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VARITY ANNOUNCES THIRD QUARTER EARNINGS; RESULTS WELL ABOVE LAST YEAR

 BUFFALO, N.Y., Nov. 23 ~PRNewswire~ -- Varity Corporation (NYSE: VAT) today reported results for the third quarter well above the same period of last year. Net income for the quarter was $10.5 million, or 23 cents per share, as compared to a net loss of $17.8 million, or 91 cents per share. Sales and revenues were $844.4 million, versus $759.4 million in 1991.
 For the nine months ended October 31, net income was $22.2 million, or 33 cents per share, versus a net loss of $62.7 million or $3.07 per share a year ago. Sales and revenues were $2.6 billion, compared to $2.3 billion in the prior year.
 Third quarter results included a non-cash foreign exchange loss of $6.4 million, versus a gain of $2.3 million in the same quarter last year. The loss was primarily attributable to the rapid decline in the value of the British pound against the U.S. dollar that occurred during the quarter. For the nine months, the company reported a foreign exchange loss of $2.5 million, compared to a loss of $13.0 million in the same period a year ago.
 Operating income tripled in the third quarter versus last year due to a continued strong performance by Kelsey-Hayes, and a profitable quarter at Massey Ferguson and Perkins as compared to a loss at both groups last year.
 "Cost reductions continue to drive our operating performance," said Victor A. Rice, chairman and chief executive officer of Varity. "Improved operating efficiencies were particularly important to Perkins and Massey Ferguson, whose major markets in Europe are in deep recession," Rice said.
 Kelsey-Hayes reported strong gains in spite of sluggish production in the U.S. automotive industry. Kelsey-Hayes is a major supplier of conventional and anti-lock braking systems (ABS) and aluminum and fabricated steel wheels to the automotive market. Earnings rose 23 percent to $38 million on sales of $395 million versus operating income of $31 million and sales of $368 million in the same period in 1991. Kelsey-Hayes benefitted from relatively strong sales of light trucks in North America, where it has a high market share of its products. Light truck production rose 7 percent in the quarter compared to the same period last year, while passenger car production decreased 4.5 percent.
 Massey Ferguson, the farm equipment manufacturer, earned $7 million on sales of $267 million, compared to a loss of $7 million on sales of $251 million in 1991. Massey Ferguson's profitable performance was achieved despite a continued decline in the world farm machinery market.
 Perkins reported sales of $176 million and operating income of $7 million compared to a loss of $6 million last year on sales of $133 million. Perkins experienced a four-week strike during the 1991 third quarter. Perkins is a major worldwide diesel engine producer.
 Varity Corporation (NYSE: VAT) had sales and revenues in 1991 of $3.2 billion and is one of the 150 largest U.S. industrial companies.
 Quarter to October 31 1992 1991
 Sales and revenues USD 844,400,000 759,400,000
 Net income (loss) 10,500,000 (17,800,000)
 Share earnings
 Primary .23 (.91)
 Fully diluted .23 (.91)(A)
 Average common shares 25,567,000 24,955,000
 Nine months to October 31
 Sales and revenues USD 2,559,600,000 2,272,700,000
 Net income (loss) 22,200,000 (62,700,000)
 Share earnings
 Primary .33 (3.07)
 Fully diluted .33 (3.07)(A)
 Average common shares 25,364,000 24,953,000
 (A) -- anti-dilutive
 -0- 11~23~92
 ~CONTACT: Jerry Hostetter of Varity Corporation, 716-888-8073~
 (VAT)


CO: Varity Corporation ST: New York IN: AUT SU: PDT

BM -- CL001 -- 0296 11~23~92 09:26 PST
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Publication:PR Newswire
Date:Nov 23, 1992
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