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COOPER REPORTS SHARE EARNINGS OF $2.90, BEFORE ONE-TIME AND ONGOING EFFECTS OF ACCOUNTING CHANGES

 HOUSTON, Feb. 1 /PRNewswire/ -- Fully diluted share earnings for Cooper Industries, Inc. (NYSE: CBE) for 1992 were $2.90, before the one- time charge and ongoing effects of adopting changes in accounting principles, compared with $3.01 in 1991. Net income before the effects of the accounting changes was $383.1 million, compared with $393.2 million in 1991. Revenues were constant from year to year at $6.16 billion.
 Including the current-year effects of the accounting changes, 1992's net income was reduced to $361.3 million, or $2.71 a share. In addition, the year's results include a $590-million, or $5.19-a-share, one-time cumulative-effect adjustment. After these reductions, the company had a net loss for the year of $281.5 million, or $2.48 a share.
 For the three months ended Dec. 31, 1992, Cooper reported net income of $102.5 million, or 78 cents a share, before the $6.2-million, five- cents-a-share, fourth-quarter reduction for the accounting changes. This compares with net income of $120.6 million, or 92 cents a fully diluted share, in the same quarter of 1991. Revenues were up modestly to $1.64 billion from $1.56 billion in the 1991 fourth quarter.
 Cooper announced in mid-January that it was adopting the provisions of Statements of Financial Accounting Standards (SFAS) No. 106 (Postretirement Benefits Other Than Pensions), No. 109 (Income Taxes) and No. 112 (Postemployment Benefits) for 1992.
 Chairman and Chief Executive Officer Robert Cizik noted that applying the new standards does not in any way diminish Cooper's strong cash flow, which is a key contributor to the company's growth and long- term profitability.
 Cizik said the company turned in a good operating performance, given the sluggishness of the economy for much of the year. "Demand improved for several of the company's product lines as the domestic economy began a more widespread recovery later in 1992. However, growth in many of our international markets has slowed or retreated. It was also a very frustrating year for suppliers of equipment to the domestic petroleum exploration and production industry," he explained. "Nevertheless, we generated strong cash flows, made a sizable acquisition -- Moog Automotive -- and increased our dividend for the seventh consecutive year during 1992."
 "Our results were disappointing in terms of the bottom line, primarily the result of an extreme downturn in the volatile markets of our Petroleum & Industrial Equipment segment. We alerted our shareholders to this in April and immediately began to make adjustments in our petroleum-related operations. Where appropriate, we have also made changes to meet slow growth in demand and improve efficiency throughout the rest of our businesses. The benefits of those actions will be apparent in our future performance," Cizik said.
 He pointed out that reduced interest expense offset some of the negative effects on earnings of the decline in petroleum markets, the slow domestic recovery and the downturn in Europe.
 Improvements in the general domestic economy contributed to a modest increase in revenues during the fourth quarter, as did the inclusion of the revenues of the newly acquired Moog Automotive operation. "The Automotive Products segment, including Moog, recorded a meaningful improvement in revenues and earnings as we continue to build this business," Cizik said.
 The growing recovery in industrial activity, spending for industrial maintenance and repair, improvement in consumer spending and the upswing in residential construction also boosted fourth-quarter sales for Cooper's electrical products, electrical power equipment, tools and hardware, and some industrial equipment. The continued decline in the European economies affected sales of many of the tool and hardware lines, Cizik said.
 Domestic demand for petroleum exploration and production equipment remained depressed throughout the fourth quarter. The international petroleum market also showed some signs of softening, although it still holds opportunity in areas such as the North Sea and the Middle East.
 Earnings declines in the fourth quarter resulted primarily from lower sales volumes for petroleum-related equipment, along with pricing pressure in the Tools & Hardware segment. Earnings improved modestly in some of Cooper's other operations, Cizik said. Gains came from improvements in market position and efficiency increases for some electrical products and electrical power equipment and from the expansion of Cooper's automotive products businesses.
 Cizik said the expected improvement in the domestic economy in 1993 will aid sales of many Cooper products. The international market is not expected to change significantly. Europe and Canada remain in a slump, while some other markets, such as Latin America, should grow. Petroleum exploration and production is expected to improve only modestly in the U.S. and remain steady elsewhere.
 "We will continue our cost improvement programs, including the acceleration of a number of productivity improvement, consolidation and asset disposition projects for which accruals were established in the third quarter. They will further increase operating efficiency, reduce manufacturing overhead and lower working capital needs, which should translate into earnings growth over the long term," he concluded.
 Cooper Industries is a diversified, worldwide manufacturer of electrical products, electrical power equipment, tools and hardware, automotive products, and petroleum and industrial equipment.
 Comparisons of 1992 and 1991 fourth-quarter and year-end results follow.
 COOPER INDUSTRIES, INC.
 (Millions except shares)
 Three months ended Dec. 31, 1992 1991
 Revenues $1,636.1 $1,555.4
 Costs and Expenses:
 Cost of sales 1,096.4 1,014.2
 Depreciation and amortization 81.5 65.7
 Selling and administrative 268.1 235.8
 Interest expense 27.2 35.9
 Total 1,473.2 1,351.6
 Income before Income Taxes 162.9 203.8
 Income Taxes 66.6 83.2
 Net Income 96.3 120.6
 Preferred Dividends 13.2 12.9
 Net Income Applicable to
 Common Stock $ 83.1 $ 107.7
 Net Income Per Common Share:
 Primary $.73 $.95
 Fully Diluted (A) .73 .92
 Shares Utilized in Computation of
 Net Income Per Common Share:
 Primary 113,936,000 113,269,000
 Fully Diluted (A) 132,288,000 131,851,000
 (A) The computation of fully diluted earnings per share for the


