Reinhold Industries Announces Second Quarter 2004 Financial Results

Reinhold Industries Announces Second Quarter 2004 Financial
Results 


SANTA FE SPRINGS, Calif., Aug. 12  /PRNewswire-FirstCall/ -- Reinhold
Industries, Inc. (NASDAQ:RNHDA) of Santa Fe Springs, California, today
announced results for the second quarter 2004.

Second quarter 2004 revenues were $19.5 million, up $1.8 million (10%) from
second quarter 2003.  Sales at NP Aerospace increased by $3.4 million (70%) due
primarily to retrofitting of light armored vehicles for the U.K. Ministry of
Defense.  Sales in the Aerospace business unit decreased by $1.0 million (15%)
due to decreased shipments of components related to the Minuteman III
Propulsion Replacement Program.  Sales in the CompositAir business unit
declined by $0.4 million (26%) due to continuing economic problems in the
airline industry.  Commercial sales were flat compared to 2003.  Sales for the
Bingham business unit decreased by $0.2 million (4%).

In the first six months of 2004, revenues were $36.4 million, up $2.3 million
(7%) compared to 2003.  Sales at NP Aerospace increased by $3.7 million (37%)
due primarily to retrofitting of light armored vehicles for the U.K. Ministry
of Defense.  Sales in the Aerospace business unit decreased by $0.2 million
(2%).  Sales in the CompositAir business unit declined by $0.8 million (26%). 
Sales in the Commercial business unit were flat compared to 2003.  Sales for
the Bingham business unit decreased by $0.3 million (4%) due to soft market
conditions.

Net income for the first six months of 2004 was $2.9 million, or $0.90 per
diluted share, compared to net income of $3.4 million, or $1.11 per diluted
share in 2003.  Earnings per share computations reflect a 10% stock dividend
effective May 29, 2003.

"The financial performance of our business units was mixed in the second
quarter," said Michael T. Furry, President and CEO of Reinhold.  "Our UK
subsidiary, NP Aerospace, realized record sales and profitability.  However,
due to continuing market and economic conditions, our CompositAir and Bingham
business units fell short of their financial objectives.  However, we exceeded
our consolidated budget for the first six months and continue to expect full
year 2004 results to be very strong."

This news release contains forward-looking statements as defined in the Private
Securities Litigation Reform Act of 1995.  Such forward-looking statements
involve risks and uncertainties, and Reinhold's actual experience may differ
materially from that anticipated in such statements.  Factors that might cause
such a difference include those discussed in Reinhold's filings with the
Securities and Exchange Commission, including but not limited to its most
recent proxy statement, Form 10-K and Form 10-Q.

Reinhold Industries, Inc. is a manufacturer of advanced custom composite
components, sheet molding compounds, and graphic arts and industrial rollers
for a variety of applications in the United States and Europe.

                  Reinhold Industries, Inc. (NASDAQ:RNHDA)
                (Amounts in Thousands, Except Per Share Data)
                                 (Unaudited)

            2nd Quarter Ended                2nd Quarter Ended
                     06/30/04          YTD            06/30/03       YTD

  Sales               $19,534      $36,426             $17,703   $34,078
  Net Income           $1,686       $2,865              $1,880    $3,404
  EPS                   $0.53        $0.90               $0.61     $1.11


DATASOURCE: Reinhold Industries, Inc.



CONTACT:  Judy Sanson of Reinhold Industries, Inc., [phone]

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