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BWIP HOLDING INC. EXPECTS LOWER EARNINGS FOR THE THIRD QUARTER AND ALL OF 1993

 LONG BEACH, Calif., Sept. 20 /PRNewswire/ -- BWIP Holding Inc. (NASDAQ-NMS: BWIP) today reported that it expects to report lower earnings than previously anticipated for the third quarter and full year of 1993.
 Peter C. Valli, chairman and chief executive officer, said, "Because of continuing economic weakness in the United States and Western Europe and temporary currency shortages in important customer countries of the Middle East, the anticipated recovery in aftermarket orders has so far failed to materialize.
 "We have said all along that the profit outcome for 1993 would depend on recovery in the demand for our aftermarket products and services. While we expect record sales for the year, the slowness in orders in our higher-margin aftermarket businesses will cause earnings to fall below the levels we had expected earlier this year."
 The company reported earnings of $.29 per share in the first quarter and $.35 per share in the second quarter of this year. "We had said previously that this year's quarterly earnings would be progressively better," said Valli, "but it now appears that the third quarter's results will not exceed the $.35 per share reported in the second quarter.
 "We expect a stronger fourth quarter from both a sales and earnings standpoint," Valli said, "although fourth quarter results will not make up for the earnings shortfall in the third quarter."
 Valli also noted that the company's current shipments are weighted heavily toward large original equipment. "Because we are shipping out original equipment at a rapid rate we are drawing down our backlog more quickly than it is being replaced," he said. "For that reason, we expect our backlog to decline.
 "Our backlog can change quickly as large original equipment orders are booked or shipped and the volume of aftermarket orders rises and falls," said Valli. "This is a reflection of the inherent lumpiness of our business."
 Valli added that in response to the continuing weakness in its markets the company has undertaken a comprehensive study of its worldwide operations to determine where further cost and profit improvements can be made.
 BWIP Holding Inc. is the parent company for BW/IP International Inc., a supplier of advanced technology pump, seal and fluid control equipment and services.
 -0- 9/20/93
 /CONTACT: Dan Peoples, 310-435-3700 or 619-552-1456/
 (BWIP)


CO: BWIP Holding Inc. ST: California IN: SU: ERP

MF-LS -- SD002 -- 3461 09/20/93 08:15 EDT
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Publication:PR Newswire
Date:Sep 20, 1993
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