PLYMOUTH, Mich., Jan. 28 /PRNewswire/ -- Simpson Industries (Nasdaq: SMPS)
today announced record sales of $408 million and earnings of $17.6 million for
the year ended December 31, 1996.
    Fourth quarter net sales were $98,301,000 compared with $97,894,000 in the
1995 quarter.  Sales in the fourth quarter were reduced by approximately $1.3
million due to the General Motors strike.  Operating earnings were $5,363,000
versus $6,332,000.  Net earnings were $4,236,000, or 23 cents a share,
compared to $3,394,000, or 19 cents a share.  Net earnings benefited from tax
credits of $1.1 million, or six cents a share, relating to prior years.
    For the year, net sales were $407,999,000, up from $395,069,000 the year
earlier.  Operating earnings were $29,573,000 compared to $28,764,000.  Net
earnings -- again, benefiting from the fourth quarter tax adjustment -- were
$17,607,000, up from $15,302,000.  Earnings per share were 97 cents, up from
85 cents.
    "This past year's achievements support Simpson's growth, giving us
expanded capabilities to meet our customers' needs," said Roy E. Parrott,
president and chief executive officer.  "Of these, early completion of QS-9000
registration and getting our Technical Center fully operational are
significant.  Another milestone is the successful startup of our Mexican plant
which is delivering both customer satisfaction and profitability.  Finally,
$55 million of new business awards will keep us on track to reach the $600
million sales level by the year 2000.
    "Industry estimates call for North American light vehicle and diesel
engine production to be off slightly this year.  We are currently expecting
sales for 1997 to be comparable to 1996.  At the same time, we start a strong
lineup of 13 new product launches in 1997, but we will post only a partial
year of revenues from these programs.  A number of these product launches are
in the rapidly growing wheel-end and suspension product line.  "We expect
sales growth to pick up beginning in 1998 as this year's launches produce a
full year of revenues and more new products come on stream.
    "We have an ambitious agenda for 1997.  We plan to focus on the cost
structure at our plants, with the intent of expanding variable margins,
improving cash generation, and we are bringing our information systems to a
level which will enhance efficiency, timeliness and the value of information.
    "We are actively looking for the best path to enter the European market.
As we've said, this could take the form of a joint venture, acquisition or
partnership of some kind.  We are committed to expanding our global
capabilities.  To boost growth within the U.S., we'd like to add businesses
that are extensions of our focused product lines," Mr. Parrott said.
    "New business was strong in the fourth quarter of 1996, and we are seeing
a high level of interest from our customers," said Mr. Parrott.  "The
Technical Center Open House was a great help in building awareness of our
capabilities.  We are confident that Simpson is positioned to perform at, or
better than, our growth targets over the long term."
    Simpson Industries supplies powertrain and chassis products to original
equipment manufacturers in the global automotive and diesel engine markets.
The company's products are focused in four groups:  noise, vibration and
harshness; 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, Inc.
                         Fourth Quarter Operating Results
                     (In thousands, except per share amounts)

                                       Year  Ended         Three Months Ended
                                       December 31           December 31
                                    1996        1995       1996       1995

    Net sales                     $407,999    $395,069   $98,301    $97,894

    Costs and expenses:
        Cost of products sold      365,253     354,436    89,122     88,179
        Administrative and selling  13,173      11,869     3,816      3,383
                                   378,426     366,305    92,938     91,562

    OPERATING EARNINGS              29,573      28,764     5,363      6,332

    Interest and other income, net   1,425       1,147       574        303
    Interest expense                (5,354)     (5,514)   (1,309)    (1,295)
    EARNINGS BEFORE INCOME TAXES    25,644      24,397     4,628      5,340
    Income Taxes                     8,037       9,095       392      1,946

    NET EARNINGS                  $ 17,607    $ 15,302   $ 4,236    $ 3,394

    NET EARNINGS PER SHARE            $.97        $.85      $.23       $.19

    Cash dividends per share          $.40        $.40      $.10       $.10

    Average number of common
    and common equivalent
    shares                      18,108,439  18,035,060  18,124,032  18,029,939

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