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 TECUMSEH, Mich., Oct. 27 /PRNewswire/ -- Tecumseh Products Company (NASDAQ: TECUA, TECUB) announced today its 1993 third quarter consolidated results as set forth in the following Consolidated Summary of Income. Dollar amounts are shown in millions except per share data:
 Three Months Ended Nine Months Ended
 September 30, September 30,
 1993 1992 1993 1992
 Net Sales $301.8 $290.2 $1,012.0 $985.4
 Income Before Taxes and Changes
 in Accounting Principles $25.2 $15.6 $93.5 $74.1
 Provision for Taxes 6.8 5.1 32.9 28.9
 Net Income Before Changes
 in Accounting Principles 18.4 10.5 60.6 45.2
 Cumulative Effect of Changes
 in Accounting Principles -- -- -- (95.0)
 Net Income (Loss) $18.4 $10.5 $60.6 $(49.8)
 Earnings Per Share Before Changes
 in Accounting Principles $.84 $.48 $2.77 $2.07
 Cumulative Effect of Changes
 in Accounting Principles -- -- -- (4.34)
 Earnings (Loss) Per Share $.84 $.48 $2.77 $(2.27)
 NOTE: 1992 cumulative effect adjustments are for changes in accounting for non-pension postretirement benefits and income taxes. Per share amounts have been adjusted to reflect the 100 percent stock dividend paid June 30, 1993.
 Consolidated earnings of $18.4 million, or $0.84 per share, for the third quarter of 1993 represent a 75 percent increase over the $10.5 million, or $0.48 per share, earned in the same period in 1992. The 1993 third quarter results include favorable tax adjustments of $2.8 million, or $0.13 per share, while the prior year results include a federal tax refund of $1.4 million. The 1993 third quarter profit gains were primarily attributable to continued strong performance by SICOM Ltda., the Company's Brazilian subsidiary, along with substantial sales volume increases in engine and power train products.
 Total compressor product sales for the third quarter of 1993 were 8 percent below the prior year period. Sales of the Company's French subsidiary, L'Unite Hermetique S.A., were down 34 percent reflecting continued weak economic conditions in Europe along with a currency- related reduction in market share in the refrigerator compressor market. The Company's U.S. compressor exports for the 1993 third quarter were 25 percent below the record-setting level of 1992, due primarily to the continued restrictions on foreign currency in China, along with an excess supply of air conditioning compressors in the Far East following an unusually cool summer in Japan. On the positive side, the Company's third quarter sales of compressors in the United States increased by more than 20 percent compared to the prior year. The Company's U.S. sales of unitary air conditioning compressors increased in a flat market while hot and humid conditions in key U.S. regions have reduced industry inventories of room air conditioners to their lowest level in four years.
 The improvement in compressor profitability for the third quarter was due primarily to SICOM, which continues to reap the benefits of a rebound in economic activity in Brazil, despite rampant inflation, currently at 35 percent per month. However, political turmoil continues in Brazil and undermines any fundamental economic reforms that are necessary.
 The third quarter of 1993 was outstanding for the Company's engine and power train products as sales increased 30 percent over the prior year period. Sales of snow thrower engines have been particularly strong after several disappointing seasons in a market where Tecumseh is the dominant supplier. The profit gains for the Engine and Power Train Products business were primarily a result of increases in sales volume compared to the year earlier period, along with a turnaround in the Company's European operations.
 The Company is continuing active discussions in an attempt to settle the strike, which began on October 6, 1993, at its aluminum diecasting facility in Sheboygan Falls, Wisconsin. Production has continued through the combined efforts of management and other salaried employees.
 Sales for the third quarter of 1993 were 28 percent ahead of last year. These gains were primarily attributable to sump pump sales in areas affected by the summer flooding, along with continued growth in water gardening pump products.
 Tecumseh Products Company is a full-line independent global manufacturer of hermetic compressors for air conditioning and refrigeration products, gasoline engines and power train products for lawn and garden applications, and pumps.
 -0- 10/27/93
 /CONTACT: John H. Foss of Tecumseh Products, 517-423-8417/

CO: Tecumseh Products Company ST: Michigan IN: SU: ERN

ML -- DE015 -- 7254 10/27/93 11:50 EDT
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Publication:PR Newswire
Date:Oct 27, 1993

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