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LUCAS TAKES DECISIVE ACTION FOR PROFITABLE GROWTH

 LUCAS TAKES DECISIVE ACTION FOR PROFITABLE GROWTH
 RESTON, Va., Oct. 13 /PRNewswire/ -- Lucas Industries today


announced, with its 1991/92 financial results, a series of decisive actions to further reduce costs, increase competitiveness, sharpen focus on core businesses, increase cash generation, improve profitability and enhance shareholder value. The actions are:
 -- Restructuring core and support businesses, with costs of $169.7 million provided for in 1991/92;
 -- Consequent employee reduction of 4,000 (of which 1,250 have already been implemented);
 -- Divestment of non-core businesses -- up to $192 million to be realized this year
 -- New Management Structure -- improved control -- sharper focus -- central overheads reduced by 25 percent.
 Lucas is restructuring its core businesses in response to political, economic and market changes and to match developing needs of customers. The planned actions include modernization of facilities and integration of operations into fewer sites. Closure of eight sites has already been announced.
 The 4,000 employee reduction from restructuring, of which over half are overseas, includes 1,250 already implemented, bringing the total reductions to date to 12 percent since 1990.
 Performance of core businesses will be enhanced significantly and market positions further strengthened in some cases by alliances and joint ventures. For example, the recent investment in Czech brakes manufacturer, Autobrdzy.
 Also, partnerships and joint ventures are being pursued to achieve better market shares with Lucas technology and to spread investment costs, such as the recently announced petrol engine management joint venture with Sagem.
 Other Lucas businesses, which are not vital for or do not contribute to core strengths in aerospace and automotive markets, are being divested to realize up to $192 million in 1992/93. The first four companies to be divested are the Fluid Power distribution business, Autocentres in the United Kingdom, Defence Fabrications (missile casings) and Aircraft Transparencies.
 Lucas has continued essential capital investments and research and development within its core and supporting businesses to underpin future organic growth. Increased market share in the growing diesel car market has resulted from Lucas maintaining investment in injection equipment throughout the recession. Capital spending will reduce in 1992/93 as some projects pass their initial investment phase.
 Lucas is reinforcing programs to reduce working capital and improve cost control throughout its businesses.
 The drive for performance improvement is now managed by a new Group Executive, which replaces previous Group, Sector and Divisional Executives. This streamlined structure provides a flatter, slimmer and more responsive organization with stronger central control and overhead costs reducing by 25 percent.
 For a complete report, contact Renate Myles of Lucas Aerospace, 703-264-2387.
 -0- 10/13/92 R
 /NOTE: July 31, 1992 coversion rate of $1.92/
 /CONTACT: Renate Myles of Lucas Aerospace, 703-264-2387; or John Grant, finance director, or Bernard Carey, manager, corporate communications, Lucas Industries plc, London, 071-493-6793/ CO: Lucas Aerospace ST: Virginia IN: ARO SU:


KD -- DC020 -- 9491 10/13/92 16:23 EDT
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Date:Oct 13, 1992
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