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GENERAL SIGNAL THIRD QUARTER NET RISES 12.3 PERCENT

 GENERAL SIGNAL THIRD QUARTER NET RISES 12.3 PERCENT
 STAMFORD, Conn., Oct. 22 /PRNewswire/ -- General Signal reported


third quarter net earnings up 12.3 percent to $17.9 million on a 3.7 percent gain in sales to $408 million. Earnings per share gained 9.6 percent to 91 cents per share on higher shares outstanding.
 For the nine months ended Sept. 30, net earnings rose 16.1 percent to $52.7 million on a 3.2 percent gain in sales to $1.24 billion. Earnings per share gained 14.4 percent to $2.70.
 Orders year-to-date rose 7.9 percent to $1.27 billion, resulting in a $34 million improvement in backlog.
 Operating earnings for the process control sector grew despite lower sales, as margins achieved their best level this year. Improvements in the instrumentation, pumps, and heat treating businesses led the sector's results for both the three-month and nine-month periods.
 The electrical controls sector also witnessed higher margins for the quarter and year-to-date periods, aided by "bolt-on" acquisitions and strong advances in small motor applications. Five of the sector's six businesses had higher earnings in the quarter.
 Operating earnings for the industrial technology sector declined as a result of weakness in the semiconductor equipment industry, which more than offset strength in telecommunications operations. For the nine- month period, the sector gained in both sales and operating earnings.
 Reflecting on the quarter, Edmund M. Carpenter, chairman and chief executive officer, said: "Given the economic environment we are pleased with this, our sixth consecutive up quarter on a continuing business basis. The combination of effective asset management and new product development efforts, coupled with an aggressive acquisition program, and the divestiture of marginal product lines have played a major role in these results. Since the beginning of this year we have completed eight strategic "bolt-on" acquisitions which will add about $100 million in annual sales and contribute to earnings in the first year.
 "We continue to see signs of gradual economic improvement and will continue to manage tightly so as to reap the rewards of leverage when sales expand," Mr. Carpenter concluded.
 General Signal Corporation, with 1991 sales of $1.6 billion, is a leading manufacturer of equipment and instruments for the process control, electrical, semiconductor and telecommunications industries.
 GENERAL SIGNAL CORPORATION
 Consolidated Statement of Earnings
 (In thousands except per share data - Unaudited)
 Three months Nine months
 Periods ended Sept. 30 1992 1991 1992 1991
 Net sales $407,971 $393,443 $1,240,470 $1,201,805
 Cost of sales 295,308 283,617 897,836 870,125
 Selling, general &
 admin. expenses 82,340 80,398 252,494 246,360
 Total operating costs
 and expenses 377,648 364,015 1,150,330 1,116,485
 Operating earnings 30,323 29,428 90,140 85,320
 Interest expense (6,493) (8,031) (21,171) (24,840)
 Interest income 888 908 3,704 2,982
 Earnings before
 income taxes 24,718 22,305 72,673 63,462
 Income taxes 6,797 6,349 19,985 18,087
 Net earnings 17,921 15,956 52,688 45,375
 Earnings per share of
 common stock $.91 $.83 $2.70 $2.36
 Average common shares 19,626 19,284 19,515 19,273
 GENERAL SIGNAL CORPORATION
 Sector Performance
 (In thousands - Unaudited)
 Three months ended Sept. 30 1992 1991
 Net sales:
 Process Controls $166,200 $172,300(A)
 Electrical Controls 148,400 127,900
 Industrial Technology 93,400 93,200(A)
 Total 408,000 393,400
 Operating Earnings:
 Process Controls 16,800 16,000(A)
 Electrical Controls 13,300 11,000
 Industrial Technology 2,500 4,100(A)
 Total operating earnings
 before unallocated expenses,
 equity income and interest 32,600 31,100
 Nine months ended Sept. 30 1992 1991
 Net sales:
 Process Controls 514,200 521,600(A)
 Electrical Controls 425,300 382,500
 Industrial Technology 301,000 297,700(A)
 Total 1,240,500 1,201,800
 Operating Earnings:
 Process Controls 48,100 45,700(A)
 Electrical Controls 34,000 32,100
 Industrial Technology 13,200 11,800(A)
 Total operating earnings
 before unallocated expenses,
 equity income and interest 95,300 89,600
 (A) 1991 sales and operating earnings have been restated to reflect the transfer of a unit to Industrial Technology from Process Controls.
 GENERAL SIGNAL CORPORATION
 Consolidated Balance Sheet
 (In thousands, unaudited)
 9/30/92 12/31/92
 Assets
 Current assets:
 Cash and cash equivalents $ 9,359 $ 18,352
 Accounts receivable, net 316,793 294,441
 Inventories 250,575 246,130
 Prepaid expenses and other
 current assets 38,457 26,640
 Deferred taxes 15,854 16,369
 Total 631,038 601,932
 Property, plant and equipment, net 256,763 263,650
 Intangibles, net of accumulated
 amortization 240,074 217,273
 Other assets 123,571 97,343
 Total 1,251,446 1,180,198
 Liabilities and Shareholders' Equity
 Current liabilities:
 Notes payable and current maturities
 of long-term debt 7,136 13,479
 Accounts payable 126,653 128,876
 Accrued expenses 145,804 179,264
 Income taxes 39,030 36,429
 Total 318,623 358,048
 Long-term debt less
 current maturities 363,532 289,839
 Deferred income taxes 40,721 42,753
 Other liabilities 15,203 13,122
 Shareholders' equity 513,367 476,436
 Total 1,251,446 1,180,198
 -0- 10/22/92
 /CONTACT: Nino J. Fernandez, vice president-investor relations of General Signal Corporation, 203-357-8800/ CO: General Signal Corporation ST: Connecticut IN: TRN SU: ERN


SM-LO -- NY046 -- 3505 10/22/92 11:21 EDT
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Date:Oct 22, 1992
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