CTB International Corp. Announces Third Quarter Results.

MILFORD, Ind.--(BUSINESS WIRE)--Oct. 28, 1998--CTB International Corp. (Nasdaq:CTBC) today reported 27 percent sales growth for the quarter ended September 30, 1998, to $91.1 million compared with $71.7 million in the third quarter of 1997. Net income for the quarter totaled $5.6 million, or 43 cents per share, for the third quarter, compared with net income of $6.4 million, or 63 cents per share, in the comparable prior year period.

Earnings per share reflects a 28 percent increase in weighted average shares outstanding primarily as a result of the company's initial public offering and the conversion of all preferred stock to common stock that occurred on August 21, 1997.

Operating income for the quarter totaled $10.7 million, compared with $12.2 million in the same period last year.

For the first nine months of 1998, the company reported $9.9 million in net income, or 76 cents per share, versus $11.9 million, or $1.41 per share during the comparable 1997 period.

Chris Chocola, president and chief executive officer of CTB International Corp., noted that the quarter's results were slightly above current market expectations.

Chocola said, "We are pleased with the strength of the domestic poultry market and encouraged by the healthy flow of orders and shipments in the grain bin business. Growth in the United States is helping to offset weakness in the overseas economies, particularly in Asia and Brazil, where, despite the challenges presented by these markets, we remain confident that we are positioned to realize the potential demand."

Chocola added that the Charoen Pokphand project and market share gains in the feeding, watering, and ventilation product lines, as well as favorable market conditions for the sale of egg production systems contributed to the quarter's revenue gains. The acquisition of Sibley, a leading manufacturer of heaters for the agriculture industry, also favorably impacted sales during the quarter.

Chocola indicated that, while earnings were negatively affected by the remaining implementation phase of CTB's new integrated computer software system, the company made further progress in responding efficiently to dealer orders. He noted that the majority of the financial impact related to the system implementation has already been incurred.

The computer software system, also known as an enterprise resource system, will integrate many internal functions of the company and is intended to maximize effective planning, scheduling, execution, and control of the company's resources. By implementing the enterprise resource system, CTB will further enhance its ability to provide customer satisfaction and to execute its strategy.

Chocola noted that during the quarter CTB took significant steps forward to execute its business strategy. "In addition to closing the Sibley acquisition, we closed the acquisition of STACO, a leading manufacturer of feeders and other equipment for the swine raising industry. We signed a letter of intent to purchase Roxell, a European pig and poultry equipment manufacturer, and we also entered into an exclusive worldwide arrangement with Jay-Dee Industries, Inc. to market its poultry nest systems," Chocola said.

"These actions extend CTB's product offering and increase our ability to offer customers the most complete, highest-value package of products available in the world," Chocola added.

During the quarter, CTB also announced that its Board of Directors authorized expansions of its stock repurchase program, announced in August and again in October, permitting the company to repurchase up to 1,500,000 shares.

Chocola noted that the company has repurchased 738,000 shares.

NINE MONTH RESULTS

Sales for the first nine months of the year totaled $208.4 million, an increase of 35 percent over $153.9 million last year.

Operating income for the nine months year-to-date was $19.7 million, compared with $22.0 million in the prior year period.

CTB International Corp., based in Milford, Indiana, is a leading manufacturer and marketer of automated feeding, watering, heating, and ventilation systems; commercial egg production systems; and feed and grain storage bins as well as grain handling equipment. The company also markets breeder nesting systems. Founded in 1952, CTB serves the poultry, swine, egg production and grain industries. It operates from facilities in Europe and Latin America, as well as from U.S. plants in Indiana, Alabama, Missouri, and Pennsylvania.

This document contains certain statements regarding the future, including, without limitation, sales growth, earnings growth and overall growth strategy, and involves certain risks and uncertainties regarding CTB International Corp.'s business and operations and the agriculture industry. Please refer to the Company's Securities and Exchange Commission filings, including, but not limited to, the Company's Form 10-K filing, where specific risk factors that could cause actual results to differ materially from the forward-looking statements made in this news release are identified. -0-

               CTB International Corp. and Subsidiaries
               Condensed Consolidated Income Statements
                                Actual
                 (In thousands, except per share data)
                             (Unaudited)


                 For the Three Months      For the Nine Months
                       Ended                     Ended
                     September 30,            September 30,
                   ________________         __________________
                    1997      1998            1997      1998
                    ____      ____            ____      ____
Net sales          $71,740  $91,138  27.0%  $153,904  $208,380   35.4%
Cost of sales       51,150   70,053  37.0%   112,009   161,752   44.4%
                   _______  _______         ________  ________
  Gross profit      20,590   21,085   2.4%    41,895    46,628   11.3%
                      28.7%    23.1%            27.2%     22.4%
Other operating
 expense:
  Selling, general,  7,974    9,926  24.5%    18,965    25,552   34.7%
   and administrative
   expenses           11.1%    10.9%            12.3%     12.3%
  Amortization of
   goodwill            430      446   3.7%       973     1,335   37.2%
                   _______  _______         ________  ________
Operating income    12,186   10,713 -12.1%    21,957    19,741  -10.1%
                      17.0%    11.8%            14.3%      9.5%
Other income
 (expense) - Net    (1,607)  (1,474) -8.3%      (822)   (3,412) 315.1%
                   _______  _______         ________  ________
Income before
 income taxes       10,579    9,239 -12.7%    21,135    16,329  -22.7%

Income taxes         4,204    3,628 -13.7%     9,193     6,420  -30.2%
                   _______  _______         ________  ________
Net income          $6,375   $5,611 -12.0%   $11,942    $9,909  -17.0%
                   _______  _______         ________  ________
                   _______  _______         ________  ________
                       8.9%     6.2%             7.8%      4.8%
Earnings per share:
  Pro forma net
   income per
   share             $0.63    $0.43 -31.7%     $1.41     $0.76  -46.1%
                   _______  _______         ________  ________
                   _______  _______         ________  ________
  Pro forma
   weighted average
   shares (a)       10,149   12,950  27.6%     8,488    13,115   54.5%
                   _______  _______         ________  ________
                   _______  _______         ________  ________

(a)  Average number of common shares outstanding varies between
     periods presented principally due to five million shares issued
     in the Company's initial public offering, the exchange of all
     outstanding preferred stock for 648 thousand shares of common
     stock on August 21, 1997 and 596 thousand net treasury shares
     repurchased by the Company during 1998.