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FARREL REPORTS YEAR END RESULTS

 ANSONIA, Conn., April 1 /PRNewswire/ -- Farrel Corporation today announced the financial results for the eight-months fiscal period ended Dec. 31, 1992. The company changed its fiscal year from an April 30 year end to a December 31 year end. Therefore, the results reported today relate to the transition period May 1, 1992 to Dec. 31, 1992.
 The result for the fiscal period was a net loss of $1,918,000 or $0.31 per share, on sales of $45.7 million. For the comparable (unaudited) eight-months period in 1991, net income was $2.1 million on sales of $60.3 million. In the full prior fiscal year ending April 30, 1992, earnings were $4.5 million, or $0.81 per share, on sales of $95.5 million.
 Rolf Liebergesell, the chairman and chief executive of Farrel, commented that operating losses during the period were largely offset by an arbitration award resulting from litigation against a former licensee. Earnings were unfortunately reduced by a mandated non- recurring charge of $1.4 million after-tax to establish a post- retirement medical benefits reserve required by a new accounting standard (FAS 106) which alone accounted for a loss of $0.22 per share.
 In response to depressed market conditions, Farrel instituted a company-wide restructuring program in October 1992 and established a $1.0 million pre-tax restructuring reserve. By the end of the first quarter of 1992, employment in the U.S. and the U.K. will have been reduced by 20 percent from levels a year ago.
 "Following a year of record earnings, the results of our new abbreviated fiscal year were disappointing. Instead of the moderate recovery in most of our markets expected in the spring of 1992, severe recessionary conditions continued throughout the year," Liebergesell, said.
 "With our new products, to which we have recently added twin-screw extruder technology, and our much-reduced breakeven point resulting from the restructuring program, the company is well positioned to benefit from improvements in any of its world-wide markets. We are monitoring market developments carefully and are prepared to take all steps necessary to return to profitability this year," Liebergesell said.
 FARREL CORPORATION
 Financial Highlights
 (Unaudited)
 Periods Ended Eight Months Twelve Months
 December 31 (A) April 30
 1992 1991 1992
 Net sales $45,734,000 $60,251,000 $95,452,000
 Net (loss) income (1,918,000)(B) 2,107,000 4,550,000
 Net (loss) income
 per common share (0.31)(B) N/A 0.81
 NOTES: (A) The company changed its fiscal year end from April 30 to December 31.
 (B) Includes impact of adoption of FAS 106 of $1.4 million after-tax or $.22 per share.
 -0- 4/1/93
 /CONTACT: Joseph R. Carvalko, Jr. of Farrel Corporation, 203-736-5514/


CO: Farrel Corporation ST: Connecticut IN: SU: ERN

TM-LD -- NY117 -- 2296 04/01/93 18:07 EST
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Publication:PR Newswire
Date:Apr 1, 1993
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