Woodhead Industries Reports Fiscal Second Quarter Results; Income From Operations Up 57%; Net Income Up 129%

Business Wire, April 27, 2006

DEERFIELD, Ill. -- Woodhead Industries, Inc., (NASDAQ:WDHD) today announced financial results for its fiscal second quarter ended April 1, 2006. The Company reported second quarter revenue of $59.0 million, up 4.7% (7.3% in constant dollars), compared to the same period last year. Income from operations totaled $4.9 million, up 56.9% from the second quarter of 2005. Net income increased 129.3% to $3.0 million, or $0.25 per diluted share for the 2006 second quarter, compared to net income of $1.3 million, or $0.11 per diluted share for the same period in 2005.

Philippe Lemaitre, Woodhead Industries' Chairman and Chief Executive Officer, commented, "Our second quarter results provide evidence that our sales and marketing initiatives and cost management efforts are paying off. Sales were at the high end of our guidance and earnings exceeded our expectations. Performance in our Electrical segment was particularly strong, as increased volumes and diligent cost management led to significantly improved profitability. We were also pleased with performance in our North American Connectivity segment, which registered another quarter of solid revenue growth. "

In the Connectivity segment, sales were $43.5 million, up 2.4% (5.9% in constant dollars) from the second quarter of 2005, with foreign exchange negatively impacting the year-over-year comparison. Income from operations totaled $3.0 million, compared to $2.3 million last year. North American Connectivity revenue growth remained strong, increasing 9.1% during the quarter. Connectivity segment operating income improved 32.2% primarily due to higher volume levels and cost control.

Electrical segment revenue increased 11.5% to $15.5 million, as compared to $13.9 million for the second quarter of 2005. Income from operations was $2.8 million, up 79.3% from $1.6 million during the same period last year. The substantial increase in Electrical segment profitability is attributable to higher volumes, operational improvements and cost control.

Outlook

Lemaitre noted, "Our positive outlook for the remainder of the year is tempered by the start-up of a new ERP system in North America. We are being cautious and currently anticipate that revenues during the second half of our 2006 fiscal year will be in a range of $115 to $118 million, with earnings per share of $0.42 to $0.45. This performance would result in full year revenues of $227 to $230 million, and earnings per share of $0.85 to $0.88, which is up from our previous full year earnings guidance of $0.79 to $0.85 as a result of our strong second quarter performance."

This press release contains statements that are forward-looking. These statements are based on current expectations that are subject to risks and uncertainties. In particular, such risks include future actions, prospective products, future performance or results of current or anticipated products, sales efforts, expenses, the outcome of contingencies such as legal proceedings, general economic and business conditions, business system conversions, competition, and other issues discussed in our Form 10-K and other SEC filings.

Conference Call

Woodhead Industries, Inc., will host a conference call today, April 27, 2006, at 11:00 am Eastern Time to discuss performance and financial results for the fiscal second quarter. The dial-in phone number is 800-967-7184 or 719-457-2633. The Access code is 2109034. To access a live internet webcast of the conference call, visit the Company's website at www.woodhead.com and select the webcast icon. A replay of the conference call will be archived and available on the Company's website following the live event.

About Woodhead Industries, Inc.

Woodhead Industries (NASDAQ:WDHD) develops, manufactures and markets network and electrical infrastructure products engineered for performance in harsh, demanding, and hazardous industrial environments. Woodhead is known in the global industrial market by its recognized brands which include Brad Harrison(R), BradPower(TM), BradControl(TM), SST(TM), Daniel Woodhead(R), mPm(R), applicom(R), Aero-Motive(R) and RJ-Lnxx(R). Our expertise extends from mechanical, electrical, and electronics to communication software products and technologies. Woodhead operates from 21 locations in 10 countries spanning North America, Europe and Asia/Pacific.

For further information, contact: Robert Fisher, Vice President, Finance and CFO, 847-317-2400, e-mail: rfisher@woodhead.com.

