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TRINOVA REPORTS FIRST-QUARTER RESULTS

    MAUMEE, Ohio, April 21 /PRNewswire/ --- TRINOVA (NYSE: TNV) today announced income before cumulative effect of change in accounting principle (FAS 106) of $5.6 million, or 20 cents per share, in the 1993 first quarter, compared with $450,000, or 2 cents per share, in the 1992 first quarter.  Sales were $429.2 million in the 1993 first quarter, compared with $422.6 million a year earlier.
     "Our results for the quarter show our continued progress in improving our manufacturing efficiency and reducing costs at a time when most of our markets continue to be soft," said Darryl F. Allen, TRINOVA chairman, president and chief executive officer.
    "1993 first-quarter operating income and margin increased substantially for each of our three business segments -- industrial, automotive, and aerospace & defense -- compared with the 1992 first quarter.  In industrial, operating income also improved over the 1992 fourth quarter, in spite of Europe's continued weakness.  In automotive, the strength of our European air conditioning and power steering businessl?ed strong operating results.  In aerospace & defense, operating income and margin improved over the 1992 first quarter even though sales were at their lowest level for a quarter since 1988.
    "Selling and general administrative and engineering, research and development expenses were reduced $5 million from a year ago.  We fully expect that our efforts to reduce costs, coupled with a modest recovery in some of our markets, will lead to continuing improvement in 1993."
    TRINOVA adopted FAS 106 in the 1993 first quarter, which resulted in a net loss for the quarter, after cumulative effect of change in accounting principle, of $64.6 million, or $2.28 per share.
    Quarterly Results
    (dollars in millions, except per share data)
                   1Q93     1Q92      4Q92       3Q92     2Q92
    Sales        $429.2   $422.6    $431.6     $402.2   $439.0
    Operating
      income       18.5      8.7      19.3       12.3     18.6
    Operating
     margin (pct)   4.3      2.1       4.5        3.1      4.2
    Income before
     cumulative effect
     of change in
     accounting
     principle      5.6       .5       6.1        1.7      6.2
    Cumulative
     effect of
     change in
     accounting for
     postretirement
     benefits     (70.2)      --        --         --       --
    Net income
     (loss)       (64.6)      .5       6.1        1.7      6.2
    Income per
     share before
     cumulative
     effect of change
     in accounting
     principle      .20      .02       .21        .06      .22
    Cumulative
     effect of change
     in accounting for
     postretirement
     benefits     (2.48)      --        --         --       --
    Net income
     (loss) per
     share        (2.28)     .02       .21        .06      .22
    Segment Analysis
    Industrial
    Quarterly Results
    (dollars in millions)
                   1Q93     1Q92      4Q92       3Q92     2Q92
    Sales        $221.8   $220.8    $228.0     $218.8   $235.2
    Operating
     income         4.4       .9       2.6        6.5      6.8
    Operating
     margin
     (percent)      2.0       .4       1.1        3.0      2.9
    Order
     intake       239.2    253.4     225.3      214.4    234.7
    Order
     backlog      153.4    179.2     152.2      167.8    180.8
    "1993 first-quarter industrial operating income increased $3.5 million on sales that were flat," Allen said.  "Sales and orders increased for the U.S. industrial markets compared with the first quarter of 1992, while both European sales and orders declined from a year ago.  In Europe, our cost-reduction initiatives are helping mitigate the effects of lower volumes.  Total industrial orders were down from the 1992 first quarter, although March orders increased from a year ago.  Orders in Asia and Brazil also improved over a year ago."
    Automotive
    Quarterly Results
    (dollars in millions)
                   1Q93     1Q92      4Q92       3Q92     2Q92
    Sales        $117.6   $103.3    $110.1      $92.6   $109.3
    Operating
     income        11.8      7.5      11.4        3.7      9.6
    Operating
     margin
     (percent)     10.1      7.3      10.4        4.0      8.8
    "Our automotive business continued strong, driven by air conditioning and power steering business in Europe,"  Allen said.  "The increase in sales in Europe is especially impressive considering that car sales in Europe for the first quarter were down nearly 20 percent from a year earlier.  Our automotive sales in the U.S. were up over a year ago as a result of the consolidation in the 1993 first quarter of a joint venture which was previously accounted for by the equity method."
