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NEWCOR REPORTS FIRST-QUARTER EARNINGS

 BLOOMFIELD HILLS, Mich., Feb. 25 /PRNewswire/ -- Richard A. Smith, president and chief executive officer of Newcor, Inc. (NASDAQ-NMS: NEWC), announced that Newcor reported net income of $1,505,000, or $0.328 per share, compared with net income of $322,000, or $0.067 per share, for the first quarter of 1992. The net income improvement of $1,183,000, or 367 percent, was achieved on sales of $27.3 million which were up $12.2 million, or 81 percent, compared to one year ago.
 Performance was consistent with company expectations. The significant improvement compared to one year ago was due primarily to the stage of contracts-in-progress within Newcor's Special Machines segment. Although the first quarter is normally seasonally slow, Newcor's Precision Parts segment continued to be profitable, and performance was comparable to one year ago.
 The financial outlook for the balance of 1993 is in line with company projections as it entered 1993, and, as Mr. Smith indicated at an analyst meeting in September of 1992, Newcor continues to expect that 1993 will mark the third consecutive year of record net earnings.
 The company's backlog of open orders was $48.2 million, down 7 percent compared to $51.6 million at the beginning of the quarter, and down 34 percent compared to $72.5 million one year ago. The decline compared to one year ago was due to the higher level of sales this year and the significant engine assembly order of approximately $35 million received during the first quarter of 1992. The level of quote activity remained very strong during the quarter. Customers have continued to delay order placement, but the prospect for a number of significant orders in the $1 million to $10 million range being placed during the second quarter is quite good.
 Newcor, headquartered in Bloomfield Hills, designs and manufactures custom machines and manufacturing systems as well as special precision machined parts and molded rubber and plastic products. Newcor is listed on the NASDAQ stock market under the symbol NEWC.
 NEWCOR, INC.
 CONSOLIDATED STATEMENTS OF INCOME
 (In thousands, except per-share amounts)
 Three Months Ended Percent
 1/31/93 1/31/92 Change
 Sales $27,284 $15,043 81
 Cost of sales 21,221 11,555 84
 Gross margin 6,063 3,488 74
 Selling, general and
 administrative 3,582 2,985 20
 Operating income 2,481 503 393
 Other income (expense):
 Interest expense (254) (122) 108
 Other 64 76 -16
 Income before income taxes 2,291 457 401
 Provision for income taxes 786 135 482
 Net income $1,505 $322 367
 Net income per share(A) $0.328 $0.067
 Dividends per share(A) $0.05 $0.03
 Weighted average common
 stock shares outstanding 4,585 4,820
 CONSOLIDATED CONDENSED BALANCE SHEET
 (In thousands)
 1/31/93 10/31/92
 Assets:
 Current assets $51,437 $55,457
 Property, plant and
 equipment, net of
 accumulated depreciation 13,877 14,100
 Other assets 6,133 6,145
 $71,447 $75,702
 Liabilities:
 Current liabilities $16,909 $21,342
 Long-term debt 23,200 24,300
 Other liabilities 1,499 1,500
 41,608 47,142
 Shareholders' equity:
 Common stock 4,785 4,783
 Capital in excess of par 1,170 1,168
 Unfunded pension liability (273) (273)
 Treasury stock (1,717) (1,717)
 Retained earnings 25,874 24,599
 29,839 28,560

 $71,447 $75,702
 (A) In December 1992, the board of directors declared a 3-for-2 stock split distributed Feb. 10, 1993, to shareholders of record Jan. 20, 1993. All per-share data has been restated to reflect the stock split.
 -0- 2/25/93
 /CONTACT: Marjorie H. Edwards, corporate secretary, Newcor, Inc., 313-253-2400/
 (NEWC)


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

ML-DH -- DE008 -- 0278 02/25/93 09:43 EST
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Date:Feb 25, 1993
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