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SECOM GENERAL CORPORATION REPORTS NET LOSS ON HIGHER SALES FOR FISCAL FOURTH QUARTER; FORECASTS PROFITABLE FISCAL 1993

 SECOM GENERAL CORPORATION REPORTS NET LOSS ON HIGHER SALES
 FOR FISCAL FOURTH QUARTER; FORECASTS PROFITABLE FISCAL 1993
 NOVI, Mich., Oct. 22 /PRNewswire/ -- Secom General Corporation (NASDAQ-NMS: SECM) announced today that it recorded a net loss of $402,000, or 15 cents per share, on sales of $8,796,000 for its fiscal fourth quarter ended Sept. 30, 1992, compared to net income of $395,000, or 19 cents per share, on sales of $6,452,000 for the same quarter last year.
 For the year ended Sept. 30, 1992, Secom recorded net income of $921,000, or 32 cents per share, on sales of $34,097,000, compared to net income of $1,103,000, or 68 cents per share, on sales of $16,963,000 in 1991. Secom said the announced results are preliminary and subject to final adjustment and independent accountant review.
 Net income for the year ended Sept. 30, 1992, includes approximately $560,000, or 19 cents per share, from the cumulative change in method of accounting for income taxes, as Secom is adopting Statement on Financial Accounting Standard No. 109 effective Oct. 1, 1991. The cumulative change is based on preliminary analysis and is subject to final review. For the year ended Sept. 30, 1991, net income includes $375,000 from extraordinary item, which derived from realization of net operating loss carryforwards.
 Secom attributed the fourth-quarter operating loss of $626,000 (before tax benefit) to (1) the $150,000 writedown of a minority interest investment derived from the sale of a subsidiary four years ago; (2) losses of approximately $100,000 associated with the stamping/die design business at the Triple Tool unit, which was disbanded in September 1992; and (3) lower than anticipated gross profit margins on sales at the Triple Tool and Uniflow units.
 The loss associated with the stamping/die design business at Triple Tool for the fiscal year was approximately $400,000.
 "The dynamics at Triple Tool and Uniflow have been changing significantly throughout the year," said Secom's chairman and CEO, Roy A. McKnight. "At Uniflow, new machinery, which was expected to be operational earlier in the year, is now on-line and other production efficiency gains were made later than anticipated. At Triple Tool, with the stamping/die design business coming to an end, the emphasis is to expand the customer base in its traditional tool business, as sales for the year were less than expected," said McKnight.
 For fiscal 1993, Secom anticipates that each quarter will become more profitable, as Secom's three business segments improve margins in their respective basic manufacturing niches. In particular, management believes that Secom's Uniflow subsidiary will recognize significant revenue from its $5 million investment in new plant and machinery. "This investment allows Uniflow to expand into profitable niche markets in the cold metal forming parts industry," said McKnight.
 Earlier in the year, Secom obtained $4 million in industrial development revenue bonds to fund the Uniflow expansion. The bonds bear interest at approximately 2 percent below the prime rate and the principle is payable over 10 years. At Sept. 30, 1992, Secom's stockholders' equity was approximately $12,600,000, or $4.50 per share.
 "Secom's stock price has fallen in recent weeks, however; two company officers have recently acquired 27,000 shares through the exercise of stock options at an average of $4.60 per share, and through a rollover from a 401(K) Plan, because they are confident in the future of the company," said David J. Marczak, Secom's secretary/treasurer.
 Secom General operates seven plants in Michigan and California that specialize in three areas of basic manufacturing: metal parts forming, plastic molded products and toolmaking, serving principally the automotive, trucking, consumer and construction industries.
 SECOM GENERAL CORPORATION
 (Unaudited)
 QTD QTD YTD YTD
 9/30/92 9/30/91 9/30/92 9/30/91
 Sales $8,796,000 $6,452,000 $34,097,000 $16,963,000
 Income/(loss)
 before provision (626,000) 395,000 515,000 1,103,000
 Provision for/
 (benefit from)
 income taxes (224,000) 135,000 153,000 375,000
 Income/(loss)
 before extraordinary
 item and change in
 method of accounting
 for income taxes (402,000) 260,000 362,000 728,000
 Extraordinary item -
 utilization of
 operating loss
 carryforwards N/A 135,000 N/A 375,000
 Cumulative effect change
 in method of accounting
 for income taxes N/A N/A 560,000 N/A
 Net income/(loss) (402,000) 395,000 922,000 1,103,000
 Earnings per share(a):
 Earnings before
 extraordinary item
 and change in method
 of accounting for
 income taxes ($0.15) $0.13 $0.13 $0.45
 Extraordinary item -
 utilization of
 operating loss
 carryforwards N/A $0.06 N/A $0.23
 Cumulative effect of
 accounting change N/A N/A $0.19 N/A
 Net income/(loss)
 per share ($0.15) $0.19 $0.32 $0.68
 Weighted average
 shares outstanding 2,829,000 2,088,000 2,771,000 1,621,000
 (a) -- All earnings per share data have been restated to reflect the 10-percent stock dividend declared March 9, 1992.
 -0- 10/22/92
 /CONTACT: David J. Marczak, secretary/treasurer, Secom General Corporation, 313-349-8970; or Alex Tassos & Associates, 619-748-0787, for Secom General Corporation/
 (SECM) CO: Secom General Corporation ST: Michigan IN: SU: ERN


KE-SM -- DE027 -- 3854 10/22/92 16:52 EDT
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