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 NEWTOWN, Pa., Nov. 10 /PRNewswire/ -- SPS Technologies (NYSE: ST) today reported a net loss for the third quarter of 1993 of $6.8 million, or $1.34 per share, due to a pretax restructuring charge of $9.2 million.
 The restructuring charge is the result of additional manufacturing consolidation costs, early retirement programs, work force reductions, and the revaluation of certain assets held for sale.
 Excluding the effect of the restructuring charge, net earnings for the third quarter of 1993 were approximately $50,000 or $.01 per share, compared to a net loss of $479,000 or $.09 per share, in the third quarter of 1992.
 Net earnings for the first nine months of 1993 were approximately $3.1 million, or $.60 per share, prior to the application of restructuring charges which produced a net loss for the period of $3.8 million, or $.75 per share. This compares to net earnings for the first nine months of 1992 of $2.4 million, or $.48 per share, prior to a retroactive charge for changes in accounting policies that produced a net loss of $11.0 million, or $2.15 per share.
 Net sales for the third quarter of 1993 were $67.1 million, compared to $76.5 million for the same period in 1992. Net sales for the first nine months of 1993 were $223.0 million, compared to $246.4 million in 1992.
 Sales were down for the third quarter and nine months compared to the same periods in 1992 in all markets except the transportation and farm machinery market. The most significant reduction in sales was in the aerospace fastener market where anticipated orders for new aircraft did not occur, and additional cancellations or extended assembly schedules for military aircraft and engines were announced. Although domestic aerospace fastener orders are slightly ahead of last year, orders for these same types of fasteners in Europe have declined 28 percent. Continuing pressure to reduce prices, and the process of consolidating the company's three domestic aerospace fastener manufacturing facilities into two plants, has had a negative effect on aerospace margins.
 Sales to industrial fastener and magnetic customers in the Midwest were adversely affected by this year's floods, although sales of magnetic materials still improved slightly from 1992. Shipments to the automotive industry were up compared to last year in response to the strengthening domestic car business.
 Incoming orders and sales of UNBRAKO(R) brand products to the worldwide fastener distribution industry declined somewhat compared to 1992, reflecting a conservative inventory policy by customers. The reduction in sales, in addition to the process of consolidating three domestic Unbrako manufacturing facilities into one plant, adversely affected profits for this portion of the fastener business segment.
 Sales of proprietary superalloys increased from 1992, and margins also improved, but lower sales of stainless steel alloys and continued weakness in the aerospace market produced an overall drop in superalloy sales.
 Incoming orders in the third quarter of 1993 were $72.2 million, compared to $73.5 million in 1992. Orders improved in the transportation market, but overall orders were down due to decreases in the aerospace and materials markets. Orders for the nine-month period were relatively unchanged from 1992.
 The backlog in orders at Sept. 30, 1993, was $83.3 million, compared to $82.7 million on the same date a year ago.
 In connection with John R. Selby's previously announced retirement, the board of directors expects to complete its search for a new chief executive officer by year end. Thereafter, it is expected that management will conduct a comprehensive review of the company's operations and restructuring plans and, based upon the results of such review, consider the need for additional charges that would further reduce the company's equity and could result in the violation of certain debt convenants. It is the opinion of management that waivers or modifications to the debt agreements will be obtained, if necessary, from the debt holders. Management also believes that the company has sufficient access to capital resources to meet its operating, financing and investing needs. In light of the foregoing, it is expected that the board of directors will review its current dividend policy.
 Statements of Consolidated Operations
 (Unaudited; thousands of dollars except per-share data)
 Periods ended Third quarter Nine months
 Sept. 30 1993 1992 1993 1992
 Net sales $67,115 $76,500 $222,988 $246,396
 Cost of goods sold 55,654 65,671 183,913 205,379
 Gross profit 11,461 10,829 39,075 41,017
 Selling, general and
 administrative expense 10,716 10,189 31,978 32,736
 Restructuring charge 9,200 210 9,200 414
 Operating earnings (loss) (8,455) 430 (2,103) 7,867
 Other income (expense):
 Interest income 77 151 346 452
 Interest expense (1,343) (1,351) (4,104) (4,219)
 Equity in earnings
 (loss) of affiliates 410 253 267 (10)
 Other, net 171 (185) 642 66
 Earnings (loss) before
 income taxes and cumulative
 effect of changes in
 accounting policies (9,140) (702) (4,952) 4,156
 Provision (benefit)
 for income taxes (2,300) (223) (1,120) 1,720
 Earnings (loss) before
 cumulative effect of changes
 in accounting policies (6,840) (479) (3,832) 2,436
 Cumulative effect of changes
 in accounting policies:
 Income taxes --- --- --- (2,400)
 Postretirement benefits --- --- --- (11,000)
 Net loss (6,840) (479) (3,832) (10,964)
 Per-share data:
 Continuing operations ($1.34) ($.09) ($.75) $.48
 Accounting changes --- --- --- (2.63)
 Net loss (1.34) (.09) (.75) (2.15)
 The 1992 amounts have been reclassified for comparative purposes to reflect the fourth quarter 1992 decision to retain the fastener manufacturing plant in Shannon, Ireland, and the Unbrako fastener distribution business in West Bromwich (Birmingham), England.
 The effective tax rate is lower than the statutory tax rate due to certain losses for which no tax benefits were available and state income taxes.
 -0- 11/10/93
 /CONTACT: Arthur B. Belden, vp-finance of SPS Technologies, 215-860-3046/

CO: SPS Technologies ST: Pennsylvania IN: SU: ERN

MJ-MK -- PH017 -- 2779 11/10/93 12:57 EST
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Publication:PR Newswire
Date:Nov 10, 1993

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