BHA Group Inc. announces second quarter 1996 unaudited operating results.

KANSAS CITY, Mo.--(BUSINESS WIRE)--April 11, 1996--BHA Group Inc. (NASDAQ: BHAG) today announced unaudited operating results for the second quarter and six months ended March 31, 1996.

Net sales for the three months ended March 31, 1996, increased 3% to $31,202,000 from $30,264,000 for the same period in fiscal 1995. Earnings per share increased 15% to $.31 from $.27 the prior year. Actual earnings increased to $1,741,000 from $1,581,000 in 1995.

Net sales for the six months ended March 31, 1996, increased 2% to $58,901,000 from $57,522,000 the prior year. Earnings per share for the six-month period increased 16% to $.58 from $.50 the prior year with actual earnings increasing to $3,246,000 from $2,992,000 in 1995.

Commenting on the results, James E. Lund, president and chief executive officer, said: "We are pleased to report that record earnings per share were achieved in the quarter just completed. The sales mix remains favorable generating improved gross margins and in turn higher earnings per share compared to the second quarter of 1995. Strong performance in our domestic fabric filter business was enhanced by growth in our new, higher tech products within this market.

"Margins were also favorably impacted by the results of all of our international operations. Our worldwide parts and service business for both the electrostatic precipitator and the fabric filter markets saw volume increases and margin expansion during the second quarter.

"The domestic market for electrostatic precipitator parts and service remains competitive as the electric utility industry continues to struggle with the effects of deregulation. The ongoing expansion into international electrostatic precipitator markets and continued focus domestically on industrial accounts provides us with the greatest opportunity for maximizing the profits of this segment of our business."

The company's backlog at the end of March 1996 was $36 million, consistent with December 1995 and March 1995.

The company also announced that the board of directors has declared a dividend of $.03 per share of common stock, payable on May 3, 1996, to shareholders of record on April 22, 1996.

BHA Group Inc. manufactures and markets replacement parts and provides maintenance and rebuilding services for industrial air pollution control equipment on a worldwide basis. -0-

                      BHA Group Inc. and Subsidiaries
                   Consolidated Statements of Operations
                 Three and Six Months Ended March 31, 1996
                    (With Comparative Figures for 1995)
                               (Unaudited)

                                     Three Months Ended March 31,
                                        1996             1995

Net sales                           $31,202,000      $30,264,000
Earnings before income taxes          2,721,000        2,571,000
Net earnings                          1,741,000        1,581,000
Earnings per share                          .31              .27
Weighted average shares outstanding   5,594,904        5,785,393

                                      Six Months Ended March 31,
                                        1996             1995

Net sales                           $58,901,000      $57,522,000
Earnings before income taxes          5,106,000        4,822,000
Net earnings                          3,246,000        2,992,000
Earnings per share                          .58              .50
Weighted average shares outstanding   5,593,777        5,932,614

CONTACT: BHA Group Inc., Kansas City

James C. King, 816/356-8400, ext. 279