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 LAPEER, Mich., Aug. 2 /PRNewswire/ -- Durakon Industries, Inc. (NASDAQ-NMS: DRKN) today released its sales and earnings results for the second quarter and six months ended June 30, 1993.
 Net income for the second quarter 1993 was $3,487,000 or $0.53 per share compared to $2,661,000 or $0.41 per share in the second quarter 1992. For the six months ended June 30, 1993 net income was $5,271,000 or $0.80 per share versus $4,004,000 or $0.63 per share for the same period last year. Included in the 1993 second quarter and six months earnings, respectively, was income of $0.08 per share and $0.06 per share from investment activities.
 Net sales increased 16 percent to $26,854,000 for the second quarter 1993 versus the same period in 1992. For the six months ended June 30, 1993, net sales improved 18 percent to $49,874,000 compared to the same period in 1992.
 Net sales from the vehicle transportation segment increased 64 percent in the second quarter and 62 percent in the six months ended June 30, 1993 compared to the same periods in 1992. Unit volumes increased 78 percent compared to the second quarter last year and 76 percent over the first half of 1992 reflecting a shift in product mix and an increase in dealer installations as a percentage of unit sales. Net sales from the pickup accessories segment declined 4 percent from the second quarter last year and were off 2 percent compared to the first six months of 1992. Bedliner unit volume increased 10 percent from the second quarter last year and 15 percent over the first six months in 1992. A reduction in selling prices to the OEM channel accounted for the net sales decrease from last year's comparable periods.
 Consolidated gross margin for the second quarter decreased two percentage points to 35 percent and for six months margins decreased one percentage point to 34 percent from the same periods last year. The reduction in gross margin was attributable to a larger portion of total sales from the vehicle transportation segment.
 Selling, general and administrative expense increased over last year's second quarter by $360,000 and year-to-date by $823,000. However, as a percent of net sales, spending was lower. The increase was primarily due to increased sales commissions in the vehicle transportation segment. Operating income increased over the 1992 periods, even though the second quarter 1993 was adversely impacted by approximately $310,000 of spending relating to expansion activities and reengineering projects at the operating companies. Other expense reflects the net expense and non-taxable capital gain related to a short-term investment which matured in the quarter and $83,000 of start up losses from our Mexican joint venture.
 William Webster, president and CEO, said that, "Demand for our products continues to be strong and we are cautiously optimistic for the balance of the year. The expansion project at Jerr-Dan is on target and on budget. We expect to have additional capacity available beginning the fourth quarter of this year. Together with our distributors we have implemented an aggressive marketing program to increase aftermarket sales of pickup truck bedliners in response to projected reductions in GM factory installations of certain options including bedliners. In the international market, our joint venture in Mexico began production of bedliners in April and we have established a sales and marketing organization in Brazil to expand our business in that country." Durakon Industries is the world's leading producer and distributor of pickup truck bedliners and rollback car carriers, a major manufacturer of wheel lift towing vehicles and a leading distributor of light truck accessories. Headquartered in Lapeer, Mich., it has manufacturing facilities in Lapeer, Mich.; Greencastle, Pennsylvania and Lerma, Mexico. A publicly traded company, it is listed on the NASDAQ National Market System.
 (In Thousands, Except Per Share Amounts)
 Three months ended June 30:
 (Unfav) Percent
 1993 1992 Variance Change
 Net sales $26,854 $23,149 $ 3,705 16
 Operating income 4,822 4,477 345 8
 Other income (expense),
 net (26) (15) (11) --
 Net income 3,487 2,661 826 31
 Primary net income per
 common share $ 0.53 $ 0.41 $ 0.12 29
 Fully diluted net income
 per share $ 0.53 $ 0.41 $ 0.12 29
 Primary common shares
 outstanding 6,571 6,344 4
 Fully diluted common shares
 outstanding 6,571 6,364 3
 Six months ended June 30:
 Net sales $49,874 $42,193 $ 7,681 18
 Operating income 8,031 6,672 1,359 20
 Other income (expense),
 net (252) 50 (302) --
 Net income 5,271 4,004 1,267 32
 Primary net income per
 share $ 0.80 $ 0.63 $ 0.17 27
 Fully diluted net income per
 share 0.80 $ 0.63 $ 0.17 27
 Primary common shares
 outstanding 6,557 6,322 4
 Fully diluted common shares
 outstanding 6,557 6,364 3
 -0- 8/2/93
 /CONTACT: Thomas A. Galas, chief financial officer of Durakon Industries, Inc., 313-664-0850, ext. 226/

CO: Durakon Industries, Inc. ST: Michigan IN: AUT SU: ERN

PS -- NY035 -- 8269 08/02/93 10:21 EDT
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Publication:PR Newswire
Date:Aug 2, 1993

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