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THIOKOL REPORTS THIRD QUARTER INCOME

 OGDEN, Utah, April 14 /PRNewswire/ -- Thiokol Corp. (NYSE: TKC) today reported a 1 percent increase in net income for the third quarter ended March 31, 1993. Net income for the quarter was $15.4 million or 76 cents per share compared to $15.2 million or 75 cents per share for the prior year.
 Net sales for the quarter were $277.9 million, a decrease from $341.2 million for the like period last year.
 Operating results for the quarter were favorably affected by certain tax related items. Operating results for the quarter included a $1.9 million charge for severance and restructuring costs related to the fastening systems business.
 Net income for the nine months ended March 31, 1993 increased 1 percent to $43.5 million or $2.15 per share compared to $43.0 million or $2.13 per share for the like period of the prior year. Sales of $874.4 million for the nine month period decreased 9 percent from $959.6 million last year.
 U. Edwin Garrison, chairman and chief executive officer said, "We continue to maintain our net income in a difficult industry environment. During the quarter we took action to restructure and reduce expense levels at Huck in response to continued weakness in the worldwide commercial aircraft and European industrial markets. These actions should enable Huck to improve profitability in future quarters, as well as better serve its customers."
 Space sales of $113.5 million for the quarter decreased 19 percent from the prior year while quarterly operating income increased 8 percent to $15.1 million from the prior year's $14.0 million. The sales decrease resulted from slightly lower Space Shuttle production and significantly lower Castor sales and ASRM nozzle development activity. Higher profits related to the Space Shuttle program contributed to the increase in operating income.
 Strategic sales declined 18 percent to $65.1 million from $79.6 million last year, however operating income was essentially unchanged at $10.7 million. The sales decrease was attributed to fewer Peacekeeper motor deliveries and reduced sales on the SICBM and Trident programs. The SICBM program was terminated during the third quarter of the prior fiscal year. Higher operating margins realized on the Peacekeeper and Trident programs offset the effect of the sales decrease.
 Third quarter tactical sales declined to $20.0 million from $33.8 million last year. The tactical product line operated at essentially a break even level for the quarter compared to income of $.9 million last year. The sales decline was caused principally by a decrease in HARM and Mark 70 deliveries.
 Ordnance sales of $39.4 million decreased 18 percent while operating income of $3.7 million increased approximately $.4 million or 13 percent from the prior year. The decline in sales resulted from lower operating levels at the government-owned, contractor-operated ammunition plants. The operating income increase was due to better operating margins realized on the programs.
 The company's results in each of its propulsion systems businesses were favorably affected in the current nine month period by recoveries in U.S. Government revenues of approximately $9.4 million of tax related costs expensed in prior periods. Approximately $3.2 million relates to the current quarter.
 Huck's fastening systems sales of $39.9 million for the quarter were
essentially unchanged from last year. Fastening systems income of $1.2 million, after deducting a $1.9 million charge for severance and restructuring costs, declined 59 percent from $3.0 million last year. Operating income before the restructuring charges would have increased $.1 million or 3 percent for the quarter. Fastening systems income for the current and prior year quarter does not include an allocation of Corporate expense. Significantly higher industrial sales offset reduced aerospace sales. Income from international operations continues to be negatively affected by the continuing recession in Europe.
 General and administrative expense for the quarter when compared to last year decreased 12 percent or $2.2 million. The decrease resulted primarily from lower compensation and other Corporate costs.
 Thiokol is a major producer of solid propulsion systems, ordnance and composite products for the space and defense industries, and high technology, proprietary fastening systems.
 Below are unaudited comparative results for the 3rd quarter of fiscal year 1993 (in thousands, except per share data)
 THIOKOL CORP.
 CONSOLIDATED STATEMENTS OF INCOME
 FISCAL YEARS 1993 - 1992
 Three Months Ended Nine Months Ended
 March 31, March 31,
 1993 1992 1993 1992
 Net sales $277,936 $341,201 $874,412 $959,571
 Interest and
 other income 2,065 2,090 5,542 8,560
 280,001 343,291 879,954 968,131
 Deductions from income:
 Cost of sales 228,755 289,794 728,031 828,876
 General and
 administrative
 expense 16,196 18,391 51,103 41,442
 Research and
 development
 expense 4,063 4,819 12,302 10,143
 Interest expense 6,384 6,250 19,147 17,800
 255,398 319,254 810,583 898,261
 Income before
 income taxes: 24,603 24,037 69,371 69,870
 Income taxes 9,178 8,847 25,876 26,859
 Net income $ 15,425 $ 15,190 $ 43,495 $ 43,011
 Net income
 per share $ .76 $ .75 $ 2.15 $ 2.13
 Average number of
 common and common
 equivalent shares
 outstanding 20,422 20,125 20,267 20,161
 -0- 4/14/93
 /CONTACT: Steve Lawson of Thiokol, 801-629-2257/
 (TKC)


CO: Thiokol Corp. ST: Utah IN: ARO SU: ERN

BB -- DV002 -- 5506 04/14/93 08:02 EDT
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Date:Apr 14, 1993
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