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DONNELLY CORPORATION REPORTS THIRD-QUARTER FINANCIAL RESULTS

 HOLLAND, Mich., April 20 /PRNewswire/ -- Donnelly Corporation (AMEX: DON) today reported third-quarter financial results for the 1993 fiscal year.
 Net sales for the third quarter were $79,625,000 which represents an increase of nearly 16 percent over $68,798,000 for the same period last year. Net income for the third quarter was $2,631,000, compared to $1,695,000 for the third quarter of fiscal 1992, an increase of 55 percent. Third-quarter earnings per share for 1993 were $.34 compared to $.24 in 1992.
 Net sales for the first nine months of fiscal 1993 were $218,135,000 which represents an increase of nearly 12 percent over $194,927,000 for the same period in fiscal 1992. Net income for the period was $6,266,000 compared to $4,171,000 last year. This is an increase of 50 percent. Earnings per share increased to $.81 for the first nine months of fiscal 1993 from $.59 for the same period in fiscal 1992.
 Sales increased during the third quarter due to 1) a 24-percent increase in automotive industry production levels compared to the same period last year, and 2) continued strong sales for modular window systems, particularly for the extremely popular new Jeep Grand Cherokee and the Saturn. Donnelly manufactures Jeep Grand Cherokee windows in its Holland operations and Saturn windows in Tennessee.
 Sales continued to grow in spite of lower production schedules at Honda of America, one of Donnelly's largest customers, flat sales in Europe due to the ongoing recession there, and the fact that display coatings sales are no longer included in Donnelly's total sales. The display coatings product line has been consolidated into a joint venture called Donnelly Applied Films, located in Boulder, Colo., and sales of this product are now incorporated into that venture. If these sales had been included in Donnelly's third quarter (as was the case last year), total corporate sales would have increased by 28 percent.
 Earnings during the first nine months have improved due to favorable product mix, particularly on window programs, and Donnelly's continued sharp focus on reducing costs and improving operations. These improvements helped offset the negative impact of legal expenses associated with the patent litigation between Donnelly and Gentex. A significant portion of these expenses were again taken during the third quarter and additional expenses will likely be taken in the fourth quarter. It should be noted that, in a recent Court decision, Gentex was awarded only $2.2 million versus the $31 million originally requested. Final determination regarding this settlement should occur in Donnelly's fourth quarter, at whie? a charge against earnings is expected to occur.
 Dwane Baumgardner, Chairman of the Board for Donnelly Corporation, stated, "To date, Donnelly's 1993 fiscal year has been marked by steady gains in our business levels, in productivity, and in our overall financial performance. We are very pleased to report such solid performance in light of the extraordinary demands that have been placed upon us to defend Donnelly in ongoing patent litigation.
 "As the economy improves, and as Donnelly continues to introduce innovative new technologies to the marketplace, we are seeing many areas of our business rapidly pick up speed. Currently, we are expanding our production capabilities to accommodate anticipated growth over the next several years."
 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, Mich., since 1905 and today operates from 20 facilities around the world. Donnelly is also recognized as a leader in the application of participative management practices and was recently named as one of the "Top 10" in the new book titled, "The 100 Best Companies to Work for in America."
 DONNELLY CORPORATION
 COMBINED CONSOLIDATED STATEMENTS OF INCOME
 (in thousands, except Three Months Ended
 per-share data) April 3, 1993 March 28, 1992
 Net Sales $ 79,625 $ 68,798
 Gross profit 17,995 14,830
 Operating income 4,024 2,876
 Interest expense 755 960
 Income before taxes on income and minority
 interest, equity earnings, and extraordinary
 gain 3,727 2,530
 Net income 2,631 1,695
 Income per share of common stock .34 .24
 Dividends per share of common stock .07 .056
 Weighted average number of
 common shares outstanding 7,693 6,971
 (in thousands, except Nine Months Ended
 per-share data) April 3, 1993 March 28, 1992
 Net Sales $218,135 $194,927
 Gross Profit 48,810 41,939
 Operating income 10,141 7,056
 Interest expense 2,412 2,811
 Income before taxes on income and minority
 interest, equity earnings, and extraordinary
 gain 8,856 5,842
 Net income 6,266 4,171
 Income per share of common stock .81 .59
 Dividends per share of common stock .21 .168
 Weighted average number of
 common shares outstanding 7,681 6,968
 COMBINED CONSOLIDATED BALANCE SHEETS
 (in thousands) April 3, 1993 June 27, 1992
 ASSETS
 Current Assets:
 Cash & Equivalents $ 3,134 $ 3,769
 Accounts Receivable 42,652 43,092
 Inventories 16,227 15,959
 Other Current Assets 7,881 4,715
 Total Current Assets 69,894 67,535
 Net Property, Plant and Equipment 62,009 59,429
 Other Assets 8,217 4,265
 140,120 131,229
 ======= =======
 LIABILITIES AND SHAREHOLDERS' EQUITY
 Current Liabilities:
 Accounts Payable $ 25,771 $ 25,774
 Accruals 15,499 13,583
 Current Maturities of
 Long-Term Debt 93 93
 Total Current Liabilities 41,363 39,450
 Long-Term Debt 26,920 24,789
 Deferred Income Taxes & Other Liab. 6,149 5,832
 Total Liabilities 74,432 70,071
 Minority Interest 411 ----
 Shareholders' Equity 65,277 61,158
 140,120 131,229
 ======= =======
 -0- 4/20/93
 /CONTACT: Maryam Komejan, 616-786-6022, or Ron Winowiecki, 616-786-6303, both of Donnelly Corporation/
 (DON)


CO: Donnelly Corporation ST: Michigan IN: AUT SU: ERN

SM -- DE019 -- 8027 04/20/93 11:40 EDT
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Date:Apr 20, 1993
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