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GOULDS PUMPS ANNOUNCES ECONOMIC AND WEATHER CONDITIONS RESULT IN GOULDS PUMPS BEING BELOW FIRST QUARTER PROJECTIONS

 SENECA FALLS, N.Y., March 19 /PRNewswire/ -- Goulds Pumps, Inc. (NASDAQ-NMS: GULD) today announced that first quarter results are anticipated to fall below market expectations as a result of continuing persistent recessionary conditions in North America and Europe, softness in the company's industrial core markets, a delay of shipments by some customers in adverse weather conditions on the east coast of the United States.
 Stephen V. Ardia, president and chief executive officer of Goulds Pumps, explained, "Sales for the first quarter of 1993 will be at their lowest level in three years for the first quarter of the year due to weaker sales volume in the United States, Europe and Canada, continued pricing pressures in the industry, a shift of business at our VPD- California division to the second quarter of the year and the impact of wet weather conditions on our water systems business. Additionally, European sales of lower margin pumps will also adversely affect earnings for the quarter." Ardia added, "The fact is that we lagged the global recession in 1991, when we reported record results. The fact that we are continuing to feel the impact of these difficult economic times is a reflection of the capital goods industry trailing the economic recovery."
 "We expect that this softness in sales volume, pricing, timing of shipments and product mix will result in earnings for the first quarter of 1993 that will be at approximately the same level as our fourth quarter of 1992, which exclusive of one-time charges and the cumulative accounting change under SFAS 106, were $.16 per share. While it is difficult to predict future business conditions at this time, we are encouraged that our parts orders rate has stabilized and that the current and near-term performance of Oil Dynamics, Inc. (ODI), our joint venture company, will even exceed our earlier optimistic predictions. These factors, when combined with what we consider predictions. These factors, when combined with what we consider to be extraordinary efforts by our employees, will produce satisfactory results for our shareholders for the year," said Ardia.
 "Of equal importance, we took several actions during 1992 designed to maximize short- and long-term profitability," Ardia continued. As outlined in the company's 1992 annual report, to be mailed to shareholders today, the following actions have been taken:
 -- Increased product development expenditures by 80 percent to generate greater sales volume from new products. "By 1994, more than 10 percent of our sales will result from new products," Ardia stated in his Letter to Shareholders. The new products include Goulds' newly acquired line of energy pumps, which will begin shipments in the fall of 1993.
 -- Achieved cost savings through restructuring. Nearly $3 million in payroll savings will result from the early retirement of certain salaried employees. The 1992 transfer of a product line from Texas to Pennsylvania will save $1 million annually in operating costs.
 -- Implemented new, more efficient business systems to improve customer service and reduce costs. Improvements in business processes continue into 1993, with the focus including a reduction of design time and order processing time.
 Goulds Pumps will report its results for the first quarter of 1993 on April 23.
 Founded in 1848, Goulds Pumps designs, manufactures and services pumps, motors and accessories for industrial, commercial and consumer markets throughout the world. Company headquarters are in Seneca Falls.
 -0- 3/19/93
 /CONTACT: John Morphy, chief financial officer of Goulds Pumps, 315-568-2811/
 (GULD)


CO: Goulds Pumps, Inc. ST: New York IN: SU: ERP

SH -- NY007 -- 7794 03/19/93 09:51 EST
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Publication:PR Newswire
Date:Mar 19, 1993
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