PLYMOUTH, Mich., July 17 /PRNewswire/ -- Simpson Industries, Inc.
(Nasdaq: SMPS) today reported record sales and earnings for the second
quarter ended June 30, 1996.
    Net sales for the quarter were up 6.2 percent to $110,049,000 from
$103,600,000 in the year earlier period.  Operating earnings advanced to
$10,902,000 from $9,055,000 in the prior year's second quarter.  Net
earnings rose to $5,971,000, or 33 cents a share, a 21.6 percent
increase from $4,911,000, or 27 cents a share.
    For the half, Simpson posted sales of $211,470,000, compared to
$210,837,000.  Operating earnings were $18,450,000 compared to
$19,027,000.  Net earnings were $9,928,000, or 55 cents a share, versus
$10,473,000, or 58 cents a share.  Results for the first quarter were
affected by overall softness in the light vehicle market as well as the
General Motors strike.
    A 12 percent gain in sales to diesel engine manufacturers
strengthened second quarter results.  Simpson's sales to auto/light
truck manufacturers were up by five percent, in line with North American
production rates for the quarter.  The Company noted that approximately
$500,000 of the second quarter operating earnings improvement was due to
the recovery of out-of-period costs net of certain unusual expenses.
    "Profitability grew faster than sales in the quarter as operating
margins improved, and we expect this to continue for Simpson, based on
expected production levels," said Roy E. Parrott, president and chief
executive officer.  "Our engineering and design capabilities are
creating innovative, cost effective products for our customers, such as
the gerotor lube pump design we will be producing for Eaton later this
year.  A clear focus on Simpson's product groups sharpen that expertise,
and over time, these strategies expand profitability.  As was the case
in the second quarter, better coverage of fixed costs and operating
efficiencies benefit margins and earnings.
    "Simpson now has four plant locations, as well as our Corporate
Headquarters and Technical Center, which have qualified for QS 9000
status," he said.  "This further strengthens our competitive position,
especially because we are ahead of many others in the industry.
    "Simpson's new business awards are on track, totaling $33 million so
far in 1996.  With auto production schedules higher than earlier in the
year, we are currently expecting this year's sales to come in at about
$400 million," Mr. Parrott said.
    Simpson Industries supplies powertrain and chassis products to
original equipment manufacturers in the global automotive and heavy duty
markets.  The company's products are focused in four groups:  noise and
vibration, wheel-end and suspension, modular engine assemblies and high
precision machined parts.
    Simpson's 11 manufacturing units are located throughout the midwest,
as well as North Carolina, Ontario and Mexico.

                           Simpson Industries
                    Second Quarter Operating Results



                (In thousands, except per share amounts)

                    Six Months Ended                Three Months Ended
                             June 30                June 30

                                  1996       1995      1996      1995
    Net Sales                   $211,470   $210,837  $110,049  $103,600

    Costs and expenses:
       Cost of products sold     186,821    186,544    95,783    91,688
       Administrative and selling  6,199      5,266     3,364     2,857

                                 193,020    191,810    99,147    94,545

    OPERATING EARNINGS            18,450     19,027    10,902     9,055

    Interest and other income - net  159        796        35       462
    Interest expense              (2,724)    (2,862)   (1,384)   (1,481)
    EARNINGS BEFORE INCOME TAXES  15,885     16,961     9,553     8,036
    Income taxes                   5,957      6,488     3,582     3,125

    NET EARNINGS                  $9,928    $10,473    $5,971    $4,911


    NET EARNINGS PER SHARE         $0.55      $0.58     $0.33     $0.27

    Cash dividends per share       $0.20      $0.20     $0.10     $0.10

    Average number of common
      and common equivalent
      shares               18,096,326  18,027,830  18,118,936 18,050,093