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 WAUKESHA, Wis., July 29 /PRNewswire/ -- Hein-Werner Corp. (AMEX: HNW) today reported results for the second quarter ended July 3, 1993.
 Net sales were $13.8 million, compared to $15.0 million for the second quarter of 1992, down approximately 8 percent. The company reported a net loss of $729,000, or $.32 per share, compared to a net loss of $517,000, or $.23 per share in the year earlier period.
 For the six months ended July 3, 1993, net sales were $28.6 million, compared to $30.2 million in the year earlier period. The company reported a net loss for the six months of $901,000, or $.40 per share, compared to $1.0 million, or $.45 per share.
 Joseph L. Dindorf, president and chief executive officer, said, "Hein-Werner continues to face many challenges as economic and business conditions for some of our North American markets remain difficult. This scenario is compounded by deteriorating economic circumstances in both Europe and the Far East. While foreign sales, either U.S. based or from our foreign based companies, are down substantially, they are profitable and will continue to be profitable at projected sales levels."
 Dindorf continued, "Our fluid power division is experiencing a strong year; present trends indicate a record earnings performance. Engine reconditioning equipment is beginning to emerge from the recession, strongly aided by foreign industrial equipment orders and increasing demand for our contract machining expertise. We recently signed a $900,000 contract in the People's Republic of China for shipment in the fourth quarter. Collision repair equipment continues to reflect erratic progress. The market is in contraction. The economy, as well as a reduction in vehicle accident rates, has had an impact; for the present, supply exceeds demand. Compounding this scenario is an excess supply of used equipment, primarily resulting from bankruptcies, which the market is in the process of absorbing. All of these factors are further impacted by a slow evolving change in technology, which is driving the market toward tighter tolerance requirements for vehicle repair. We believe Hein-Werner's possession of this technology will position the company as a clear winner in this difficult market."
 Dindorf concluded, "It has been far too long since the earnings performance reflected the objectives of both the management and shareholders. To that end, we believe that the North American segments have bottomed out and will improve with the economic cycle. Foreign markets appear to have stabilized. We have the market position, cost and asset structure in place to provide a quick resurgence once business conditions improve."
 Hein-Werner Corp. is a leading worldwide manufacturer and marketer of collision repair equipment, engine rebuilding equipment and fluid power equipment. The company has manufacturing operations sales offices in the United States and Europe with distribution channels throughout the rest of the world.
 Consolidated Statements Of Operations
 (Unaudited, in thousands, except per share amounts)
 Three Months Six Months
 Period ended 7/3/93 6/27/92 6/3/93 6/27/92
 Net sales $13,806 $15,034 $28,567 $30,183
 Cost of sales 8,826 9,371 18,075 18,936
 Gross profit 4,980 5,663 10,492 11,247
 Selling, engineering
 and administrative
 expenses 5,217 5,032 10,302 10,441
 Operating profit (237) 631 190 806
 Interest expense, net 414 473 857 1,007
 Other (income)
 expense, net 100 46 61 (66)
 Earnings (loss) from
 continuing operations
 before income taxes $ (751) $ 112 $ (728) $ (135)
 Income tax (benefit)
 expense (22) 252 173 195
 Net earnings (loss)
 from continuing
 operations $ (729) $ (140) $ (901) $ (330)
 Loss from discontinued
 operations, net -- (377) -- (686)
 Net earnings (loss) $ (729) $ (517) $ (901) $(1,016)
 Earnings per common share
 from continuing
 operations $(.32) $(.06) $(.40) $(.15)
 Earnings per share $(.32) $(.23) $(.40) $(.45)
 Weighted average shares
 outstanding 2,252 2,252 2,252 2,252
 Earnings per share data for 1992 have been restated to give effect to the 5 percent stock dividend paid Jan. 22, 1993.
 -0- 7/29/93
 /CONTACT: Edward Duffy, vice president - finance and treasurer of Hein-Werner Corp., 414-542-6611/

CO: Hein-Werner Corp. ST: Wisconsin IN: AUT SU: ERN

MP -- NY121 -- 7444 07/29/93 17:00 EDT
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Publication:PR Newswire
Date:Jul 29, 1993

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