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SPS TECHNOLOGIES REPORTS CHARGES AGAINST EARNINGS AND EXPECTED LOSS FOR 1992

 NEWTOWN, Pa., Dec. 18 /PRNewswire/ -- SPS Technologies (NYSE: ST) today announced it will incur charges in 1992 for mandatory changes in accounting standards and implementation of the company's restructuring program, and that it will report a net loss for the fourth quarter and for the year.
 The accounting changes are in compliance with two new Statements of Financial Accounting Standards (SFAS) issued by the Financial Accounting Standards Board (FASB).
 SFAS No. 106 changes the method for expensing the cost of postretirement benefits by requiring accrual of the expected cost during the years of a worker's employment. In adopting this new standard, the company has elected to take a one-time, after-tax, non-cash charge against earnings of approximately $11 million, or $2.16 per share, retroactive to Jan. 1, 1992, representing its unfunded and unrecognized accumulated postretirement obligation.
 SFAS No. 109 changes the method of accounting for income taxes from the deferred method to the liability method. In adopting this new standard, the company has elected to take a one-time, non-cash charge against earnings of approximately $2.4 million, or $.47 per share, retroactive to Jan. 1, 1992.
 On May 3, 1991, the company announced a restructuring plan under which it intends to divest certain real estate assets and industrial fastener operations. In a modification of that plan, the company has decided to retain both its Shannon, Ireland, fastener manufacturing facility and Unbrako U.K., the company's fastener distribution business in West Bromwich (Birmingham), England.
 The Shannon plant makes UNBRAKO(R) brand socket head cap screws, socket set screws, hex keys and related products. Unbrako U.K. distributes these products in the United Kingdom.
 According to John R. Selby, chairman and chief executive officer, "The decision to retain Shannon and Unbrako U.K. reflects our determination to maintain our traditionally strong presence overseas as a supplier of high-quality socket screw products to the European industrial market. These businesses have demonstrated an improved performance over the past year, and we expect this trend to continue."
 Because of the protracted period required to complete the sale of all remaining industrial fastener businesses in Europe and a reassessment of the anticipated net realizable value of all assets to be divested, the accelerated consolidation of fastener manufacturing facilities in the United States and the decision to retain Shannon and Unbrako U.K., the company will incur a pre-tax restructuring charge of $9.6 million in the fourth quarter of 1992. This charge is expected to reduce earnings from continuing operations for the fourth quarter and the year by approximately $7.5 million, or $1.47 per share, on an after- tax basis.
 According to Selby, "Through continued emphasis on improved working capital management, cost reduction programs, and the effective utilization of our human resources and production capacity, we are taking those actions necessary to assure the financial soundness of our company and a significant earnings improvement in 1993."
 /delval/
 -0- 12/18/92
 /CONTACT: Peter Lawton, manager, corporate advertising and public relations of SPS Technologies, 215-860-3038/
 (ST)


CO: SPS Technologies ST: Pennsylvania IN: SU: ERP RCN

LJ-MK -- PH008 -- 8114 12/18/92 10:18 EST
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Publication:PR Newswire
Date:Dec 18, 1992
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