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THE FAIRCHILD CORPORATION REPORTS POSITIVE RESULTS FROM CONTINUING OPERATIONS IN FISCAL 1992 THIRD QUARTER

 THE FAIRCHILD CORPORATION REPORTS POSITIVE RESULTS FROM
 CONTINUING OPERATIONS IN FISCAL 1992 THIRD QUARTER
 CHANTILLY, Va., May 11 /PRNewswire/ -- The Fairchild Corporation (NYSE: FA), a leading aerospace, industrial products and communications services company, reported third quarter earnings from continuing operations of $164,000, or $.01 per share, compared to a loss of $5,979,000, or a $0.35 loss per share, for the third quarter ended March 31, 1991.
 For the nine months ended March 29, 1992, Fairchild reported a loss from continuing operations of $15,002,000, or $0.92 per share. This compared with earnings from continuing operations of $19,024,000 or $1.12 per share for the first nine months of the prior fiscal year which included a pretax gain of $54,496,000 on the sale of 52.8 percent of the Company's former wholly owned subsidiary, Banner Aerospace, through an initial public offering.
 The company reported a net loss, after discontinued operations and extraordinary items, of $1,384,000, or a loss per share of $.08, in the current year third quarter, compared to net earnings of $985,000, or $.06 per share in the prior year third quarter. For the nine month period ended March 29, 1992, the company reported a net loss of $17,229,000, or $1.05 loss per share, compared to net earnings of $27,286,000, or $1.59 per share, for the prior year nine months.
 Sales for the three months ended March 29, 1992, totalled $124,229,000 compared to $132,051,000 for the same period in the prior year. For the current nine-month period, sales were $365,973,000, compared to $385,164,000 in fiscal 1991.
 Operating income was $8,442,000 for the recent quarter, compared with $6,811,000 for the three months ended March 31, 1991. The improved operating income resulted from higher operating income in the Industrial Products and Communications Services segments and lower corporate administrative expense, offset partially by lower operating income in the Aerospace Fasteners segment.
 Other major items reflected in the net results were equity earnings, net of minority interest, of $2,268,000 for the quarter ended March 29, 1992, versus $4,251,000 for the same period a year ago. The reduction in equity earnings was primarily due to a lower level of earnings at Banner Aerospace in the current year quarter. Investment income of $7,421,000 was recognized in the current year quarter, compared to $1,524,000 in the prior year quarter, and included $5,000,000 of dividends realized on participating pension annuity contracts. Fairchild recognized an after-tax loss of $1,702,000 on disposal of two small subsidiaries during the recent quarter.
 For the first nine months of this fiscal year, operating income was $15,213,000, compared with $23,425,000 for the first nine months of fiscal 1991. An increase in operating income from the Communications Services segment, and lower corporate administrative expense in the current nine-month period was more than offset by lower operating income in the Aerospace Fasteners and Industrial Products segments. The year-to-date net results included net equity earnings of $5,966,000 for the period ended March 29, 1992, versus $13,441,000 for the first nine months of the prior fiscal year, primarily due to lower equity earnings at Banner Aerospace and Rexnord Corporation, caused by the impact of the recession. The loss on disposal of discontinued operations was $2,948,000 in the recent nine months, compared with a loss of $723,000 in the same period of fiscal 1991.
 "As was the case in the second quarter of fiscal 1992, we continue to be adversely affected by weaker customer demand and margin pressures in our Aerospace Fasteners segment. Performance improved, however, in all three business segments and equity earnings from affiliates increased by $1.4 million compared to the fiscal 1992 second quarter," said Chairman and Chief Executive Officer Jeffrey J. Steiner. Corporate expenses were $7.3 million lower in the first nine months of the year compared with the fiscal 1991 period, and net interest expense for the year-to-date period decreased by $2.7 million.
 "We have made aggressive cuts in operating costs, especially in our Aerospace Fasteners segment, where this year staffing levels have been reduced by over 520 positions. While the cost of severance led to a $2.5 million restructuring charge in the nine month period, the annualized direct and indirect cost savings resulting from the elimination of the non-manufacturing positions, together with other operating expense reduction measures is estimated to be $10.2 million," Steiner added. He also noted that similar aggressive cost reductions are also being made in Fairchild's unconsolidated affiliated companies, thereby making it possible to expect better performance in equity earnings.
 The Fairchild Corporation is a leading supplier of aerospace and industrial products and communications services.
 THE FAIRCHILD CORPORATION
 Summary Income Statement
 (In thousands, except per share data)
 Periods ended Three months Nine months
 3/29/92 3/31/91 3/29/92 3/31/91
 Sales by Business Segment:
 Aerospace fasteners $ 74,877 $ 84,907 $226,170 $251,053
 Industrial products 34,694 33,639 96,534 99,745
 Communications services 14,658 13,505 43,269 34,366
 Total 124,229 132,051 365,973 385,164
 Total segment operating
 income (A) 12,214 13,820 28,903 43,664
 Corporate expense (4,706) (8,154) (15,871) (23,134)
 Corporate income 934 1,145 2,181 2,895
 Total operating income 8,442 6,811 15,213 23,425
 Net interest expense (17,200) (17,207) (52,046) (54,743)
 Investment income 7,421 1,524 9,913 1,613
 Equity earnings - net of
 minority interest 2,268 4,251 5,966 13,441
 Non-recurring (loss)
 income (B) -- (4,528) -- 48,996
 (Loss) earnings from continuing
 operations before
 income taxes 931 (9,149) (20,954) 32,732
 Income tax (provision)
 benefit (767) 3,170 5,952 (13,708)
 Earnings (loss) from
 continuing operations 164 (5,979) (15,002) 19,024
 Earnings (loss) from
 discontinued operations 185 (710) 392 (645)
 Loss on disposal of
 discontinued operations (C) (1,702) (41) (2,948) (723)
 (Loss) earnings before
 extraordinary items (1,353) (6,730) (17,558) 17,656
 Extraordinary items - net (D) (31) 7,715 329 9,630
 Net (loss) earnings (1,384) 985 (17,229) 27,286
 Earnings (loss) per share:
 Continuing operations .01 (.35) (.92) 1.12
 Discontinued operations (.09) (.04) (.15) (.09)
 Extraordinary items -- .45 .02 .56
 Net (loss) earnings (.08) .06 (1.05) 1.59
 Common shares outstanding 16,154 17,116 16,374 17,113
 (A) Includes $2.5 million restructuring charge within the Aerospace Fasteners segment in the nine months ended March 29, 1992.
 (B) Principally pretax gain from sale of 52.8 percent interest in Banner Aerospace in the nine months ended March 31, 1991. Loss in quarter ended March 31, 1991, was for litigation reserve.
 (C) Loss in the quarter ended March 29, 1992, is primarily from the sale of the domestic operations of Thompson Aircraft Tire, and current year losses also include additional losses incurred to dispose of Enviro Holdings and Sovereign Air, Ltd.
 (D) Net after-tax gain on the repurchase of the company's debentures.
 -0- 5/11/92
 /CONTACT: John D. Jackson of Fairchild, 703-478-5872/
 (FA) CO: Fairchild Corporation ST: Virginia IN: ARO SU: ERN


SM -- NY099 -- 8805 05/11/92 16:59 EDT
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