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ELDEC ANTICIPATES LOWER EARNINGS DUE TO HIGH SEVERANCE COSTS

 LYNNWOOD, Wash., March 31 /PRNewswire/ -- ELDEC Corp. (NASDAQ: ELDC) reported that fiscal 1993 fourth-quarter earnings will be lower than generally expected by industry analysts due to unanticipated high severance costs in the quarter.
 ELDEC recently laid off 78 regular employees and 17 contract employees, primarily as a result of the worldwide slowdown in the aerospace industry. The layoffs, involving many long-time employees with considerable severance benefits, cost the company about $600,000. The net result will be a negative impact on earnings of about 7 cents per share in the fourth quarter. However, long term the layoffs reduce annual operating costs by about $4 million.
 Before the layoffs, the company was expected to earn about 12 cents a share for the quarter ended March 28, 1993.
 ELDEC custom designs and manufactures electronic and electromechanical systems for aerospace and defense applications. Founded in 1957, the company is a sub-contractor to a large number of major aerospace and defense electronics contractors.
 -0- 3/31/93
 /CONTACT: Tom Brown, chief executive officer, 206-743-8205, or Phillip Lorenzen, chief financial officer, 206-743-8220, both of ELDEC/
 (ELDC)


CO: Eldec Corp. ST: Washington IN: ARO SU: ERP

AL-LM -- SE010 -- 1498 03/31/93 12:26 EST
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Publication:PR Newswire
Date:Mar 31, 1993
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