Harmon First Quarter Earnings Nearly Triple

BLUE SPRINGS, Mo. (Tuesday, April 30, 1996) -- Harmon Industries, Inc. today announced record first quarter results for the period ended March 31, 1996.

Net sales for the first quarter were $38.4 million, an increase of 31 percent from $29.4 million in the first quarter of 1995. Net earnings nearly tripled to $2.1 million for the period ended March 31, compared with $706,000 a year ago. Earnings per share were $0.30 in the first quarter of 1996, compared with $0.10 for the same period in 1995.

"We are very pleased with our first quarter results, especially in light of an industry slow-down that is still challenging many suppliers," said Björn Olsson, president and CEO of Harmon Industries, Inc. "Our technological leadership and asset management service business were major contributing factors to the outstanding success."

The on-time completion of the Chicago Transit Authority project, an achievement that many in the industry thought was unrealistic, was one of the biggest highlights of the quarter. Additionally, Harmon achieved record shipments during the quarter and was still able to maintain a strong backlog.

Harmon achieved another milestone during the quarter by earning ISO-9001 certification that covers all signal and engineering offices in Grain Valley, Mo.; Jacksonville, Fla.; Louisville, Ky.; and Omaha, Neb., as well its electronic manufacturing facilities in Grain Valley and Warrensburg, Mo.

Harmon also recently announced a realignment that is designed to make it easier for customers to do business with the company. Due to changing market needs, Harmon is merging its three operating subsidiaries, Harmon Electronics, Inc., Consolidated Asset Management Company, Inc. (CAMCO), and Electro Pneumatic Corporation, into the parent company, Harmon Industries, Inc. The realignment is effective May 1.

"Our intent is to become one voice and one face to our customers," Olsson said. "We believe this will make us more efficient as an organization and enable us to provide even better service to our customers."

Harmon Industries, Inc., a leading supplier of signal and train control products to railroads and transit systems throughout North America and the world, is traded on the Nasdaq Stock Market under the symbol "HRMN." For further information, please contact Charles M. Foudree, executive vice president-finance and chief financial officer, Harmon Industries, Inc., 1300 Jefferson Court, Blue Springs, MO 64015. The telephone number is (816) 229-3345.

###

Back to Harmon News Releases