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NEWCOR REPORTS SECOND-QUARTER EARNINGS

 BLOOMFIELD HILLS, Mich., May 26 /PRNewswire/ -- Richard A. Smith, president and chief executive officer of Newcor, Inc. (NASDAQ-NMS: NEWC), announced that Newcor reported net income of $1,753,000, or $0.382 per share, on sales of $31.0 million for the second quarter ended April 30, 1993, compared with net income of $373,000, or $0.081 per share, on sales of $18.1 million for the same period in 1992. The net income improvement of $1,380,000, or 370 percent, was achieved on a sales increase of $12.9 million or 71 percent.
 The significant improvement compared to one year ago was due primarily to the state of contracts-in-progress within Newcor's Special Machines segment. Newcor's Precision Parts segment's operating results also improved compared to one year ago because of the inclusion of Midwest Rubber's operating income. Midwest Rubber was acquired Aug. 3, 1992.
 Although the company's backlog of open orders, $47.1 million, was down 2 percent compared to $48.2 million at the beginning of the quarter, and down 39 percent compared to $76.7 million one year ago, the trend of new orders booked was positive. New orders booked during the second quarter were $29.2 million as compared with $23.9 million in the first quarter of 1993 and $22.6 million in the second quarter of 1992. The trend of improving new orders was indicative of the strong level of quote activity that the Special Machines segment has continued to experience. Based on the number of active quotes in the system as of April 30, 1993, the new order outlook for the balance of fiscal 1993 remains very good.
 Newcor, Inc., 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 under the symbol NEWC.
 NEWCOR, INC.
 CONSOLIDATED STATEMENTS OF INCOME
 (In thousands, except per-share amounts)
 Six Months Ended Percent
 4/30/93 4/30/92 Change
 Sales $58,260 $33,091 76
 Cost of sales 44,986 25,516 76
 Gross margin 13,274 7,575 75
 Selling, general and
 administrative 7,918 6,401 24
 Operating income 5,356 1,174 356
 Other income (expense):
 Interest expense (521) (302) 73
 Other 116 143 -20
 Income before income taxes 4,950 1,015 388
 Provision for income taxes 1,692 320 429
 Net income $3,258 $695 369
 Net income per share(a) $0.710 $0.148 ---
 Dividends per share(a) $0.10 $0.07 ---
 Weighted average common
 stock shares outstanding 4,586 4,704 ---
 Three Months Ended Percent
 4/30/93 4/30/92 Change
 Sales $30,976 $18,048 72
 Cost of sales 23,765 13,961 70
 Gross margin 7,211 4,087 76
 Selling, general and
 administrative 4,336 3,416 27
 Operating income 2,875 671 328
 Other income (expense):
 Interest expense (267) (180) 48
 Other 51 67 -24
 Income before income taxes 2,659 558 377
 Provision for income taxes 906 185 390
 Net income $1,753 $373 370
 Net income per share(a) $0.382 $0.081 ---
 Dividends per share(a) $0.05 $0.04 ---
 Weighted average common
 stock shares outstanding 4,586 4,584 ---
 CONSOLIDATED CONDENSED BALANCE SHEET
 (In thousands)
 4/30/93 10/31/92
 Assets:
 Current assets $55,354 $53,614
 Property, plant and
 equipment, net of
 accumulated depreciation 14,251 14,100
 Other assets 7,649 7,988
 $77,254 $75,702
 Liabilities:
 Current liabilities $17,891 $21,342
 Long-term debt 26,500 24,300
 Other liabilities 1,499 1,500
 45,890 47,142
 Shareholders' equity:
 Common stock 4,785 4,783
 Capital in excess of par 1,171 1,168
 Unfunded pension liability (273) (273)
 Treasury stock (1,717) (1,717)
 Retained earnings 27,398 24,599
 31,364 28,560
 $77,254 $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- 5/26/93
 /CONTACT: Marjorie H. Edwards, Newcor corporate secretary, 313-253-2400/
 (NEWC)


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

DH-ML -- DE005 -- 2342 05/26/93 09:47 EDT
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Date:May 26, 1993
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