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RELIANCE ELECTRIC COMPANY ANNOUNCES PRELIMINARY SECOND QUARTER RESULTS

 RELIANCE ELECTRIC COMPANY ANNOUNCES
 PRELIMINARY SECOND QUARTER RESULTS
 CLEVELAND, July 21 /PRNewswire/ -- Reliance Electric Company (NYSE: REE) announced net sales of $383 million for the quarter ending June 30, 1992, compared to 1991 second quarter sales of $379 million and first quarter 1992 sales of $373 million. Sales for the first half of 1992 were $756 million compared to $755 million in 1991.
 Earnings before interest and taxes of $38 million compared to $42 million for the same period last year and $34 million for the first quarter of 1992. For the first six months of 1992, earnings before interest and taxes were $72 million versus $85 million for the same period last year.
 Reliance's net earnings for the second quarter, before extraordinary items, were $13 million versus $11 million in 1991 and, for six months were $19 million compared to $22 million in 1991.
 Reliance's sales, operating income and earnings per share were generally in line with analysts' expectations for the quarter. In addition to operating items, the company reported an extraordinary charge of $22 million in the second quarter. The extraordinary charge, which was described in the company's prospectus for its recently completed common stock offering, relates to the early redemption and retirement of approximately $590 million in principal amount of subordinated debt. As a result of the charge, which included amortization of expenses associated with the issuance of the debt and call premiums, the company reported a net loss for the quarter of $9 million or $.32 per share. Before the extraordinary charge, the company had earnings of $.19 per share compared to $.18 per share last year.
 Commenting on the results for the quarter, John C. Morley, Reliance's president and chief executive officer, stated that "We continue to see weakness in some of our served markets due to the slow pace of the economic recovery. While incoming order rates in many of our businesses are encouraging, with continuing strength in our lead indicator product lines, our results still do not reflect underlying economic strength."
 Reliance recently completed a capital restructuring project which included an initial public offering of 17.3 million shares of newly issued common stock and a new bank credit facility through a syndicate of lenders led by Chemical Bank. The proceeds of the common stock offering and borrowings under the new credit facility were used in June to redeem all of Reliance's outstanding debentures originally issued in connection with the company's 1986 leveraged buyout. The company also effectively defeased all of its $1.40 Junior Preferred stock effective June 30, 1992.
 Three Months Ended Six Months Ended
 June 30 June 30
 1992 1991 1992 1991
 Net Sales $383 $379 $756 $755
 Earnings Before
 Interest and Taxes 38 42 72 85
 Earnings Before Extra-
 ordinary Charges 13 11 19 22
 Extraordinary Charges 22 0 22 0
 Net (Loss) Earnings (9) 11 (3) 22
 Net (Loss) Earnings per
 Equivalent share of
 Common Stock (.32) .18 (.33) .36
 Weighted Average
 equivalent of
 common stock
 outstanding 42,873,978 33,195,122 38,105,771 33,155,159
 Reliance Electric Company, headquartered in Cleveland, designs, manufactures, sells and services a broad range of industrial and telecommunications equipment. Reliance operates 48 manufacturing plants worldwide, in nine countries, and employs approximately 14,000 people.
 -0- 7/21/92
 /CONTACT: P. Kelly Tompkins of Reliance Electric Company, 216-266-5809/
 (REE) CO: Reliance Electric Company ST: Ohio IN: TLS SU: ERN


BM -- CL007 -- 1048 07/21/92 07:26 EDT
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Publication:PR Newswire
Date:Jul 21, 1992
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