Belding Heminway Company, Inc. reports third quarter results; Announces sale of Lily; Closing thread manufacturing facility.

NEW YORK--(BUSINESS WIRE)--Oct. 25, 1995-- Belding Heminway Company, Inc. (NYSE:BHY) today announced its financial results for the third quarter and nine month periods ended September 30, 1995.

Third quarter sales were $28.7 million compared to $31.0 million in the year ago third quarter. Net income available to common shares was $102,000 or $0.01 per share after provision for preferred dividends compared to net income available to common shares of $298,000 or $0.06 per share after provision for preferred dividends in the year ago quarter. Net income was $428,000 before provision for preferred stock dividends of $326,000 compared to net income of $905,000 before provision for preferred dividends of $607,000 in the year ago period. Weighted average common shares outstanding increased 45% compared to 1994's third quarter due to the conversion of preferred stock into common shares in December 1994.

For the first nine months of 1995, sales were $95.7 million compared to $89.7 million in the year ago period, an increase of 7%. Net income available to common shares was $1,290,000 compared to net income available to common shares of $1,033,000 in last year's period. For the first nine months of 1995, earnings per share were $0.17 compared to $0.20 per share for the nine months ended September 30, 1994, on a 46% increase in weighted average common shares outstanding in the first nine months of 1995.

The third quarter results reflect continuing industry-wide soft demand in the home furnishings market, lower demand for top thread as well as lower margins in the Company's Thread division. The Company noted that its Thread division's margins were reduced due to higher than expected raw material and manufacturing costs. The Company's Button division continues to benefit from our cross-merchandising agreement with Concord House Fabrics as well as other new product developments, such as a line of earrings targeted to retail markets.

Separately, the Company announced that it has sold the assets of the Lily cotton knit yarn product line, which was part of the Company's Button division. Lily's latest twelve month sales were approximately $5 million. Lily's lower-margin cotton knit yarns did not fit within the Company's strategy to focus on its core Thread, Button/Craft and Home Furnishings operations.

Additionally, the Company announced that it is closing the recently acquired West New York, N.J. manufacturing facility of Culver Textile Corporation. These operations will be consolidated into the Winsted, Connecticut and Bronx, New York facilities, currently operated through the Company's Danfield Thread division. The Company noted that Culver Textile and Danfield Thread's operations are highly synergistic, and enhanced efficiencies will result from the consolidation of their manufacturing and distribution efforts.

Gregory Cheskin, President and Chief Executive Officer said: "Our third quarter results were impacted by soft demand that continues to affect the entire home furnishings industry, and thus far we see no signs of improvement in our fourth quarter. Our Thread operations continue to experience lower demand in top thread as well as reduced margins as raw material costs remain at increased levels, which we have not yet been able to pass through to the marketplace. Due to the forecasts for lower automobile, furniture and footwear production through the remainder of this year, we expect our Thread division to continue to have lower than historical sales and margins. We will work through our ongoing margin improvement programs, the results of which should begin to be seen in the 1996 second quarter. The consolidation of Culver's operations into our Danfield Thread manufacturing facilities should begin to benefit the cost structure of these operations in the second quarter of 1996. Our Button business continues to perform very well, although we will have lower overall sales in that division as a result of the sale of Lily."

Mr. Cheskin added: "The second half of 1995 has been and we expect will continue to be a more difficult operating environment than we had anticipated. As a result, operating investments in our Thread division will be accelerated during the fourth quarter to improve manufacturing efficiencies, which should bode well for 1996 and beyond. We are focused on critical manufacturing, inventory, marketing, and distribution processes that should enhance productivity and enable us to further realize the substantial potential of our Thread division."

Belding Heminway manufactures and markets industrial threads, decorative home furnishing fabrics and consumer sewing and crafts products, principally buttons. In addition to its headquarters in New York City, it has manufacturing or distribution facilities in Lansing, Iowa, Hendersonville, North Carolina, Watertown and Winsted, Connecticut, Emporia, Virginia, and Bronx, New York. -0-

                     BELDING HEMINWAY COMPANY, INC.
                          AND  SUBSIDIARIES
                  CONSOLIDATED STATEMENTS OF OPERATIONS
              (Dollars in thousands, except per share data)

                            Three Months Ended        Nine Months Ended
                               September 30,             September 30,
                             1995        1994           1995      1994

Net sales                  $28,699     $30,952         $95,714  $89,704
Income before interest
  and income taxes         $ 1,984     $ 2,516         $ 7,633  $ 7,495
Net income applicable to
  common stockholders'     $   102     $   298         $ 1,290  $ 1,033

Net income per
  common share             $   0.01     $  0.06        $  0.17  $  0.20

Weighted average
 common shares
outstanding
  (in thousands)              7,413      5,125           7,416    5,085

                 CONSOLIDATED & SUMMARIZED BALANCE SHEET
                         (Dollars in thousands)

                             September 30, 1995   December 31, 1994
                                  (Unaudited)        _________

Current Assets                    $   50,554        $   51,139
Total Assets                      $  140,059        $  132,190

Current Liabilities               $   24,640        $   24,901
Total Liabilities                 $   90,762        $   85,131

Stockholders' Equity:
  Preferred                        $  21,849        $   20,897
  Common                              27,448            26,162
     Total                         $  49,297        $   47,059

CONTACT: Morgen-Walke Associates

June Filingeri, Robert Weiner

Media Contact: Stacy Berns

[phone]