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THIOKOL FIRST QUARTER INCOME INCREASES

 THIOKOL FIRST QUARTER INCOME INCREASES
 OGDEN, Utah, Oct. 15 /PRNewswire/ -- Thiokol Corp. (NYSE: TKC)


today reported a 2 percent increase in net income for its first quarter ended Sept. 30, 1992. Net income for the quarter was $13.5 million or 67 cents per share compared to $13.2 million or 66 cents per share for the prior year.
 Net sales of $289.0 million for the three month period were substantially the same compared to the prior year's $289.5 million. A $37.8 million decline in defense related propulsion systems sales for the quarter was offset by fastening systems sales of $37.3 million. There were no fastening sales in the prior year quarter.
 Net income was higher due to an increase in Space Shuttle solid rocket motor operating margins and a decrease in the effective income tax rate from 39.3 percent to 37.3 percent and other favorable tax related items.
 U. Edwin Garrison, chairman and chief executive officer said, "We have maintained our net income while experiencing a decline in sales and operating margins on many defense programs. We continue to be successful in reducing costs and managing change in a difficult industry environment and are pleased with our results."
 Space sales of $134.4 million increased 1 percent compared to 1992 while operating income increased 48 percent to $17.6 million over prior year's $11.9 million. Space Shuttle rocket motor sales declined 5 percent for the quarter but income rose 37 percent due to higher operating margins resulting from a retroactive increase in the fee rate on the current contract. The increased fee rate results from high performance ratings on contract incentive criteria. Castor sales rose significantly due to increased production of motors associated with the COMET program and increased deliveries for the Atlas space-launch vehicle.
 Strategic sales decreased 20 percent to $62.4 million and related operating income declined 33 percent to $5.6 million from $8.3 million in 1992. The sales and income declines result primarily from lower Peacekeeper motor and related hardware deliveries and reduced production on the Trident and SICBM programs. The SICBM program was terminated during the third quarter of the prior fiscal year.
 Tactical sales of $17.5 million decreased 32 percent while operating income of $1.2 million decreased 69 percent from the prior year. The sales decline was caused by a significant decrease in HARM, Maverick and Mark 70 deliveries. Production on these programs has either been completed or is nearing completion. A decline in sales and reduced operating margins on other tactical programs also contributed to the lower operating income.
 Ordnance sales of $37.4 million decreased 30 percent and operating income decreased 24 percent to $1.7 million. The decline in sales and income resulted from lower operating levels at the government-owned, contractor-operated ammunition plants and a significant reduction in flare sales.
 Huck, our fastening systems segment, had sales for the quarter of $37.3 million while operating income after allocation of corporate expenses was insignificant. Slower production of new commercial aircraft, customer inventory reductions, and decreased defense spending continue to negatively impact aerospace fastener sales.
 A decrease in interest income of $2.0 million was caused by lower levels of cash and cash equivalents combined with lower interest rates.
 General and administrative expense when compared to 1992 increased $9.2 million, all of which was due to the inclusion of Huck's general and administrative expense. Huck was acquired in November 1991 and was not included in Thiokol's first quarter financial results for the prior year. General and administrative expense excluding Huck was $7.3 million, a 7 percent decrease from 1992. The increase in interest expense and most of the increase in research and development expense are attributed to Huck operations.
 Thiokol is a major producer of solid propulsion systems, ordnance and composite products for the space and defense industries, and high technology, proprietary fastening systems.
 NOTE: Below are unaudited comparative results for the first quarter of fiscal year 1993, (in thousands, except per share data).
 THIOKOL CORP.
 CONSOLIDATED STATEMENT OF INCOME
 FISCAL YEARS 1993 - 1992
 Three Months Ended
 Sept. 30,
 1992 1991
 Net sales $289,014 $289,499
 Interest and other income 1,460 3,795
 290,474 293,294
 Deductions from income:
 Cost of sales 241,323 256,014
 General and administrative expense 17,033 7,831
 Research and development expense 4,302 2,120
 Interest expense 6,335 5,584
 268,993 271,549
 Income before income taxes: 21,481 21,745
 Income taxes 8,010 8,546
 Net income $13,471 $13,199
 Income per share $.67 $.66
 Average number of common and common
 equivalent shares outstanding 20,150 20,095
 -0- 10/15/92
 /CONTACT: Steve Lawson of Thiokol, 801-629-2257/
 (TKC) CO: Thiokol Corp. ST: Utah IN: ARO SU: ERN


BB -- DV002 -- 0199 10/15/92 08:01 EDT
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Date:Oct 15, 1992
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