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TRINOVA REPORTS RESULTS FOR 1991

 TRINOVA REPORTS RESULTS FOR 1991
 MAUMEE, Ohio, Jan. 23 /PRNewswire/ -- TRINOVA Corporation


(NYSE: TNV) announced today that largely due to the continuing worldwide recession, sales were 14 percent below year-ago levels and the company incurred a loss for the year of $6.52 per share (including a special charge for the write-off of certain intangibles, primarily goodwill, and other charges in the fourth quarter amounting to $5.54 per share). For the 1991 fourth quarter, the loss was $6.18, including the special charge of $5.54, on a 17 percent decline in sales from a year ago. Approximately one third of the sales decline was related to divested businesses and changes in currency exchange rates.
 "1991 was a tough year for TRINOVA as the industrial and automotive markets we serve were at severely depressed levels and we experienced the stretch out or cancellation of aerospace & defense orders," said Darryl F. Allen, chairman, president and chief executive officer. "Toward the end of 1991, we began to see some stabilization in industrial markets in the U.S., but Europe continues to show signs of further weakening.
 "We remain steadfast in our focus on enhancing cash flow and improving asset efficiency," said Allen. "And, despite the earnings downturn, we still generated $95 million in operating cash flow in 1992. Inventories were reduced by $37 million over the last 12 months (a total of $115.5 million over the last 27 months). Since we began our program to streamline, consolidate and improve operations in January 1989, we have closed 21 facilities, sold six businesses and have been able to make TRINOVA a more focused organization. Additionally, the number of employees at year end was 17,700, down nearly 9 percent from the same time last year.
 "We anticipate that 1992 will show the benefits of our downsizing and restructuring initiatives and that results will improve as the consolidation of facilities continues. We are also excited about the level of new products coming out of our businesses and the market potential for them."
 Quarterly Results
 (in millions except per share data)
 4Q 91 4Q 90 3Q 91 2Q 91 1Q 91
 Sales $413.6 $496.5 $400.0 $432.9 $434.8
 Special Charge (166.4) --- --- --- ---
 Operating Income (Loss)(171.2) 17.7 (11.4) 15.9 10.7
 Net Income (Loss) (174.5) 4.5 (15.2) 3.8 1.8
 Net Income (Loss)
 Per Share (6.18) .16 (.54) .13 .07
 Full-Year Results
 (in millions except per share data)
 1991 1990
 Sales $1,681.2 $1,955.4
 Special Charge (166.4) ---
 Operating Income (Loss) (155.9) 112.8
 Net Income (Loss) (184.1) 45.5
 Net Income (Loss) Per Share (6.52) 1.51
 Results for the 1991 fourth quarter and year include a special charge for the write-off of certain intangibles (primarily goodwill) and other charges amounting to $166.4 million, $156.4 million net, or $5.54 per share (see further discussion below). Other-net deductions also increased significantly in the fourth quarter from one year ago ($7.4 million in 1991 versus $2.4 million in 1990) largely due to reduced interest income, reduced earnings in affiliates and exchange losses.
 Segment Analysis
 Industrial
 Quarterly Results
 (in millions) 4Q 91 4Q 90 3Q 91 2Q 91 1Q 91
 Sales $212.6 $259.3 $211.7 $227.3 $232.4
 Special Charge (88.1) --- --- --- ---
 Operating Income (Loss) (98.9) 2.7 (4.6) 4.1 3.0
 Operating Margin (pct) --- 1.1 --- 1.8 1.3
 Order Intake 223.5 248.4 207.1 230.0 242.3
 Order Backlog 169.5 193.4 164.4 170.4 183.9
 (quarter end)
 Full-Year Results
 (in millions) 1991 1990
 Sales $884.0 $1,039.3
 Special Charge (88.1) ---
 Operating Income (Loss) (96.3) 58.7
 Operating Margin (pct) --- 5.7
 Order Intake 902.8 1,059.0
 "Fourth-quarter unit sales volumes actually declined $40.7 million from year-ago levels and $4.2 million from third-quarter levels before effects of exchange rate changes and dispositions," Allen said. "Our unit sales were hurt by weakness in several industrial segments that we serve around the world, including machine tools and off-highway equipment. Additionally, December showed early and prolonged holiday closures in Europe and the U.S., not boding well for early January 1992.
 "Redundancy costs and adjustments for bad debts also contributed to the larger loss in the 1991 fourth quarter compared with the third quarter. Inventory reductions and other initiatives continued in the fourth quarter and should lead to improvement in 1992, even though we are not expecting much improvement in volumes for at least the first half of the year.
