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HUFFY CORPORATION ANNOUNCES FIRST QUARTER RESULTS

 HUFFY CORPORATION ANNOUNCES FIRST QUARTER RESULTS
 DAYTON, Ohio, April 15 /PRNewswire/ -- Huffy Corporation (NYSE: HUF) announced today record sales for the first quarter ended March 31, 1992. Net sales were $179,615,000, surpassing last year's record of $168,675,000 by $10,940,000. Net earnings for the quarter were $5,881,000, or $.41 per fully diluted share, which was slightly lower than the $6,090,000, or $.43 per fully diluted share, for the same period last year. As announced in an earlier news release, net earnings were negatively impacted primarily by True Temper Hardware Company's operating performance and higher interest costs related to increased inventory levels.
 Harry A. Shaw III, chairman and chief executive officer, commented, "We continue to be encouraged by strong demand for our products and services. All three of our business segments, Recreation and Leisure Time Products, Juvenile Products and Services for Retail, established new sales records.
 "Quarterly earnings were somewhat disappointing. As we announced earlier, True Temper Hardware Company suffered some margin deterioration as a result of the major emphasis that has been placed on strategic market share growth. On the positive side, we are pleased to report that substantial progress has been made in obtaining additional market share. Order backlog remains high and product demand remains strong.
 "Planned increased inventory levels at the Huffy Bicycle Company have significantly improved the service level for our customers. Additionally, inventory levels at our other product companies are up modestly. Maintaining these increased inventory levels resulted in higher interest costs."
 Commenting further on operating results, Richard L. Molen, president and chief operating officer, said, "In the Recreation and Leisure Time Products segment, both Huffy Bicycle Company and Huffy Sports Company reported improved earnings over the excellent levels reported a year ago. Sales of Huffy bicycles remain at 1991 record levels. However, retail sales of higher specification mountain bikes have been slower than expected, while sales of popularly priced mountain bikes remain strong. True Temper hardware Company experienced margin reduction as a result of competitive pricing pressure, a shift to a less profitable product mix, and increased promotional costs. We expect that True Temper Hardware's 1992 earnings will exceed 1991 levels. Long term cost reduction programs to improve operating efficiency have been accelerated and we anticipate that the benefits of these programs will favorably impact results later in 1992 and in 1993.
 "Profitability in the Juvenile Products segment continued at record levels. This excellent performance was a result of new product innovation, positive demographics and increased operating efficiency associated with the consolidation of production and distribution facilities. In the Services for Retail segment, Washington Inventory Service reported improved operating results compared to last year, as management successfully identified and implemented cost reduction programs and improved employee training methods. Huffy Service First performed at planned levels and continues aggressively to pursue merchandising business opportunities to strengthen its market position."
 Shaw concluded, "As we enter the second quarter, our peak sales period, demand for our products and services remains strong. We anticipate a stable bike market at 1991 record levels and a continuation of the move toward more popularly priced products. True Templer Hardware Company's margin pressure will continue. However, increased volume from market share gains will produce slightly improved profits by year end. Therefore, we anticipate that second quarter performance will be comparable to 1991 second quarter results. Our outlook for the year remains positive and we expect 1992 to be Huffy Corporation's fourth consecutive year of record performance."
 Huffy Corporation is a major supplier of bicycles, basketball, hardware and juvenile products, and a nationwide supplier for assembly, merchandising and inventory services to high volume retailers.
 CONSOLIDATED STATEMENTS OF EARNINGS
 (Dollars in thousands, except per share data)
 Three Months Ended
 March 31,


Percent
 1992 1991 Increase
 Net Sales $179,615 $168,675 6
 Gross Profit $ 37,821 $ 34,952
 Percent to Net Sales 21.1 pct. 20.7 pct.
 Selling, general and
 administrative expenses $ 26,089 $ 23,000
 Other income (expenses) $ 52 $ (116)
 Earnings before interest
 and taxes $ 11,784 $ 11,836 ---
 Interest expense, net $ 2,379 $ 1,907
 Earnings before income taxes $ 9,405 $ 9,929 (5)
 Income taxes $ 3,524 $ 3,839
 Net earnings $ 5,881 $ 6,090 (3)
 Earnings Per Common Share:
 Primary(A) $ 0.44 $ 0.47 (6)
 Fully Diluted(A) $ 0.41 $ 0.43 (5)
 Fully Diluted Common Shares(A) 15,224,523 14,957,232
 (A) All earnings per share data, number of Common Stock and Common Stock equivalents outstanding and equity per commn share have been adjusted to reflect the three-for-two stock split effective July 12, 1991.
 -0- 4/15/92
 /CONTACT: Pamela J. Whipps, assistant treasurer and manager, investor relations of Huffy Corporation, 513-866-6251/
 (HUF) CO: Huffy Corporation ST: Ohio IN: LEI SU: ERN


KK -- CL003 -- 8508 04/15/92 09:06 EDT
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Date:Apr 15, 1992
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