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GRUMMAN'S FIRST QUARTER 1992 NET INCOME UP

 GRUMMAN'S FIRST QUARTER 1992 NET INCOME UP
 BETHPAGE, N.Y., April 16 /PRNewswire/ -- Grumman Corporation


(NYSE: GQ) today reported its first quarter net income increased 40 percent to $31.6 million or 92 cents a share, from $22.5 million or 65 cents a share in the year earlier period. Sales were up nine percent to $957.2 million from $881.6 million.
 Operating profits before interest and taxes were $62.8 million, up from $10 million in the 1991 quarter, an increase of $52.8 million. For the year-ago period, operating profits included a $46.5 million non- recurring charge due to the settlement of claims against the bankrupt Tracor Aviation, Inc. Net income for the 1991 quarter included the release of $30.7 million in tax reserves.
 Quarterly interest expense dropped 30 percent to $15.7 million from $22.4 million in the 1991 first quarter due to reduced borrowings and lower interest rates.
 In remarks to the company's annual shareholders meeting today, Grumman Chairman Renso Caporali pointed out that "from the beginning of 1990 to today (April 16), we've reduced our debt by $433 million. As of right now, we have paid down our bank debt to $50 million, and we expect to have that paid off by June. That will leave us with a total of about $465 million in debt, down from a peak of $950 million just over two years ago." The company's total debt was $591.6 million at the end of the quarter and $516.6 million as of April 16.
 Caporali said inventories and receivables were reduced $298 million in the past two quarters, "and we're going to keep going. We've reduced our debt and gotten some breathing room by the gains we've made in these areas. We believe there will be opportunities ahead, and we want to be able to go for them."
 In the quarter, increased F-14D deliveries contributed to strong aerospace segment results with operating income of $43.4 million on sales of $698 million, an operating margin of 6.2 percent. Six new F-14D aircraft were delivered in the quarter. The last four new F-14D's under contract will be delivered in the second quarter. The company is under contract to remanufacture F-14D aircraft through the second quarter of 1993.
 Sales of the electronics systems segment increased 37 percent in the quarter to $128.9 million on growth of the Joint STARS program, the radar aircraft being developed for the U.S. Air Force and Army. The company expects to sign a contract for the first production Joint STARS systems soon.
 GRUMMAN CORPORATION AND SUBSIDIARIES
 Consolidated Financial Data
 Unaudited
 (Dollars in thousands except per share amounts)
 CONDENSED INCOME STATEMENT
 Three Months ended March 31, 1992 1991
 Sales $ 957,206 $ 881,564
 Income (loss) before taxes 47,102 (12,373)
 Provision (credit)
 for federal income taxes 15,500 (34,900)
 Net income $ 31,602 $ 22,527
 Earnings per share $ .92 $ .65
 BALANCE SHEET DATA at March 31, 1992 1991
 Working capital $ 1,159,002 $ 1,259,624
 Net property, plant and equipment 424,164 465,955
 Long-term debt 582,879 797,858
 Preferred stock 32,360 32,365
 Shareholders' equity - common 971,815 882,123
 Shareholders' equity per common share $29.01 $26.50
 Common shares outstanding 33,497,027 33,288,355
 BACKLOG at March 31, $7.0 Billion $8.2 Billion
 GRUMMAN CORPORATION AND SUBSIDIARIES
 Summary of Sales and Income by Business Segments
 Unaudited
 (Dollars in Thousands)
 Three Months Ended March 31,
 1992 1991
 Operating Operating
 Sales Profit(Loss) Sales Profit(Loss)
 Aerospace $ 697,934 $ 43,358 $ 635,969 $(10,235)(A)
 Electronics
 Systems 128,939 2,865 93,929 2,585
 Information &
 Other Services 149,724 8,708 162,704 10,264
 Special Purpose
 Vehicles 81,771 7,182 94,895 7,289
 Corporate Items &
 Eliminations (101,162) 640 (105,933) 123
 CONSOLIDATED $ 957,206 $ 62,753 $ 881,564 $ 10,026
 Interest Expense $ 15,651 $ 22,399
 Income (loss) before
 Federal Income Taxes $ 47,102 $(12,373)
 (A) Includes a $46.5 million charge arising from the settlement of claims against the bankrupt Tracor Aviation, Inc. (Tax reserves of $30.7 million were released and included in net income in the first quarter of 1991.)
 -0- 4/16/92
 /CONTACT: Robert P. Harwood of Grumman, 516-575-5287/
 (GQ) CO: Grumman Corporation ST: New York IN: ARO SU: ERN


SH -- NY066 -- 9291 04/16/92 12:10 EDT
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Date:Apr 16, 1992
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