period assumes the conversion of the 7 percent debentures and the $1.60 preferred to common stock.
 As a result, interest on the debentures, net of tax, is added back to net income, and the preferred dividends are not deducted in this computation.
 COOPER INDUSTRIES, INC.
 (Millions except shares)
 Twelve months ended Dec. 31, 1992 1991
 Revenues $6,158.5 $6,162.6
 Costs and Expenses:
 Cost of sales 4,193.8 4,129.4
 Depreciation and amortization 289.1 258.0
 Selling and administrative 979.9 945.4
 Interest expense 115.6 161.2
 Total 5,578.4 5,494.0
 Income before income taxes and
 cumulative effects of changes
 in accounting principles 580.1 668.6
 Income Taxes 218.8 275.4
 Income before cumulative effects
 of changes in accounting
 principles 361.3 393.2
 Cumulative effects on prior years
 of changes in accounting
 principles (590.0) --
 Net Income (Loss) (228.7) 393 ($ 281.5) $


342.3
 Net Income Per Common Share:
 Primary -
 Income before cumulative
 effects of changes in
 accounting principles $2.71 $3.04
 Cumulative effects on
 prior years of changes
 in accounting principles (5.19) --
 Net Income (Loss) ($2.48) $3.04
 Fully Diluted -
 Income before cumulative
 effects of changes in
 accounting principles $2.71 $3.01(A)
 Cumulative effects on prior
 years of changes in
 accounting principles (5.19) --
 Net Income (Loss) ($2.48) $3.01(A)
 Shares Utilized in Computations of
 Net Income Per Common Share:
 Primary 113,830,000 112,499,000
 Fully Diluted 113,830,000 131,052,000(A)
 (A) The computation of fully diluted earnings per share for the period assumes the conversion of the 7 percent debentures and the $1.60 preferred to common stock.
 As a result, interest on the debentures, net of tax, is added back to net income, and the preferred dividends are not deducted in this computation.
 -0- 2/1/93
 /CONTACT: Ellen H. Myers, director of corporate communications of Cooper Industries, Inc., 713-739-5423/
 (CBE)


CO: Cooper Industries, Inc. ST: Texas IN: SU: ERN

SM -- NY032 -- 1249 02/01/93 10:15 EST
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