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BORG-WARNER SECURITY ANNOUNCES FIRST QUARTER RESULTS

 CHICAGO, May 4 /PRNewswire/ -- Borg-Warner Security Corp. (NYSE: BOR) today reported pro forma net income from continuing operations of $6.5 million, or $0.28 per share, for the quarter ended March 31, 1993. Net income from continuing operations for the 1992 first quarter, on a comparable basis, was $5.6 million, or $0.24 per share. Revenue for the 1993 first quarter rose to $425.5 million, up 9 percent from $389.8 million in the year-earlier period.
 Due to previously announced non-recurring charges, the company recorded a net loss of $259.9 million, or $11.80 per share, for the 1993 first quarter. The non-recurring charges include a $250 million elimination of excess purchase price not directly related to ongoing operations, a $6.6 million loss resulting from the repurchase of debt and an $8.3 million charge to recognize post-retirement life and health benefit liabilities in accordance with new accounting principles.
 Donald C. Trauscht, Borg-Warner Security's chairman and chief executive officer, said that while economic conditions continue to restrict profit margin improvement, business volume increased for all of the company's operations during the quarter. He added that the effect of the May 1993 subordinated debt refinancing will further reduce interest expense and puts the company in an excellent position for future earnings growth.
 Chicago-based Borg-Warner Security Corp. is the largest, broadest-based supplier of security services in the United States. The company provides guard, alarm, armored transportation and courier services under the Wells Fargo, Burns and Pony Express names.
 BORG-WARNER SECURITY CORPORATION
 Summary Income Information
 (in millions, except per share)
 Three months ended March 31 1993 1992
 Revenue $425.5 389.8
 Pro forma income from continuing operations 6.5 5.6
 Non-recurring items:
 Eliminations of excess purchase prices (250.0)
 Loss on repurchase of debt (6.6)
 Change in accounting for post-retirement
 benefits (8.3)
 Loss from discontinued operations (1.5)
 Total non-recurring items $(266.4)
 Net loss $(259.9)
 Per share
 Pro forma income from continuing
 operations $ 0.28 $ 0.24
 Net loss $(11.80)
 Average shares outstanding -- Pro forma 23.3 23.4
 -- Total 22.0
 NOTE: Pro forma results have been adjusted to eliminate non- recurring administrative costs, interest expense, excess purchase price amortization, certain gains on asset sales, and special provisions following the various restructuring efforts undertaken through January 1993. They do not reflect any impact of the May 1993 subordinated debt refinancing.
 -0- 5/4/93
 /CONTACT: Joseph C. Allen of Borg-Warner Security Corporation, 312-322-8836/
 (BOR)


CO: Borg-Warner Security Corp. ST: Illinois IN: SU: ERN

TS -- NY019 -- 4160 05/04/93 08:51 EDT
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Publication:PR Newswire
Date:May 4, 1993
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