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OEA Reports First Quarter Results

4 December 1997

OEA Reports First Quarter Results

    DENVER, Dec. 4 -- OEA, Inc. , a Denver, Colorado,
high-technology manufacturer of automotive safety and aerospace products,
reported results for the first quarter ended October 31, 1997.
    Ahmed D. Kafadar, Chairman and Chief Executive Officer, announced that net
sales and operating profit were $57,334,800 and $10,254,500, respectively, as
compared to first quarter, prior-year sales and operating profit of
$45,339,700 and $11,757,800.  Net earnings and earnings per share for the
current quarter were $6,112,700 and $.30, respectively, as compared to
$7,105,200 and $.35 in the prior year.
    Automotive sales for the quarter were $44,998,200, an increase of 24% over
the prior year driven by the success of our passenger inflator and the
introduction of our new driver, side-impact and second generation passenger
inflators.  Mr. Kafadar noted that 1.3 million inflators were shipped in the
first quarter, an increase of 31% over the fourth quarter and that we are on
track to achieving our sales goal of 8 million inflators in fiscal year 1998.
Automotive operating profit for the quarter was $8,531,000, 14% below last
year.  As previously reported, the reduction in operating profit is primarily
due to higher costs associated with the ramp-up of our four new inflator
production lines.  We anticipate "de-bugging" to be completed in the second
quarter and productivity reaching planned levels by the end of the second
quarter.  First quarter initiator sales were below last year's mainly due to
customers' timing, but are expected to exceed last year's sales by year-end.
    Aerospace sales were $12,336,600, an increase of 37% over the prior year
on sales increases in engineering development contracts, the Delta satellite
launcher program and the V-22 program.  Operating income for the quarter was
$1,723,500, 5% below a very strong prior year, but 261% above the fourth
quarter.  The operating profit improvement is a result of improved
manufacturing efficiencies and lower costs on development programs.  Incoming
orders for the quarter were over $13 million with 40% related to the Delta
program.
    Mr. Kafadar also announced that the cornerstone for our European inflator
facility was laid on September 25 in Les Mureaux, France.  The plant is
expected to be in operation by late fiscal year 1999.  This facility will
eventually have capacity to produce 14 million inflators annually.
    OEA is a leading manufacturer of air bag initiators and a major supplier
of air bag inflators.  OEA is also a leader in the design and manufacture of
personnel escape systems for military aircraft and high-reliability devices
for missiles and space applications.

                              FINANCIAL SUMMARY
                        Three Months Ended October 31,

                                              1997           1996

    Net Sales                          $57,334,800    $45,339,700

    Operating Profit                    10,254,500     11,757,800
    Other income (Expense)               (689,600)       (82,600)

    Earnings Before Income Taxes         9,564,900     11,675,200

    Federal and State Income Taxes       3,452,200      4,570,000

    Net Earnings                         6,112,700      7,105,200

    Net Earnings Per Share                    $.30           $.35

    Average Number of Shares
      Outstanding                       20,557,178     20,520,151


SOURCE  OEA, Inc.