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CIMCO ANNOUNCES FIRST QUARTER RESULTS FOR FISCAL YEAR 1994

 COSTA MESA, Calif., Sept. 2 /PRNewswire/ -- CIMCO Inc. (NASDAQ: CIMC) today reported net sales of $19.3 million for its first quarter ended July 31, 1993, an increase of 3 percent from $18.8 million for the first quarter a year ago. Net earnings declined to $107,000, or $.04 per share, from $370,000, or $.12 per share, reported in the prior- year's first quarter.
 The company stated that sales in the quarter benefitted from continued double-digit growth of the Compounding Group's Singapore operation, up 88 percent compared to the first quarter last year. However, Sinagapore's contribution was offset by a decline in sales at the Commercial/Industrial Group's molding operations due primarily to the continued sluggish U.S. economy. While sales at the Medical Group were relatively flat, restructuring and cost-cutting measures implemented during the quarter improved operating margins substantially over the like period last year.
 "For the near term, molding sales are expected to continue to be somewhat soft, pending completion of tooling currently in process for large programs with major new customers," said Russell T. Gilbert, president and chief executive officer.
 Gilbert noted that, in addition to low sales levels in the molding operations, first quarter profitability was further impacted by continued downward pricing pressures in the Compounding Group. Also, restructuring costs for the pending closure of the company's Corona, Calif., molding plant and relocation of equipment and tooling into the Costa Mesa plant, affected results for the quarter. "This initial consolidation effort will provide a more orderly, efficient transfer of programs from our Costa Mesa and Corona facilities to our highly cost- effective plant currently under construction in Dayton, Nev.," Gilbert concluded.
 Founded in 1959, CIMCO Inc. is a major developer and manufacturer of high-performance plastic components for commercial/industrial and medical markets. The company also custom formulates and compounds reinforced thermoplastic materials. CIMCO supplies more than 100 original equipment manufacturers in the computer, commercial irrigation, automotive safety, residential products, telecommunications and health care industries.
 CIMCO INC. SELECTED FINANCIAL DATA
 (Unaudited)
 Quarter Ended July 31, 1993 July 31, 1992
 Net sales $19,256,000 $18,760,000
 Earnings before taxes 18,000 517,000
 Provision for income taxes (89,000) 147,000
 Net earnings 107,000 370,000
 Earnings per common share (primary) .04 .12
 Weighted average shares outstanding 2,979,289 2,969,324
 Balance Sheet July 31, 1993 April 30, 1993
 Current assets $24,372,000 $23,456,000
 Total assets 50,550,000 49,348,000
 Current liabilities 13,186,000 13,039,000
 Long-term debt, net 6,671,000 5,719,000
 Stockholders' equity 28,315,000 28,208,000
 -0- 9/2/93
 /CONTACT: Cecilia A. Wilkinson or Kim P. Feazle of Pondel Parsons & Wilkinson, 310-207-9300; or L. Ronald Trepp, CFO, of CIMCO, 714-546-4460/
 (CIMC)


CO: CIMCO Inc. ST: California IN: CHM SU: ERN

LM-JL -- LA015 -- 8274 09/02/93 09:05 EDT
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Publication:PR Newswire
Date:Sep 2, 1993
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