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FAIRCHILD INDUSTRIES, INC. REPORTS FISCAL 1993 SECOND QUARTER RESULTS

 CHANTILLY, Va., Feb. 5 /PRNewswire/ -- Fairchild Industries, Inc., a subsidiary of The Fairchild Corporation (NYSE: FA), a leading aerospace, industrial products and communications services company, continued to strengthen its operating performance in the second quarter of fiscal 1993, despite the sluggish economy.
 Although sales were $116,548,000 in the fiscal 1993 quarter, compared to $120,782,000 in the fiscal 1992 quarter, primarily due to continued softness in the aviation industry, second quarter operating income for fiscal 1993 was $9,016,000, up by 19 percent from $7,552,000 for the fiscal 1992 second quarter. This significant improvement resulted primarily from higher operating income in Fairchild's Industrial Products and Communications Services segments.
 The continued strong performance of these two segments was offset partially by lower operating income in the Aerospace Fasteners segment, reflecting weaker customer demand and excess capacity impacting the Aerospace Fasteners business. The company recognized restructuring charges of $1,500,000 in the current quarter and $2,500,000 in the prior year quarter in an ongoing effort to downsize its Aerospace Fasteners business.
 For the current six months period, sales were $234,648,000 compared to $241,744,000 in the prior year. However, operating income for the fiscal 1993 six months was $21,079,000, up 30 percent from $16,192,000 for the fiscal 1992 six months. Again, the strong performance was due to continued growth in the Industrial Products and Communications Services segments. Higher other corporate income in the current year also helped to increase operating income. Excluding the restructuring charges, operating income for both six months in the Aerospace Fasteners segment was about the same.
 The company reported a tripling of net earning for the current quarter to $1,314,000 from $431,000 in the prior year quarter. For the current six month period, net earnings were up by 146 percent to $3,171,000 from $1,285,000 in the fiscal 1992 six month period. Net interest expense in the current year periods approximated the prior year levels. However, net earnings for the current six month period included a one-time extraordinary non-cash charge of $810,000, net of tax, which represents Fairchild's write-off of its deferred loan costs related to the portion of the term loan repaid during its recapitalization program completed last August.
 Commenting on the second quarter results, Chairman and Chief Executive Officer, Jeffrey J. Steiner, stated "Operating income overall was well above second quarter levels of fiscal 1992. While sales and incoming orders at our Aerospace Fasteners business continue to reflect the downturn in the aerospace industry caused by a decline in defense spending and the depressed airline industry, we are committed to making even more cuts in our operating costs and taking other measures in order to operate more profitably in the current economic climate."
 Mr. Steiner noted the continued strong performance of D-M-E Company and Fairchild Communications Services Company. He also stated that the recapitalization program, successfully completed during the first quarter by the company, clearly strengthens the inherent value of the company and opens up new avenues of opportunity that will be aggressively pursued over the next several years.
 FAIRCHILD INDUSTRIES, INC.
 Summary Income Statement
 (In thousands, except per share data)
 Periods ended Three months Six months
 12/27/92 12/29/91 12/27/92 12/29/91
 Sales by business
 segment:
 Aerospace Fasteners $62,913 $74,540 $130,069 $151,293
 Industrial Products 37,063 31,795 72,088 61,840
 Communications
 Services 16,572 14,447 32,491 28,611
 Total $116,548 $120,782 $234,648 $241,744
 Segment Operating Income:
 Aerospace Fasteners $ 176 $ 370 $ 4,886 $ 3,859
 Industrial Products 4,711 3,758 8,728 6,468
 Communications
 Services 3,649 3,358 7,123 6,362
 Total 8,536 7,486 20,737 16,689
 Corporate admin. expense (815) (792) (1,729) (1,564)
 Corporate income 1,295 858 2,071 1,067
 Total operating income 9,016 7,552 21,079 16,192
 Equity earnings 100 154 246 319
 Minority interest (51) (53) (189) (210)
 Net interest expense (6,716) (6,869) (13,897) (13,964)
 Earnings from continuing
 operations before income
 taxes 2,349 784 7,239 2,337
 Income tax provision 1,058 353 3,258 1,052
 Earnings from continuing
 operations 1,291 431 3,981 1,285
 Extraordinary item - net 23 -- (810) --
 Net earnings $1,314 $ 431 $ 3,171 $ 1,285
 -0- 2/5/93
 /CONTACT: Michael T. Alcox, chief financial officer of Fairchild Industries, 703-478-5824/
 (FA)


CO: Fairchild Industries, Inc. ST: Virginia IN: ARO SU: ERN

LD-TM -- NY054 -- 3733 02/05/93 17:25 EST
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Date:Feb 5, 1993
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