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TRINOVA REPORTS SECOND-QUARTER SALES AND INCOME

 TRINOVA REPORTS SECOND-QUARTER SALES AND INCOME
 MAUMEE, Ohio, July 23 /PRNewswire/ TRINOVA Corporation


(NYSE: TNV) continued to show improvement in the 1992 second quarter, earning $6.2 million, or 22 cents per share, a substantial increase over a year ago and the 1992 first quarter. "The economy is far from robust, but internal initiatives to reduce costs and increase penetration of our markets, coupled with improvement in some of our market niches, are leading to improved profitability," said Darryl F. Allen, TRINOVA chairman, president and chief executive officer.
 "Our automotive segment continued to perform well with operating income nearly doubling year-earlier results," Allen said. "Our industrial segment operating income increased $2.7 million on sales that would be essentially the same as the 1991 second quarter after adjusting for exchange rate changes. In addition, industrial business order intake again improved over the previous-year quarter. Our aerospace & defense results improved over the 1992 first quarter, but were below year-ago results due to continued order cancellations and delivery stretch-outs.
 "We decreased inventory an additional $11 million during the quarter (a total of $138 million over the last 33 months). While there were many positive signs in the quarter, the economy is only grudgingly recovering."
 Quarterly Results
 (dollars in millions, except per share data)
 2Q 92 2Q 91 1Q 92 4Q 91 3Q 91
 Sales $439.0 $432.9 $422.6 $413.6 $400.0
 Operating
 Income (Loss) 18.6 15.9 8.7 (4.8)(A) (11.4)
 Special Charge --- --- (166.4) ---
 Operating Margin 4.2 pct 3.7 pct 2.1 pct ---(A) ---
 Net Income (Loss) 6.2 3.8 .5 (174.5)(B) (15.2)
 Net Income (Loss)
 Per Share .22 .13 .02 (6.18)(B)(.54)
 (A) -- Before special charge
 (B) -- After deducting special charge of $156.4 million, net of tax, or $5.54 per share.
 Six-Month Results
 (dollars in millions, except per share data)
 1992 1991
 Sales $861.7 $867.7
 Operating Income 27.3 26.7
 Operating Margin (pct) 3.2 3.1
 Net Income 6.7 5.7 (A)
 Net Income Per Share .24 .20 (A)
 (A) -- Six-month 1991 net income includes a gain of $1.4 million, 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.
 Segment Analysis
 Industrial
 Quarterly Results
 (dollars in millions)
 2Q 92 2Q 91 1Q 92 4Q 91 3Q 91
 Sales $235.2 $227.3 $220.8 $212.6 $211.7
 Operating
 Income (Loss) 6.8 4.1 .9 (10.8)(A) (4.6)
 Special Charge --- --- --- (88.1) ---
 Operating Margin 2.9 pct 1.8 pct .4 pct --- (A) ---
 Order Intake 234.7 230.0 253.4 223.5 207.1
 Order Backlog 180.8 170.4 179.2 169.5 164.4
 (A) -- Before special charge
 Six-Month Results
 (dollars in millions)
 1992 1991
 Sales $456.0 $459.7
 Operating Income 7.7 7.2
 Operating Margin (pct) 1.7 1.6
 Order Intake 488.1 472.3
 "Sales increased over the 1991 second quarter, due almost entirely to exchange rate changes. The increase in operating income on essentially flat sales means our internal initiatives to reduce costs are having a positive effect," Allen said. "The economy is slowly recovering with North America and Asia showing the greatest improvement, while recovery in Europe and Brazil is occurring much more slowly. Although we are seeing a recovery in several geographic areas, many of our gains worldwide have been achieved through aggressive marketing that has won established business away from competitors."
 Aerospace & Defense
 Quarterly Results
 (dollars in millions)
 2Q 92 2Q 91 1Q 92 4Q 91 3Q 91
 Sales $ 94.5 $112.5 $ 98.5 $108.1 $106.5
 Operating
 Income 7.4 11.5 5.2 10.4 (A) 2.6
 Special Charge --- --- --- (30.5) ---
 Operating Margin 7.8 pct 10.2 pct 5.2 pct 9.6 pct(A)2.4 pct
 Order Intake 78.8 104.8 82.9 105.1 86.0
 Order Backlog 346.6 399.0 361.9 383.2 382.2
 (A) -- Before special charge
 Six-Month Results
 (dollars in millions)
 1992 1991
 Sales $193.0 $224.0
 Operating Income 12.6 22.1
 Operating Margin (pct) 6.5 9.9
 Order Intake 161.7 224.2
 "While aerospace & defense sales and income continued down from a year ago, there was an improvement in operating income over the 1992 first quarter," Allen said. "Some of the downturn for this business can be tied to the economy, but the majority is due to less demand for military equipment as a result of changing worldwide political conditions. These changing conditions mean programs to replace existing equipment are being stretched out, indicating defense business will continue weak for the foreseeable future. Airlines are also stretching out delivery schedules in commercial aerospace. To help counter the weakening conditions, we are consolidating operations and have introduced a variety of internal initiatives to find new, non-traditional markets for our aerospace & defense products."
 Automotive
 Quarterly Results
 (dollars in millions)
 2Q 92 2Q 91 1Q 92 4Q 91 3Q 91
 Sales $109.3 $ 93.1 $103.3 $ 92.8 $ 81.7
