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THE FAIRCHILD CORPORATION REPORTS FISCAL 1992 FOURTH QUARTER AND ANNUAL RESULTS

 THE FAIRCHILD CORPORATION REPORTS FISCAL 1992
 FOURTH QUARTER AND ANNUAL RESULTS
 CHANTILLY, Va., Sept. 11 /PRNewswire/ -- The Fairchild Corporation (NYSE: FA), a leading aerospace, industrial products and communications services company, made excellent progress in the latter half of fiscal 1992, despite the impact of the recession. Although operating income was down $4,022,000 or 13 percent in fiscal 1992 compared to fiscal 1991, fiscal 1992 fourth quarter operating income was up $4,190,000 or 64 percent as compared to the fiscal 1991 fourth quarter. The improved fourth quarter operating income resulted from higher operating income in the industrial products and communications services segments and lower corporate administrative expense, offset partially by lower operating income in the Aerospace Fasteners segment.
 Overall, the company reported a net loss of $22,835,000, or $1.40 per share, for the fiscal year ended June 30, 1992. This compared with fiscal 1991 earnings of $28,340,000, or $1.65 per share. However, fiscal 1991 results included a pretax gain of $54,496,000 on the sale of 52.8 percent of the company's former wholly-owned subsidiary, Banner Aerospace, through an initial public offering.
 For the fourth quarter of fiscal 1992, Fairchild's net loss was $5,606,000, or $0.35 per share, compared with earnings of $1,054,000, or $0.06 per share, for the same quarter of fiscal 1991. The prior year quarter included non-recurring pretax income of $7,677,000 attributed to reversal of litigation reserves.
 Total sales for fiscal 1992 were $489,780,000 compared to $515,652,000 for fiscal 1991. For the 1992 fourth quarter, sales totaled $123,807,000 compared to $130,488,000 in the prior year fourth quarter. Increases in sales in the industrial products and communications services segments, in both the current year and recent quarter, were offset by lower sales in the aerospace fasteners segment.
 Another major item reflected in fiscal 1992 net results was $7,086,000 of equity earnings net of minority interest, versus $20,287,000 in fiscal 1991, and $1,120,000 in the current year fourth quarter compared to $6,846,000 in the prior year fourth quarter. The reduction in equity earnings is primarily caused by the impact of the recession at the company's two major equity affiliates, Banner Aerospace and Rexnord Corporation. Investment income was up $7,411,000 in the current year over the prior year primarily due to gains realized on investments sold during the year. Net interest expense decreased $4,515,000 for fiscal 1992 and $1,818,000 in the fiscal 1992 fourth quarter compared to the prior year periods.
 Chairman and Chief Executive Officer, Jeffrey J. Steiner, stated, "We have made aggressive cuts in operating costs, especially in our aerospace fasteners segment, where staffing levels have been significantly reduced. While the cost of severance has lead to a $2.5 million pretax restructuring charge in fiscal 1992, the estimated annualized cost savings from the eliminated positions, together with other operating expense reductions, is in excess of $9 million." Steiner added that the recent recapitalization of Rexnord Corporation and aggressive cost reductions at Rexnord and Banner Aerospace will make possible improved equity earnings in fiscal 1993.
 Steiner also noted the recent strong performance of D-M-E Company and Fairchild Communications Services Company, and stated that Fairchild is well positioned, company-wide, to capitalize on improvements in the commercial aviation industry and the general economy.
 THE FAIRCHILD CORPORATION
 Summary Income Statement
 (In thousands, except per share data)
 Periods Ended Fourth Quarter Year
 June 30 1992 1991 1992 1991
 Sales by business segment:
 Aerospace fasteners $ 73,100 $ 85,221 $299,270 $336,274
 Industrial products 35,704 31,408 132,238 131,153
 Communications services 15,003 13,859 58,272 48,225
 Total 123,807 130,488 489,780 515,652
 Total segment oper. inc.(A) 15,400 13,592 44,303 57,256
 Corporate expense (6,108) (9,029) (21,979) (32,163)
 Corporate income 1,481 2,020 3,662 4,915
 Total operating income 10,773 6,583 25,986 30,008
 Net interest expense (17,529) (19,347) (69,575) (74,090)
 Investment income (exp.) (463) 426 9,450 2,039
 Equity earnings net of minority
 interest 1,120 6,846 7,086 20,287
 Non-recurring (loss) inc.(B) -- 7,677 -- 56,673
 (Loss) earnings from cont.
 opers. before inc. taxes (6,099) 2,185 (27,053) 34,917
 Inc. tax (provision) benefit 933 1,238 6,885 (12,470)
 (Loss) earns. from cont. opers.(5,166) 3,423 (20,168) 22,447
 Loss from discont. opers. (440) (2,819) (2,996) (4,187)
 (Loss) earns. bef. extraord.
 items (5,606) 604 (23,164) 18,260
 Extraord. items - net (C) -- 450 329 10,080
 Net (loss) earnings (5,606) 1,054 (22,835) 28,340
 Earns. (loss) per share:
 Continuing operations $(.32) $.20 $(1.24) $1.31
 Discontinued operations (.03) (.17) (.18) (.24)
 Extraordinary items -- .03 .02 .58
 Net (loss) earnings (.35) .06 (1.40) 1.65
 Common shares outstanding 16,153 17,165 16,318 17,154
 (A) Includes $2.5 million restructuring charge within the aerospace fasteners segment fiscal 1992.
 (B) Principally pretax gain from sale of 52.8 percent interest in Banner Aerospace in fiscal 1991. Gain in quarter ended June 30, 1991, was for reversal of litigation reserve.
 (C) Net after-tax gain on the repurchase of the company's debentures.
 -0- 9/11/92
 /CONTACT: Mike Alcox, chief financial officer of Fairchild, 703-478-5824/
 (FA) CO: The Fairchild Corporation ST: Virginia IN: ARO SU: ERN


LD-PS -- NY053 -- 8611 09/11/92 16:18 EDT
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