Daniel Industries Inc. reports earnings growth for the fourth quarter and fiscal year ended Sept. 30, 1995.

HOUSTON--(BUSINESS WIRE)--Nov. 21, 1995--Daniel Industries, Inc. (NYSE; symbol: DAN) reported that the company achieved earnings growth for its fourth quarter and fiscal year ended Sept. 30, 1995. For the fourth quarter, the company earned $2,930,000, or $.24 per share, exclusive of a pre-tax non-recurring charge of $10,587,000 on the divestitures of non-core product lines.

The divestitures of the non-core product lines are an integral part of Daniel's restructuring plan that was previously announced on Feb. 2, 1995. The company reported a net loss of $4,969,000, or $.41 per share, compared with net income of $1,568,000, or $.13 per share, for the fourth quarter of last year.

For the year ended Sept. 30, 1995, the company earned $6,747,000, or $.56 per share, exclusive of non-recurring charges of $1.62 per share primarily related to the restructuring program in the second, third and fourth quarters. The company reported a net loss of $12,792,000, or $1.06 per share, compared to net income of $1,324,000, or $.11 per share, for the prior fiscal year.

W.A. Griffin, III, president and CEO, stated that the company's earnings growth for the fourth quarter and throughout fiscal 1995 resulted from improvements in the domestic natural gas markets and substantial benefits derived from cost savings arising from Daniel's restructuring plan.

The company's backlog at Sept. 30, 1995, was approximately $47 million, up 12 percent from the previous quarter and up 40 percent from a year ago. The strengthening in the backlog is a solid indicator that the trend of improved market conditions should continue well into fiscal 1996.

Daniel's restructuring program, which began in the second quarter, is nearing completion. The company's cost savings initiatives, with the exception of plant relocations, have been finalized. These savings will aid the company in achieving its restructured goal of EBDIT (earnings before depreciation, interest and taxes) of 18 percent of revenues. EBDIT for the fourth quarter, exclusive of the charge for divestitures, was 13 percent compared to 8 percent for the same period a year ago. Griffin also said, "The improvements in Daniel's EBDIT margin will continue as the full impact of the restructuring is realized." In addition to the cost savings, the restructuring plan identified non-core product lines to be divested. Griffin said, "All of the non-core product lines have been sold or their sale is expected to be completed in the near future. A pre-tax non-recurring charge of $10,587,000 on the divestitures has been recognized in the fourth quarter. The company is now positioned for growth in the natural gas capital equipment markets and in other areas where the company has expertise in manufacturing products for flow measurement and control applications."

Daniel Industries, Inc. is a major international manufacturer of fluid measurement and flow control products and systems principally for natural gas and oil producers, transporters and refiners. -0-

                        DANIEL INDUSTRIES, INC.
                  CONSOLIDATED STATEMENT OF OPERATIONS
                  ------------------------------------
                            (Unaudited)
                ($000's omitted except per share amounts)

                             Quarter Ended            Year Ended
                             September 30,           September 30,
                         --------------------    ---------------------
                            1995       1994        1995         1994
                         --------    --------    --------     --------
   Revenues              $ 45,497    $ 58,320    $168,560     $203,766
   Costs and expenses      52,259(a)   56,112     187,075(b)   201,646
                         --------    --------    --------     --------
   Income (loss) before
     income tax expense
     (benefit)             (6,762)      2,208     (18,515)       2,120
   Income tax expense
     (benefit)             (1,793)        640      (5,723)         796
                         --------    --------    --------     --------
   Net income (loss)     $ (4,969)   $  1,568    $(12,792)    $  1,324
                         ========    ========    ========     ========
   Earnings (loss)
     per common share    $   (.41)   $    .13    $  (1.06)    $    .11
                         ========    ========    ========     ========
   Average number of
     shares outstanding    12,083      12,032      12,048       12,030
                         ========    ========    ========     ========

   (a)  Included in costs and expenses is $10.6 million related to
        divestitures of non-core product lines.

   (b)  Included in costs and expenses are amounts aggregating
        $28.1 million relating to restructuring and other charges as
        follows:  employee terminations ($4.0 million), impairments of
        property, plant and equipment and other assets ($7.7 million),
        inventory writedowns ($3.8 million), sale of the company's
        airplane ($1.4 million), expenses incurred in connection with
        the unsolicited merger proposal ($600 thousand) and a loss on
        divestitures of non-core product lines ($10.6 million).

-0-

CONTACT: Daniel Industries Inc.

Henry G. Schopfer, III, 713/827-3836