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MAXCO SALES AND EARNINGS RISE IN FIRST QUARTER

 LANSING, Mich., Aug. 3 /PRNewswire/ -- Maxco, Inc. (NASDAQ-NMS: MAXC) today announced results for the first quarter ended June 30, 1993 which included higher sales and earnings, led by the company's Finishmaster, Inc. business unit.
 Maxco's sales rose 14 percent to $32,684,000 from $28,733,000 for the quarter. Operating earnings were $1,349,000 compared to $1,228,000. Net income increased 16 percent to $824,000 from $708,000.
 Per share earnings were 17 cents compared to 15 cents. There were approximately 4.4 million weighted average shares outstanding in both years' first quarters.
 "Results were in line with our projections," said Max A. Coon, chairman. "Finishmaster, our auto paint distributor, continued to lead our overall results with a sales gain of 37 percent. A major factor in this gain is the acquisition earlier this year of two outlets in Indianapolis. We also carved out greater market share in other areas through growth of existing locations. At this level, Finishmaster is on track for the $65 million in sales we've projected for fiscal 1994.
 "We recently initiated a $2 million expansion of our Wright Plastics facility, prompted by demand for product. Our construction supply units were impacted by comparatively lower levels of orders. In last year's first quarter, Akemi was finishing up an unusually large, one time contract for which there was no comparable event in this year's first quarter," Mr. Coon said.
 "Overall, we are confident of a solid performance in fiscal 1994. We expect better results than in the prior year," Mr. Coon said.
 Maxco distribution businesses include the construction supplies group (Ersco and Wisconsin Wire & Steel), which markets commercial and highway construction materials throughout Michigan, Wisconsin and Indiana, as well as FinishMaster. Wright Plastics, Pak Sak Industries and Akemi are Maxco manufacturing businesses.
 CONSOLIDATED STATEMENTS OF OPERATIONS
 Maxco, Inc. and Subsidiaries
 Three Months Ended June 30,
 1993 1992
 (Unaudited) (Unaudited)
 (In thousands, except per share data)
 Net sales $32,684 $28,733
 Costs and expenses:
 Cost of sales and operating expenses 27,410 23,884
 Selling, general and administrative 3,339 3,088
 Depreciation and amortization 586 533
 $31,335 $27,505
 OPERATING EARNINGS 1,349 1,228
 Interest expense (net) (370) (343)
 INCOME BEFORE FEDERAL INCOME
 TAXES AND EQUITY IN OPERATIONS
 OF AFFILIATES 979 885
 Federal income taxes 335 300
 INCOME BEFORE EQUITY IN
 EARNINGS OF AFFILIATES 644 585
 Equity in earnings of affiliates
 (net of deferred tax) 180 123
 NET INCOME $ 824 $ 708
 Net Income Per Share $ .17 $ .15
 -0- 8/3/93
 /CONTACT: Max Coon, President, or Vince Shunsky, VP-Finance Maxco, Inc., 517-321-3130; or Dixie Watterson, 708-564-5610, Mark Perlgut, 212-580-4141, or Earle Brown, 813-796-1452, all of The Investor Relations Company, for Maxco/
 (MAXC)


CO: Maxco, Inc. ST: Michigan IN: SU: ERN

ML -- DE015 -- 8855 08/03/93 11:18 EDT
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Publication:PR Newswire
Date:Aug 3, 1993
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