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BANNER AEROSPACE REPORTS EARNINGS GAINS

 CHANTILLY, Va., Nov. 1 /PRNewswire/ -- Banner Aerospace, Inc. (NYSE: BAR), a major supplier to the world's air transport industry, today reported earnings gains for the fiscal second quarter and first half ended Sept. 30.
 Current year first half net income was $2,794,000, or 16 cents per common share, up from $2,555,000, or 14 cents per common share, last year. Sales were $127,932,000 compared to $127,717,000 a year ago. Excluding $7,126,000 in sales of shut-down operations, comparable sales in last year's first half would have been $120,591,000.
 Second quarter net income amounted to $1,376,000, or eight cents per common share, up from $1,354,000, or seven cents per share, a year earlier. Second quarter sales amounted to $60,551,000, down from $64,181,000 in last year's second quarter. Excluding $4,004,000 in sales of shut-down operations, last year's second quarter sales were $60,177,000.
 The company said that the earnings gains reflected the shut down of two unprofitable operating units in fiscal 1993. It said that largely as a result of the shut-downs and improved product mix, operating income as a percentage of sales rose to 8.1 percent in the current year second quarter, up from 6.4 percent in the comparable period last year.
 It said that the improvements were largely attributable to the growth of its large jet engine and engine components business and to its expanded inventory of aircraft parts as a consequence of the fiscal 1993 acquisition of certain aircraft parts inventory of Pan American World Airways, Inc.
 Banner said that sales of the former Pan Am inventory were contributing to a strong cash inflow which had enabled the company to reduce debt by $12.9 million in the current year first half and by $20.9 million from the January 1993 high of $166.5 million which included borrowings to complete the $45 million Pan Am purchase. Inventories at Sept. 30 were $206,899,000 compared to $218,676,000 as of March 31. The decline of $11,777,000 in inventories was primarily due to sales of the Pan Am inventories.
 The company reported a strong financial position with current assets of $260,423,000 amounting to 8.9 times current liabilities. Working capital at Sept. 30 was $231,132,000 and stockholders' equity totaled $121,508,000, or $6.75 per common share.
 Banner Aerospace is a leading international supplier to the aerospace/aviation industry. Products include jet engines and engine components, avionic, hydraulic and electrical systems, fasteners, bearings and other airframe components. The company also sells refurbished corporate aircraft including helicopters and jet and turboprop airplanes, repairs corporate aircraft engines and processes insulated electrical wire for the aerospace/aviation markets.
 BANNER AEROSPACE, INC.
 Consolidated Statements of Income
 (in thousands, except per share data)
 Three Months Six Months
 Period ended Sept. 30, 1993 1992 1993 1992
 Net sales $60,551 $64,181 $127,932 $127,717
 Cost of goods sold 42,087 44,983 89,755 89,517
 Gross profit 18,464 19,198 38,177 38,200
 Selling, general and
 administrative expenses 13,531 15,061 28,202 30,386
 Operating income 4,933 4,137 9,975 7,814
 Interest Expense 2,637 1,893 5,321 3,589
 Income before taxes 2,296 2,244 4,654 4,225
 Provision for taxes 920 890 1,860 1,670
 Net Income $ 1,376 $ 1,354 $ 2,794 $ 2,555
 Earnings per common share $ .08 $ .07 $ .16 $ .14
 Weighted average number of
 shares 18,000 18,000 18,000 18,000
 Consolidated Balance Sheets
 Sept. 30, 1993, and March 31, 1993
 (in thousands)
 Sept. 30, March 31,
 1993 1993(A)
 ASSETS
 Current Assets
 Cash $ --- $ 2,966
 Receivables 43,095 40,013
 Inventories 206,899 218,676
 Other 10,429 10,083
 Total 260,423 271,738
 Net fixed assets 7,136 7,552
 Other assets 29,104 28,209
 Total $296,663 $307,499
 Sept. 30, March 31,
 1993 1993(A)
 LIABILITIES & EQUITY
 Current Liabilities
 Bank overdraft $ 107 $ ---
 Current debt 252 386
 Accounts payable 16,806 17,302
 Other liabilities 12,126 12,459
 Total 29,291 30,147
 Long-term debt 145,364 158,138
 Other 500 500
 Stockholders' equity 121,508 118,714
 Total $296,663 $307,499
 (A) -- Restated for FASB 109.
 -0- 11/1/93
 /CONTACT: Eugene W. Juris of Banner Aerospace, 703-478-5790/
 (BAR)


CO: Banner Aerospace, Inc. ST: Ohio IN: ARO AIR SU: ERN

BM-AR -- CL021 -- 9063 11/01/93 10:39 EST
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Date:Nov 1, 1993
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