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FARR CO. REPORTS RESULTS

 EL SEGUNDO, Calif., Feb. 26 /PRNewswire/ -- Farr Co. (NASDAQ: FARC) reported lower sales and a loss for the fourth quarter of 1992, reflecting the continued weak economy, customer-initiated delays in the completion of several large contracts, restructuring costs associated with plant closings and certain accounting adjustments.
 Fourth quarter sales were $26,976,000, down from $29,830,000 in the same period a year ago. A net loss of $4,480,000, or $1.23 per share, was recorded, compared to a net loss of $1,552,000, or 43 cents per share in 1991's final period.
 For the year, sales were $112,094,000, as compared to $112,410,000 in 1991. The loss for the year was $4,590,000, or $1.26 per share, compared to a net loss of $2,996,000, equal to 83 cents per share a year ago.
 Charles Wofford, chairman and president, commented: "As anticipated, sales for the quarter were down largely due to delays by customers on several large gas turbine projects which we had initially expected to complete in 1992. The delays impacted both sales and profits for the period. Completion of these projects is now scheduled for the first half of 1993.
 "Also impacting the fourth quarter was the previously announced restructuring charge of $1.5 million to cover costs associated with closing two manufacturing plants, one in Pryor, Okla., and the other in Eatonton, Ga.
 "In addition, we had negative inventory adjustments of $1.5 million, primarily in two domestic plants. Also, the 1992 results reflect limitations on U.S. tax loss carry-backs which resulted in the loss of approximately $1.8 million of tax benefits.
 "Included in the annual results is a provision of $0.5 million to cover the company's adoption of the new pronouncement related to accounting for income taxes (SFAS 109). This change is effective as of the beginning of 1992 and will result in a restatement of the first quarter figures."
 Wofforc?ontinued: "The deferred completion of the turbine projects mentioned earlier highlights the recessionary pressures Farr's business has experienced throughout the year in this country as well as in Canada and Europe. Our decision to close the Pryor and Eatonton plants is an important step in our efforts to consolidate our U.S. manufacturing operations and to increase production efficiency, asset utilization and profitability.
 "Dealing with an international recession while completing the integration of our April 1991 acquisition of Cambridge Filter Corp., implementing a new computer system, and rationalizing and upgrading manufacturing throughout the company has required difficult choices. Results have been slower than we would have liked, but we are continuing to make changes necessary to position Farr to grow with an improving economy."
 Farr Co. is a leading producer of filters for particulate, liquid and gaseous filtration systems. The company has 10 manufacturing facilities in the United States as well as plants in Canada and England.
 FARR CO. AND SUBSIDIARIES
 Condensed Consolidated Income Statements
 (In thousands, except per share amounts)
 Three months ended Years ended
 Jan. 2, Dec. 28, Jan. 2, Dec. 28,
 1993 1991 1993 1991
 Net sales $26,976 $29,830 $112,094 $112,410
 Costs and expenses:
 Cost of sales 24,120 24,479 90,069 86,546
 Selling, general
 and administrative 5,176 5,751 21,731 22,273
 Interest expense 486 702 2,322 2,341
 Restructuring costs 1,500 990 1,500 5,733
 Total costs and
 expenses 31,282 31,922 115,622 116,893
 Income (loss) before
 income taxes (4,306) (2,092) (3,528) (4,483)
 Income taxes 174 (540) 1,062 (1,487)
 Net income (loss) ($4,480) ($1,552) ($4,590) ($2,996)
 Earnings per common
 share(A) ($1.23) ($0.43) ($1.26) ($0.83)
 (A) Based upon 3,653,151 and 3,611,386 average shares outstanding in 1992 and 1991, respectively.
 -0- 2/26/93
 /CONTACT: Jack Carr, executive VP-finance of Farr Co., 310-536-6300/
 (FARC)


CO: Farr Co. ST: California IN: SU: ERN

JL-BP -- LA024 -- 1045 02/26/93 17:47 EST
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Publication:PR Newswire
Date:Feb 26, 1993
Words:676
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