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Harmon Industries, Inc. NASDAQ: HRMN For Immediate Release |
Charles M. Foudree (816) 229-3345 |
Long-term outlook remains strong...Harmon Officials Discuss Company Position
BLUE SPRINGS, Mo. (Monday, September 18, 1995) -- Company officials from Harmon Industries, Inc. discussed the company's current position as well as other activities in the railroad industry during a teleconference with industry analysts today.
Harmon officials stated that they will not meet the financial community's earnings expectations in the third quarter, and for 1995, for a variety of reasons.
Harmon officials said they are experiencing continued difficulty in fully integrating the transportation product line, acquired from Servo Corporation of America in late 1994, into Harmon's existing operations in southern California.
Additionally, the company explained that there has been a downturn in orders for certain products recently, most of which is due to the ongoing consolidation activities within the railroad industry.
Harmon officials said they are actively refining their business strategies to mitigate this short-term concern.
"The integration of the hot box line has taken longer than we originally anticipated. However, we have taken steps to fix this internal situation and are confident that complete integration will be achieved in early 1996," said Björn Olsson, president and chief executive officer of Harmon Industries. "Even though we will not meet our initial expectations, we will still have a good year. With a record backlog and an outstanding financial position, we're able to keep our focus on the long-term growth of our company."
Harmon Industries, Inc. is a leading supplier of signal and train control products to railroads and transit districts throughout North America and the world. The company is traded in the over-the-counter market and is quoted on the NASDAQ National Market System under the symbol HRMN. For further information, please contact Charles M. Foudree, executive vice president-finance, Harmon Industries, Inc., 1300 Jefferson Court, Blue Springs, MO 64015. The telephone number is (816) 229-3345.
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