Document 6XmOdNwpVLNGLOJzoXg2Z1Zm

-"arlock NEWS RELEASE 7/15/75 SECOND QUARTER SALES AND EARNINGS Rochester, New York, July 15 - - - - Net income at Garlock Inc. (NYSE) continued its substantial growth with a 35% gain in the second quarter ended June 29 while sales for the period rose 10%. Second quarter net income was $2,237,000 in 1975 and $1,655,000 in 1974 after the latter's restatement for LIFO accounting. Per share income for the quarter rose to 94t from 70$ last year, again after restatement. There were 2,377,000 shares outstanding in both periods. Sales in the second quarter were $42,337,000 in 1975 compared to $38,636,000 in 1974. First half net income was $4,272,000, up 36% from $3,140,000 for the restated 1974 period. Six-month sales were $84,973,000, up 14% from $74,639,000 in 1974. Earnings per share for the first half of 1975 were $1.80 compared to $1.32 last year. Garlock experienced particularly strong growth in its products sold largely to the energy or process industries. These products include braided packings, expansion joints, compressor components, and plastic butterfly valves. GARLOCK INC.. 1250 MIDTOWN TOWER, ROCHESTER. NEW YORK 14604 (716)232-1400 TELEX: 978452 Garlock products used by original equipment manufacturers for the production of heavy trucks and consumer durables (appliances and cars) continued to experience weakness as in the first quarter. The products primarily affected are custom molded rubber products, bearing materials, and oil seals. The current relationship of sales to original equipment manufac turers versus those to the maintenance and repair aftermarket is now 40% to 60% versus the 45% to 55% experienced during 1974 and the 50% to 50% experienced in recent years. Garlock's overseas business this year is dramatically ahead of what it was last year for the comparable period. The profit margin improvements in 1975 are the result of 1) product mix (with greater emphasis on higher margin products and elimina tion of low-margin items), 2) price increases, and 3) customer/market mix (with more aftermarket penetration than sales to new equipment makers). Garlock expects moderate sales and earnings growth in the second half, with earnings growing faster than sales. The company expects both sales and earnings to set records for the year. Garlock Inc., headquartered in Rochester, New York, manufactures industrial seals and other components, primarily for piping, machinery, and transportation applications. (EARNINGS TABLE FOLLOWS) Page 2 of 3 GARLOCK INC. EXECUTIVE OFFICES/1250 MIDTOWN TOWER. ROCHESTER. NEW YORK 14604 (716)232-1400 TELEX: 978452 GARLOCK INC. EARNINGS TABLE Second Quarter Sales Pre-Tax Income Income Taxes Net Income Per Share Average Shares THIRTEEN WEEKS ENDED June 29 1975 June 30 1974 $42,337,000 4,208,000 1,971,000 2,237,000 $.94 2,377,000 $38,636,000 3,465,000 1,810,000 1,655,000 $.70 2,377,000 + 9.6% + 21.4% + 8.9% + 35.2% + 34.3% First Half Sales Pre-Tax Income Income Taxes Net Income Per Share Average Shares TWENTY-SIX WEEKS ENDED June 29 1975 June 30 1974 $84,973,000 8,478,000 4,206,000 4,272,000 $1.80 2,377,000 $74,639,000 6,362,000 3,222,000 3,140,000 $1.32 2,377,000 + 13.8% + 33.3% + 30.5% + 36.1% + 36.4% (These figures are subject to year-end audit by independent accountants.) For additional information: Douglass M. Barnes (7160 232-1400 Page 3 of 3 GARLOCK INC. EXECUTIVE OFFICES/1250 MIDTOWN TOWER, ROCHESTER, NEW YORK 14604 (716)232-1400 . TELEX: 976452