PLYMOUTH, Mich., April 15 /PRNewswire/ -- Simpson Industries, Inc.
(Nasdaq: SMPS) announced that net sales in the first quarter ended March 31,
1997, were $105,874,000 compared with $101,421,000 in the first quarter of the
prior fiscal year, an increase of 4.4 percent.
    Net earnings increased by 10.9 percent to $4,387,000, or $.24 a share for
the quarter ended March 31, 1997, from $3,957,000, or $.22 a share in the
corresponding quarter a year ago.
    "We were pleased with the year-over-year improvement in both net sales and
net earnings," said Roy E. Parrott, president and chief executive officer.
"The sales increase occurred in the automotive area primarily because one
major customer incurred some work stoppages in the prior year.  The gross
profit margin of 10.2 percent and the operating earnings margin of 7.4 percent
were the same as the comparable quarter last year.  However, there was an
improvement over the operating earnings margin of 7.2 percent reported for the
fiscal year ended December 31, 1996."
    On March 26, 1997, Simpson announced the signing of a letter of intent to
acquire the Vibration Attenuation Division of Holset Engineering Company,
Ltd., a subsidiary of Cummins Engine Company, Inc.  The transaction is subject
to completion of customary legal and financial due diligence.
    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.  Plants are located throughout the Midwest, as well
as North Carolina, Ontario and Mexico.

    Consolidated Statements of Operations (Unaudited)
    (Dollar and share amounts in thousands, except per share data)


                                                 Three Months Ended
                                                       March 31

                                                 1997          1996

    NET SALES                                 $105,874       $ 101,421

    Cost of products sold                       95,058          91,038
    GROSS PROFIT                                10,816          10,383

    Administrative and selling                   3,033           2,835

    OPERATING EARNINGS                           7,783           7,548

    Interest and other income - net                420             124
    Interest expense                            (1,293)         (1,340)
    EARNINGS BEFORE INCOME TAXES                 6,910           6,332
    Income taxes                                 2,523           2,375

    NET EARNINGS                                $4,387          $3,957

    NET EARNINGS PER SHARE                       $0.24           $0.22

    Cash dividends per share                     $0.10           $0.10

    Average number of common and
     common equivalent shares                   18,149          18,074

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