Griffon Reports Results for the First Quarter of Fiscal 1998

Griffon Corporation Reports Record Operating Results for the First Quarter of Fiscal 1998

Jericho, New York, February 5, 1998—Griffon Corporation (NYSE: GFF) today reported record operating results for the first quarter of fiscal 1998, ended December 31, 1997.

Net sales for the quarter increased 26% to $229,031,000 compared to $181,744,000 for the first quarter of fiscal 1997. Net income for the quarter was $8,515,000 compared to $7,520,000 for the first quarter of last year. Diluted earnings per share for the quarter were $.27 compared to $.24 for the first quarter of last year. Basic earnings per share for the first quarter were $.28 compared to $.26 a year earlier.

Each of the company’s three business segments contributed to the improved earnings in the first quarter. The growth in sales came primarily from the building products and electronic information and communication systems segments.

Griffon Corporation—

is a leading manufacturer and marketer of residential garage doors, as well as a major supplier of commercial and industrial garage doors and a range of related products and services for the home building and replacement markets;
is a leader in the development and production of embossed and laminated specialty plastic films used in the baby diaper, feminine napkin, adult incontinent, surgical and patient care markets; and
develops and manufactures information and communication systems for government and commercial markets worldwide.

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: The statements contained in this release which are not historical facts are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by forward-looking statements, including the effect of business and economic conditions; the impact of competitive products and pricing; capacity and supply constraints or difficulties; product development, commercialization or technological difficulties; and other risks and uncertainties.

Griffon Corporation Operating Highlights (Unaudited)
	For the Three Months Ended December 31,
	1997	1996
Net sales	$229,031,000	$181,744,000

Operating income	$ 14,305,000	$ 12,726,000
Interest expense, net and other	(789,000)	(398,000)

Income before income taxes	13,516,000	12,328,000
Provision for income taxes	5,001,000	4,808,000
Net income	$ 8,515,000	$ 7,520,000
Net income per share of common stock:
Basic	$.28	$.26
Diluted	$.27	$.24
Weighted average number of shares used in the calculation of per share results:
Basic	30,477,000	28,907,000
Diluted	31,408,000	31,240,000