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CIMCO EXPECTS REVENUES AND EARNINGS TO DECLINE IN THIRD QUARTER

 COSTA MESA, Calif., Jan. 19 /PRNewswire/ -- CIMCO INC. (NASDAQ: CIMC) today announced that it expects revenues and earnings to be substantially lower in the third quarter ending Jan. 31, 1993, than the preceding quarter. In the second fiscal quarter ended Oct. 31, 1992, CIMCO earned $.10 per share on revenues of $19.2 million.
 "The anticipated reduction in earnings is attributed to a decrease in sales resulting in lower plant utilization in our Commercial/Industrial Group. We have been experiencing an unexpected falloff in sales from some of our major customers due to continued softness in the computer industry," said Russell T. Gilbert, CIMCO's president and chief executive officer.
 "Therefore, over the last two weeks we reduced our work force by 9 percent to be more in line with our near-term order outlook. The layoffs were made primarily at the Commercial/Industrial Group's Costa Mesa and Corona molding facilities, as well as reductions in our corporate staff," Gilbert said. CIMCO's total worldwide employment at Dec. 31, 1992, was 794.
 "On the positive side, our Compounding Group remains strong," Gilbert added. "The Commercial/Industrial Group is experiencing good sales growth in a number of areas other than computer-related products; tooling backlogs are strong; and our Medical Group has just signed a long-term contract with a new customer to manufacture and package intravenous sets with in-line microfilters."
 Founded in 1959, CIMCO INC. is a major developer and manufacturer of high performance plastic components for commercial/industrial and medical markets. The company also custom formulates and compounds reinforced thermoplastic materials. CIMCO supplies more than 100 original equipment manufacturers in the business machine, computer, commercial irrigation, automotive safety, telecommunications and health care industries.
 -0- 1/19/93
 /CONTACT: S. Suki Shattuck, director of corporate relations of CIMCO, 714-546-4460; or Cecilia A. Wilkinson of Pondel Parsons & Wilkinson, 310-207-9300, for CIMCO/
 (CIMC)


CO: CIMCO INC. ST: California IN: SU: ERP

JL-LS -- LA006 -- 6175 01/19/93 09:30 EST
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Publication:PR Newswire
Date:Jan 19, 1993
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