 "We are continuing to see some stability in North American industrial markets, while European orders continue to decline. In the 1991 fourth quarter, for the first time since the first quarter of 1990, order intake increased over the previous quarter. Order backlog also increased in the fourth quarter, the first increase since the third quarter of 1990."
 Aerospace & Defense
 Quarterly Results
 (in millions) 4Q 91 4Q 90 3Q 91 2Q 91 1Q 91
 Sales $108.1 $121.1 106.5 $112.5 $111.5
 Special Charge (30.5) --- --- --- ---
 Operating Income (Loss) (20.1) 18.2 2.6 11.5 10.6
 Operating Margin (pct) --- 15.0 2.4 10.2 9.5
 Order Intake 105.1 112.2 86.0 104.8 119.4
 Order Backlog 383.2 416.4 382.2 399.0 414.1
 (quarter end)
 Full-Year Results
 (in millions) 1991 1990
 Sales $438.6 $455.6
 Special Charge (30.5) ---
 Operating Income 4.5 57.2
 Operating Margin (pct) 1.0 12.6
 Order Intake 415.3 460.4
 "Although down from a year ago, sales, operating income before the special charge and new orders improved over the weak 1991 third quarter," Allen said. "Aerospace & defense margins, exclusive of the special charge, also improved over the 1991 third quarter, as commercial aerospace business worldwide continued at a good level in the 1991 fourth quarter."
 Automotive (A)
 Quarterly Results
 (in millions) 4Q 91 4Q 90 3Q 91 2Q 91 1Q 91
 Sales $ 92.8 $116.0 $ 81.7 $ 93.1 $ 91.0
 Special Charge (47.8) --- --- --- ---
 Operating Income (Loss) (46.5) 1.1 (4.2) 5.0 1.9
 Operating Margin (pct) --- .9 --- 5.3 2.1
 Full-Year Results
 (in millions) 1991 1990
 Sales $358.6 $460.5
 Special Charge (47.8) ---
 Operating Income (Loss) (43.8) 15.4
 Operating Margin (pct) --- 3.3
 (A) - Results for 1991 do not include the divested German power steering pump business. In 1990, sales for this business were $55.7 million for the year and $16.9 million in the fourth quarter. Operating income was not significant.
 "After experiencing an operating loss in the 1991 third quarter, our automotive business rebounded in the 1991 fourth quarter, with the improvement due to better profitability in the U.S. and an increase in air conditioning volumes in Germany," Allen said. "For the year, the automotive business was profitable, before the special charge, despite U.S. auto sales hitting an eight-year low and United Kingdom auto sales a nine-year low. 1991 fourth-quarter operating income, before the special charge, was comparable to a year ago even though sales declined 20 percent."
 Write-off to Reflect Future Market Conditions
 On Dec. 18, 1991, TRINOVA announced that it would record a special charge in the fourth quarter. A condensation of this announcement follows:
 "TRINOVA has been part of explosive changes in the markets in which we operate. Our customers continue to change the way they do business; geographic shifts in the marketplace continue to influence all components manufacturers; and, generally, industrial businesses and property valuations have softened.
 TRINOVA's balance sheet has included the goodwill from 20 businesses acquired since 1970. Due to a changing marketplace and product mix, we have altered the way we operate the companies we have acquired over the last several years. We are refocusing them to respond to the ever-changing future needs of our customers. After careful analysis we have concluded that much of the goodwill purchased from the previous owners no longer has value. These factors resulted in a special charge recorded in the fourth quarter for the write-off of certain intangibles (primarily goodwill) and other adjustments amounting to $105.3 million, or $3.73 per share.
 We also found that because of the worldwide slump in business and property values during the past two years, we are unable to sell certain properties for anticipated prices. These were properties we planned to sell as part of our restructuring initiatives. We also find that changing markets and customers, changing geopolitical situations and reduced staffing needs brought about by successes and anticipated successes in our restructuring efforts lead to new initiatives beyond those we had previously anticipated. In 1992, we will reduce the number of employees by an additional 800 people, primarily in the U.S. and Europe. These factors resulted in a special charge amounting to $61.1 million pretax, $51.1 million after-tax, or $1.81 per share." (For a copy of the complete text of the Dec. 18 announcement, contact Warren Bimblick.)
