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GOULDS PUMPS REPORTS RECORD ANNUAL SALES AND EARNINGS BEFORE EXTRAORDINARY CHARGE

        GOULDS PUMPS REPORTS RECORD ANNUAL SALES AND EARNINGS
                    BEFORE EXTRAORDINARY CHARGE
    SENECA FALLS, N.Y., Jan. 27 /PRNewswire/ -- Goulds Pumps, Inc. (NASDAQ-NMS: GULD) today announced record sales and earnings before extraordinary charge.  According to Goulds' president, Stephen V. Ardia in a letter to the shareholders, "these results are especially rewarding given the challenging economic environments in the United States and many of our key international markets."
    The company's financial results for the three and 12 months ended Dec. 31, 1991 are as follows.
                        GOULDS PUMPS, INC.
          (In millions except percentages and per share data)
    Periods ended                Three months          12 months
      Dec. 31                   1991      1990       1991      1990
    Net sales                  $138.5    $142.9     $566.6    $554.7
    Gross margin (in percents)   28.9      28.8       30.0      29.3
    Tax rate (in percents)       39.4      37.0       39.0      37.0
    Net income                   $5.9      $6.2      $31.3     $30.6
    E.P.S. before
     extraord. charge            $.29      $.30      $1.51     $1.49
    E.P.S.                       $.26      $.30      $1.48     $1.49
    Ardia also pointed out "earnings performance would have been even brighter except for management's decision to invest some of this outstanding performance in the future of the company."
    An extraordinary charge of $.6 million was recognized for the early retirement of the company's convertible subordinated debentures.  The $25 million of debentures were at an interest rate of 9-7/8 percent and due in the year 2006.  The company has refinanced this redemption with newly issued debt at substantially lower interest rates.
    Additionally, the fourth quarter financial results were impacted by a $2 million provision for estimated environmental costs.  This provision has been made to reflect costs anticipated to remediate a Goulds' landfill located in Seneca Falls.  The landfill site was used from 1900 to 1980 to dispose of wastes generated by the company's main manufacturing facility.  The site is one of over 1,000 being evaluated by the New York Department of Environmental Conservation and the remediation is expected to occur through late 1994 or early 1995.
    Other investments in the future, indicated by Ardia, include the new Seneca Falls Learning Center, a high-tech, multipurpose training facility available to all Gould personnel, the development of an employee profit-sharing program, increased emphasis on new product development, and the continuing investment in better business systems and  Total Quality.  "These things will keep us on course toward a successful future," said Ardia.
    In discussing year-end results, Ardia said "we are especially pleased with our 30.0 percent consolidated gross margin percentage for the year, which is up from 29.3 percent last year.  This increase was achieved through a favorable mix of business, price increases and performance improvement.  Also, the company ended the quarter with a strong balance sheet and a debt-to-equity ratio of 29.3 percent."
    Orders for the last three months of the year were $133.4 million, which is 2 percent higher than orders of $130.8 million for the same quarter last year.  Specifically, Industrial Products Group (IPG) orders rose by 5 percent for the quarter as pump orders strengthened due to increased orders arising from the introduction of new products in 1991 and growth in international project orders.  Ardia said, "We are very encouraged by the fourth quarter order rate which was almost 6 percent above the rate recorded for the first three quarters on 1991."
    At the Water Technologies Group (WTG), orders declined by 3 percent for the quarter as business at the Water Systems division remained stable, while incoming orders at the company's Italian subsidiary, Lowara S.p.A., decreased by 7 percent due to unfavorable exchange rates. Without the unfavorable impact of translation, orders at Lowara would have increased 2 percent for the fourth quarter of 1991 compared to the fourth quarter of 1990.
    Total orders for the year were $555.7 million, which is less than 1 percent below orders of $556.2 million last year.  Orders at WTG increased 3 percent, while orders at IPG decreased 2 percent compared to 1990.  Total backlog, which is comprised primarily of IPG orders, was $92.0 million at Dec. 31, 1991, compared to $101.3 million at the same time last year.
    IPG posted record sales and contribution levels in 1991, including an increase in gross margin percentage to 30.8 percent from last year's percentage of 29.7 percent.  For the quarter, IPG sales decreased 4 percent while contribution declined 10 percent.  These decreases were largely driven by the Engineered Products Division which had achieved records in these two measures in 1990.
    WTG achieved record sales, contribution and orders levels in 1991. For the fourth quarter sales volume declined 1 percent and contribution rose by 16 percent.  At the Water Systems Division sales volume gains of 7 percent combined with a favorable gross margin percentage and other operating efficiencies resulted in a contribution increase of 18 percent.  Lowara recorded sales and contribution declines which were impacted by unfavorable currency translation.
    Ardia closed his announcement by stating, "We are proud of our 1991 performance, especially under the negative economic pressures that are sweeping the world.  We were able to stay on course by choosing directions designed to produce maximum performance under difficult conditions, as well as to take advantage of emerging opportunities. Even more important, we continued the investments in the future that will maintain our momentum, and allow us to capitalize on future upturns in the economy."
