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TECUMSEH REPORTS SECOND-QUARTER EARNINGS

 TECUMSEH REPORTS SECOND-QUARTER EARNINGS
 TECUMSEH, Mich., July 20 /PRNewswire/ -- Following is the text of


the Report to Shareholders of Tecumseh Products Company (NASDAQ-NMS: TECUA, TECUB) for the three months ended June 30, 1992.
 TO OUR SHAREHOLDERS:
 We are pleased to report that your company earned $22.1 million, or $2.02 per share, in the second quarter of 1992, which is a 55-percent increase compared to the earnings of $14.2 million, or $1.30 per share, for the same period in 1991. These earnings per share amounts for 1992 and 1991 have been adjusted to reflect the 100-percent stock dividend paid May 29, 1992 in shares of new, non-voting Class A common stock to holders of record of Class B common stock on May 8, 1992.
 Sales of $362.8 million for the second quarter of 1992 represent an 11-percent increase compared to the same period in 1991. Increased export sales of U.S.-built compressors accounted for over one-half of the increase in consolidated sales for the second quarter of 1992. This export sales growth is due primarily to increased demand for air- conditioning equipment in emerging Asian markets. Sales of compressors in the United States for the second quarter of 1992 increased 4 percent compared to 1991, reflecting stronger activity in the U.S. air- conditioning industry. Primarily due to increased volume, associated production efficiencies and cost-control measures, operating profitability of the North American compressor business doubled in the second quarter of 1992 and is the major factor in the favorable consolidated earnings comparison to the year-earlier period.
 Second-quarter 1992 U.S. engine and power train sales recorded gains of 17 percent compared to the recessionary levels of the year-earlier period. Operating profit improvements reflected this increased volume.
 Operating results of the company's European subsidiaries improved modestly in the second quarter compared to the year-earlier period. However, the recent strengthening of the primary European currencies against the U.S. dollar and Japanese yen will impair the short-term competitive position of our European operations.
 We expect that the significant favorable earnings comparisons achieved in the first two quarters of 1992 will not continue for the balance of 1992 because results in the second half of 1991 were unusually strong relative to the first half of the year. Furthermore, temperate spring and early summer weather conditions in the United States in 1992 will likely dampen the demand for air-conditioning compressors for the remainder of this year. Although SICOM Ltda., our Brazilian subsidiary, reported modest earnings in the first half of 1992, the Brazilian economy remains in a deep recession which makes it difficult for SICOM to maintain efficient production levels.
 TECUMSEH PRODUCTS COMPANY AND SUBSIDIARIES
 CONSOLIDATED SUMMARY OF INCOME
 (Dollars in millions except per-share amounts)
 Three Months Ended Six Months Ended
 June 30, June 30,
 1992 1991 1992 1991
 Net sales $362.8 $327.7 $695.2 $645.2
 Income before taxes $36.6 $24.3 $63.5 $35.2
 Provision for taxes $14.5 $10.1 $25.6 $16.1
 Net income $22.1 $14.2 $37.9 $19.1
 Earnings per share(a) $2.02 $1.30 $3.47 $1.75
 (a) -- The above per-share amounts have been adjusted to reflect the 100-percent stock dividend paid May 29, 1992, to shareholders of record on May 8, 1992.
 -0- 7/20/92
 /CONTACT: John H. Foss of Tecumseh Products Co., 517-423-8417/
 (TECU) CO: Tecumseh Products Company ST: Michigan IN: SU: ERN


DH-SB -- DE009 -- 0654 07/20/92 10:39 EDT
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Date:Jul 20, 1992
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