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OAK INDUSTRIES REPORTS THIRD-QUARTER RESULTS; COMPANY'S TURNAROUND CONTINUES

             OAK INDUSTRIES REPORTS THIRD-QUARTER RESULTS;
                    COMPANY'S TURNAROUND CONTINUES
    WALTHAM, Mass., Nov. 13 /PRNewswire/ -- Oak Industries Inc. (NYSE: OAK) today reported net income of $4.3 million, or 5 cents per share, for the third quarter ended Sept. 30, 1991, compared with net income of $7.9 million, or 10 cents per share, for the same period in 1990.  This year's third-quarter net income includes a non-recurring gain of $3.5 million, resulting from the favorable resolution of an income tax issue for which a reserve had been previously established, and a non-recurring charge of $0.2 million for litigation costs.  Last year's third-quarter net income included income from discontinued operations of $7.3 million.  Third-quarter 1991 sales were $29.6 million, compared with $33.1 million for the third quarter of 1990.
    For the nine months ended Sept. 30, 1991, Oak reported net income of $3.3 million, or 4 cents per share.  This includes non-recurring income of $0.7 million and income from discontinued operations of $0.3 million. Last year's comparable nine-month net income was $10.2 million or 12 cents per share, including non-recurring income of $1.1 million and income from discontinued operations of $8.0 million.  Sales for the first nine months of 1991 were $92.9 million, compared with $108.9 million for the same period in 1990.
    "We are generally pleased with Oak's progress in a tough economic environment," said William S. Antle III, president and chief executive officer.  "Although sales for this quarter were $3.5 million less than year-ago levels, $3.4 million of that decline is related to product lines that were discontinued in late 1990.  Additional sales from market-share gains and the acquisition of Standard Grigsby Inc. earlier this year were offset by lower volume in other areas resulting from the slow economic environment.
    "On a quarter-to-quarter basis," said Antle, "operating income is benefitting from aggressive control of expenses and prudent reduction of costs.  Despite the low sales volumes, operating income this quarter was at its highest level in 10 years.  Furthermore, this is the 7th consecutive quarter of improved operating profit over its comparable quarter in the previous year.  When the recession abates, Oak should be in a good position to maximize profits."
    Antle continued, "Our balance sheet is very strong, and improved even further during the third quarter.  Operations generated cash of $4.1 million, due in part to inventory reductions of $2.6 million during this three-month period.  As of Sept. 30, 1991, we had $34.4 million in cash, our debt-to-equity ratio decreased from 21 to 14 percent, and our current ratio increased to 3.9 from 3.2.  We now are better positioned than ever to make an acqusition, which is our first priority for the coming months."
    Oak Industries, Inc., headquartered in Waltham, Mass., is a 59-year- old manufacturer of components and controls.  The company is pursuing a strategy for growth in the appliance, electronics and electrical industries through new-product introductions, ongoing productivity enhancements and strategic acquisitions.
                          OAK INDUSTRIES INC.
            Consolidated Statements of Operations (Unaudited)
              (Dollars in thousands, except per share data)
                               For the three months  For the nine months
                                  ended Sept. 30        ended Sept. 30
                                  1991      1990        1991      1990
    Net sales                   $29,552   $33,089     $92,904  $108,919
    Costs and expenses           28,515    32,521      90,578   107,823
    Income from continuing
     operations before
     non-recurring items          1,037       568       2,326     1,096
    Non-recurring income          3,300         0         660     1,125
    Income from continuing
     operations                   4,337       568       2,986     2,221
    Income from discontinued
     operations                       0     7,282         305     7,980
    Net income                   $4,337    $7,850      $3,291   $10,201
    Income per common
     share-(a)
     (Primary & fully diluted):
       Continuing operations    5 cents    1 cent     4 cents   3 cents
       Discontinued operations        0    9 cents          0   9 cents
    Net income per common share 5 cents   10 cents    4 cents  12 cents
    ----
    NOTE (a)-Primary and fully diluted per share amounts are based on the weighted average number of shares of common stock outstanding of 82,526,762 and 82,525,165 during the quarters ended Sept. 30, 1991, and 1990, respectively, and 82,527,411 and 82,524,221 for the nine months ended Sept. 30, 1991 and 1990, respectively.
    -0-                           11/13/91
    /CONTACT:  William S. Antle, III, chief executive officer, or William C. Weaver, chief financial officer, both of Oak Industries, Inc., 617-890-0400/
    (OAK) CO:  Oak Industries, Inc. ST:  Massachusetts IN:  CPR SU:  ERN DD-SD -- NE001 -- 3790 11/13/91 09:16 EST
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Publication:PR Newswire
Date:Nov 13, 1991
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