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?BUSINESS EDITOR:

?BUSINESS EDITOR:
 DESPITE FALLOFF IN 4TH-QUARTER RESULTS, NEWCOR REPORTS RECORD NET OF $5.0 MILLION, OR $1.55 PER SHARE, FOR 1991 ON SALES OF $98.7 MILLION
 TROY, Mich., Dec. 16 /PRNewswire/ -- Due primarily to its Special Machines segment, Newcor, Inc. (AMEX: NEW) today reported that net earnings for its fiscal year ended Oct. 31, 1991, hit an all-time high of $5.0 million, or $1.55 per share, up more than fourfold from fiscal 1990's $1.2 million, or 37 cents a share, and 32 percent higher than the previous record high of $3.8 million, or $1.17 a share, reached in 1982. Net sales for the year totaled $98.7 million, an increase of 12.4 percent from the year earlier's $79.9 million.
 "The outstanding results," said Richard A. Smith, president and chief executive officer of the company, "were due primarily to our Special Machines segment, which completed and delivered three large welding and assembly lines during the third quarter." Smith added that since Newcor now uses the completed-contract method of accounting to report financial results, "the third quarter was the principle beneficiary of the revenues and earnings associated with this important business."
 The executive also noted that "Although the Precision Parts segment contributed to the record-high profits, the 1991 performance of this segment declined from 1990 due to the depressed domestic automotive and truck market."
 Fourth-quarter sales totaled $13.9 million, down more than 50 percent from last year's sales of $28.7 million. Net income totaled $236,000, or 7 cents a share, against the year-ago's $1.9 million, or 59 cents a share. As previously reported, the fourth-quarter decline in sales and net income was not unexpected because no large contracts were scheduled for completion during the quarter, unlike the fourth quarter of 1990 when a number of important contracts were completed.
 The company's backlog of open orders at Oct. 31, 1991, was $15.1 million, compared to $70.9 million a year earlier. The backlog, Newcor explained, does not include a prospective new order for an engine assembly system with a production value in excess of $30 million. Wilson Automation, Newcor said, has completed the simultaneous engineering for the system, which usually leads to a contract award. New orders of $78.9 million were secured in fiscal 1991 compared with a record $111.2 million in 1990.
 Newcor, Inc. headquartered in Troy, designs and manufactures custom machines and manufacturing systems as well as special precision-machined parts.
 NEWCOR, INC. CONSOLIDATED STATEMENT OF INCOME
 (In Thousands, Except Per-Share Amounts)
 (Results for the Three Months Ended Are Unaudited)
 For the Three Months Ended Oct. 31
 Pct.
 1991 1990 Change
 Sales $13,900 $28,732 -52
 Cost and expenses:
 Cost of sales 10,690 23,086 -54
 Selling general & admin. 2,846 3,324 -14
 Interest 61 587 -90
 Closedown of operation in Canada --- (100) ---
 13,597 26,897 -49
 Income before income taxes 303 1,835 -83
 Provision (benefit) for income
 taxes 67 (73) ---
 Net income $236 $1,908 -88
 Net income per share of common
 stock $0.07 $0.59 -88
 Average common shares
 outstanding 3,244,211 3,242,286 ---
 For the 12 Months Ended Oct. 31
 Pct.
 1991 1990 Change
 Sales $98,747 $79,865 +24
 Cost and expenses:
 Cost of sales 76,872 64,211 +20
 Selling general & admin. 12,536 11,123 +13
 Interest 2,017 1,895 +6
 Closedown of operation in Canada --- 1,188 ---
 91,425 78,417 +17
 Income before income taxes 7,322 1,448 +406
 Provision (benefit) for income
 taxes 2,294 233 +885
 Net income $5,028 $1,215 +314
 Net income per share of common
 stock $1.55 $0.37 +319
 Average common shares
 outstanding 3,242,845 3,242,286 ---
 -0- 12/16/91
 /CONTACT: Marjorie Edwards of Newcor, Inc., 313-643-7730/
 (NEW) CO: Newcor, Inc. ST: Michigan IN: MAC SU: ERN


KK-SB -- DE004 -- 2399 12/16/91 09:38 EST
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Date:Dec 16, 1991
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