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BWIP HOLDING INC. LOWERS FIRST QUARTER EARNINGS EXPECTATIONS

 LONG BEACH, Calif., March 22 /PRNewswire/ -- BWIP Holding Inc. (NASDAQ-NMS: BWIP), citing a combination of weak demand in its aftermarket business, product mix changes and delays in shipments of certain large original equipment orders, reduced its earnings expectations for the first quarter.
 Peter C. Valli, chairman and chief executive officer, said, "We had previously announced that results for the first quarter would drop below those of recent quarters and that the final outcome would be determined by demand for our aftermarket products and services.
 "Now that we are approaching the end of the quarter," said Valli, "it is clear that our first quarter results will be negatively affected by prolonged customer deferrals in the aftermarket portion of our business and by delays in the shipment of original equipment."
 Valli said that compared with the third and fourth quarters of 1992, in which the company reported earnings per share of $.39 and $.40, respectively, earnings in the first quarter of 1993 would fall below $.30 per share. "This result is an example of the inherent lumpiness of our business," Valli said.
 Valli also noted that margins in the first quarter of 1993 are lower than last year because of the shift in the company's product mix to more original equipment sales. The company experienced a dramatic increase in its original equipment bookings in 1992.
 He added that original equipment requires much longer lead times to produce than aftermarket products, and that some shipments that were expected to be shipped in the first quarter have experienced normal production delays. "Shipment levels will catch up to the increase in bookings later in the year," Valli said.
 "With our strong backlog, we expect that results for the subsequent quarters of 1993 will improve," Valli added. "It is clear, however, that results for the year as a whole will continue to depend on an anticipated rise in aftermarket sales. The longer these orders are delayed, the less likely it is that we will be able to better our 1992 performance."
 BWIP Holding Inc. is the parent company for BW/IP International Inc., a supplier of advanced-technology pump, seal and fluid control equipment and services.
 -0- 3/22/93
 /CONTACT: Dan Peoples of Peoples & Co., 310-435-3700 or 619-552-1456, for BWIP Holding/
 (BWIP)


CO: BWIP Holding Inc. ST: California IN: SU: ERP

KJ-JB -- SD001 -- 8275 03/22/93 14:05 EST
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Publication:PR Newswire
Date:Mar 22, 1993
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