 STATEMENT OF FINANCIAL POSITION
 (Dollars in thousands, except per share data)
 December 31 December 31
 1991 1990
 ASSETS
 CURRENT ASSETS
 Cash $ 26,597 $ 25,464
 Receivables 194,043 225,739
 Inventories:
 In-process and finished products 243,093 293,171
 Raw materials and manufacturing
 supplies 60,139 70,152
 Total 303,232 363,323
 Other current assets 48,880 56,840
 TOTAL CURRENT ASSETS 572,752 671,366
 Plants and properties 824,278 849,889
 Less accumulated depreciation 389,754 382,684
 Total 434,524 467,205
 Other assets 63,075 175,629
 TOTAL ASSETS $ 1,070,351 $ 1,314,200
 LIABILITIES AND SHAREHOLDERS' EQUITY
 CURRENT LIABILITIES
 Notes payable $ 141,680 $ 115,287
 Accounts payable 102,359 113,518
 Income taxes 24,230 37,238
 Other accrued liabilities 168,359 144,286
 Current maturities of
 long-term debt 12,880 18,503
 TOTAL CURRENT LIABILITIES 449,508 428,832
 Long-term debt 177,271 195,640
 Deferred income taxes 31,313 44,308
 Deferred credits and other
 liabilities 37,612 46,710
 SHAREHOLDERS' EQUITY
 Common stock - par value $5 a share
 Authorized - 100,000,000 shares
 Outstanding - 28,225,970 and
 28,218,500 shares, respectively
 (after deducting 5,983,926
 and 5,991,396 shares, respectively,
 in treasury) 141,130 141,093
 Additional paid-in capital 336 266
 Retained earnings 222,360 425,629
 Currency translation adjustments 10,821 31,722
 TOTAL SHAREHOLDERS' EQUITY 374,647 598,710
 TOTAL LIABILITIES AND
 SHAREHOLDERS' EQUITY $ 1,070,351 $ 1,314,200
 STATEMENT OF OPERATIONS
 (In thousands, except per share data)
 Three Months Ended Year Ended
 Dec. 31 Dec. 31
 1991 1990 1991 1990
 Net sales $ 413,560 $ 496,453 $ 1,681,212 $ 1,955,424
 Cost of
 products sold 322,739 381,177 1,309,094 1,477,676
 MANUFACTURING
 INCOME 90,821 115,276 372,118 477,748
 Selling and general
 administrative
 expenses 76,345 78,262 286,727 289,530
 Engineering, research
 and development
 expenses 19,288 19,333 74,867 75,413
 Special charge 166,400 - 166,400 -
 OPERATING INCOME
 (LOSS) (171,212) 17,681 (155,876) 112,805
 Interest expense (6,676) (8,009) (26,453) (31,698)
 Other - net (7,444) (2,421) (12,950) (6,042)
 INCOME (LOSS) BEFORE
 INCOME TAXES (185,332) 7,251 (195,279) 75,065
 Income taxes
 (credit) (10,800) 2,800 (11,200) 29,600
 NET INCOME
 (LOSS) $ (174,532) $ 4,451 $ (184,079) $ 45,465
 NET INCOME (LOSS)
 PER SHARE $ (6.18) $ .16 $ (6.52) $ 1.51
 Average shares
 outstanding 28,244 28,236 28,242 30,207


Notes:
 Income (loss) per share has been computed on the average number of common shares outstanding, including common stock equivalents. The assumed conversion of the company's 6 percent convertible debentures was not included in average shares outstanding for the three months and years ended Dec. 31, 1991 and 1990 because the effect of the inclusion would have been anti-dilutive.
 In the 1991 fourth quarter, the company recorded a special charge of $166.4 million for the write-off of certain intangibles and other charges. The write-off of intangibles, primarily goodwill, amounted to $105.3 million. Other charges totaled $61.1 million and consisted of write-downs to anticipated sales prices for certain properties included in the 1989 provision for restructuring, as well as provisions for new initiatives for additional facility closures and personnel reductions. The special charge increased the 1991 fourth-quarter and year net loss by $156.4 million, or $5.54 per share.
 Other - net for the year ended Dec. 31, 1991 includes a gain of $2.3 million ($1.4 million after tax, or 5 cents per share) from settlement of outstanding litigation associated with the purchase and installation of automated factory equipment at one of the company's production facilities.
 Other - net for the year ended Dec. 31, 1990 includes a gain of $5.2 million ($2.8 million after tax, or 9 cents per share) from settlement of certain terminated defined-benefit pension plans.
 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 & defense, and automotive markets.
 -0- 1/23/92
 /CONTACT: Warren N. Bimblick of TRINOVA, 419-867-2290/
 (TNV) CO: TRINOVA Corporation ST: Ohio IN: AUT ARO SU: ERN


CG -- CL006 -- 2680 01/23/92 10:09 EST
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