Server: Netscape-Communications/1.12 Date: Thursday, 18-Dec-97 00:24:21 GMT Content-type: text/html THE SINGER COMPANY NEW YORK, NY , Thu Oct 24 3:00:00 EDT 1996
THE SINGER COMPANY
Stock Symbol: SEW Exchange Code: N


SINGER REPORTS CONTINUED IMPROVEMENT IN MEXICO IN THIRD QUARTER RESULTS


  
 NEW YORK, NY - October 24, 1996 - The Singer Company (SEW:NYSE) 
 today announced that earnings for the third quarter of 1996 were 
 $20.1 million or $.39 per share, versus $11.8 million or $.23 per 
 share last year after a $12.8 million special charge.  The 1996 
 third quarter results include a previously-announced $1.5 million 
 charge for the remaining reorganization costs at the company's 
 largest manufacturing facility in Brazil.  
 
 Revenues in the third quarter were $333.5 million, versus $289.4 
 million a year ago.  Excluding the sales of Italy and Singer 
 Furniture, acquired in the fourth quarter of 1995, sales rose 6.1 
 percent in the period.  
 
 The company's Mexican operation, suffering from a severe economic 
 recession, continued its turnaround by posting its second 
 consecutive quarter of improved results.  Mexico experienced a $2.4 
 million net loss, compared to a net loss of $4.5 million in the 
 same period a year ago.  Revenues were above the 1995 period in 
 peso terms and the company remained profitable on the operating 
 line.  Results benefited from lower interest rates in Mexico.  "Our 
 performance in Mexico is encouraging and we remain cautiously 
 optimistic about continued improvement there," said Mr. James H. 
 Ting, Chairman and Chief Executive Officer.  
 
 The results are in line with a previous announcement by the 
 company that earnings would be lower than a year ago in the third 
 quarter, primarily as a result of difficult economic conditions in 
 Europe.  A shift in consumer buying habits to lower-priced, lower-
 margin products produced lower earnings in Europe.  Although sewing 
 units rose in the quarter, the shift in mix produced sales below 
 the same period last year.  
 
 "Our results in Europe reflect a weak economic environment and low 
 consumer confidence, particularly at the retail level," said Mr. 
 Ting.  "Our business is particularly slow in Germany and Spain, 
 where unsatisfactory conditions are exacerbated by high 
 unemployment."  Mr. Ting said that Singer continued its 
 refranchising program in Europe to improve its market position and 
 that results to date had been positive.  
 
 Rebounding from a two-week strike that penalized sales and 
 earnings in the second quarter, Brazil's performance improved.  
 Manufacturing facilities returned to normal operations and the 
 company's retail and wholesale network experienced results above a 
 year ago.  
 
 Thailand and most other Asian countries achieved improved sales 
 and earnings above the same quarter of 1995 as demand for both 
 sewing machines and consumer durables for the home remained 
 healthy.  The Middle East experienced growth despite considerable 
 political turmoil in the region.  
 
 Singer's new products that were first launched a year ago 
 continued to exceed expectations.  Sales of water filters, power 
 tools and furniture were ahead of plan for the quarter.  Year to 
 date, new product sales exceeded the company's plan and are 
 expected to easily surpass the goal for 1996.  
 
 For the first nine months of 1996 Singer reported sales of $981.3 
 million versus $835.3 million last year.  Excluding sales of 
 companies acquired in the fourth quarter of 1995, sales for the 
 first nine months in 1996 rose 7.8 percent.  Earnings for the first 
 nine months were $49 million or $.95 per share, compared to $50.1 
 million or $.97 per share a year ago, after a $12.8 million special 
 charge.  
 
 "While most of our operations around the world are growing on 
 expectations, we remain concerned about the unfavorable market 
 conditions in Europe and their impact on approaching Christmas 
 sales," said Mr. Ting.  "In spite of these uncertainties, Singer 
 expects to meet earnings expectations for 1996," he said.  
 
 With operations in more than 140 countries, Singer is one of the 
 most widely recognized and respected brands in the world.  The 
 company is the largest manufacturer and seller of sewing machines 
 and a leading marketer of consumer durable products for the home.  
 Sales in 1995 were $1.2 billion.  
 
 ###
 
 THE SINGER COMPANY N.V.
 CONSOLIDATED STATEMENTS OF INCOME (unaudited)
 (in millions of US dollars, except per share data)
 
                                         Three Months               Nine Months
                                      Ended September 30,   Ended September 30,
                                     1996           1995    1996           1995
                                     -------------------    -------------------
 Revenues                            $ 333.5     $ 289.4    $ 981.3     $ 835.3
 Cost of sales                         225.6       197.2      683.3       564.5
                                     -------------------    -------------------
 Gross profit                          107.9        92.2      298.0       270.8
 Selling and administrative expenses    75.0        72.2      217.1       195.8
                                     -------------------    -------------------
 Operating income                       32.9        20.0       80.9        75.0
                                     -------------------    -------------------
 Other income (expenses):
  Interest, net of related foreign
  exchange adjustments                 (18.7)      (15.3)     (57.0)      (43.8)
 Equity in earnings from operating
  affiliates                             2.2         1.6        9.5         8.8
 Royalties and license income            4.2         4.1       12.1        13.0
 Miscellaneous, net                      1.6         4.4        9.8         8.3
                                     --------------------   -------------------
                                       (10.7)       (5.2)     (25.6)      (13.7)
                                     --------------------   -------------------
 Income before income taxes             22.2        14.8       55.3        61.3
 Income taxes                            2.1         3.0        6.3        11.2
                                     --------------------   -------------------
 Net income                          $  20.1     $  11.8    $   9.0    $   50.1
                                     ====================   ===================
 Net income per share                $  0.39     $  0.23    $  0.95    $   0.97
                                     ====================   ===================
 Average shares outstanding
  (in millions)                         51.3        51.4       51.5        51.4
                                     ====================   ===================
 
 THE SINGER COMPANY N.V.
 CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
 (in millions of US dollars)
 
                                          September 30,          December 31,
                                              1996                   1995      
                                        -----------------     -----------------
 ASSETS
 Current assets:
  Cash and cash equivalents             $     222.4           $     235.8
  Accounts receivable, net                    524.6                 507.7
  Inventories                                 331.4                 317.3
  Other current assets                         20.3                   9.3
                                        -----------------     -----------------
   Total current assets                     1,098.7               1,070.1
 
 Property, plant and equipment, net           350.4                 310.0
 Investment in equity of operating 
  affiliates                                   79.7                  73.5
 Other assets                                 148.3                 143.4
                                        -----------------     -----------------
                                        $   1,677.1           $   1,597.0
                                        =================     =================
 
 LIABILITIES AND SHAREHOLDERS' EQUITY
 Current liabilities:
   Notes and loans payable              $     489.7           $     439.4
  Accounts payable and accrued 
   liabilities                                241.8                 288.1
                                        -----------------     ----------------
  Total current liabilities                   731.5                 727.5
 Long-term debt                               213.9                 172.2
 Other non-current liabilities                104.7                 110.0
 Shareholders' equity                         627.0                 587.3
                                        -----------------     ----------------
  Total liabilities and equity          $   1,677.1           $   1,597.0
                                        =================     ================