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SUDBURY, INC. RELEASES SECOND QUARTER RESULTS

 CLEVELAND, Jan. 6 /PRNewswire/ -- Sudbury, Inc. (NASDAQ: SUDS) reported net sales of $60,584,000 from ongoing operations and consolidated net income of $3,232,000 (26 cents per share primary and fully diluted) for the second quarter of fiscal 1994. This compares with net sales of $55,255,000 and consolidated net income of $1,164,000 (10 cents per share primary and fully diluted) for the same period a year ago.
 For the quarter, the company benefited from a $568,000 reduction in income tax expense due to the favorable resolution of a state tax issue. In addition, as a result of its debt reduction program, the company was able to reduce interest expense by $642,000 from the prior year period.
 For the six months ended Nov. 30, 1993, Sudbury recorded net sales of $115,028,000 from ongoing operations and consolidated net income of $4,314,000 (36 cents and 35 cents per share primary and fully diluted, respectively). This compares with net sales of $107,355,000 and income before extraordinary gain of $1,464,000 in the prior year period, which also included operating income of $1,175,000 posted by businesses which the company subsequently sold as part of its reorganization. Principal factors in the increased profitability were a $1,589,000 reduction in restructuring expenses and a $1,203,000 reduction in interest expense.
 In announcing the improved second quarter operating performance, Jacques R. Sardas, chairman and chief executive officer, commented, "We are pleased to be delivering these improved results, which are in line with the plans we presented to our stockholders at our October 1993 Annual Meeting to build a stronger and healthier Sudbury." Sardas also noted, "Although our fiscal third quarter is a seasonally slow period in the automotive industry, our order levels have been strong and we are encouraged about the prospects for the remainder of the fiscal year."
 Sudbury is a manufacturer of industrial products with its principal office in Cleveland.
 SUDBURY, INC.
 Consolidated Financial Highlights
 (In thousands, except per share amounts)
 Three Months Ended
 11/30/93 11/30/92
 (Unaudited) (Unaudited)
 OPERATING RESULTS
 Net sales:
 Ongoing operations $ 60,584 $ 55,255
 Businesses held for sale -- 16,667
 TOTAL $ 60,584 $ 71,922
 Operating income:
 Ongoing operations $ 3,580 $ 3,211
 Businesses held for sale -- 484
 Special charges -- (494)
 TOTAL 3,580 3,201
 Interest expense (986) (1,628)
 Other income (expense) 180 (299)
 Income before income taxes 2,774 1,274
 Income tax benefit (expense) 458 (110)
 INCOME BEFORE EXTRAORDINARY GAIN 3,232 1,164
 Extraordinary gain-forgiveness
 of pre-petition liabilities -- --
 NET INCOME $ 3,232 $ 1,164
 Net income per share:
 Primary $ .26 $ .10
 Fully diluted $ .26 $ .10
 Common shares and common share equivalents
 Primary 12,217 11,751
 Fully diluted 12,258 11,753
 Six Months Ended
 11/30/93(A) 11/30/92
 (Unaudited) (Unaudited)
 OPERATING RESULTS
 Net sales:
 Ongoing operations $115,028 $107,355
 Businesses held for sale 315 47,560
 TOTAL $115,343 $154,915
 Operating income:
 Ongoing operations $ 5,365 $ 5,493
 Businesses held for sale -- 1,175
 Special charges -- (1,589)
 TOTAL 5,365 5,079
 Interest expense (1,978) (3,181)
 Other income (expense) 512 (274)
 Income before income taxes 3,899 1,624
 Income tax benefit (expense) 415 (160)
 INCOME BEFORE EXTRAORDINARY GAIN 4,314 1,464
 Extraordinary gain-forgiveness
 of pre-petition liabilities -- 78,805
 NET INCOME $ 4,314 $ 80,269
 Net income per share:
 Primary $ .36 $ (B)
 Fully diluted $ .35 $ (B)
 Common shares and common share equivalents
 Primary 12,148 (B)
 Fully diluted 12,270 (B)
 FINANCIAL CONDITION November 30,1993 May 31, 1993
 (Unaudited) (Audited)
 Current Assets $ 59,134 $ 62,722
 Property and equipment - net 46,320 46,482
 Notes receivable and other assets 2,692 5,252
 Net assets of businesses
 held for sale 2,000 2,000
 TOTAL ASSETS $110,146 $116,456
 Current liabilities $ 43,758 $ 46,441
 Long-term debt 37,860 45,984
 Other long-term liabilities 6,826 6,673
 Deferred income taxes 550 550
 Stockholders' equity 21,152 16,808
 TOTAL LIABILITIES AND
 STOCKHOLDERS' EQUITY $110,146 $116,456
 (A) -- As a result of the company's emergence from Chapter 11 on Sept. 1, 1992, certain amounts presented in the operating results, principally for interest expense, for the six months ended Nov. 30, 1993 are not comparable to the same prior year period.
 (B) -- Per share amounts are irrelevant due to reorganization.
 -0- 1/6/94
 /CONTACT: Mark E. Brody of Sudbury, Inc., 216-464-7026, ext. 125/
 (SUDS)


CO: Sudbury, Inc. ST: Ohio IN: SU: ERN

BM -- CL016 -- 9810 01/06/94 13:49 EST
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Date:Jan 6, 1994
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