Applied Power announces record second quarter earnings.

MILWAUKEE--(BUSINESS WIRE)--March 19, 1997--Applied Power Inc. (NYSE:APW) reported record sales and net earnings for the second quarter ended February 28, 1997. Net earnings for the second quarter were $0.66 per share, a 20 percent improvement from the $0.55 per share reported for the same period last year. Sales for the second quarter were $157.2 million, an increase of 15 percent over the comparable prior year period.

For the first six months of fiscal 1997, earnings were $1.33 per share, an increase of 21 percent over the $1.10 per share reported for the same period in fiscal 1996. Sales were $310.3 million, an increase of 12 percent over the comparable prior year period. Year-over-year operating profit margins increased substantially to 11.9 percent from 10.2 percent.

Richard G. Sim, Chairman and CEO, stated, "We are pleased with our second quarter results. The earnings per share improvement represents our thirteenth consecutive quarter of year-over-year EPS growth of 20 percent or better. Our sales for the year and quarter are 12 percent and 15 percent respectively ahead of last year, including the negative effect of a stronger dollar. We are particularly encouraged by the strengthening trend in orders and sales and we have an optimistic outlook for the rest of 1997 and into 1998. Our strategy of preferentially investing in sustainable growth opportunities is clearly benefiting us."

All of the Company's segments reported improved profits on a year-to-date basis. Technical Environments and Enclosures ("TEE") profits grew an impressive 92 percent on a strong 69 percent sales growth. Engineered Solutions ("ES") profits grew 23 percent on a sales reduction of 5 percent. Excluding the sale of the mobile equipment valve line and the effect of the Cadillac valve contract which ended last fiscal year, sales in ES grew at a modest level. Distributed Products ("DP") profits grew 9 percent on sales growth of 5 percent.

The Company's debt increased $8.2 million during the quarter, primarily as a result of the acquisition of the C Fab business. At February 28, 1997, outstanding debt totaled $144.9 million and debt to total capitalization remained at 42 percent.

Applied Power is a global company comprised of three business segments. Technical Environments and Enclosures expertise is in configuring technical equipment for end users and in providing enclosures for electronic equipment. Engineered Solutions supplies components and systems based on hydraulic and vibration control technologies to a diverse group of OEM customers. Distributed Products provides industrial and electrical tools and accessories through various distributor and retail channels worldwide.

To receive a faxed copy of this or other recent Applied Power communications, please call the Company's "News on Demand" service at 1-800-549-0679. -0-

                         Applied Power Inc.
                 Comparative Statement of Earnings
              (In Thousands, Except per Share Amounts)

                                         Three Months Ended
                                      February 28,  February 29,
                                         1997          1996
                                     __________    __________
Sales                                $  157,170    $  137,080
Cost of Goods Sold                       96,737        85,414
                                     __________    __________
  Gross Profit                           60,433        51,666

Engineering, Selling and
 Administrative Expense                  41,812        37,802
                                     __________    __________
  Operating Profit                       18,621        13,864

Other Expense (Income)
  Interest Expense (Net)                  3,195         2,047
  Amortization of Intangibles             1,799           988
  Other (Net)                              (612)         (421)
                                     __________    __________
    Earnings Before Income Taxes         14,239        11,250

Income Tax Expense                        4,770         3,600
                                     __________    __________
Net Earnings                          $   9,469    $    7,650
                                     __________    __________
                                     __________    __________

Earnings per Share                    $    0.66    $     0.55

Average Shares Outstanding               14,346        13,922



                         Applied Power Inc.
                 Comparative Statement of Earnings
              (In Thousands, Except per Share Amounts)

                                          Six Months Ended
                                      February 28,  February 29,
                                         1997          1996
                                     __________    __________
Sales                                $  310,266    $  276,350
Cost of Goods Sold                      189,195       170,604
                                     __________    __________
  Gross Profit                          121,071       105,746

Engineering, Selling and
 Administrative Expense                  84,047        77,658
                                     __________    __________
  Operating Profit                       37,024        28,088

Other Expense (Income)
  Interest Expense (Net)                  5,820         4,114
  Amortization of Intangibles             3,297         1,707
  Other (Net)                              (678)         (321)
                                     __________    __________
    Earnings Before Income Taxes         28,585        22,588

Income Tax Expense                        9,576         7,228
                                     __________    __________
Net Earnings                         $   19,009    $   15,360
                                     __________    __________
                                     __________    __________

Earnings per Share                   $     1.33    $     1.10

Average Shares Outstanding               14,263        13,959


                         Applied Power Inc.
                     Comparative Balance Sheet
                       (Dollars in Thousands)

                                       February 28,    August 31,
                                           1997          1996
                                       ___________   ___________
CURRENT ASSETS

Cash and Cash Equivalents              $       84    $    1,001
Accounts Receivable                        70,328        68,747
Inventories                               124,663       120,648
Prepaid Expenses                           16,658        16,509
                                       __________    __________
  Total Current Assets                    211,733       206,905

Other Assets                                6,330         6,370
Goodwill                                  105,941        58,266
Intangible Assets                          31,977        33,464

Property, Plant & Equipment
  Gross Property, Plant & Equipment       180,888       168,125
  Less:  Accumulated Depreciation         (96,046)      (91,889)
                                       __________    __________
    Net Property, Plant & Equipment        84,842        76,236
                                       __________    __________
  TOTAL ASSETS                           $440,823    $  381,241
                                       __________    __________
                                       __________    __________


LIABILITIES AND SHAREHOLDERS' EQUITY

Short-term Borrowings                  $   24,595    $   16,068
Trade Accounts Payable                     39,927        41,397
Accrued Compensation and Benefits          17,683        20,805
Income Taxes Payable                        4,016         7,081
Other Current Liabilities                  21,673        22,378
                                       __________    __________
  Total Current Liabilities               107,894       107,729

Long-term Debt, Less Current Portion      120,349        76,548
Deferred Taxes                             13,834        15,395
Other Long-term Liabilities                14,530        13,114

SHAREHOLDERS' EQUITY
  Common Stock                              2,758         2,730
  Additional Paid-in Capital               37,754        34,383
  Retained Earnings                       144,575       126,392
  Cumulative Translation Adjustments         (871)        4,950
                                       __________    __________
    Total Shareholders' Equity            184,216       168,455
                                       __________    __________
  TOTAL LIABILITIES AND
    SHAREHOLDERS' EQUITY               $  440,823    $  381,241
                                       __________    __________
                                       __________    __________

CONTACT: Applied Power Inc.

Robert C. Arzbaecher, 414/781-6600