TransTechnology reports 8 percent increase in incomefrom continuing operations for fiscal 1997...

LIBERTY CORNER, N.J.--(BUSINESS WIRE)--Jan. 15, 1997-- TransTechnology Corp. (NYSE: TT) today reported that income from continuing operations for the fiscal year 1997 third quarter, which ended Dec. 29, 1996, increased 8 percent to $3,020,000, or $.60 per share, from $2,793,000, or $.55 per share,

Net income for the current year's third quarter increased 20 percent to $2,821,000, or $.56 per share, after a loss from discontinued operations of $199,000, or $.04 per share. The prior year's third quarter had net income of $2,346,000, or $.46 per share, after a loss from discontinued operations of $447,000, or $.09 per share. Sales for the third quarter of fiscal 1997 increased 4 percent to $42,851,000 from $41,087,000 in the same quarter a year ago.

The company's Specialty Fastener Products segment reported sales growth of 2 percent and a decrease in operating income of 7 percent over the prior year's third quarter, primarily because of declines in the European and Brazilian retaining ring businesses which reported lower revenues and operating income for the quarter. These declines were partially offset by the contribution of the Pebra hose clamp business which was purchased in the first quarter of this fiscal year. Domestic specialty fastener operations reported essentially flat revenues but a slightly higher operating profit than in the prior year's third quarter.

In looking forward to the remainder of the 1997 fiscal year, the company said that it expects that its Specialty Fastener segment, overall, will post slightly higher fourth quarter revenues than in the previous fiscal year's same quarter, but that operating income may be flat. The company said that its European Specialty Fastener operations are expected to show a slight improvement in revenues and operating income in the fourth quarter, due primarily to the Pebra operation offsetting the weakness in the German retaining ring business. Domestic Specialty Fastener revenues are expected to be relatively flat when compared with the prior year's fourth quarter, with operating income being flat or slightly lower. Domestic Fastener operations are heavily influenced by the heavy truck production rate, which is down from the prior year, and the automotive OEM build schedule, which is currently estimated to be slower in the company's fourth fiscal quarter than last year. Although most of the revenue loss due to the heavy truck slowdown was recaptured through sales to other end user markets, the margins realized from these alternate markets are lower, thus higher revenues yield slightly lower operating profits as a percentage of sales.

For the fiscal 1997 third quarter, the Rescue Hoist and Cargo Hook segment reported a 16 percent revenue increase and a 79 percent improvement in operating income over the prior year's third quarter. New rescue hoist and cargo hook orders booked in the third quarter amounted to $6.3 million as compared to $9 million in the prior year's third quarter. The backlog of orders at the end of the third quarter stood at $30.5 million as compared to $32.4 million a year earlier.

Michael J. Berthelot, TransTechnology's chairman and chief executive officer, commented, "While our overall results were good, we continued to battle the slower economy in Europe, especially in Germany. We have spent the last year assimilating the Seeger Group acquisition, and have recently commenced a number of rationalization and consolidation actions to maximize the efficiency of our European and US operations. In September 1997, we will close the smaller of our two retaining ring factories in Germany, transferring the work to the UK, with its lower labor costs, and our remaining German ring factory. We expect this consolidation to reduce our European work force with no impact upon revenues or customer service. Similarly, in the US and Brazil we are looking at a number of consolidation possibilities to improve the work flow and efficiency of our retaining ring operations. At the same time that we are lowering our cost structure, we are increasing our engineering and product development resources so as to make further inroads in the markets that we serve by providing high quality value added services at the same or lower prices."

For the first nine months of fiscal 1997, income from continuing operations was $6,844,000, or $1.35 per share, up 17 percent from $5,869,000, or $1.15 per share, for the corresponding period in fiscal 1996. Net income for the first nine months of fiscal 1997 was $6,170,000, or $1.22 per share, after a loss from discontinued operations of $674,000, or $.13 per share, compared with $5,101,000, or $1.00 per share after a loss from discontinued operations of $768,000, or $.15 per share, for the fiscal 1996 nine months. Total sales advanced 18 percent to $131,071,000 for the fiscal 1997 nine-month period from $111,155,000 for the corresponding period a year ago.

