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DONNELLY CORPORATION REPORTS 4TH-QUARTER AND YEAR-END EARNINGS

 DONNELLY CORPORATION REPORTS 4TH-QUARTER AND YEAR-END EARNINGS
 HOLLAND, Mich., Aug. 11 /PRNewswire/ -- Donnelly Corporation (AMEX: DON) today reported annual and fourth-quarter financial results for the 1992 fiscal year.
 Annual Financial Results
 Donnelly achieved record sales and earnings in fiscal 1992. Net sales for the fiscal year ended June 27, 1992, were $271,399,000, an increase of 16.6 percent over $232,841,000 for the fiscal year ended June 30, 1991. Earnings for fiscal 1992 closed at $7,082,000, up from $4,168,000 last year. Earnings per share of common stock were $1 in fiscal 1992, compared to $0.59 last year.
 Financial performance during the fourth quarter of the 1992 fiscal year showed significant improvement when compared to the same period of fiscal 1991. Sales for the fourth quarter of 1992 were $76,472,000, up 18.7 percent over $64,436,000 for the same period last year. Earnings for the fourth quarter of 1992 were $2,911,000 or $0.39 per share of common stock, compared to earnings of $1,321,000, or $0.18 per share of common stock in the fourth quarter of 1991.
 Annual sales increased in all market segments as a result of stronger economic conditions overall and higher demand for certain Donnelly products. Donnelly's largest and most important market, the automotive industry, increased production by 7.6 percent during fiscal 1992.
 Automotive Products sales increased 19.4 percent in 1992 to $241,726,000 from $202,514,000 in 1991. This increase was due to increased sales of modular window systems both in Donnelly's Holland operations and at D & A Technology, Inc. (a joint venture with Asahi Glass) which supplies modular window systems for the General Motors Saturn vehicles. D & A Technology, Inc. is located in Mt. Pleasant, Tenn. In addition, sales of Automotive Vision Systems products, such as interior and exterior mirror systems, interior lights, trim, and electronic mirror systems, increased as automotive industry production levels increased.
 Sales volumes for the Coated Products area also increased during the year, particularly during the second half. Earlier in the year, Donnelly announced a decision to consolidate its display coatings operations, which produce coated glass used in liquid crystal displays (LCDs), with those of another coating manufacturer. As a result, sales for display coatings were no longer reflected in Donnelly's financial statements as of May 1992. Two months of sales for this product area are not included in reported numbers, resulting in 1992 sales for Coated Products being $29,673,000 compared to $30,327,000 in fiscal 1991.
 Dwayne Baumgardner, chief executive officer for Donnelly Corporation, stated: "We are very pleased to report record sales and earnings for 1992, particularly in light of the continuing weakness of the U.S. economy and the intense competitive pressure of the world automotive industry. This accomplishment was achieved by maintaining a sharp focus on controlling costs at all levels, by supporting long-term programs of strategic importance, and through the contribution of many committed Donnelly employees and teams."
 Summary and Highlights
 Major events of fiscal 1992 included:
 -- Operations and financial performance were improved as a result of managerial programs put in place to support key development programs and control costs throughout the organization.
 -- New agreements/relationships were established with automotive electronics and interior trim manufacturers to develop and produce higher value products for customers.
 -- Development work was completed on Donnelly's new GLARESTOPPER (TM) Electrochromic Technology, which uses thin film coatings to produce solid-state dimmable exterior mirror systems for heavy trucks. Small- scale production has begun in conjunction with a joint venture partner.
 -- SUPERCHROMIC (TM) Electrochromic Technology was introduced which uses a chemical technology to produce dimmable mirror and window systems for automotive use. New product prototypes are now being evaluated by potential customers.
 -- Donnelly entered into a new joint venture with Applied Films Laboratory, Inc. in Boulder, Colo., to produce coated glass products used in the manufacture of liquid crystal displays. This venture will consolidate Donnelly's display coatings operations with those of Applied Films in Boulder during fiscal 1993 and 1994. The new company is called Donnelly Applied Films Corporation.
