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RB&W CORP. ANNOUNCES '92 RESULTS, FORECASTS PROFITABILITY, EXTENDS LOAN AGREEMENTS

 MENTOR, Ohio, April 12 /PRNewswire/ -- RB&W Corporation (AMEX: RBW) today announced 1992 results which showed an increase in sales, strong improvement in operating results prior to special charges, growth in market share in both the manufacturing and distribution businesses and critical cost reductions in all segments. FASB accounting charges and a $10.5 million manufacturing restructuring reserve obscure the substantial operating progress made during the year. The company also announced it had renewed an agreement with its lenders, extending to April 1, 1994, and beyond.
 Sales for the fourth quarter and full year 1992 were $46,458,000 and $182,776,000, respectively, as compared to $40,011,000 and $164,249,000 for the prior year periods. Sales increased 11 percent for the year, with the manufacturing segment increasing 10.5 percent and distribution 12 percent.
 Net losses for the fourth quarter, including the $10.5 million reserve for manufacturing restructuring and reserves for expenses associated with real estate held for sale, were $12,762,000 ($2.27 per share). For the full year, operating profit before special charges was $5.1 million, with both distribution and manufacturing divisions profitable, versus a year ago operating loss of $3.2 million. After giving effect to a charge in inventory accounting method, adoption of new FASB accounting standards and the establishment of a restructuring reserve, a net loss was recorded for the year totaling $15,019,000, or $2.69 per share. This compares to the year ago net loss of $12,350,000, or $2.32 per share.
 Ronald K. Leirvik, president and chief executive officer, said that the improvement in operating performance results from the fundamental reshaping of the company's business strategies and organization structure which began in late 1991. These changes include downsizing, decentralizing, increased cellular manufacturing and implementation of a hub and spoke distribution system, all designed for a more cost effective distribution system and lower cost, more flexible, higher quality manufacturing capability from a significantly smaller asset base. Leirvik added that sales growth was supported by continued customer demand for RB&W's Total Fastening Service (TFS) programs.
 He further stated that RB&W is entering 1993 with $88.6 million in total assets, $34.2 million in working capital and a current ratio greater than 2 to 1. Leirvik said the company is forecasting an improvement in first quarter 1993 earnings over the comparable period in 1992, with both divisions expected to be profitable. Annual projections for 1993 show both divisions profitable for the year and in excess of 1992 results before the accounting and restructuring charges for that year.
 Kent M. Holcomb, vice president and acting chief financial officer, stated that the company's loan agreements with its current lenders had been renewed to April 1, 1994 and beyond. Holcomb stated that the terms of the renewals included revised principal repayment schedules and competitive interest rates which corresponded with the company's restructuring plans and operating financial needs.
 RB&W Corporation is a leading industrial company engaged in the manufacture and distribution of cold formed parts. With 148 years of experience, it remains one of the largest companies in the fastener industry.
 -0- 4/12/93
 /CONTACT: Murray J. Howe, vice-chairman, RB&W Corporation, 305-421-5036/
 (RBW)


CO: RB&W Corporation ST: Ohio IN: SU: ERN

AR -- CL006 -- 4691 04/12/93 10:27 EDT
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Publication:PR Newswire
Date:Apr 12, 1993
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