PLYMOUTH, Mich., July 16 /PRNewswire/ -- Simpson Industries, Inc.
(Nasdaq: SMPS) today reported that sales of $110,274,000 for the second
quarter ended June 30, 1997 were up slightly from the prior year comparable
quarter of $110,049,000.  Strong sales to diesel engine customers and a new
wheel-end and suspension program that went on line in late 1996 offset the
effects of a decline in auto production and strikes at two key customers.
    Net earnings for the second quarter were $5,418,000, or 30 cents a share,
compared to $5,971,000, or 33 cents in the year earlier period.  In 1996's
second quarter, approximately 2 cents a share was due to the recovery of
out-of-period costs net of certain unusual expenses.
    For the six months, net sales were $216,148,000, up from $211,470,000 in
the 1996 first half.  Net earnings were $9,805,000, or 54 cents a share,
compared to $9,928,000, or 55 cents a share in the first six months of 1996.
    "We are starting to see benefits of increased program penetration in this
quarter's sales results," said Roy E. Parrott, president and chief executive
officer.  "Simpson is ramping up new programs that will strengthen sales well
into the next century.  If the domestic and international economies remain
strong and there is no further deterioration in auto and truck production, we
are looking at sales of about $440 million for 1997.  This includes the
second half consolidation of sales with our international expansion, the
acquisition of the Vibration Attenuation business of Holset Engineering from
Cummins Engine Co., Inc.,"  Mr. Parrott said.
    The Company had announced on July 7, 1997 that it will close the Jackson,
Michigan manufacturing plant and take a pre-tax charge of approximately
$4 million in the third quarter ending September 30, 1997.  Mr. Parrott said,
"The transfer of operations to three other existing facilities and elimination
of excess capacity should generate approximately $2.5 million of annualized
savings starting in 1998."
    Simpson Industries supplies powertrain and chassis products to original
equipment manufacturers in the automotive and medium and heavy duty 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 and Brazil.  European and Asian operations
are located in England, France, Spain and Korea.
    Certain statements in this press release may be "forward-looking
statements" under the Securities Exchange Act of 1934.  Statements regarding
future operating performance, new programs expected to be launched and other
future prospects and developments are based on current expectations and
involve certain risks and uncertainties that could cause the actual results
and developments to differ materially from the forward-looking statements.
Potential risks and uncertainties include such factors as demand for the
Company's products, pricing and other actions taken by competitors, and
general economic conditions affecting the markets served by the Company.

                    Consolidated Statements of  Operations
                                 (Unaudited)
                      (In thousands, except per share data)

                                  Six Months Ended       Three Months Ended
                                       June 30                 June 30

                                   1997       1996       1997         1996
    NET SALES
                               $216,148   $211,470   $110,274     $110,049

    Cost of products sold       192,292    186,821     97,234       95,783
    GROSS PROFIT                 23,856     24,649     13,040       14,266

    Administrative and selling    6,223      6,199      3,191        3,364

    OPERATING EARNINGS           17,633     18,450      9,849       10,902

    Interest and other              526        159        107           35
      income - net
    Interest expense             (2,717)    (2,724)    (1,424)      (1,384)
    EARNINGS BEFORE              15,442     15,885      8,532        9,553
    INCOME TAXES
    Income taxes                  5,637      5,957      3,114        3,582

    NET EARNINGS                 $9,805     $9,928     $5,418       $5,971

    NET EARNINGS PER SHARE        $0.54      $0.55      $0.30        $0.33

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

    Average number of common
    and common equivalent shares 18,163     18,096     18,177       18,119

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