Berthelot continued, "Our stars this quarter were the Breeze Eastern unit, which manufactures Rescue Hoists and Cargo Hooks, and the Breeze Industrial hose clamp business. Not only did we see an impressive continuation of improvement in the financial results of the Rescue Hoist segment, but the many rescues in the disastrous floods in the western United States reminded us of the importance of our products and the brave men and women who use them. The men and women of Breeze Eastern continue to develop new products, such as hoists and cargo hooks for the V-22 and several actuator products, and to work more efficiently to serve our customers in a timely and professional manner. Our Breeze Industrial unit, foreseeing the decline in heavy truck production rates, moved quickly to replace the at-risk revenues with newly acquired business serving other industries. This proactive approach to a slowdown not only illustrates the high quality of our management team at Breeze Industrial, but also bodes well for future growth when the heavy truck business recovers and those orders return."

Joseph F. Spanier, vice president and chief financial officer, said, "Our cash flow for the quarter was very strong. In the third quarter, we repaid almost $3 million of debt from cash generated by operations, while funding our capital expenditures program. As we commence our detailed financial and operating planning process for the fourth quarter and the new fiscal year, we will continue to focus on further debt reductions." -0-

Results for the third quarter and nine months were as follows:
(In thousands of dollars, expect per share data)

                      TransTechnology Corporation
                STATEMENTS OF CONSOLIDATED OPERATIONS

In thousands of dollars
(except share amounts)     Third Quarter Ended    Nine Months Ended
                           12/29/96    12/31/95   12/29/96  12/31/95

Net sales                  $42,851     $41,087   $131,071  $111,155
Cost of sales               28,861      27,269     90,884    77,180
 Gross profit               13,990      13,818     40,187    33,975
General, administrative
 & selling expenses          8,620       7,644     25,287    20,850
Interest expense             1,794       1,787      5,418     4,552
Interest income               (471)       (273)    (1,024)     (612)
Royalty and other income      (973)       (241)    (1,193)     (678)
 Income from continuing
  operations before income
  taxes                      5,020       4,901     11,699     9,863
Income taxes                 2,000       2,108      4,855     3,994
 Income from continuing
  operations                 3,020       2,793      6,844     5,869
Loss from discontinued
 operations(a)                (199)       (447)      (674)     (768)
  Net income                $2,821      $2,346     $6,170    $5,101
Earnings per share:
From continuing operations   $0.60       $0.55      $1.35     $1.15
From discontinued operations (0.04)      (0.09)     (0.13)    (0.15)
 Net income                  $0.56       $0.46      $1.22     $1.00
Weighted average shares
 outstanding             5,026,000   5,099,000  5,076,000 5,092,000

(a) Loss from discontinued operations is net of applicable tax
benefits of $134 and $275 for the quarters ended Dec. 29, 1996 and
Dec. 31, 1995, respectively, and $478 and $471 for the nine months
ended Dec. 29, 1996 and Dec. 31, 1995, respectively.
-0-
                           SEGMENT INFORMATION

                        Third Quarter Ended       Nine Months Ended
                        12/29/96   12/31/95      12/29/96  12/31/95

Sales:
 Specialty fasteners    $34,391     $33,779      $105,497   $90,145
 Rescue hoists and
  cargo hooks             8,460       7,308        25,574    21,010
  Total                 $42,851     $41,087      $131,071  $111,155
Operating profit:
 Specialty fasteners     $6,301      $6,756       $17,073   $15,729
 Rescue hoists and
  cargo hooks             2,406       1,341         5,711     2,855
 Total                    8,707       8,097        22,784    18,584
Corporate expenses        1,893       1,409         5,667     4,169
Interest expense          1,794       1,787         5,418     4,552
 Income from continuing
  operations before
  income taxes          $5,020       $4,901       $11,699    $9,863

                       BALANCE SHEET INFORMATION

                                    12/29/96        3/31/96

Current assets                       $89,534        $95,282
Property, plant & equipment - net     60,391         60,577
Costs in excess of net assets of
 acquired businesses                  19,137         16,411
Other assets                          28,348         27,097
Total assets                        $197,410       $199,367
Current portion of long-term debt     $6,199         $6,026
Other current liabilities             28,522         31,908
Total current liabilities            $34,721        $37,934
Long term debt                        69,427         72,565
Other liabilities                     17,878         16,398
Shareholders' equity                  75,384         72,470
Total liabilities and shareholders'
 equity                             $197,410       $199,367

CONTACT: TransTechnology Corp., Liberty Corner

Michael J. Berthelot, 908/903-1600