Robbins & Myers Reports Second Quarter Results

Dayton, Ohio (ots-PRNewswire) - Robbins & Myers, Inc. (NYSE:RBN) today reported sales and earnings for the second quarterended February 28, 1999, were in line with expectations. TheCompany previously announced that second quarter results would belower than the second quarter of fiscal 1998 due to continuedweakness in the specialty chemicals, oil and gas markets and somesoftness in the pharmaceutical market. Sales for the second quarter were $94.9 million compared to$108.4 million reported for the second quarter of fiscal 1998.The Company recorded a previously announced one-time charge of $5million in this quarter primarily for the closure of itsFairfield, California manufacturing facility. This chargedecreased net income for the quarter by $3.3 million and dilutedearnings per share by $.30 ($.25 due to the one-time charge and$.05 due to the anti-dilutive effect of the convertible note) toa loss of $.3 million and $.03 diluted earnings per share. Netincome and diluted earnings per share in the same period of theprior fiscal year were $7.9 million and $.62, respectively. For the first half of the fiscal year, sales were $193.2million versus $212.5 million for the same period in 1998. Netincome was $3.7 million and $16.1 million for the first sixmonths of fiscal 1999 and fiscal 1998, respectively. Year-to-datediluted earnings per share were $.34 versus $1.24 for thecomparable period last year. On a year-to-date basis, the $3.3million one-time charge decreased diluted earnings per share by$.27 ($.25 due to the one-time charge and $.02 due to the anti-dilutive effect of the convertible note). Gerald L. Connelly, President and Chief Executive Officer,said, "The major event impacting results for the quarter was thecontinued weakness in our key end markets. Capital spending inthe specialty chemicals sector is down significantly and the lowprice of oil continues to depress all activity in that sector." Connelly continued, "Closure of the Fairfield, Californiafacility and the consolidation of power sections and down-holepump manufacturing into Houston allows us to size the EnergySystems business unit appropriately for today's oil and gassector environment and permits us to better serve our customers.In addition, we have initiated actions to strengthenprofitability in this down cycle. These include further staffreductions, stringent controls on costs and a reduction inplanned capital spending." "The work stoppage at our Moyno Industrial Products facilityin Springfield, Ohio, continues with economics the main issue,"stated Connelly. "However, we are meeting customer requirementsdue to the contribution of our salaried workforce, ourdistributors and also outsourcing of manufacturing." Connelly concluded, "The current global business climate hascreated a difficult period for the Company. We are encouraged bystrong marketplace acceptance of recent new product introductionsand we believe the actions undertaken will help stabilize ourperformance for the balance of this fiscal year and positionRobbins & Myers well to maximize results in the long-term." Robbins & Myers, Inc. is an international manufacturer andmarketer of superior quality fluids management products andsystems serving the process industries: specialty chemicals,pharmaceutical, oil and gas exploration, production and pipeline,wastewater treatment, food and beverage, and pulp and paper.Headquartered in Dayton, Ohio, the Company has facilities in theUnited States, Canada, Europe, Brazil, Mexico, Singapore andjoint ventures in China, India and Taiwan. In addition to historical information, this news releasecontains forward- looking statements and performance trends whichare subject to certain risks and uncertainties that could causeactual results to differ materially from these statements andtrends. Such factors include, but are not limited to, asignificant decline in capital expenditures in the specialtychemicals and pharmaceutical industries, a major decline in oiland gas prices, foreign exchange rate fluctuations, continuedavailability of acceptable acquisition candidates, and generaleconomic conditions that can affect demand in the processindustries. The Company's common stock trades on the New York StockExchange under the symbol RBN. ROBBINS & MYERS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED INCOME STATEMENT

Three Months Ended

Six MonthsEnded

Feb. 28, Feb. 28,

Feb. 28, Feb.28,

1999

1998

1999

1998

(in thousands, except per share data) Net sales

$94,876

$108,372

$193,142$212,530 Cost of sales

63,193(A) 68,797

127,957(A)134,477 Gross profit

31,683

39,575

65,18578,053 Operating expenses 23,204

24,407

47,45448,733 Other expense (income)

4,708(A)

(516)

4,285(A)(988) Operating income

3,771

15,684

13,44630,308 Interest expense

3,614

3,664

7,1545,882 Income before income taxes

157

12,020

6,29224,426 Income taxes

54

4,086

2,1408,304 Minority interest, net

of taxes

405

--

405

-- Net income

($302)

$7,934

$3,747$16,122 Net Income Per Share:

Basic

($0.03)

$0.72

$0.34$1.47

Diluted

($0.03)

$0.61

$0.34$1.24 Weighted Average Common

Shares Outstanding:

Basic

10,914

11,025

10,92510,995

Diluted

13,529

13,985

13,54813,976 Unfilled Orders

$96,310

$109,000

$96,310$109,000

(A) -- In the three month and six month periods of fiscal1999, cost of sales and other expense include one-time charges of$400,000 and $4,600,000, respectively, primarily for the closureof the Company's Fairfield, California Manufacturing Facility.

Note: All known adjustments have been reflected in thisreport, but the information is subject to annual audit and year-end adjustments which are estimated to be insignificant. ROBBINS & MYERS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited) (in thousands)

February 28, 1999

February28, 1998 ASSETS

Current Assets

Cash and cash equivalents

$8,240

$12,067

Accounts receivable

65,590

77,494

Inventories

58,515

62,019

Other current assets

3,169

3,902

Deferred taxes

9,627

6,257

Total Current Assets

145,141

161,739

Goodwill & Other Intangible

Assets, Net

218,489

219,068

Other Assets

11,239

4,824

Property, Plant & Equipment, Net

116,506

117,531

Total

$491,375

$503,162 LIABILITIES AND SHAREHOLDERS' EQUITY

Current Liabilities

Accounts payable

$23,656

$25,319

Accrued expenses

55,513

49,607

Current portion of long-term debt

3,844

3,821

Total Current Liabilities 83,013

78,747

Long-Term Debt - Less Current Portion

198,251

227,375

Other Long-Term Liabilities

61,104

53,544

Shareholders' Equity

149,007

143,496

Total

$491,375

$503,162ots Original Text Service: Robbins & Myers, Inc. Internet:http://www.newsaktuell.de Contact: Hugh E. Becker, VicePresident Investor Relations, of Robbins & Myers (USA) 937-225-3335 Web site: http://www.robn.com

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