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GRUMMAN REPORTS SECOND QUARTER EARNINGS

 BETHPAGE, N.Y., July 20 /PRNewswire/ -- Grumman Corporation (NYSE: GQ) today reported 1993 second quarter net income from continuing operations of $26.8 million or 79 cents a share, up 13 percent from $23.8 million or 68 cents a share in the comparable 1992 quarter. Sales in the quarter were $746.2 million, down 13 percent from $853.8 million in the year ago quarter.
 For the six month period, income from continuing operations increased 15 percent to $61.1 million or $1.79 a share from $53 million or $1.53 a share. Sales were $1.6 billion compared with $1.8 billion. Net income for the 1993 period was $54.4 million or $1.60 a share after a $6.7 million or 19 cents a share loss from discontinued operations which was reported in the first quarter. In the first half of 1992, Grumman reported a net loss of $140.6 million or $4.22 a share after a charge of $198 million or $5.88 a share from Financial Accounting Standard 106, the accounting change for retiree health care benefits.
 "In both the quarter and six months, we strengthened our operating margins and reduced our interest costs," said Renso L. Caporali, chairman. "The success of our financial discipline is evident in the growth of our operating income and margins in a period of declining sales."
 In the six month period, operating income increased to $110.9 million from $107.3 million. The operating margin increased to 6.9 percent from 5.9 percent. In the aerospace segment, which accounts for 60 percent of Grumman's revenues, the operating margin increased to 7.1 percent from 6.3 percent.
 Interest cost declined by $11.2 million to $18.3 million as the company continued to reduce debt. Total debt at the end of June was $298.2 million, down 35 percent in the past year. Cash and marketable securities totaled $158.9 million. By the end of July, the remaining $43.3 million worth of 9-1/4 percent convertible debentures will have been redeemed or converted to common stock, leaving total debt of approximately $250 million.
 "We now have only one publicly traded debt issue, $200 million of 10-3/8 percent notes which are not callable before 1996," noted Caporali. "The strength of our balance sheet and the efficiency of our operations give us confidence in our ability to succeed in a very difficult aerospace and defense environment."
 In the aerospace segment, six month sales declined 24 percent to $984.1
million, and operating income was down 15 percent to $69.8 million. Sales and income on the E-2C program were strong as five aircraft were delivered compared with three in the first half of 1992. However, these gains did not offset declines on the F-14 program, where the last production aircraft were delivered in the second quarter of 1992.
 In the information and other services segment, six month sales advanced 14 percent to $326.7 million and operating income was up 27 percent to $16.4 million. Both sales and operating income increased in the electronics systems and special purpose vehicles segments.
 Grumman Corporation is best known as a leading international aircraft and aerospace company. Other businesses range from sophisticated integrated information and electronics systems to U.S. Postal Service delivery trucks. Headquartered in Bethpage, Grumman employs 20,000 people. Revenues were $3.5 billion in 1992.
 GRUMMAN CORPORATION AND SUBSIDIARIES
 Consolidated Financial Data
 (Unaudited, dollars in thousands except per share amounts)
 Condensed Income Statement
 Three months ended June 30 1993 1992
 Sales $ 746,190 $ 853,845
 Income before taxes 41,232 34,095
 Provision for federal
 income taxes 14,400 10,300
 Income from continuing
 operations 26,832 23,795
 Income from discontinued
 operations - 3,142
 Net income $ 26,832 $ 26,937
 Primary earnings per share:
 From continuing operations $.79 $.68
 Income from discontinued
 operations -- .09
 Net income $.79 $.77
 Six months ended June 30 1993 1992
 Sales $ 1,617,961 $ 1,804,312
 Income before taxes 92,552 77,728
 Provision for federal
 income taxes 31,500 24,700
 Income from continuing
 operations 61,052 53,028
 Income (loss) from
 discontinued operations (6,700) 4,391
 Cumulative effect of change
 in accounting for
 postretirement benefits -- (198,000)
 Net income (loss) $ 54,352 $ (140,581)
 Primary earnings (loss) per share:
 From continuing operations $1.79 $ 1.53
 Income (loss) from
 discontinued operations (.19) .13
 Cumulative effect of
 accounting change -- (5.88)
 Net income (loss) $1.60 $(4.22)
 Balance Sheet Data
 June 30 1993 1992
 Working capital $ 937,887 $ 950,333
 Net property, plant and equipment 384,181 418,993
 Long-term Debt 290,507 453,828
 Preferred Stock - 29,769
 Shareholders' equity - common 841,762 792,424
 Shareholders' equity per common share $24.87 $23.66
 Common shares outstanding 33,847,527 33,499,101
 Backlog at June 30(A) $7.0 Billion $7.0 Billion
 (A) -- Includes authorized but unfunded amounts.
 GRUMMAN CORPORATION AND SUBSIDIARIES
 Summary of Sales and Income by Business Segments
 (Unaudited, dollars in Thousands)
 Three months ended June 30
 1993 1992
 Operating Operating
 Sales Income (Loss) Sales Income (Loss)
 Aerospace $435,552 $30,810 $ 602,397 $39,259
 Electronics
 Systems 134,137 2,799 115,997 2,405
 Information &
 Other Services 176,068 9,058 143,118 6,343
 Special Purpose
 Vehicles 94,135 7,994 89,545 7,943
 Corporate Items &
 Eliminations (93,702) (2,251) (97,212) (7,942)
 Consolidated $746,190 48,410 $ 853,845 48,008
 Interest Expense 7,178 13,913
 Income from continuing
 operations before
 Federal Income Taxes $41,232 $34,095
 Six Months Ended June 30,
 1993 1992
 Operating Operating
 Sales Income (Loss) Sales Income (Loss)
 Aerospace $ 984,053 $ 69,754 $1,300,331 $ 81,587
 Electronics
 Systems 301,615 6,700 244,936 5,000
 Information &
 Other Services 326,702 16,399 286,103 12,885
 Special Purpose
 Vehicles 188,568 15,597 171,316 15,122
 Corporate Items &
 Eliminations (182,977) 2,427 (198,374) (7,302)
 Consolidated $1,617,961 110,877 $1,804,312 107,292
 Interest Expense 18,325 29,564
 Income from continuing
 operations before
 Federal Income Taxes $ 92,552 $ 77,728
 -0- 7/20/93
 /CONTACT: Robert P. Harwood of Grumman, 516-575-5287/
 (GQ)


CO: Grumman Corporation ST: New York IN: ARO SU: ERN

TS -- NY049 -- 6764 07/20/93 11:35 EDT
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Date:Jul 20, 1993
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