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FEDERAL SIGNAL CORP. ANNOUNCES A 15 PERCENT INCREASE IN NET INCOME IN 1993 FIRST QUARTER

 OAK BROOK, Ill., April 15 /PRNewswire/ -- Federal Signal Corp. (NYSE: FSS) announced today that it again achieved record first quarter earnings, reporting $.21 per share, a 17 percent increase over the $.18 per share reported in the first quarter of 1992. This performance resulted in the 26th consecutive quarter of earnings exceeding prior year amounts. New business, sales and backlogs also increased over prior year levels.
 Net income of $7.2 million increased 15 percent over the $6.2 million reported in the first quarter of 1992. Sales increased 6 percent to a first quarter record $127.4 million compared to $119.8 million in last year's first quarter, while new business increased 14 percent resulting in a backlog of $206.6 million.
 All four groups posted increases in new business and sales. The earnings increase was essentially due to substantial earnings improvements achieved by the Sign and Tool Groups. The Vehicle Group's income remained even with last year while the Signal Group's earnings declined somewhat from last year's record first quarter levels.
 The Sign Group achieved moderate increases in orders and sales while reducing its loss from $1.0 million in the first quarter of 1992 to $.1 million in 1993. The group's ongoing efforts to strategically reduce operating expenses resulted in significantly improved performance. The company's management remains encouraged by the group's improved cost competitiveness as well as the continued stability in market conditions.
 The Tool Group's earnings increased 15 percent on a sales gain of 17 percent, with all of the group's units posting increases in new business, sales and earnings. The strength of the group's domestic markets and the positive contribution of Dico, just acquired in the fourth quarter of 1992, were the principal contributors to these results.
 The Vehicle Group's sales and earnings were even with last year's results. The year-to-year comparison of the group's results was adversely affected by declines in sales and profitability of Netherlands-based Ravo. While Ravo's results were depressed by the effects of the European recession, their lower operating results were offset by increased sales and earnings experienced by both Emergency One and Elgin Sweeper, the group's domestically based operations. The group's new business increased 13 percent over the year ago level, as all of the group's units achieved increases in incoming order levels, boding well for the group's operating results for the balance of the year.
 Despite a 13 percent increase in the Signal Group's sales, earnings declined 7 percent. Most of the sales increase was attributable to the inclusion of VAMA, the group's Spain-based emergency signaling manufacturer. VAMA's sales were not included in the first quarter of 1992 since this acquisition did not occur until May 1992. The group's decline in earnings was the result of VAMA's loss. The company's management believes VAMA's poor results are attributable to the effects of the recession in Spain and continue to look to VAMA to be a contributor to the group's long-term growth.
 Joseph J. Ross, chairman, president and chief executive officer, stated, "Despite the weak European economy and a modestly improving domestic economy, most of our units are experiencing positive trends in incoming orders. As a result, we anticipate continued strong sales and earnings increases for the remainder of 1993."
 Federal Signal Corp., listed on the New York Stock Exchange, is a manufacturer and worldwide supplier of public safety, signaling and communications equipment, fire trucks, ambulances, street sweeping and vacuum loader vehicles, parking control equipment, custom on-premise signage, carbide cutting tools, precision punches and related die components.
 FEDERAL SIGNAL CORP.
 Consolidated Income Data
 For the First Quarter 1993 and 1992
 Quarter ended March 31: 1993 1992
 Revenues $127,447,000 $119,817,000
 Net income 7,151,000 6,205,000
 Share earns: Net income .21 .18
 -0- 4/15/93
 /CONTACT: Charles R. Campbell of Federal Signal, 708-954-2020/
 (FSS)


CO: Federal Signal Corp. ST: Illinois IN: TRN SU: ERN

WB -- NY050 -- 6192 04/15/93 11:29 EDT
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Date:Apr 15, 1993
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