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MAXCO, INC. THIRD QUARTER NET UP SHARPLY

MAXCO, INC. THIRD QUARTER NET UP SHARPLY
 LANSING, Mich., Feb. 14 /PRNewswire/ -- Maxco, Inc. (NASDAQ: MAXC) today announced strong profitability on a sales increase of 11 percent in the quarter ended Dec. 31, 1991.
 The company reported net sales and other income of $21,025,000 compared to $18,896,000 in the year earlier third quarter. The company's net income advanced to $462,000, or nine cents a share, rebounding from a loss of $521,000, or 12 cents a share.
 For the nine months, Maxco posted a 3-percent gain in net sales and other income, reporting $69,919,000 in the current year vs. $67,898,000 in the prior year period. Net income was more than double the prior year at $1,736,000, or 36 cents a share. This compares to $690,000, or 13 cents a share in the year earlier nine months.
 Third-quarter results include a recognized gain of $218,000 from the sale of 56,000 shares of Medar, Inc. During the nine months ended Dec. 31, 1991, Maxco sold a total of 144,000 Medar shares and recognized a gain of $605,000. As of Dec. 31, Maxco held 2,008,138 shares of Medar common stock.
 There were approximately 4.6 million weighted average shares outstanding in this year's reporting periods compared to 4.8 million the year before.
 "The key factor in looking at this quarter's results is that the improvements were achieved in a recessionary climate," said Max A. Coon, chairman and president. "Sales for Wright Plastics, which supplies the auto industry, are up which has improved margins as overhead is absorbed. We are also gaining as the positive effects of closing the Mississippi facility for Pak Sak are impacting operating results.
 "Finishmaster has gained in sales in both the quarter and nine months, but profitability remains about even with last year. This is because margins have been under pressure as we work to gain market share and because we are investing in new stores within the region," Coon said. "We are looking forward to continuing positive results for the company."
 Approximately 345,000 shares of Maxco, Inc. common stock have been tendered by shareholders to exchange for Series Three Preferred Stock. These preferred shares will be voting stock and will provide quarterly cumulative dividends at an annual rate of 10 percent. This is in response to an offer declared effective Dec. 30, 1991 to holders of record of Maxco, Inc. common stock as of Nov. 4, 1991. This offering terminated on Feb. 12.
 Maxco distribution businesses include Finishmaster, Inc., and the construction supply group (Ersco and Wisconsin Steel) which markets commercial and highway construction materials throughout Michigan, Wisconsin and Indiana. Wright Plastics, Pak Sak Industries and Akemi Plastics are other Maxco businesses.
 CONSOLIDATED STATEMENTS OF OPERATIONS
 Maxco, Inc. and Subsidiaries
 Unaudited
 (In Thousands, except per share data)
 Three Months Ended Dec. 31,
 1991 1990
 Net sales and other income $21,025 $18,896
 Costs and expenses:
 Cost of sales and operating expenses 16,851 16,258
 Selling, general and administrative 2,797 2,526
 Depreciation and amortization 451 442
 Interest expense 434 479
 20,533 19,705
 INCOME BEFORE FEDERAL INCOME
 TAXES AND EQUITY IN OPERATIONS
 OF AFFILIATES 492 (809)
 Federal income taxes (benefit) 100 (260)
 INCOME BEFORE EQUITY IN
 OPERATIONS OF AFFILIATES 392 (549)
 Equity in earnings of affiliated
 companies 70 28
 NET INCOME 462 (521)
 Net Income Per Share $ .09 $ (.12)
 CONSOLIDATED STATEMENTS OF OPERATIONS
 Maxco, Inc. and Subsidiaries
 Unaudited
 (In Thousands, except per share data)
 Nine Months Ended Dec. 31,
 1991 1990
 Net sales and other income $69,919 $67,898
 Costs and expenses:
 Cost of sales and operating expenses 57,190 56,898
 Selling, general and administrative 8,183 7,637
 Depreciation and amortization 1,376 1,266
 Interest expense 1,343 1,338
 68,092 67,139
 INCOME BEFORE FEDERAL INCOME
 TAXES AND EQUITY IN OPERATIONS
 OF AFFILIATES 1,827 759
 Federal income taxes (benefit) 400 195
 INCOME BEFORE EQUITY IN
 OPERATIONS OF AFFILIATES 1,427 564
 Equity in earnings of affiliated
 companies 309 126
 NET INCOME 1,736 690
 Net Income Per Share $ .36 $ .13
 -0- 2/14/92
 CONTACT: Max Coon or Vince Shunsky of Maxco, Inc., 517-321-3130; or Dixie Watterson, 708-564-5610, Bruce Marcus, 212-580-0703, Earle Brown, 813-796-1452, or Tim King, 213-541-4415, all of The Investor Relations Company, for Maxco, Inc.
 (MAXC)
CO: MAXCO, INC.
IN: CST
SU: ERN
ST: MICHIGAN (MI)


-- DE008 -- 9035 02/14/92
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