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SUNDSTRAND ANNOUNCES FIRST-QUARTER RESULTS; ORDER RATES UP 17 PERCENT

 SUNDSTRAND ANNOUNCES FIRST-QUARTER RESULTS; ORDER RATES UP 17 PERCENT
 ROCKFORD, Ill., April 16 /PRNewswire/ -- Sundstrand Corporation (NYSE: SNS) today reported first quarter 1992 sales of $383.4 million, a decrease of 4.8 percent from first quarter 1991 sales of $402.9 million.
 Net earnings in the first quarter of 1992 were $20.9 million, equivalent to 58 cents per share, which included an after-tax charge of $2.4 million or 7 cents per share related to reductions in employment levels. Net earnings in the first quarter of 1991 were $23.7 million, equivalent to 66 cents per share, which included an after-tax charge of $1.3 million or 3 cents per share related to reductions in employment and the relocation of Global Wulfsberg.
 In the company's aerospace segment, an increase in commercial aftermarket sales was more than offset by reduced shipments to original equipment manufacturers (OEMs) in both the commercial and military markets. In the company's industrial segment, lower sales reflected last year's reduction in order levels. Earnings declined primarily as a result of lower overall sales volume, a shift in the mix of aerospace commercial OEM sales, and the employment reduction charge noted above.
 Incoming orders in the first quarter of 1992 were $387.4 million, up 17 percent from orders received in the first quarter of 1991. Excluding the $23.7 million acquired Milton Roy backlog from the 1991 first- quarter results, the increase in 1992 was 26 percent. Most of the improvement occurred in the aerospace segment due to uneven OEM ordering patterns and the depressed commercial aftermarket order levels experienced last year as a result of the Persian Gulf war and the recession.
 Harry Stonecipher, Sundstrand chairman, president and chief executive officer, said, "Our first-quarter sales level continues to reflect the significant impact that the recession had on the company's backlog during 1991. We are seeing signs of increasing strength and are pleased that our incoming orders increased substantially from the first quarter of 1991. Aerospace orders are up a very strong 47 percent over a very weak first quarter in 1991, an are up 6 percent over the fourth quarter of 1991. Industrial orders are up 6 percent over a relatively strong first quarter in 1991, and are up 13 percent over the fourth quarter of 1991."
 Total unfilled orders on March 31, 1992, were $1,012.2 million compared to $1,111.8 million on March 31, 1991, and $1,008.2 million on Dec. 31, 1991.
 The company's annual meeting of stockholders will be held at 11 a.m. Eastern time on Tuesday, April 21, in the Terrace Room at The Plaza in New York.
 Sundstrand Corporation, with 1991 sales of $1,669.2 million, is an international market leader in the design, manufacture and sale of a variety of proprietary, technology-based components and subsystems for aerospace (61 percent of 1991 sales) and industrial (39 percent of 1991 sales) markets.
 SUNDSTRAND CORPORATION AND SUBSIDIARIES
 Consolidated Statement of Earnings
 (Unaudited; amounts in millions, except per-share data)
 Three months ended March 31: 1992(A) 1991(B)(C)
 Net sales $383.4 $402.9
 Costs, expenses and other income:
 Costs of products sold 236.8 251.9
 Marketing and administration 103.7 100.0
 Interest expense 16.7 20.8
 Interest and dividend income (6.0) (9.7)
 Other, net (.5) 1.9
 Total 350.7 364.9
 Earnings before income taxes 32.7 38.0
 Income taxes 11.8 14.3
 Net earnings 20.9 23.7
 Weighted average number of
 common shares outstanding 36.1 36.0
 Net earnings per common share $.58 $.66
 Cash dividends per common share $.275 $.275
 Incoming orders $387.4 $331.2
 (A) -- "Marketing and administration" including non-recurring charges of $3.8 million for the quarter ended March 31, 1992, associated with reductions in employment levels.
 (B) -- Marketing and administration" including nonrecurring charges of $1 million for the quarter ended March 31, 1991, associated with reductions in employment levels. "Other, net" included non-recurring charges of $1 million for the quarter ended March 31, 1991, associated with the relocation of Global Wulfsberg.
 (C) -- Incoming orders in 1991 included unfilled orders of $23.7 million for the company's Milton Roy subsidiary which was acquired in January 1991.
 Consolidated Balance Sheet
 (Unaudited; amounts in millions)
 3/31/92 12/31/91
 Assets
 Current assets:
 Cash and cash equivalents $12.5 $8.4
 Accounts receivable 331.2 356.7
 Inventories 445.1 429.3
 Deferred income taxes 108.4 103.3
 Other current assets 38.4 46.9
 Total current assets 935.6 944.6
 Property, plant and equipment, net 497.0 494.3
 Intangible assets 222.3 221.3
 Other assets 56.4 59.3
 Tota $1,711.3 $1,719.5
 Liabilities and Shareholders' Equity
 Current liabilities:
 Accounts payable $96.0 $100.8
 Accrued salaries, wages & commissions 37.3 40.0
 Contributions due retirement plans 28.5 21.8
 Provision for losses on long-
 term contracts 18.5 24.5
 Other accrued liabilities 125.5 114.1
 Total current liabilities 305.8 301.2
 Deferred income taxes 192.1 192.8
 Long-term debt 433.5 454.9
 Other liabilities 75.4 78.2
 Shareholders' equity:
 Common stock, at par value 18.9 18.9
 Other shareholders' equity 685.6 673.5
 Sub total 704.5 692.4
 Total $1,711.3 $1,719.5
 -0- 4/16/92
 /CONTACT: Gary Hedges of Sundstrand, 815-226-6245/
 (SNS) CO: Sundstrand Corp. ST: Illinois IN: ARO SU: ERN


CK-TS -- NY033 -- 9225 04/16/92 11:15 EDT
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