The Fairchild Corporation - NYSE: FA - Reports Fourth Quarter Net Operating Income of $10.4 Million, Led by Strong Performance of Fairchild Fasteners Division

Business Wire, Sept 17, 1998

DULLES Va.--(BUSINESS WIRE)--Sept. 17, 1998--The Fairchild Corporation [NYSE: FA] had net operating income of $10.4 million on revenues of $174.0 million in its fourth quarter ending June 30, 1998, bringing net operating income for the year to $45.4 million on revenues of $741.2 million. The Fairchild Fasteners division recorded a strong performance in the fourth quarter, generating sales of $116.5 million, operating income of $14.2 million and cash flow (EDITDA) in excess of $18.0 million.

Fairchild, a leading worldwide aerospace components manufacturing and distribution company, had basic earnings per share from continuing operations (diluted) of $0.24 for the fourth quarter and yearly earnings of $2.66, compared with earnings of $0.44 and $0.11 respectively for the comparable quarter and year in 1997. Pro forma sales for the year were $609.7 million, with pro forma operating income of $32.7 million.

"The significant investment we have made in equipment and staff training at Fairchild Fasteners over the past two years, which aggregate over $50 million, has now begun to generate handsome benefits in production capacity and profit," said Jeffrey J. Steiner, Chairman and CEO of The Fairchild Corporation. "We believe that the aerospace industry remains fundamentally strong and that the trend is positive in the coming years despite recent temporary problems due to international economic difficulties."

The company's second largest component, Aerospace Distribution (Banner Aerospace, Inc. [NYSE: BAR], had operating income of $1.2 million on fourth quarter revenues of $55.0 million. These figures were not comparable to 1997 results because of the disposition of the Banner Hardware Group and Pac Aero units to AlliedSignal in January 1998.

The Fairchild Corporation reserved an additional $13.8 million after tax to cover costs associated with the restructuring of Fairchild Technologies, a division that makes semiconductor and optical disc manufacturing equipment and which has been classified as a discontinued operation. The Company has adopted a plan to enhance the opportunities to exploit market developments in the technologies business sector while improving the ability of the unit to operate more efficiently, including a reduction in production capacity and staff.

This news release contains forward-looking statements within the meaning of Section 27-A of the Securities Act of 1933, as amended and Section 21-E of the Securities Exchange Act of 1934, as amended. The Company's actual results could differ materially from those set forth in the forward-looking statements as a result of the risks associated with the Company's business, changes in general economic conditions, and changes in the assumptions used in making such forward-looking statements. -0-