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EXHIBIT 99
October 3, 2000
FOR IMMEDIATE RELEASE (released over PR Newswire @ 9:18 p.m.)
(NASDAQ Symbols: TECUA and TECUB)
TECUMSEH PRODUCTS COMPANY ANNOUNCES PRELIMINARY THIRD QUARTER RESULTS
Tecumseh, Michigan, October 3, 2000 - Tecumseh Products Company (NASDAQ: TECUA
and TECUB) today announced that it expects its earnings per share for the third
quarter ending September 30, 2000 to be in a range from $0.68 to $0.73. The
Company's two major business segments, Engine & Power Train Products and
Compressor Products, are now expected to report third quarter sales and earnings
at levels lower than previously anticipated.
Engine & Power Train Products results continue to be adversely impacted by
significant reductions in engine demand for various utility applications such as
portable power generators and lower than expected sales of lawn and garden
engines and transmissions. An unfavorable product mix has resulted in lower than
expected sales and profits of higher margin utility engines. Additionally, unit
production costs have been adversely impacted by reduced shipping levels, which
have resulted in production imbalances and excess production capacity. Market
conditions in the Engine & Power Train Products Group are expected to further
deteriorate throughout the balance of the year, with the majority of fourth
quarter production and sales weighted heavily toward the lower margin lawn and
garden market.
Results in the Compressor Products Group continue to be adversely impacted by
reduced demand as well as accelerating competition in its air conditioning
markets. Commercial refrigeration sales also slowed noticeably in the third
quarter. Brazilian sales, while still strong, have been negatively impacted by
the weakness of the European currency. Additionally, margins have declined in
Brazil as a result of increasing price competition and upward pressure on
manufacturing costs. Indian operations continue to suffer from start up costs
associated with bringing a new manufacturing plant on line. Worldwide conditions
in the compressor markets are not expected to improve throughout the balance of
the year.
It is likely that fourth quarter earnings per share will be below those of the
third quarter and significantly below those of fourth quarter 1999.
Tecumseh Products Company will host a conference call to report on the third
quarter results on Tuesday, October 24th at 11:00 a.m. ET. The call will be
broadcast live over the Internet and then available for replay through Tecumseh
Products Company's website at www.tecumseh.com.
This release contains forward-looking statements within the meaning of the
"Private Securities Litigation Reform Act of 1995" and are subject to the safe
harbor provisions created by that Act. Actual results may differ materially from
those projected as a result of certain risks and
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uncertainties inherent in business forecasts as more fully described in the
Company's Annual Report on Form 10-K.
Tecumseh Products Company is a full-line independent global manufacturer of
hermetic compressors for air conditioning and refrigeration products, gasoline
engines and power train products for lawn and garden applications, and a
diversified line of pumps for the private and commercial consumer.
Contact: Pat Walsh (517) 423-8455
Tecumseh Products Company
