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THE FAIRCHILD CORPORATION REPORTS FISCAL 1992 SECOND QUARTER RESULTS

THE FAIRCHILD CORPORATION REPORTS FISCAL 1992 SECOND QUARTER RESULTS
 CHANTILLY, Va., Feb. 12 /PRNewswire/ -- The Fairchild Corporation (NYSE: FA), a leading aerospace, industrial products and communications services company, today reported a net loss of $7,705,000, or $0.47 per share, for the second quarter ended Dec. 29, 1991. For the comparable quarter of the prior fiscal year, Fairchild reported net income of $6,147,000, or $0.36 per share.
 For the six months ended Dec. 29, 1991, the company reported a net loss of $15,845,000, or $0.96 per share. This compared with net income of $26,301,000, or $1.54 per share, for the first half of the prior fiscal year.
 The losses for the recent periods were attributed principally to reduced sales and margins in the aerospace fastener segment and lower equity earnings of affiliate companies, Banner Aerospace and Rexnord Corporation, caused by the impact of the recession. The company also recognized a charge of $2.5 million in the recent quarter for a restructuring charge attributable to severance costs at its aerospace fastener operations. The year-ago period benefited from gains on disposal of discontinued operations.
 Sales for the three and six months ended Dec. 29, 1991, totalled $120,782,000 and $241,744,000, respectively. For the comparable periods of the prior year, sales were $129,951,000 and $253,113,000.
 Operating income before interest expense, equity earnings, investment income, and taxes was $2,422,000 for the recent quarter, compared with $7,827,000 for the three months ended Dec. 30, 1990. Other major items reflected in the net results were equity earnings, net of minority interest, of $862,000 for the quarter ended Dec. 29, 1991, vs. $3,374,000 for the same period a year ago. Fairchild recognized a loss of $1,246,000 on disposal of discontinued operations in the recent quarter, compared with a gain of $9,458,000 in the fiscal 1991 period.
 For the first six months of this fiscal year, operating income was $6,771,000, compared with $16,614,000 for the first half of fiscal 1991. The year-to-date net results included net equity earnings of $3,698,000 for the period ended Dec. 29, 1991, vs. $9,190,000 for the first half of the prior fiscal year. The loss on disposal of discontinued operations was $1,246,000 in the recent six months, compared with a loss of $682,000 in the same period of fiscal 1991. The fiscal 1991 six-month period included a non-recurring pretax gain of $53,524,000 related to the sale of 52.8 percent of Banner Aerospace.
 "We continue to be adversely affected by weaker customer demand and margin pressures in our Aerospace Fastener segment. However, we reduced our net loss from continuing operations prior to the restructuring charge from $8.3 million in the fiscal 1992 first quarter to $5.2 million in the second quarter despite the decline of $2 million in equity earnings of affiliates. We also experienced improved investment income performance and interest expense reductions," said Chairman and Chief Executive Officer Jeffrey J. Steiner. Corporate expenses were $3.8 million lower in the first half of the year compared with the fiscal 1991 period, and interest expense for the year-to-date period decreased by $2.7 million.
 "We are now making even more aggressive cuts in operating costs, especially in our fastener segment, where staffing levels will be reduced by approximately 550 (or 17 percent) this year. While the cost of severance led to the $2.5 million restructuring charge in the recent period, it will produce significant cost improvements in the coming fiscal year," Steiner added. He also noted that similar aggressive cost reductions are being made in the unconsolidated affiliate companies as well, thereby making it possible to expect better performance in equity earnings.
 The Fairchild Corporation is a leading supplier of aerospace and industrial products and communications services.
 THE FAIRCHILD CORPORATION
 Summary Income Statement
 (In thousands, except per-share data)
 Three Months Six Months
 12/29/91 12/30/90 12/29/91 12/30/90
 Sales:
 Aerospace fasteners $74,540 $ 82,835 $151,293 $166,146
 Industrial products 31,795 33,329 61,840 66,106
 Communications services 14,447 13,787 28,611 20,861
 Total 120,782 129,951 241,744 253,113
 Total segment
 operating income(A) 7,486 14,929 16,689 29,844
 Corporate expense (5,812) (7,404) (11,165) (14,980)
 Corporate income 748 302 1,247 1,750
 Total operating income 2,422 7,827 6,771 16,614
 Equity earnings - net of
 minority interest 862 3,374 3,698 9,190
 Net interest expense 16,857 18,413 34,846 37,536
 Investment income 3,175 1,849 2,492 89
 Non-recurring items -
 net(B) -- (1,026) -- 53,524
 (Loss) earnings from
 continuing operations
 before taxes (10,398) (6,389) (21,885) 41,881
 Income tax benefit
 (provision) 3,519 2,122 6,719 (16,878)
 (Loss) earnings from
 continuing operations (6,879) (4,267) (15,166) 25,003
 Earnings from discontinued
 operations 119 66 207 65
 (Loss) gain on disposal
 of discontinued
 operations(C) (1,246) 9,458 (1,246) (682)
 Extraordinary items -
 net 301 890 360 1,915
 Net (loss) earnings(D) (7,705) 6,147 (15,845) 26,301
 Earnings (loss) per share:
 Continuing operations $(.42) $(.25) $(.92) $1.46
 Discontinued operations (.07) .56 (.06) (.03)
 Extraordinary items .02 .05 .02 .11
 Net (loss) earnings (.47) .36 (.96) 1.54
 Common shares outstdg. 16,274 16,898 16,484 17,099
 (A) -- Includes $2.5 million restructuring charge within the aerospace fasteners segment in the quarter and six months ended Dec. 29, 1991.
 (B) -- Principally pretax gain from sale of 52.8 percent interest in Banner Aerospace.
 (C) -- Current year losses relate to additional losses incurred to dispose of Enviro Holdings and Sovereign Air. Gain in the quarter ended Dec. 30, 1990, is primarily from the sale of the foreign operations of Thompson Aircraft Tire.
 (D) -- Net after-tax gain on the repurchase of the company's debentures.
 -0- 2/12/92
 /CONTACT: Deborah M. Tucker of Fairchild, 703-478-5856/
 (FA) CO: The Fairchild Corporation ST: Virginia IN: ARO SU: ERN


JT-CK -- NY076 -- 9359 02/12/92 15:34 EST
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