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 SHELTON, Conn., Nov. 16 /PRNewswire/ -- Raytech Corporation (NYSE: RAY) today announced net income of $1.1 million or $.34 per share for the 13-week period ended Oct. 3, 1993, as compared with net income of $1.2 million or $.35 per share for the corresponding period last year.
 For the 39-week period ended Oct. 3, 1993, the company reported net income of $2.9 million or $.88 per share as compared with $3.2 million or $.98 per share for the same period in 1993. Included in the results for the 39-week period in 1993 is a "one-time" cumulative charge of $3.8 million resulting from the required adoption of new accounting standards. Also, in September 1993, management decided to consolidate the operations of its German subsidiaries into the company's plant in Morbach, Germany, which will result in the closure of the company's plant in Radevormwald, Germany. Included in the results for the 13-week and 39-week periods of 1993 is a charge of $3.3 million for the estimated cost of the consolidation, offset in part by a $1.4 million insurance recovery that was received during the third quarter of 1993. For the 39-week period, income before the cumulative effect of the accounting changes, which includes the net charge of $1.9 million previously discussed, amounted to $6.7 million or $2.04 per share which represents a 108 percent increase over the prior-year results. The improvement is the result of unit volume sales increases domestically, offset in part by declines in unit volume demand in the company's European markets, lower interest expense, and to a lesser degree a general price increase on selective products.
 Net sales for the nine-month period of 1993 increased 16 percent to $107.5 million as compared with $92.8 million for the same period a year ago. The company's German subsidiary, Raybestos Reibbelag GmbH, formed in June of 1992, accounted for 15 percent of the net sales reported in the nine-month period of 1993. On a comparable basis, net sales improved 8 percent as a result of the continued strong recovery within the U.S. automotive original equipment and aftermarket segments and slight increases in the heavy duty construction and agricultural markets. Excluding the incremental sales attributable to Raybestos Reibbelag GmbH, domestic sales increases have been partially offset by a 9 percent decline in the European markets.
 Raytech Corporation is headquartered in Shelton, with operations serving world markets for energy absorption and power transmission products, as well as custom engineered components.
 Condensed Consolidated Statements of Operations
 (In thousands, except share data)
 13 weeks 39 weeks
 Periods ended Oct. 3 Sept. 27 Oct. 3 Sept. 27
 1993 1992 1993 1992
 Net sales $33,423 $35,484 $107,513 $92,784
 Income before the
 cumulative effect of
 accounting changes 1,123 1,161 6,690 3,196
 Cumulative effect of
 changes in accounting
 principles --- --- 3,808 ---
 Net income 1,123 1,161 2,882 3,196
 Income per share before
 the cumulative effect of
 changes in accounting
 principles $.34 $.35 $2.04 $.98
 Cumulative effect of
 changes in accounting
 principles --- --- (1.16) ---
 Net income per share .34 .35 .88 .98
 Average shares
 outstanding 3,260,948 3,313,875 3,280,933 3,269,439
 -0- 11/16/93
 /CONTACT: A.A. Canosa of Raytech, 203-925-8000/

CO: Raytech Corporation ST: Connecticut IN: SU: ERN

MK-MJ -- PH015 -- 5031 11/16/93 11:26 EST
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Publication:PR Newswire
Date:Nov 16, 1993

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