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RDO Equipment Reports Q2 '02 Profits

Fargo, N.D.-based RDO Equipment Co. announced that net income for the second quarter of the company's 2002 fiscal year was $478,000, or 4 cents per share, compared to a net loss of $1.3 million, or 10 cents per share, for the same period in fiscal 2001. Year to date, net income was $122,000, or 1 cent per share, compared to a loss of $426,000, or 3 cents per share, for the first six months of the last fiscal year. These results represent a significant turnaround from the previous four quarters and reflect "Back to the Basics" initiatives, the company said. These include the streamlining of senior management, the sale of truck dealerships and the closing of certain store locations.

Revenues for the second quarter totaled $149 million and are down $34.5 million, or 18.8 percent, from the same quarter one year ago. For the six months ended July 31, 2001, revenues were $303.7 million, versus $369.4 million a year ago.

Ronald Offutt, CEO of the company, said, "The financial results demonstrate that the company is headed in the right direction. Ongoing efforts to streamline operations and to increase customer focus will be required as we expect to continue to experience the effects of a slowing economy at least for the balance of the fiscal year."

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