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CHARTER POWER SYSTEMS ANNOUNCES FIRST QUARTER RESULTS

 CHARTER POWER SYSTEMS ANNOUNCES FIRST QUARTER RESULTS
 PLYMOUTH MEETING, Pa., June 4 /PRNewswire/ -- Charter Power Systems,


Inc. (AMEX: CHP) announced today that in the 1993 fiscal first quarter, ended April 30, 1992, net income declined to $716,000 or 12 cents per share, from $1,577,000 or 27 cents per share in the prior year period.
 Sales for the quarter were $31,320,000 compared with $40,462,000 for the fiscal 1992 first quarter ended April 30, 1991. Sales in the company's standby power segment declined significantly, in line with previously disclosed expectations, while motive power sales increased slightly.
 Gross profit margin declined to 21.2 percent from 22.4 percent in the prior year quarter, as the impact of the reduced sales volume on the company's ability to absorb its fixed costs was partially mitigated by the combination of effective cost reduction programs and the current year benefit of the substantial year-end charges taken in anticipation of the June 1992 closing of the company's Perth, Ontario, plant. Interest expense declined to $245,000 from $611,000 in the prior year quarter, reflecting the benefit of reduced long-term debt and lower interest rates.
 "The first quarter reduction in standby power sales, particularly to AT&T, materialized as expected," stated Robert Alvine, chairman and chief executive officer, "due principally to the continued impact of the recession, particularly in the telecommunications and UPS market sectors and the accelerated shift in customer demand in these key market sectors from conventional flooded to valve-regulated batteries. We are pleased, however, that our capital investment and working capital management programs, combined with operating efficiencies, have enabled us to remain profitable and to generate strong cash flows from operations. Moreover, we remain optimistic that a number of developments in the pipeline, including a successful launch at the end of the first quarter of our new Liberty 2000 valve-regulated battery line, should enable us to return to pre-downturn sales and earnings levels in the second half of the fiscal year."
 CHARTER POWER SYSTEMS, INC.
 (Unaudited; in thousands, except earnings per-share data)
 Pct.
 Three months ended April 30 1992 1991 Change
 Sales $31,320 $40,462 (22.6)
 Operating income 1,524 3,465 (56.0)
 Income before income taxes 1,193 2,718 (56.1)
 Net income 716 1,577 (54.6)
 Earnings per common and
 common equivalent share $.12 $.27 (55.6)
 Weighted average common and
 common equivalent shares 5,887 5,884 ---
 Net cash flows provided by
 operating activities $4,552 $3,117 46.0
 Charter Power Systems is producer and marketer of batteries and integrated power systems for the standby and motive power markets.
 /delval/
 -0- 6/4/92
 /CONTACT: Donald L. Nevins Jr. (financial), 215-834-7334, or Yanis Bibelnieks (shareholders), 212-949-2295, both of Charter Power Systems/
 (CHP) CO: Charter Power Systems, Inc. ST: Pennsylvania IN: SU: ERN


MK-CC -- PH032 -- 7163 06/04/92 15:54 EDT
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Date:Jun 4, 1992
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