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Kuhlman Corporation Announces Record Q2 Results

13 July 1998

Kuhlman Corporation Announces Record Second Quarter Results

    SAVANNAH, Ga., July 13 -- Kuhlman Corporation
today announced record quarterly results for the three months ended June 30,
1998.  The Company reported record net income of $9,990,000 in the second
quarter of 1998 compared to $6,409,000 in the second quarter of 1997, an
increase of 56%.  Earnings per share were $0.57 in this year's second quarter
compared to $0.43 in the year-ago period, an increase of 33%.  Operating
profit in the second quarter of 1998 reached a historical high of $18,390,000,
or 9.5% of net sales, compared to $14,228,000, or 8.4% of net sales, posted in
the year-ago period.  Net sales for the second quarter of 1998 were
$194,142,000 compared to $170,221,000 for the corresponding period in 1997, an
increase of 14%.  The Company's record-setting results in the second quarter
were due primarily to positive gains made by the Company in its major markets,
margin improvement in key product lines, and the addition of Snyder Tank
Corporation, which was acquired by the Company in November 1997.
    Similarly, the Company posted record results for the first six months of
1998.  Net income for the first six months of 1998 was $18,807,000 compared to
$11,691,000 for the same period in 1997.  This represents an increase of 61%.
Earnings per share were $1.08 for the first six months of 1998 compared to
$0.80 in the year-ago period, an increase of 35%.  Net sales for the first
half of 1998 were $378,244,000 compared to $304,369,000 for the corresponding
period in 1997, an increase of 24%.
    Robert S. Jepson, Jr., Chairman and Chief Executive Officer, stated that,
"We are pleased to report to our shareholders that the Company again achieved
record operating results in the quarter and six months just ended.  The
performance for the second quarter represents the ninth consecutive quarter in
which Kuhlman has posted record results compared to the same quarter one year
earlier.  The Company's performance in the second quarter was due to the many
achievements and strong operating momentum within each of our business
segments.  We believe that our activities and accomplishments in the second
quarter provide a basis for continued growth in shareholder value as we go
forward."

    Following are the comparative results for the three months and six months
ended June 30, 1998 and June 30, 1997:

    (In thousands, except per share data)
                              Three Months Ended          Six Months Ended
                                   June 30,                    June 30,
                              1998          1997         1998          1997
                                               (Unaudited)

    Net sales             $194,142      $170,221     $378,244      $304,369
    Cost of goods sold     148,689       131,707      290,704       236,113
    Gross profit            45,453        38,514       87,540        68,256
    Selling, engineering,
     general and
     administrative
     expenses               27,063        24,286       52,428        42,777
    Operating profit        18,390        14,228       35,112        25,479
    Other income (expense):
    Interest expense, net   (1,837)      (3,028)       (3,687)       (4,966)
    Other, net                (308)        (388)         (689)         (703)
    Total other income
     (expense), net         (2,145)      (3,416)       (4,376)       (5,669)
    Income before taxes     16,245        10,812       30,736        19,810
    Taxes on income          6,255         4,403       11,929         8,119
    Net income              $9,990        $6,409      $18,807       $11,691
    Per share amounts:
    Net income - basic       $0.60         $0.46        $1.13         $0.84
    Net income - diluted     $0.57         $0.43        $1.08         $0.80

    Average shares outstanding:
    Basic                   16,736        13,928       16,656        13,840
    Diluted                 17,476        14,785       17,452        14,635

    Kuhlman Corporation is a diversified industrial manufacturing company
operating in two business segments: 1) Electrical Products - which
manufactures power, distribution and instrument transformers for electrical
utilities and industrial users, and electrical and electronic wire and cable
products for use in consumer, commercial and industrial applications; and
2) Industrial Products - which manufactures proprietary engine components,
fuel tanks and other products used on light, medium and heavy-duty trucks, and
on construction, agricultural, mining, power generation and marine equipment.
    This press release contains forward looking statements that involve risks
and uncertainties that could cause actual results to differ materially from
those projected.  These uncertainties include, but are not limited to,
economic conditions, market demand and pricing, competitive and cost factors,
raw material prices, global interest rates, foreign exchange rates, and other
risk factors.  Forward looking statements are necessarily subject to change
upon the occurrence of events that may affect business.