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HUFFY ADOPTS STATEMENT OF FINANCIAL ACCOUNTING STANDARDS NO. 106

 DAYTON, Ohio, Jan. 25 /PRNewswire/ -- Huffy Corporation (NYSE: HUF) announced today the early adoption of Statement of Financial Accounting Standards No. 106 (SFAS 106) which will result in an estimated after tax charge against 1992 earnings of approximately $7.5 million, or approximately $.50 per fully diluted share. SFAS 106 requires recognition of a one-time cumulative charge of approximately $7.0 million (approximately $.47 per fully-diluted share) retroactive to Jan. 1, 1992. In addition, quarterly results for 1992 will be restated pursuant to SFAS 106 to reflect the impact of a net increase in current year expense expected to be approximately $.5 million, or $.03 per fully-diluted share.
 SFAS 106 requires employers to accrue all expected postretirement benefits other than pensions. Approximately 50 percent of the total charge reflects the expected future cost of health care benefits which the company makes available to early retirees only until age 65. The other 50 percent of the charge relates to anticipated future liability for postretirement benefits acquired in connection with recent acquisitions, benefits for select employee groups, and benefits for employees who retired prior to 1989. The company elected in 1989 to cease providing traditional post-retirement health care benefits to future retirees over age 65.
 The company also announced that earnings for the year ended Dec., 1992 are expected to be between $.90 and $.93 per fully diluted share, before the one-time cumulative charge and net increase in current year expense impact of SFAS 106. Current analysts' estimates range from $1.00 to $1.10 per share.
 Harry A. Shaw III, chairman and chief executive officer stated, "Our earnings for 1992 reflect a disappointing fourth quarter performance at the True Temper Hardware Company. There was a significant sales shortfall, most of which was caused by our inability to meet production schedules. This manufacturing inefficiency also led to increased costs."
 Richard L. Molen, president and chief operating officer said, "The integration of True Temper Hardware Company has been more difficult than we anticipated. 1992 was a year of rapid change at True Temper. Margins were negatively impacted throughout the year by a successful market share growth strategy that created a very competitive pricing environment and affected operating efficiency with increased volume. Many cost reduction programs were initiated in 1992, including facilities consolidation, administrative expense reduction, and new systems installations. In addition to new product introductions, there were numerous changes in management, systems, and procedures all designed to enhance True Temper Hardware's sales and profitability. The combination of the demanding environment and the initiation of new programs and other changes negatively impacted manufacturing costs, particularly in the fourth quarter."
 Shaw concluded, "We are confident that the benefits of all these efforts will begin to be realized beginning in late 1993, when new programs and other changes are fully implemented. All of our other operating companies are performing well. We are enjoying strong demand for all our products, including True Temper Hardware Company which ended the year with a healthy backlog. We are looking forward to 1993 with renewed optimism."
 Huffy Corporation is a diversified manufacturer and supplier of bicycles, basketball backboards, lawn and garden tools, juvenile products, and inventory, assembly and merchandising services.
 -0- 1/25/93
 /CONTACT: Pamela J. Whipps, assistant treasurer and manager, investor relations for Huffy Corporation, 513-866-6251/
 (HUF)


CO: Huffy Corporation ST: Ohio IN: LEI SU: ERP

BM -- CL022 -- 8788 01/25/93 17:54 EST
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Publication:PR Newswire
Date:Jan 25, 1993
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