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GRUMMAN REPORTS 1991 EARNINGS

 GRUMMAN REPORTS 1991 EARNINGS
 BETHPAGE, N.Y., Jan. 27 /PRNewswire/ -- Grumman Corporation


(NYSE: GQ) today reported 1991 earnings of $2.88 per share on net income of $99.3 million, up 16 percent from $2.48 a share on net income of $85.6 million in 1990.
 Annual sales were $4.038 billion, a slight decrease from $4.041 billion in 1990.
 In the fourth quarter 1991, net income rose 47 percent to $24.5 million or 71 cents per share, from $16.7 million or 48 cents a share in the 1990 quarter. Sales reached $1.14 billion, a 2 percent gain above $1.12 billion in the prior year quarter. Operating income increased 16 percent to $56.9 million while interest expense decreased 16 percent to $19.4 million.
 Grumman Chairman Renso L. Caporali said, "We've significantly improved the company's liquidity in 1991. Year-end debt totalled $722 million, compared with $782 million a year ago; cash and marketable securities were up $164 million in 1991. This improvement came principally from reducing inventories and receivables by $196 million, along with other aggressive actions to improve cash flow."
 Results for 1991 include a $46.5 million non-recurring charge from the settlement of claims against the bankrupt Tracor Aviation, Inc., and the release of $30.7 million in tax reserves no longer required. Both items were reported in the first quarter.
 Without the one-time charge, 1991 operating income increased 4 percent to $235.2 million from $226.8 million in 1990. Interest expense dropped 14 percent in 1991, to $85.2 million, from $98.8 million the previous year.
 In the aerospace business segment, 1991 operating income, adjusted for the aforementioned non-recurring charge, was $166 million on sales of $2.896 billion, compared with $157.2 million on sales of $2.922 billion a year earlier. This 5.6 percent increase in operating income is primarily due to improved program margins. Thirty-five production aircraft were delivered in 1991, one less than in 1990.
 Electronics systems segment sales increased by 3 percent in 1991, to $505.4 million. Operating income rose 6 percent to $13.9 million. The U.S. Air Force and Army's Joint STARS program increased sales while better margins on training equipment sales improved earnings.
 The information and other services segment posted gains in 1991 sales and operating income. Sales rose 7 percent to $686.4 million on increased revenues from technical services. Operating income of $37.8 million was 10 percent higher, mainly due to the 1990 one-time charge to settle an overseas contract that reduced income by $8.5 million.
 Sales in the special purpose vehicles segment declined 6 percent in 1991 to $366.1 million, and operating income decreased 15 percent to $21.2 million. The continued strong performance of the U.S. Postal Service delivery van program did not offset the soft demand for commercial delivery trucks. Lower operating income reflected both lower revenues and a $4 million charge related to the elimination of product lines planned for 1992.
 Caporali said, "1991 was a good year for Grumman. We're more profitable and we're making gains toward increasing shareholder value. Benefits from our cost control and cash management programs are flowing to the bottom line."
 At December 31, employment was 23,600, nearly 10 percent lower than a year ago. The backlog was $6.5 billion at year-end, compared with $7.7 billion in 1990; both totals include authorized but unfunded amounts.
 GRUMMAN CORPORATION AND SUBSIDIARIES
 Consolidated Financial Data
 (Dollars in thousands except per share amounts)
 Condensed Income Statement
 Three months ended Dec. 31 (unaudited) 1991 1990
 Sales $ 1,140,642 $ 1,120,783
 Income before taxes 37,516 25,919
 Provision for federal income taxes 13,000 9,200
 Net income $ 24,516 $ 16,719
 Earnings per share $ .71 $ .48
 Twelve Months ended Dec. 31 (audited) 1991 1990
 Sales $ 4,037,906 $ 4,041,306
 Income before taxes 103,437 127,972
 Provision for federal income taxes 4,100 42,400
 Net income $ 99,337 $ 85,572
 Earnings per share $ 2.88 $ 2.48
 Balance Sheet Data
 Dec. 31: 1991 1990
 Working capital $ 1,276,753 $ 1,187,394
 Net property, plant and equipment 433,877 478,144
 Long-term debt 711,619 752,108
 Preferred stock 32,360 32,365
 Shareholders' equity - common $ 951,712 $ 867,514
 Shareholders' equity per common share $28.61 $26.45
 Common shares outstanding 33,265,391 32,797,776
 BACKLOG (A) at December 31, $6.5 billion $7.7 billion
 (A) -- Includes authorized and unfunded amounts.
 -0- 1/27/92


Contact: Miriam L. Reid of Grumman, (516) 575-3999
 (GQ) CO: Grumman Corporation ST: New York IN: ARO SU: ERN


TS -- NY032 -- 3592 01/27/92 09:43 EST
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Date:Jan 27, 1992
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