(Tables to Follow)

WOODHEAD INDUSTRIES, INC.  Consolidated Balance Sheet
(Amounts in thousands)

                                              ------------------------
Assets                                         4/1/2006    10/1/2005
                                              ------------------------
Current Assets
   Cash and short-term investments                $16,276     $13,887
   Accounts receivable                             42,303      39,040
   Inventories                                     22,750      21,173
   Prepaid expenses                                 5,764       5,785
   Refundable income taxes                            366       2,097
   Deferred income taxes                            3,133       2,164
----------------------------------------------------------------------
   Total current assets                            90,592      84,146
 Property, plant and equipment, net                55,340      54,758
 Goodwill, net                                     35,993      35,730
 Deferred income taxes                              2,502       2,746
 Other Assets                                         942       1,000
----------------------------------------------------------------------
Total Assets                                     $185,369    $178,380
----------------------------------------------------------------------

 Liabilities and Stockholders' Investment
 Current Liabilities
   Accounts payable                               $11,336     $11,080
   Accrued expenses                                13,979      11,531
   Income taxes payable                             1,725       1,053
  Current portion of long-term debt                 5,700       5,700
----------------------------------------------------------------------
 Total current liabilities                         32,740      29,364
 Long-term debt                                    19,500      19,500
 Deferred income taxes                              4,958       4,698
 Other liabilities                                  3,828       4,139
----------------------------------------------------------------------
 Total Liabilities                                 61,026      57,701

 Stockholders' investment:
   Common stock at par (shares issued: 12,405
    at 4/1/06, 12,260 at 10/1/05)                  12,218      12,260
   Additional paid-in capital                      22,157      21,596
   Deferred stock compensation                          -        (397)
   Accumulated other comprehensive income           4,679       4,726
   Retained earnings                               85,289      82,494
----------------------------------------------------------------------
     Total stockholders' investment               124,343     120,679
----------------------------------------------------------------------
 Total Liabilities and Stockholders'
  Investment                                     $185,369    $178,380
----------------------------------------------------------------------



WOODHEAD INDUSTRIES, INC.  Consolidated Income Statement
(Amounts in thousands, except per share data)

              Quarter Ended:              Six Months Ended:
            ------------------ ---------  ------------------ ---------
            4/1/2006 4/2/2005  % Change   4/1/2006 4/2/2005  % Change
            ------------------ ---------  ------------------ ---------

Net Sales    $59,028  $56,393       4.7%  $112,467 $105,069       7.0%
  Cost of
   Sales      36,704   35,548       3.3%    69,987   67,502       3.7%
            ------------------            ------------------
Gross Profit  22,324   20,845       7.1%    42,480   37,567      13.1%
  % of Net
   Sales        37.8%    37.0%                37.8%    35.8%
Operating
 Expenses     17,466   17,748     (1.6%)    33,993   34,244     (0.7%)
  % of Net
   Sales        29.6%    31.5%                30.2%    32.6%
            ------------------            ------------------
Income From
 Operations    4,858    3,097      56.9%     8,487    3,323     155.4%
  % of Net
   Sales         8.2%     5.5%                 7.5%     3.2%
Other
 Expenses
  Interest
   Expense       223      477    (53.2%)       527      963    (45.3%)
  Other
   (Income)/
   Expenses,
    Net         (147)     515                 (302)  (1,303)
            ------------------            ------------------
Other
 (Income)/
 Expenses         76      992                  225     (340)
Income
 Before
 Taxes         4,782    2,105     127.2%     8,262    3,663     125.6%
  % of Net
   Sales         8.1%     3.7%                 7.3%     3.5%
Provision
 For Income
 Taxes         1,739      778     123.5%     3,003    1,120     168.1%
            ------------------            ------------------
Net Income    $3,043   $1,327     129.3%    $5,259   $2,543     106.8%
  % of Net
   Sales         5.2%     2.4%                 4.7%     2.4%
            ==================            ==================

Earnings per
 share
  Diluted      $0.25    $0.11     127.3%     $0.43    $0.21     104.8%

Weighted-
 average
 common
 shares
 outstanding
  Diluted     12,383   12,287       0.8%    12,333   12,284       0.4%
            ==================            ==================
Dividends
 Per Share     $0.10    $0.10       0.0%     $0.20    $0.20       0.0%
            ==================            ==================



SEGMENT DATA  Quarter Ended:              Six Months Ended:
            ------------------ ---------  ------------------ ---------
            4/1/2006 4/2/2005  % Change   4/1/2006 4/2/2005  % Change
            ------------------ ---------  ------------------ ---------
Net Sales
---------
Connectivity $43,527  $42,495       2.4%   $83,904  $79,381       5.7%
Electrical    15,501   13,898      11.5%    28,563   25,688      11.2%
            ------------------            ------------------
Total        $59,028  $56,393       4.7%  $112,467 $105,069       7.0%
            ==================            ==================

Income From
 Operations
-----------
Connectivity  $3,020   $2,284      32.2%    $4,728   $2,345     101.6%
Electrical     2,813    1,569      79.3%     4,060    1,869     117.2%
Corporate
 and Other      (975)    (756)                (301)    (891)
            ------------------            ------------------
Total         $4,858   $3,097      56.9%    $8,487   $3,323     155.4%
            ==================            ==================