    Aerospace & Defense
    Quarterly Results
    (dollars in millions)
                   1Q93     1Q92      4Q92       3Q92     2Q92
    Sales         $89.8    $98.5     $93.5      $90.9    $94.5
    Operating
     income         7.0      5.2      10.2        7.0      7.4
    Operating
     margin
     (percent)      7.8      5.2      10.9        7.7      7.8
    Order
     intake        74.4     82.9      88.9       76.9     78.8
    Order
     backlog      295.8    361.9     321.6      331.7    346.6
    "1993 first-quarter aerospace & defense operating income increased by $1.8 million over 1991 on a $9 million decline in sales.  Reducing our costs and consolidating operations have given us a degree of flexibility that maintained our profitability in the 1993 first quarter, even though our aerospace & defense markets continued to decline," Allen said.  "Order intake declined after showing an increase in the 1992 fourth quarter.  Implementing initiatives that will improve our aerospace & defense business in a declining worldwide market will continue to be a high priority."


Other Effects on First-Quarter Income
    Utilizing time-based manufacturing principles and providing customers with just-in-time delivery to meet customer requirements are ways TRINOVA is working to improve its profitability.  Reducing working capital, particularly inventories, is crucial to this process. Inventory was reduced an additional $15.3 million during the 1993 first quarter, and since the beginning of 1990 has now been reduced by $150 million.  Additional reductions are expected in the future.  Liquidation of LIFO inventory quantities reduced cost of products sold by $1.9 million in the 1993 first quarter, which increased income before cumulative effect of change in accounting principle by $1.2 million, or 4 cents per share.  Liquidation of LIFO inventory quantities in the 1992 first quarter reduced cost of products sold by $700,000, which increased net income by $450,000, or 2 cents per share.  The 1993 first-quarter incremental increase from a year ago in postretirement benefit cost (as a result of adopting FAS 106 in the 1993 first quarter) decreased income before cumulative effect of change in accounting principle by $900,000, or 3 cents per share.


FAS 106 Adopted in 1993 First Quarter
    TRINOVA adopted Statement of Financial Accounting Standards No. 106, "Employers' Accounting for Postretirement Benefits Other than Pensions" (FAS 106) in the 1993 first quarter.  FAS 106 specifies that the expected cost of providing postretirement benefits other than pensions (principally health care) must be accrued during the employees' active service period.  Previously, the cost of providing these benefits was recognized as the claims were incurred.
    TRINOVA elected to recognize the benefit costs related to service up to the date of adoption (transition obligation) in the 1993 first quarter as a cumulative effect of change in accounting principle.  This resulted in a non-cash charge to income of $113.2 million pretax, $70.2 million after tax, or $2.48 per share.  Changes were made to TRINOVA's health care plans which reduced the estimated pretax transition obligation by $46 million and annual expense by approximately $10 million, compared with what they would have been had the plan changes not been made.
    First-quarter 1993 postretirement benefit cost amounted to $3.1 million, compared with $1.6 million in the 1992 first quarter.  The adoption of FAS 106 will have no effect on cash flow because TRINOVA will continue its practice of paying the cost of postretirement benefits when incurred.  The estimated cost for 1993 is $12.2 million and compares to a cost in 1992 of $5 million.
