Applied Power first quarter earnings.

MILWAUKEE--(BUSINESS WIRE)--Dec. 20, 1994--Applied Power Inc. (APW - NYSE) reported record sales and net earnings for the first quarter ended November 30, 1994. Net earnings from continuing operations were $5.4 million, or $.40 per share, an 86 percent improvement from the $2.9 million, or $.22 per share, reported for the same period last year.

Sales for the first quarter of the current year were $125.8 million, an increase of 21 percent over the $103.6 million reported in fiscal year 1994. Richard G. Sim, Chairman and CEO, stated, ``The sales growth that we experienced as fiscal year 1994 progressed continued in the first quarter of fiscal year 1995 with strong participation from all business units and major geographic markets except Japan. Wright Line's 39 percent year-to-year growth was primarily due to the strength of its product offering and distribution effectiveness into the fast growing local area computer network market. The Engineered Solutions Group, with 22 percent year-to-year sales growth, was driven by the success of Power-Packer in winning new business in the resurgent European markets. Enerpac business activity continues to strengthen worldwide and was the major factor in the Distributed Products Group's 17 percent year-to-year sales improvement. We believe the first quarter results are a solid foundation for what should be a record year of financial performance for Applied Power.''

Gross profit was $48.2 million, or 25 percent higher than a year ago, driven primarily by improvements at Wright Line and the Engineered Solutions Group. Operating expenses, at $35.7 million, were 19 percent higher than a year ago, reflecting the conversion of non-U.S. expenses (due to the weak U.S. dollar), higher sales and marketing expenses, and increased investments in new product development and geographic expansion. Since the first quarter of fiscal year 1994, Applied Power opened sales offices in Brazil and India.

Debt declined $6.6 million in the first quarter, from $103.5 million to $96.9 million. Debt to total capital is now approximately 43 percent.

Applied Power is a world leader in industrial motion and position control applications and a pioneer in the marriage of hydraulic and vibration technologies with electronics. The company is comprised of two business groups and the Wright Line unit. The Engineered Solutions Group, which includes the Power-Packer, APITECH and Barry Controls businesses, serves the automotive, truck, mobile equipment, marine, medical equipment, defense and aerospace markets. The Distributed Products Group, which consists of Enerpac and GB Electrical, provides a wide variety of high pressure products and electrical tools and consumables worldwide. The Wright Line business provides technical furniture solutions for offices and laboratories.

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


                                       Three Months Ended November 30,
                                           1994              1993

Sales                                   $ 125,799         $ 103,604
Cost of Goods Sold                         77,627            65,012
  Gross Profit                             48,172            38,592

Engineering, Selling and Administrative
 Expense                                   35,693            30,109
  Operating Profit                         12,479             8,483

Other Expense (Income)
  Interest Expense                          2,738             2,838
  Amortization of Intangibles               1,161             1,255
  Other - Net                                 201                61
    Earnings Before Income Taxes            8,379             4,329

Income Tax Expense                          2,938             1,401

Net Earnings from Continuing Operations     5,441             2,928

Discontinued Operations, Net of Tax:
  Earnings from Operations Previously
    Added to Reserve for Estimated Loss
    on Disposition                              0              (348)

Net Earnings                            $   5,441         $   2,580


Net Earnings per Share:
  Continuing Operations                 $    0.40         $    0.22
  Discontinued Operations                       0             (0.03)
    Earnings per Share                  $    0.40         $    0.20

Average Shares Outstanding                 13,622            13,141

Note:  Earnings per Share data may not total due to rounding variances.


Applied Power Inc.
Comparative Balance Sheet
(In Thousands)
                                            November 30,   August 31,
                                               1994           1994
CURRENT ASSETS

Cash and Cash Equivalents                 $     2,201    $     1,907
Accounts Receivable                            64,283         64,259
Inventories                                    95,619         94,949
Prepaid Expenses                               12,741         13,694
  Total Current Assets                        174,844        174,809

Other Assets                                    6,484          6,390
Goodwill                                       56,327         56,708
Intangible Assets                              11,343         11,750

Property, Plant & Equipment
  Gross Property, Plant & Equipment           141,437        138,792
  Less:  Accumulated Depreciation             (74,772)       (71,047)
    Net Property, Plant & Equipment            66,665         67,745

  TOTAL ASSETS                            $   315,663    $   317,402


LIABILITIES AND SHAREHOLDERS' EQUITY

Short-term Borrowings                     $    17,306    $    14,707
Trade Accounts Payable                         32,901         35,219
Accrued Compensation and Benefits              14,064         16,335
Income Taxes Payable                            7,811          8,190
Other Current Liabilities                      20,242         16,722
Current Maturities of Long-term Debt           10,650         10,792
  Total Current Liabilities                   102,974        101,965

Long-term Debt, Less Current Portion           68,942         77,956
Deferred Taxes                                 16,205         16,768
Other Long-term Liabilities                    13,575         13,402

SHAREHOLDERS' EQUITY
  Common Stock                                  2,674          2,630
  Additional Paid-in Capital                   24,764         23,648
  Retained Earnings                            80,847         75,802
  Cumulative Translation Adjustments            5,682          5,231
    Total Shareholders' Equity                113,967        107,311

  TOTAL LIABILITIES AND
    SHAREHOLDERS' EQUITY                  $   315,663    $   317,402

CONTACT: Applied Power Inc., Milwaukee 

Robert C. Arzbaecher, 414/781-6600