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McClain Industries Announces Q2 Sales and Earnings

8 May 1998

McClain Industries, Inc. Announces Sales and Earnings For the Second Quarter and Six Months Ended March 31, 1998

    STERLING HEIGHTS, Mich., May 8 -- McClain Industries, Inc.
today announced sales and earnings for the second quarter and
six months ended March 31, 1998.
    Sales for the second quarter ended March 31, 1998 were a record
$23,614,926 compared to $22,341,585 for the same quarter a year earlier.  Net
income for the quarter was $331,900 or $.07 a share compared to $376,342 or
$.08 a share for the quarter ending March 31, 1997.  Sales for the six months
ended March 31, 1998 were a record $47,240,250 compared to $42,653,815 for the
six months ended March 31, 1997.  Net income for the six months ended March
31, 1998 was $669,437 or $.14 a share compared to $413,410 or $.09 a share for
the same period in the prior year.
    "Demand for our products continues to improve.  Our order backlog is the
largest it has ever been and strong sales continue in the McClain and E-Z Pack
product lines," said Kenneth D. McClain, President and Chief Executive
Officer.  "While McClain E-Z Pack refuse bodies and Galion dump truck body
sales were hurt by a shortage of truck chassis on which to mount our dump
bodies, the truck chassis anticipated in the March, 1998 quarter are now being
delivered during the June, 1998 quarter, and it is expected that the remainder
of fiscal 1998 will result in strong sales."
    McClain Industries is one of the nation's leading manufacturers of solid
waste handling and transportation equipment for the solid waste disposal and
recycling industries and of a diversified line of dump truck bodies.

                Condensed Consolidated Statement of Operations
                                 (unaudited)

                              Three Months Ended         Six Months Ended
                               1998         1997         1998         1997
    Net Sales              $23,614,926  $22,341,585  $47,240,250  $42,653,815
    Cost of Sales           19,236,285   17,377,450   38,489,215   33,819,436
    Gross Profit             4,378,641    4,964,135    8,751,035    8,834,379
    Selling & Administrative 3,258,728    3,472,740    6,537,653    6,643,009
    Operating Profit         1,119,913    1,491,395    2,213,382    2,191,370
    Other Income (expense)    (622,013)    (921,053)  (1,203,945)  (1,564,960)
    Income Before Income Taxes 497,900      570,342    1,009,437      626,410
    Provision for Income Taxes 166,000      194,000      340,000      213,000

    Net Income                $331,900     $376,342     $669,437     $413,410

    Earnings Per Share            $.07         $.08         $.14         $.09

    Average Shares
     Outstanding             4,719,870    4,709,533    4,719,870    4,738,297

SOURCE  McClain Industries, Inc.