263                   67,599
 Receivable from APW LTD                                      32,894
 Other current assets                 9,487                    9,772
                                 ------------            -------------
Total Current Assets                162,686                  203,714

Goodwill                            115,367                  116,348
Other intangible assets              20,456                   21,040
Net Property, Plant and Equipment    48,569                   49,168
Other assets                         28,598                   26,711
                                 ------------            -------------

Total Assets                      $ 375,676                $ 416,981
                                 ============            =============


LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
 Short-term borrowings            $     633                $   1,259
 Trade accounts payable              40,537                   43,455
 Accrued compensation & benefits     13,383                   16,365
 Income taxes payable                15,140                   39,852
 Other current liabilities           22,975                   25,312
                                 ------------            -------------
Total Current Liabilities            92,668                  126,243

 Long-term Debt                     421,097                  431,215
 Other Deferred Liabilities          21,847                   22,478
Shareholders' Equity               (159,936)                (162,955)
                                 ------------            -------------

Total Liabilities and
 Shareholders' Equity             $ 375,676                $ 416,981
                                 ============            =============


Applied Power Inc. (d/b/a Actuant Corporation)
Comparative Statement of Earnings
(In thousands except percentages and per share amounts)


                                    Three Months ended November 30,
                                    -------------------------------
                                         2000           1999
                                    -------------------------------
Continuing Operations
Net Sales                            $ 117,520       $ 173,041
Cost of Products Sold                   75,690         110,923
                                      --------        --------
   Gross Profit                         41,830          62,118
                                         35.6%           35.9%

Engineering, selling and
   administrative expense               21,570          33,638
Amortization of Intangible Assets        1,499           1,979
Contract Termination Costs(Recovery)       -            (1,446)
                                      --------        ---------
   Operating Profit                     18,761          27,947
                                         16.0%           16.2%

Other Expense(Income)
   Net Financing Costs                  12,971          10,450
   Other - net                          (1,462)           (410)
                                      ---------       ---------
Earnings Before Income Taxes             7,252          17,907

Income Tax Expense                       2,968           6,916
                                      ---------       ---------
Net Earnings from
   Continuing Operations                 4,284          10,991

Discontinued Operations,
   net of Income Taxes                     -            12,691
                                      ---------       ---------
Net Earnings                           $ 4,284        $ 23,682
                                      =========       =========

Basic Earnings per Share
   Continuing Operations                $ 0.11          $ 0.28
   Discontinued Operations              $  -            $ 0.33
                                      ---------       ---------
                  Total (1)             $ 0.11          $ 0.61
                                      =========       =========

Diluted Earnings per Share
   Continuing Operations                $ 0.10          $ 0.27
   Discontinued Operations              $  -            $ 0.32
                                      ---------       ---------
                  Total (1)             $ 0.10          $ 0.59
                                      =========       =========

Weighted Average Common Shares
Outstanding
   Basic                                39,636          38,992
   Diluted                              41,812          40,312

(1)  Earnings per share data may not total due to rounding

APPLIED POWER INC. (d/b/a Actuant Corporation)
SUPPLEMENTAL UNAUDITED SEGMENT DATA

                                       FISCAL 2000
                    --------------------------------------------------
                        Q1        Q2        Q3        Q4      TOTAL
                     --------- --------- --------- --------- ---------
SALES
 TOOLS & SUPPLIES
  SEGMENT            $ 66,663  $ 75,957  $ 75,991  $ 71,106 $ 289,717
 ENGINEERED
  SOLUTIONS SEGMENT  $ 60,761  $ 57,249  $ 57,878  $ 49,127 $ 225,015
                    --------------------------------------------------
   TOTAL CONTINUING
    BUSINESSES       $127,424  $133,206  $133,869  $120,233  $514,732
 NON-CONTINUING
  BUSINESSES         $ 45,617  $ 50,881  $ 44,658  $ 15,754  $156,910
                    --------------------------------------------------
   TOTAL REPORTED
    SALES            $173,041  $184,087  $178,527  $135,987  $671,642
                    ==================================================

% SALES GROWTH
 TOOLS & SUPPLIES
  SEGMENT
 ENGINEERED
  SOLUTIONS SEGMENT
   TOTAL CONTINUING
    BUSINESSES
 NON-CONTINUING
  BUSINESSES
   TOTAL REPORTED
    SALES

OPERATING PROFIT
 TOOLS & SUPPLIES
  SEGMENT            $ 10,501  $ 14,849  $ 14,373  $ 11,292  $ 51,015
 ENGINEERED
  SOLUTIONS SEGMENT  $ 13,176  $ 10,994  $ 12,889  $ 10,658  $ 47,717
 CORPORATE / GENERAL $ (1,250) $ (1,250) $ (1,250) $ (1,250) $ (5,000)
                    --------------------------------------------------
   TOTAL CONTINUING
    BEFORE
    NON-RECURRING    $ 22,427  $ 24,593  $ 26,012  $ 20,700  $ 93,732
 NON-CONTINUING
  BUSINESSES         $  6,284  $  6,600  $  5,549  $    993  $ 19,426
 OTHER NON-RECURRING
  ITEMS (1)          $   (764) $ (5,896) $ (3,200) $(19,032) $(28,892)
                    --------------------------------------------------
   TOTAL REPORTED
    RESULTS          $ 27,947  $ 25,297  $ 28,361  $  2,661  $ 84,266
                    ==================================================