    Statement of Financial Position
    TRINOVA Corporation
    (Dollars in thousands, except per share data)
                                         March 31    December 31
                                           1993         1992
    Assets
    Current assets
    Cash                                $   21,472   $   26,269
    Receivables                            217,519      202,850
    Inventories:
    In-process and finished products       201,762      217,865
    Raw materials and manufacturing
      supplies                              46,077       50,163
                                           247,839      268,028
    Other current assets                    49,845       49,588
    Total current assets                   536,675      546,735
    Plants and properties                  834,048      826,756
    Less accumulated depreciation          424,811      421,213
                                           409,237      405,543
    Other assets                            81,359       65,111
    Total assets                        $1,027,271   $1,017,389
    Liabilities and shareholders' equity
    Current liabilities
    Notes payable                       $  115,660   $  109,549
    Accounts payable                        89,164       82,624
    Income taxes                             3,502       25,484
    Other current liabilities              139,732      141,907
    Current maturities of
      long-term debt                         8,515        8,582
    Total current liabilities              356,573      368,146
    Long-term debt                         248,374      239,061
    Deferred credits and
      other liabilities                    138,133       20,846
    Deferred income taxes                    8,667       36,476
    Shareholders' equity
    Common stock - par value $5 a share
    Authorized - 100,000,000 shares
    Outstanding - 28,258,231 and
      28,237,646 shares, respectively (after
      deducting 5,951,665 and 5,972,270 shares,
      respectively, in treasury)
                                           141,291      141,188
    Additional paid-in capital                 550          470
    Retained earnings                      148,206      217,604
    Currency translation adjustments       (14,523)      (6,402)
    Total shareholders' equity             275,524      352,860
    Total liabilities and
      shareholders' equity              $1,027,271   $1,017,389
    Condensed Statement of Operations
    TRINOVA Corporation
    (In thousands, except per share data)
                                        Three Months Ended
                                              March 31
                                          1993         1992
    Net sales                       $  429,169    $  422,644
    Cost of products sold              330,938       329,235
    Manufacturing income                98,231        93,409
    Selling and general
     administrative expenses            64,672        68,499
    Engineering, research and
     development expenses               15,053        16,195
    Operating Income                    18,506         8,715
    Interest expense                    (6,730)       (6,435)
    Other-net                           (2,442)       (1,530)
    Income before income taxes and
     cumulative effect of change in
     accounting principle                9,334           750
    Income taxes                         3,700           300
    Income before cumulative effect
     of change in accounting principle   5,634           450
    Cumulative effect of change in
     accounting for postretirement
     benefits other than pensions,
     net of income tax benefit         (70,229)            -
    Net income (loss)               $  (64,595)   $      450
    Income (loss) per share
     Income before cumulative effect
     of change in accounting principle     .20           .02
     Cumulative effect of change in
     accounting for postretirement
     benefits other than pensions        (2.48)            -
    Net income (loss) per share     $    (2.28)   $      .02
    Cash dividends
     per common share               $      .17    $      .17
    Average shares outstanding          28,296        28,253
    Notes:
    Income (loss) per share has been computed on the average
    number of shares outstanding, including common stock
    equivalents.  The assumed conversion of TRINOVA's 6 percent
    convertible debentures was not included in average shares
    outstanding for the three months ended March 31, 1993 and
    1992 because the effect of the inclusion would have been
    anti-dilutive.
    In the first quarter, TRINOVA adopted Statement of Financial
    Accounting Standards No. 106, "Employers' Accounting for
    Postretirement Benefits Other than Pensions."  The
    transition obligation amounting to $113.2 million pretax,
    $70.2 million after tax, or $2.48 per share, was recognized
    in the 1993 first quarter as the effect of a change in
    accounting principle.  First-quarter 1993 postretirement
    benefit cost amounted to $3.1 million, compared with $1.6
    million in the 1992 first quarter.
    Condensed Statement of Cash Flows
    TRINOVA Corporation
    (In thousands)
                                        Three Months Ended
                                              March 31
                                          1993         1992
    Cash Flows from operating activities
    Net Income (loss)                 $ (64,595)   $      450
    Adjustments to reconcile net
     income to net cash provided
     by operating activities:
     Cumulative effect of change in
      accounting principle, net of deferred
      income tax benefit                  70,229            -
     Depreciation                         15,295       15,383
     Changes in working capital
      elements, other than debt           (7,611)      33,037
     Restructuring payments               (4,829)      (5,840)
     Other                                 3,263        1,243
    Net cash provided by
     operating activities                 11,752       44,273
    Cash flows from investing
     activities
    Capital expenditures                 (13,120)     (11,335)
    Other                                   (676)          47
    Net cash used by investing
      activities                         (13,796)     (11,288)
    Cash flows from financing
     activities
    Net increase (decrease) in short- and
     long-term debt                        3,481      (22,751)
    Cash dividends                        (4,803)      (4,798)
    Other                                    183           53
    Net cash used by
     financing activities                 (1,139)     (27,496)
    Effect of exchange rate changes
     on cash                              (1,614)      (1,753)
    Increase (decrease) in cash           (4,797)       3,736
    Cash at beginning of period           26,269       26,597
    Cash at end of period             $   21,472   $   30,333
    TRINOVA is a world leader in the manufacture and distribution of engineered components and systems for industry.  Its components and systems are sold through its operating companies, Aeroquip and Vickers, to the industrial, aerospace and defense, and automotive markets.
    -0-                        4/21/93
    /CONTACT:  Warren N. Bimblick of TRINOVA Corporation, 419-867-2290/
    (TNV)
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