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WOODHEAD SETS ALL-TIME QUARTERLY SALES AND EARNINGS RECORD; CORE DOMESTIC BUSINESS STRONG; ACQUISITIONS BOOST INTERNATIONAL GROWTH

 BUFFALO GROVE, Ill., July 20 -- Woodhead Industries, Inc. (NASDAQ: WDHD) today reported that sales and earnings for the third quarter ended July 3, 1993 were the highest for any quarter in the company's seven-decade history: net income rose 26 percent on a sales increase of 23 percent.
 The impressive results were driven by a strong U.S. demand for the company's core products. Led by molded connectors, electrical product sales were more than twice the electrical industry expansion rate, while ergonomic workstations continued their double digit growth over the prior year. The company's international business also showed significant gains, with recent acquisitions making substantial contributions.
 For the 13 weeks ended July 3, net income was $1,582,000, a 26.2 percent gain over the $1,254,000 for the same period a year ago. Sales rose 23.2 percent to $24,670,000 from $20,025,000 for the comparable quarter of fiscal 1992. Earnings per share reached $.23 compared with $.19 last year.
 For the first three quarters of fiscal 1993, net income rose 24.7 percent to $4,071,000, or $.59 per share, compared with $3,264,000, or $.50 per share, for the first nine months of fiscal 1992. Sales for the 39 weeks were up 12.3 percent to $65,663,000 from $58,454,000 a year ago. Third quarter and nine month sales and earnings both exceeded the company's long-range targets of 10 percent growth in sales and 15 percent growth in net income annually.
 MARGINS IMPROVED
 For the quarter, the gross profit margin eased somewhat due to the integration of new acquisitions. This was more than offset by a decline in operating expenses as a percent of sales. As a result, income from operations increased to 11.5 percent of net sales compared with 10.9 percent a year ago. Net income as a percent of sales through the first nine months reached 6.2 percent compared with 5.6 percent for the same period of fiscal 1992.
 GROWTH STRATEGY CONTINUES TO YIELD STRONG RETURNS
 "The acquisitions consummated in recent quarters were ideal blends with our existing operations and coincide with our fundamental growth objective of being globally dominant in our core businesses," said Alan Reed, chairman and CEO.
 "International business in the third quarter comprised 20.2 percent of Woodhead Industries' revenue, up from 19.5 percent a year ago and continues the company's upward trend toward its goal of 25 percent of annual sales."
 A CAUTIOUS OUTLOOK
 Woodhead's financial condition continues to strengthen, giving the company further opportunity for strategic acquisitions as they arise. Total assets increased 21 percent to $56,086,000, shareholders' equity rose nearly 10 percent over a year ago, and working capital is ample at $10,632,000. As a result of the acquisitions, long-term debt increased to $3,836,000 compared with $500,000 a year ago; nevertheless, borrowings still represent only a small percent of total capital. However, Reed emphasized that Woodhead is "not on a buying spree," but that the company will continue its search for strategic acquisitions.
 "The acquisitions of recent quarters, together with our aggressive new product development programs have driven Woodhead Industries to post significant gains despite an insipid economy. These gains notwithstanding, the economy's persistent uncertainty leads us to view the future with considerable caution, and we will continue to conduct our affairs accordingly," Reed concluded.
 WOODHEAD INDUSTRIES, INC.
 (In thousands, except per share numbers)
 Percent
 13 Weeks Ended: 07/03/93 06/27/92 Change
 Net sales $24,670 $20,025 23.2
 Net income $ 1,582 $ 1,254 26.2
 Common and common
 equivalent shares 6,996 6,561 6.6
 Earnings per common
 and common equivalent
 share $ 0.23 $ 0.19 21.1
 Percent
 52 Weeks Ended: 07/03/93 06/27/92 Change
 Net sales $86,727 $76,161 13.9
 Net income $ 5,562 $ 4,119 35.0
 Common and common
 equivalent shares 6,903 6,491 6.3
 Earnings per common
 and common equivalent
 share $ 0.81 $ 0.63 28.6
 NOTE: All periods have been adjusted for a two-for-one stock
 split effected in the form of a stock dividend in March,
 1993.
 -0- 7/20/93
 /CONTACT: Robert G. Jennings, Vice President, Finance and CFO, 708-465-2900, of Woodhead Industries/
 (WDHD)


CO: Woodhead Industries, Inc. ST: Illinois IN: SU: ERN

LG -- NY084 -- 3444 07/20/93 14:12 EDT
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Publication:PR Newswire
Date:Jul 20, 1993
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