                        GOULDS PUMPS, INCORPORATED
              CONDENSED STATEMENTS OF CONSOLIDATED INCOME
              (In thousands except per share data, unaudited)
      Period ended               Three months          Twelve months
       Dec. 31                  1991      1990         1991      1990
    Net sales                 $138,478   $142,913   $566,566   $554,667
    Cost of goods sold          98,393    101,768    396,793    392,216
    S,G&A expenses              29,484     29,079    115,673    108,174
    Income from operations      10,601     12,066     54,100     54,277
    Interest expense             1,255      2,487      6,351      9,367
    Interest income                439      1,121      2,225      3,910
    Income from investments
     and affiliates                822        595      2,479      2,397
    Provision for estimated
     environmental costs         2,000         --      2,000       --
    Other income (expense)
     - net                       1,094     (1,521)       839     (2,614)
    Income before income
     taxes and extraord.
     charge                      9,701      9,774     51,292     48,603
    Provision for income
     taxes                       3,825      3,615     20,004     17,983
    Income before extraord.
     charge                      5,876      6,159     31,288     30,620
    Extraord. charge from
     early extinguishment
     of debt, net of income
     tax benefit of $313           557       --          557       --
    Net income                   5,319      6,159     30,731     30,620
    Net income per common share:
     Income before extraord.
      charge                      $.29       $.30      $1.51      $1.49
     Extraordinary charge          .03         --        .03        --
    Net income per common share   $.26       $.30      $1.48      $1.49
    Weighted average shares
     outstanding (in 000's)     20,847     20,657     20,781     20,589
                     CONDENSED CONSOLIDATED BALANCE SHEETS
                            (Dollars in thousands)
                                           12/31/91      12/31/90
                                          (unaudited)    (audited)
    Assets
     Current assets:
     Cash and cash equivalents            $  16,372      $ 14,134
     Marketable securities                      926        23,782
     Receivables - net                      100,249       107,308
     Inventories                             91,920        95,575
     Deferred tax benefit                     5,891         6,295
     Recoverable income taxes                  --             410
     Prepaid expenses and other
      current assets                          8,287         8,529
    Total current assets                    223,645       256,033
    Property, plant & equipment - net       140,767       128,491
    Investments, including investments
     in affiliates                           13,572        25,504
    Other assets                             17,881        14,835
                                            395,865       424,863
    Liabilities and shareholders' equity
    Current liabilities:
    Current maturities of debt               19,795        41,300
    Trade payables                           34,365        39,560
    Other                                    47,429        47,918
    Total current liabilities               101,589       128,778
    Long-term debt                           44,419        55,340
    Pension                                  11,339         9,628
    Deferred taxes and other                 19,263        24,612
    Shareholders' equity                    219,255       206,505
                                           $395,865      $424,863
    Market Segments:
    The company operates in two major market segments, Industrial Products and Water Technologies.  The Industrial Products segment produces and sells pumps used in various industries including pulp and paper, chemical processing, petrochemical, food and beverage, oil, mining, municipal, and electric utility and provides parts and repair services for various types of pumps and other rotating equipment.  The Water Technologies segment produces and sells pumps for residential, farm, irrigation and commercial/light industrial use.
              SELECTED MAJOR MARKET SEGMENT INFORMATION
                           (In thousands)
       Period ended              Three months           Twelve months
        Dec. 31                1991         1990      1991      1990
    Net sales:
     Industrial products     $ 92,953    $ 96,886   $346,013   $341,720
     Water Technologies        45,525      46,027    220,553    212,947
    Total net sales           138,478     142,913    566,566    554,667
    Operating earnings:
     Industrial products
      contribution             11,751      13,079     44,511     43,713
     Less: allocations(A)      (2,867)     (2,007)    (8,409)    (6,819)
     Industrial products
     operating earnings         8,884      11,072     36,102     36,894
    Water Technologies
     contribution               4,209       3,639     25,897     24,715
     Less: allocations(A)      (1,114)       (277)    (2,094)      (394)
    Water Technologies
     operating earnings         3,095       3,362     23,803     24,321
    Total operating earnings   11,979      14,434     59,905     61,215
    General corporate exp.      1,378       2,368      5,805      6,938
    Interest expense            1,255       2,487      6,351      9,367
    Interest income               439       1,121      2,225      3,910
    Income from investments
     and affiliates               822         595      2,479      2,397
    Provision for estimated
     environmental costs        2,000          --      2,000         --
    Other income (exp.) - net   1,094      (1,521)       839     (2,614)
                               $9,701      $9,774    $51,292    $48,603
    (A) Allocations are comprised of an allocation of applicable corporate expenses and other income/(expense) items.
    -0-        1/27/92
    /CONTACT:  John Morphy, vice president and chief financial officer of Goulds Pumps, 315-568-2811/
    (GULD) CO:  Goulds Pumps Inc. ST:  New York IN: SU:  ERN SH-SM -- NY036 -- 3711 01/27/92 11:52 EST
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