 Operating
 Income (Loss) 9.6 5.0 7.5 1.3 (A) (4.2)
 Special Charge --- --- --- (47.8) ---
 Operating Margin 8.8 pct 5.3 pct 7.3 1.4 (A) ---
 (A) -- Before special charge
 Six-Month Results
 (dollars in millions)
 1992 1991
 Sales $212.6 $184.1
 Operating Income 17.2 6.9
 Operating Margin (pct) 8.1 3.7
 "Our global automotive business has been bolstered by continuing strong demand in Europe for air conditioning and power steering components and systems," Allen said. "This increased business during the 1992 second quarter helped increase operating income to its highest level in over three years. In the U.S., higher- than-expected production by auto manufacturers aided our business, but summer shutdowns worldwide will lower volumes for the third quarter."
 TRINOVA Corporation
 Statement of Financial Position
 (dollars in thousands, except per share data)
 June 30 December 31
 1992 1991
 Assets
 Current Assets
 Cash $21,818 $26,597
 Receivables 218,935 194,043
 Inventories:
 In-process
 and finished products 223,225 243,093
 Raw materials and
 manufacturing supplies 56,784 60,139
 Total 280,009 303,232
 Other current assets 48,711 48,880
 Total Current Assets 569,473 572,752
 Plants and properties 838,757 824,278
 Less accumulated depreciation 414,331 389,754
 Total 424,426 434,524
 Other assets 63,949 63,075
 Total Assets $ 1,057,848 $ 1,070,351
 Liabilities and Shareholders' Equity
 Current Liabilities
 Notes payable $ 73,854 $ 141,680
 Accounts payable 100,251 102,359
 Income taxes 25,409 24,230
 Other current liabilities 167,034 168,359
 Current maturities of long-term debt 1,789 12,880
 Total Current Liabilities 368,337 449,508
 Long-term debt 249,879 177,271
 Deferred credits and
 other liabilities 38,772 37,612
 Deferred income taxes 29,055 31,313
 Shareholders' Equity
 Common stock - par value $5 a share
 Authorized - 100,000,000 shares
 Outstanding - 28,231,122 and 28,225,970 shares, respectively
 (after deducting 5,978,774 and 5,983,926 shares, respectively, in
 treasury) 141,157 141,130
 Additional paid-in capital 377 336
 Retained earnings 219,416 222,360
 Currency translation adjustments 10,855 10,821
 Total Shareholders' Equity 371,805 374,647
 Total Liabilities
 and Shareholders Equity $ 1,057,848 $ 1,070,351
 TRINOVA Corporation
 Statement of Income
 (in thousands, except per share data)
 Three Months Ended Six Months Ended
 June 30 June 30
 1992 1991 1992 1991
 Net sales $ 439,009 432,88 861,653 867,701
 Cost of
 products sold 334,836 328,462 664,071 664,317
 Manufacturing Income 104,173 104,427 197,582 203,384
 Selling and general
 administrative expenses 68,461 69,668 136,960 139,049
 Engineering, research and
 development expenses 17,080 18,815 33,275 37,644
 Operating Income 18,632 15,944 27,347 26,691
 Interest expense 6,443) (6,478) (12,878) (13,640)
 Other - net (1,885) (3,140) (3,415) (3,684)
 Income before
 Income Taxes 10,304 6,326 11,054 9,367
 Income taxes 4,100 2,500 4,400 3,700
 Net Income 6,204 3,8 6,654 5,667
 Net Income per Share $ 0.22 $ 0.13 $ 0.24 $ 0.20
 Cash Dividends
 per Common Share $ 0.17 $0.17 $ 0.34 $0.34
 Average Shares Outstanding 28,266 28,240 28,265 28,239
 Notes:
 Income 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 1992 and 1991 second-quarter and six-month periods because the effect of the inclusion would have been anti-dilutive.
 Other - net for the six-month period ended June 30, 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.
 TRINOVA Corporation
 Statement of Cash Flows
 (in thousands)
 Six Months Ended
 June 30
 1992 1991
 Cash Flows from
 Operating Activities
 Net income $ 6,654 $ 5,667
 Adjustments to reconcile
 net income to net cash
 provided by operating activities:
 Depreciation 31,144 31,116
 Changes in working capital
 elements, other than debt 9,055 (23,428)
 Restructuring (payments) proceeds (15,610) 23,920
 Other 1,719 3,005
 Net Cash Provided by
 Operating Activities 32,962 40,280
 Cash Flows from Investing Activities
 Capital expenditures (22,079) (38,567)
 Other 61 1,597
 Net Cash Used by
 Investing Activities (22,018) (36,970)
 Cash Flows from Financing Activities
 Net (decrease) increase
 in short- and long-term debt (4,432) 7,722
 Cash dividends (9,597) (9,595)
 Other 68 63
 Net Cash Used by
 Financing Activities (13,961) (1,810)
 Effect of exchange rate
 changes on cash (1,762) (3,396)
 Decrease in Cash (4,779) (1,896)
 Cash at beginning of period 26,597 25,464
 Cash at End of Period $ 21,818 $ 23,568
 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 i?ng companies, Aeroquip and Vickers, to the industrial, aerospace & defense, and automotive markets.
 -0- 7/23/92
 /CONTACT: Warren N. Bimblick of TRINOVA Corporation, 419-867-2290/
 (TNV) CO: TRINOVA Corporation ST: Ohio IN: AUT SU: ERN


KK -- CL015 -- 2471 07/23/92 11:36 EDT
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Date:Jul 23, 1992
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