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DONNELLY CORPORATION REPORTS SECOND-QUARTER FINANCIAL RESULTS

 DONNELLY CORPORATION REPORTS SECOND-QUARTER FINANCIAL RESULTS
 HOLLAND, Mich., Jan. 16 /PRNewswire/ -- Donnelly Corporation (AMEX: DON) today reported financial results for the second quarter of the 1992 fiscal year.
 Net sales for the second quarter were $66,535,000, which represents an increase of 15 percent over $57,769,000 for the same period last year. Net income for the second quarter was $2,373,000, compared to $1,041,000 for the second quarter of fiscal 1991, an increase of 128 percent. Earnings per share for the second quarter were $0.42, compared with $0.19 per share in the same quarter last year.
 Net sales for the first half of the fiscal year were $126,129,000, which is an increase of 8.5 percent over $116,216,000 for the first six months of fiscal 1991. Net income for the period was $2,476,000, compared to $2,687,000 for the first half of fiscal 1991. This equates to earnings per share of $0.44 for the first half of this fiscal year compared to $0.48 in the first half of last year.
 Chairman of the Board Dwane Baumgardner stated: "Donnelly is very pleased to report higher sales and profits for the second quarter of our current fiscal year. This has been no small achievement considering the very difficult conditions being experienced by the automotive industry today. It is the result of an ongoing commitment to streamlining our operations, continued growth with new products, and the hard work of all those associated with the company.
 "Nevertheless, the automotive industry, which represents our largest market, remains in a serious recession and the effects of this situation have been felt by all those associated with the industry, including Donnelly. We believe the actions being taken by a number of major automotive manufacturers to reduce costs and improve their competitiveness will ultimately strengthen the entire industry long- term.
 "While it is too early to predict a full recovery in the industry any time soon, vehicle production levels are higher than one year ago at this time. We are cautiously optimistic that automotive production will increase in the months ahead and that Donnelly will continue to see improved performance in the second half of the fiscal year.
 "Throughout this recession, Donnelly has continued to maintain a strong commitment to strategic programs and we have many exciting developments under way. We believe these efforts will help us achieve a growth record in the '90s that will match and possibly even exceed the strong trend established during the '80s."
 Donnelly sales and earnings increased during the second quarter due to a number of factors, including:
 1) An increase in North American automotive production of nearly 7 percent compared to the second quarter of fiscal 1991. The automotive industry represents Donnelly's largest and most important market.
 2) Increased production of the new General Motors Saturn car. Donnelly has a joint venture with Asahi Glass of Japan to produce Modular Window Systems for this new vehicle. As production volumes for Saturn vehicles have increased during the past year, program start-up difficulties have been resolved and operations have become more efficient.
 3) The mix of products sold have favored higher value products such as advanced electrochromic and lighted mirrors and large, complex window systems. Donnelly's introduction of new and more sophisticated products has contributed to continued growth in sales in recent years despite a recession in the automotive industry.
 4) The company remains committed to a philosophy of continuous improvement in operations, resulting in ongoing cost savings and higher efficiencies.
 Donnelly's Coated Products business continues to experience solid demand for glass coatings which are used in the manufacture of liquid crystal displays for a wide variety of consumer electronic products. While production levels remain strong, price pressures have not eased due to the existence of excess production capacity throughout the world. The majority of customers for Donnelly's Coated Glass Products are in Asia.
 Considerable work has been done to improve operational efficiencies in the Coated Products area over the past two years. The results of this work have significantly reduced the negative effects of difficult market conditions and increasing competition. An evaluation is also currently under way to reassess anticipated long-term change in this market and position Donnelly's Display Coatings business for strong performance in the future.
 Donnelly Corporation is an international company dedicated to serving customers around the world with high-quality fabricated, molded and coated glass products for the transportation and electronics markets. The company has been based in Holland since 1905 and today operates from 12 separate facilities in western Michigan. In addition, Donnelly has a major manufacturing facility in Naas, Ireland; a marketing liaison office in Tokyo, and in Detroit; an Advanced Technology Center in Tucson, Ariz.; and a manufacturing facility (in conjunction with Asahi Glass of Japan) in Mount Pleasant, Tenn. Donnelly is also recognized as a leader in the application of participative management practices.
 Financial highlights for the three months and six months ended Dec. 28, 1991, are as follows:
 DONNELLY CORPORATION
 COMBINED CONSOLIDATED STATEMENTS OF INCOME
 (In thousands, Three Months Ended
 except per-share data) Dec. 28, 1991 Dec. 31, 1990
 Net sales $66,535 $57,769
 Automotive products net sales 58,104 49,255
 Coated products net sales 8,431 8,514
 Gross profit 15,052 11,379
 Operating income 3,352 1,642
 Interest expense 902 1,020
 Income before taxes on income
 and minority interest 3,140 996
 Net income 2,373 1,041
 Income per share of common stock .42 .19
 Dividends per share of common stock .07 .07
 Weighted average number of
 common shares outstanding 5,573 5,562
 (In thousands, Six Months Ended
 except per-share data) Dec. 28, 1991 Dec. 31, 1990
 Net sales $126,129 $116,216
 Automotive products net sales 110,147 99,763
 Coated products net sales 15,982 16,453
 Gross profit 26,995 23,422
 Operating income 4,066 4,282
 Interest expense 1,851 2,071
 Income before taxes on income
 and minority interest 3,309 3,054
 Net income 2,476 2,687
 Income per share of common stock .44 .48
 Dividends per share of common stock .14 .14
 Weighted average number of
 common shares outstanding 5,572 5,560
 DONNELLY CORPORATION
 COMBINED CONSOLIDATED BALANCE SHEETS
 Dec. 28, 1991 June 30, 1991
 (In thousands) (unaudited) (unaudited)
 ASSETS
 Current Assets:
 Cash & Equivalents $3,669 $1,037
 Accounts receivable 32,987 36,301
 Inventories 21,762 16,641
 Other current assets 4,694 4,387
 Total current assets 63,112 58,366
 Net property, plant and equipment 60,585 59,122
 Other assets 3,289 3,916
 $126,986 $121,404
 LIABILITIES AND SHAREHOLDERS' EQUITY
 Current Liabilities:
 Accounts payable $19,645 $23,068
 Accruals 13,711 9,164
 Current maturities of long-term debt 78 78
 Total current liabilities 33,434 32,310
 Long-term debt 42,180 41,265
 Deferred income taxes and other liab. 5,063 4,899
 Total liabilities 80,677 78,474
 Shareholders' equity 46,309 42,930
 $126,986 $121,404
 -0- 1/16/92
 /CONTACT: Maryam Komejan of Donnelly Corporation, 616-786-6022/
 (DON) CO: Donnelly Corporation ST: Michigan IN: AUT SU: ERN


DH-JG -- DE018 -- 0646 01/16/92 15:37 EST
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Date:Jan 16, 1992
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