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KUHLMAN CORPORATION THIRD QUARTER AND FIRST NINE MONTHS 1993 RESULTS

 SAVANNAH, Ga., Oct. 28 /PRNewswire/ -- Kuhlman Corporation (NYSE: KUH) today announced that the company earned $1,268,000 ($.21 per share) in the third quarter of 1993 compared to $1,012,000 ($.17 per share) for the same period in 1992.
 Net sales were $29,992,000 in the third quarter of 1993, up $1,517,000 (5 percent) from the same period in 1992. Operating profit was $418,000 and $677,000 for the third quarter of 1993 and 1992, respectively. The decline in operating profit between the quarters was due to the continued economic difficulties experienced in the electrical utility market, resulting in lower margins and the lower absorption of fixed costs caused by the company's inventory reduction program, partially offset by higher unit sales of distribution transformers due to increased market demand. Income before taxes was benefited by $800,000 in the quarter due to the settlement of certain outstanding tax related issues.
 The company recorded a net loss for the first nine months of 1993 of $3,913,000 ($.66 per share), compared to a net profit of $5,167,000 ($.87 per share) for the same period in 1992. Net sales were $86,181,000 for the first three quarters of 1993, compared to $94,031,000 for the same period in 1992. The net loss for the first nine months of 1993 included the one-time after-tax charge for restructuring of $5,304,000 ($.90 per share) and the adoption of SFAS No. 106, Accounting for Post-Retirement Benefits other than Pensions, of $1,289,000 ($.22 per share). Earnings before the restructuring charge and the cumulative effect of change in accounting method for the first nine months of 1993 were $2,680,000 ($.45 per share), compared to $5,167,000 ($.87 per share) for the corresponding 1992 period. Operating earnings for most of 1993 continued to reflect the weak performance trend which began in the last half of 1992, partially offset by the positive benefits of programs implemented as part of the company's corporate restructuring to lower costs and improve manufacturing efficiencies. The company continued to improve its balance sheet in the third quarter. Cash and cash equivalents were $24,020,000 at Sept. 30 compared to $21,994,000 and $21,572,000 at June 30, 1993, and Dec. 31, 1992, respectively. Working capital assets as a percentage of net sales continued to decline as a result of improved operating efficiencies and aggressive working capital management.
 Robert S. Jepson Jr., chairman, president and chief executive officer stated: "As we noted earlier this year, we felt that 1993 would be challenging for Kuhlman. As predicted, the third quarter continued to reflect that challenge. Though we expect certain markets to remain weak for the balance of the year and going into 1994, we are encouraged by the progress we have made in positioning our company to be more competitive and more customer focused. This should enhance our ability to improve earnings even in markets that remain weak."
 The following are the comparative results for the three months and nine months ended Sept. 30, 1993 and 1992:
 KUHLMAN CORPORATION
 (In thousands, except per share data)
 (Unaudited)
 3 mos. ended 9 mos. ended
 9/30/93 9/30/92 9/30/93 9/30/92
 Net sales $29,992 $28,475 $86,181 $94,031
 Cost of goods sold 25,580 23,537 73,076 74,821
 Gross profit 4,412 4,938 13,105 19,210
 Selling, general and
 administrative exp. 3,994 4,261 11,843 12,756
 Cost of restructuring --- --- 8,650 ---
 Operating profit (loss) 418 677 (7,388) 6,454
 Other income (expense):
 Interest expense (145) (38) (456) (550)
 Interest income 189 190 505 605
 Other, net 1,617 897 3,081 2,166
 Total other income
 (expense), net 1,661 1,049 3,130 2,221
 Income (loss) before
 taxes 2,079 1,726 (4,258) 8,675
 Taxes(benefit) on
 income (loss) 811 714 (1,634) 3,508
 Income (loss) before
 cumulative effect
 of acctng. change 1,268 1,012 (2,624) 5,167
 Cumulative effect of
 acctng. chg. related to
 post-retirement benefits
 (net of tax effect
 of $811) --- --- (1,289) ---
 Net income (loss) $ 1,268 $ 1,012 $(3,913) $ 5,167
 Per share amounts:
 Income (loss) before effect
 of acctng. change $ .21 $ .17 $ (.44) $ .87
 Accounting change --- --- (.22) ---
 Net income (loss) $ .21 $ .17 $ (.66) $ .87
 Avg. shares outstanding 5,980 5,971 5,902 5,958
 Kuhlman Corporation is a holding company involved in the manufacturing of distribution, power and instrument transformers, and spring products.
 -0- 10/28/93
 /CONTACT: Investor Relations, Kuhlman Corporation, 912-598-7809/
 (KUH)


CO: Kuhlman Corporation ST: Georgia IN: SU: ERN

RA-TG -- AT022 -- 8214 10/28/93 18:01 EDT
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Date:Oct 28, 1993
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