Camco Inc. - Earnings Growth - Driven By Strategic Investment And Operational Improvement.

TORONTO--(BUSINESS WIRE)--Feb. 10, 1997--CAMCO INC.(TSE, ME COC.) Nathaniel C. Stoddard, Chairman, President and Chief Executive Officer is pleased to announce today that Camco Inc. posted a net income of $2.6 million or $0.13 per share for the year ended December 31, 1996 compared to a net loss of $13.9 million or $0.69 per share in 1995. Camco's performance was recognized in the capital markets with a 30 percent growth in shareholder value, as the price of Camco's shares increased from $3.45 to $4.50 per share during 1996.

Sales of products and services grew to $506.7 million in 1996 compared to $451.3 million in 1995, an increase of 12 percent. Camco's total sales growth outperformed the Canadian appliance industry growth estimated at 6.5 percent, an indication of Camco's increased competitiveness in North American markets. A main contributor to the growth in sales was exports which totaled $138.9 million in 1996 and represented a 33 percent increase from last year. Exports were more than 26 percent of total company sales and were driven by the strategic investment in large capacity dryers introduced at the Montreal facility in 1995.

An emphasis on operating excellence contributed to performance improvements in all areas of the Company. An improved forecasting and production planning process enabled Camco to run its plants more smoothly and predictably, thereby, achieving better plant efficiencies. In addition, efforts made by the Camco Team to reduce commodity prices through product and process design changes resulted in lower material costs.

Major gains were also achieved in the area of cash management. The Company ended the year with cash and short term investments of $17.0 million, a $10.5 million increase from prior year. Turnover of key net working capital elements more than doubled in 1996, allowing Camco to reduce its interest and other expenses by $1.5 million.

Camco continued to evolve its strategy to refocus its manufacturing facilities on global products, and to establish new alliances to gain access to technology, export markets, and complementary products for Canadian distribution. In 1996, Camco reached a seven year agreement with the Appliance Division of General Electric Company to develop and manufacture a new appliance product at its Hamilton facility, with production beginning in 1998.

Mr. Stoddard stated, "1997 marks Camco's 20th Anniversary. We would like to thank our customers and suppliers for their support over the years. Operational excellence with a clear determination to be number one in serving our valued customers, will remain a key objective in 1997. I am confident in the Camco Team's ability to deliver the desired results and that we have the momentum to meet the challenges of 1997 head on."

Camco Inc. is the largest manufacturer and servicer of home appliances in Canada including such popular brands as GE, Hotpoint, Moffat and McClary. In addition, it produces private brands for major department stores in Canada. Production facilities of its core product lines are located in Hamilton, Ontario and Montreal, Quebec.

CONTACT: Camco Inc.

M. James Evans, 905/501-7004