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June 22, 2000 EXHIBIT 99.1
FOR IMMEDIATE RELEASE THROUGH PR NEWSWIRE
Released: June 22, 2000 @ 8:38 p.m.
TECUMSEH PRODUCTS COMPANY ANNOUNCES PRELIMINARY SECOND QUARTER RESULTS
Tecumseh, Michigan, June 22, 2000 - Tecumseh Products Company (NASDAQ: TECUA,
TECUB) today announced that it expects its earnings per share for the second
quarter ending June 30, 2000 to be in a range from $1.40 to $1.47. These lower
than anticipated earnings result primarily from declining profits in two of the
Company's major business segments, Engine & Power Train Products and Compressor
Products.
Engine & Power Train Products results have been adversely impacted by lower than
expected sales of lawn and garden engines and for various utility applications
including engines for generators. Additionally, the product mix has been less
favorable reflecting lower than expected sales of higher margin products. It is
expected that these factors will continue to impact the Engine & Power Train
Group for the balance of the year. The Company is aggressively addressing these
market-driven conditions and attempting to bring costs in line with projected
production levels and product mix.
In the Compressor business, sales of air conditioning products in North America
are well below expected rates because of continuing and accelerating competition
and less than anticipated market penetration. Sales and margins of the Company's
Brazilian subsidiary are also running at lower than previously forecasted
levels. Indian results continue to be adversely impacted by the lingering
effects of a work stoppage and start up costs associated with a new
manufacturing plant. Worldwide conditions in the compressor markets are not
expected to improve significantly throughout the balance of the year.
Third quarter and full year 2000 results are expected to be below 1999 levels as
well.
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 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
/s/ JOHN H. FOSS
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Certified by John H. Foss
Tecumseh Products Company
Vice President, Treasurer & CFO