OPERATING PROFIT %
 TOOLS & SUPPLIES
  SEGMENT                15.8%    19.5%     18.9%     15.9%     17.6%
 ENGINEERED
  SOLUTIONS SEGMENT      21.7%    19.2%     22.3%     21.7%     21.2%
   TOTAL CONTINUING
  (INCL.  CORPORATE)     17.6%    18.5%     19.4%     17.2%     18.2%

EBITDA
 TOOLS & SUPPLIES
  SEGMENT            $ 12,972  $ 17,686  $ 16,523  $ 13,470  $ 60,651
 ENGINEERED
  SOLUTIONS SEGMENT  $ 14,915  $ 12,717  $ 14,536  $ 12,141  $ 54,309
 CORPORATE / GENERAL $   (684) $   (898) $   (915) $   (832) $ (3,329)
                    --------------------------------------------------
   TOTAL CONTINUING
    BUSINESSES       $ 27,203  $ 29,505  $ 30,144  $ 24,779  $111,631
 NON-CONTINUING
  BUSINESSES         $  7,885  $  8,299  $  7,293  $  1,498  $ 24,975
 OTHER NON-RECURRING
  ITEMS (1)          $   (764) $ (5,896) $ (3,200) $(19,032) $(28,892)
                    --------------------------------------------------
   TOTAL REPORTED
    RESULTS          $ 34,324  $ 31,908  $ 34,237   $ 7,245  $107,714
                    ==================================================
 EBITDA %
 TOOLS & SUPPLIES
  SEGMENT                19.5%     23.3%     21.7%     18.9%     20.9%
 ENGINEERED
  SOLUTIONS SEGMENT      24.5%     22.2%     25.1%     24.7%     24.1%
   TOTAL CONTINUING
  (INCL.  CORPORATE)     21.3%     22.1%     22.5%     20.6%     21.7%


                                       FISCAL 2001
                    --------------------------------------------------
                        Q1        Q2        Q3        Q4      TOTAL
                     --------- --------- --------- --------- ---------
SALES
 TOOLS & SUPPLIES
  SEGMENT            $ 69,773                                $ 69,773
 ENGINEERED
  SOLUTIONS SEGMENT  $ 47,747                                $ 47,747
                    --------------------------------------------------
   TOTAL CONTINUING
    BUSINESSES       $117,520                                $117,520
 NON-CONTINUING
  BUSINESSES         $      -                                $      -
                    --------------------------------------------------
   TOTAL REPORTED
    SALES            $117,520                                $117,520
                    ==================================================

% SALES GROWTH
 TOOLS & SUPPLIES
  SEGMENT                 4.7%
 ENGINEERED
  SOLUTIONS SEGMENT     -21.4%
   TOTAL CONTINUING
    BUSINESSES           -7.8%
 NON-CONTINUING
  BUSINESSES           -100.0%
   TOTAL REPORTED
    SALES               -32.1%

OPERATING PROFIT
 TOOLS & SUPPLIES
  SEGMENT            $ 11,495                                $ 11,495
 ENGINEERED
  SOLUTIONS SEGMENT  $  8,414                                $  8,414
 CORPORATE / GENERAL $ (1,148)                               $ (1,148)
                    --------------------------------------------------
   TOTAL CONTINUING
    BEFORE
    NON-RECURRING    $ 18,761                                $ 18,761
 NON-CONTINUING
  BUSINESSES         $      -                                $      -
 OTHER NON-RECURRING
  ITEMS (1)          $      -                                $      -
                    --------------------------------------------------
   TOTAL REPORTED
    RESULTS          $ 18,761                                $ 18,761
                    ==================================================

OPERATING PROFIT %
 TOOLS & SUPPLIES
  SEGMENT                16.5%                                   16.5%
 ENGINEERED
  SOLUTIONS SEGMENT      17.6%                                   17.6%
   TOTAL CONTINUING
  (INCL.  CORPORATE)     16.0%                                   16.0%

EBITDA
 TOOLS & SUPPLIES
  SEGMENT            $ 13,885                                $ 13,885
 ENGINEERED
  SOLUTIONS SEGMENT  $ 10,037                                $ 10,037
 CORPORATE / GENERAL $    493                                $    493
                    --------------------------------------------------
   TOTAL CONTINUING
    BUSINESSES       $ 24,415                                $ 24,415
 NON-CONTINUING
  BUSINESSES                                                 $      -
 OTHER NON-RECURRING
  ITEMS (1)                                                  $      -
                    --------------------------------------------------
   TOTAL REPORTED
    RESULTS          $ 24,415                                $ 24,415
                    ==================================================
 EBITDA %
 TOOLS & SUPPLIES
  SEGMENT                19.9%                                   19.9%
 ENGINEERED
  SOLUTIONS SEGMENT      21.0%                                   21.0%
   TOTAL CONTINUING
  (INCL.  CORPORATE)     20.8%                                   20.8%


(1) CORPORATE REORGANIZATION COSTS, LOSSES ON PRODUCT LINE
    DISPOSITIONS, RECOVERY OF CONTRACT TERMINATION COSTS, EXCESS
    CORPORATE EXPENSES