PLYMOUTH, Mich., Oct. 16 /PRNewswire/ -- Simpson Industries, Inc.
(Nasdaq: SMPS) reported today that net sales in the quarter were $112,327,000,
compared to $98,228,000 in the third quarter of 1996.  The $14,099,000
increase was due largely from the inclusion of the operating results of the
recent acquisition of the vibration attenuation business of Holset
Engineering, Ltd, from Cummins Engine Co., Inc. and the impact of new program
launches undertaken since the beginning of the year.
    Net loss for the third quarter, which included a one time pre-tax charge
of $8,769,000 ($5,568,000 after-tax or $0.31 per share) in connection with the
previously announced consolidations of the Jackson and Gladwin facilities,
were $3,337,000 or a negative $0.18 per share.  Net earnings in the third
quarter of 1996 were $3,443,000 or $0.19 per share.
    Production from both the Gladwin and Jackson, Michigan plants is being
consolidated at other Simpson facilities, and the company expects to generate
annualized savings of approximately $5.5 million before taxes beginning in
1998.
    For the nine months, net sales were $328,475,000 up 6% from $309,698,000
in the comparable 1996 period.  Net earnings were $6,468,000 or $0.36 per
share compared to $13,371,000, or $0.74 per share in the first nine months of
1996.
    "This has been a watershed quarter for Simpson as it is the first quarter
to include the operations of our acquisition, as well as consolidating the
company's manufacturing facilities in the U.S.," said Roy E. Parrott,
president and chief executive officer.  "The integration of our European and
Asian operations is on track.  We are now able to compete for new business
with a broader product line and worldwide production facilities for current
and potential customers--both domestic and global."
    Simpson Industries supplies powertrain and chassis products to original
equipment manufacturers in the worldwide automotive and medium and heavy duty
diesel engine markets.  Simpson's products are focused in four groups: noise,
vibration and harshness; wheel-end and suspension; modular engine assemblies
and high-precision machined components.  Simpson's manufacturing units are
located in the United States, Canada, Mexico, Brazil, England, France, Spain
and Korea.
    To receive a copy of this and other Simpson press releases by fax, please
call Company News-On-Call at 800-758-5804 - extension 107165, or you can
access the information via the Internet at http://www.prnewswire.com./


    Consolidated Statements of Operations
    (Unaudited)

    (In thousands, except
     per share data)


                                  Nine Months Ended        Three Months Ended
                                     September 30              September 30

                                      1997    1996            1997      1996
    NET SALES                     $328,475  $309,698        $112,327  $98,228

    Cost of products sold          295,614   276,131         103,322   89,310
    GROSS PROFIT                    32,861    33,567          9,005     8,918

    Administrative and selling       9,538     9,357          3,315     3,158
    Plant Closing Costs              8,769     - - -          8,769     - - -

    OPERATING EARNINGS (loss)       14,554    24,210         (3,079)    5,760

    Interest and other income - net    732       851            206       692
    Interest expense                (5,094)   (4,045)        (2,377)  (1,321)
    EARNINGS (loss) BEFORE INCOME TAXES 10,192 21,016        (5,250)    5,131
    Income taxes (loss)              3,724     7,645         (1,913)    1,688

    NET EARNINGS                     $6,468   $13,371        $(3,337)   $3,443


    NET EARNINGS (loss) PER SHARE     $0.36     $0.74         $(0.18)    $0.19


    Cash dividends per share          $0.30     $0.30          $0.10     $0.10

    Average number of common and
       common equivalent shares      18,172    18,103         18,190    18,117

    Note:  Depreciation & Amortization $17,032 $15,343        $6,476    $5,151

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