 -- A 5-for-4 stock split was declared for both Class A and Class B common stock. This split took effect in April and had the effect of a 25-percent stock dividend. The board also maintained the historical per-share cash dividend, which had the net effect of also increasing cash dividends by 25 percent.
 -- Donnelly issued 690,000 shares of its Class A common stock to the public for $11.3 million in late spring. The proceeds were used to reduce debt.
 -- A decision was announced to expand Donnelly's modular window production capacity by building another manufacturing plant in Mt. Sterling, Ky. This plant will be in operation by July of 1993.
 -- Recognition was received from many outstanding organizations, such as Honda of America, Chrysler Corporation, General Motors, the National Private Truck Council, the American Trucking Association, the National Association of Suggestors, and the Council on Economic Priorities.
 Donnelly Corporation is an international company dedicated to serving customers around the world with high-quality fabricated, molded, and coated glass products for the automotive and electronics industries. The company has been based in Holland since 1905 and today operates from 13 separate facilities in western Michigan. In addition, Donnelly has a major manufacturing facility in Naas, Ireland; a marketing liaison office in Tokyo and in Detroit; an Advanced Technology Center in Tucson, Ariz.; and a manufacturing facility (in conjunction with Asahi Glass of Japan) in Mt. Pleasant, Tenn. Donnelly is also recognized as a leader in the application of participative management practices.
 Financial highlights for the three months and year ended June 27, 1992, are as follows:
 DONNELLY CORPORATION
 COMBINED CONSOLIDATED STATEMENTS OF INCOME
 (In thousands, except per-share data)
 Three Months Ended
 June 27, 1992 June 30, 1991
 Net sales $76,472 $64,436
 Automotive products net sales 71,441 57,397
 Coated products net sales 5,031 7,039
 Gross profit 19,022 14,895
 Operating income 6,045 2,905
 Interest expense 695 931
 Income before taxes on income, minority
 interest and equity earnings 4,967 2,520
 Net income 2,911 1,321
 Income per share of common stock .39 .18
 Dividends per share of common stock .07 .06
 Weighted average number of common
 shares outstanding 7,377 6,959
 Fiscal Year Ended
 June 27, 1992 June 30, 1991
 Net sales $271,399 $232,841
 Automotive products net sales 241,726 202,514
 Coated products net sales 29,673 30,327
 Gross profit 60,752 48,812
 Operating income 12,892 7,615
 Interest expense 3,506 3,914
 Income before taxes on income, minority
 interest and equity earnings 10,805 5,746
 Net income 7,082 4,168
 Income per share of common stock 1.00 .59
 Dividends per share of common stock .24 .22
 Weighted average number of common
 shares outstanding 7,070 6,954
 COMBINED CONSOLIDATED BALANCE SHEETS
 (In thousands)
 June 27, 1992 June 30, 1991
 Assets
 Current assets:
 Cash & equivalents $3,769 $1,037
 Accounts receivable 43,092 36,301
 Inventories 15,959 16,641
 Other current assets 4,715 4,387
 Total current assets 67,535 58,366
 Net property, plant and equipment 59,429 59,122
 Other assets 4,265 3,916
 $131,229 $121,404
 Liabilities and shareholders' equity
 Current liabilities:
 Accounts payable $25,774 $23,068
 Accruals 13,583 9,164
 Current maturities of long-term debt 93 78
 Total current liabilities 39,450 32,310
 Long-term debt 24,789 41,265
 Deferred income taxes & other
 liabilities 5,832 4,899
 Total liabilities 70,071 78,474
 Shareholders' equity 61,158 42,930
 $131,229 $121,404
 -0- 8/11/92
 /CONTACT: Maryam Komejan of Donnelly Corporation, 616-786-6022/
 (DON) CO: Donnelly Corporation ST: Michigan IN: AUT SU: ERN


DH-ML -- DE006 -- 8865 08/11/92 10:03 EDT
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