Exhibit 99.2 APPLIED POWER COMPLETES MERGER WITH ZERO CORPORATION MILWAUKEE, July 31, 1998 -- Applied Power Inc. (APW - NYSE) and ZERO Corporation (ZRO - NYSE) announced today that at special meetings for both companies, shareholders voted to approve the merger of a newly created subsidiary of Applied Power into ZERO. The merger was completed after the shareholder meetings. Under the terms of the agreement, ZERO stockholders receive .850 shares of APW common stock for each share of ZERO common stock, or approximately 11.2 million shares. This equates to a purchase price of approximately $386 million based on the July 30, 1998 closing stock price for APW. Richard G. Sim, Chairman and CEO of APW stated, "We are very pleased to complete this transaction. APW and ZERO shared the vision of creating a worldwide company which supports customers with a broad spectrum of electronic packaging products on a global basis. Our electronic enclosure systems strategy operates with three basic principles: 1. To be the premier company in providing standard and customized electronic enclosures on a global basis. 2. To be able to offer our customers either a standalone or fully integrated product. Our enclosure business brings significant experience in thermal management, power supplies, multi-layer backplanes and to a limited extent, PC board capabilities. All of these can be provided as separate components or fully integrated in the enclosure. 3. We focus on a diverse end user industry, including telecommunication, semiconductor fabrication, computer networking, medical and various other computer and electronic applications." Sim continued, "Over the last two years and culminating with the ZERO transaction, APW has purchased 10 enclosure companies operating out of 28 facilities in North America, Europe and Asia. Our acquisition strategy is to continue to grow this segment, both in geographic coverage and component and integration services that can be added to the enclosure based on the customer's requirements." Applied Power Inc., headquartered in Butler, Wisconsin, is a global company comprised of three business segments. Technical Environments and Enclosures provides technical furniture and electrical and electronic enclosure systems. Engineered Solutions supplies components and systems using thermal management, actuation and vibration control technologies to a diverse group of OEM customers. Tools and Supplies provide industrial and electrical tools and accessories through various distributor and retail channels worldwide. 38 With headquarters in Los Angeles, ZERO's primary business is protecting electronics. ZERO's system packaging, thermal management and engineered cases serve the telecommunications, instrumentation and data- processing markets. ZERO also produces the famous line of ZERO Halliburton(R) cases for consumers worldwide and cargo containers and proprietary loading systems to the airline industry. For further information contact: Applied Power Inc. Robert C. Arzbaecher Vice President and Chief Financial Officer 414-781-6600 To receive a faxed copy of this or other recent Applied Power communications, please call the Company's "News on Demand" service at 1-800-549-0679. 39 Page 3 APPLIED POWER INC.-RESTATED TO INCLUDE ZERO FINANCIAL DATA PACKAGE (UNAUDITED) ($'s in 000's, except per share amounts)
FINANCIAL HIGHLIGHTS FISCAL 1997 --------------------------------------------------------- Q1 Q2 Q3 Q4 Year -- -- -- -- ---- - --------------------- INCOME DATA - --------------------- Sales $207,760 $210,557 $232,385 $247,057 $897,758 Percent Sales Growth Over Prior Year 11% 12% 17% 22% 15% Operating Profit $ 23,687 $ 23,684 $ 26,976 $ 27,325 $101,672 --------------------------------------------------------- Percent of Sales 11.4% 11.2% 11.6% 11.1% 11.3% EBITDA $ 32,062 $ 33,021 $ 35,976 $ 35,950 $137,010 --------------------------------------------------------- Percent of Sales 15.4% 15.7% 15.5% 14.6% 15.3% - --------------------- SHARE DATA - --------------------- Basic EPS $ 0.35 $ 0.35 $ 0.40 $ 0.42 $ 1.53 --------------------------------------------------------- Basic EPS Growth Over Prior Year 25% 17% 25% 20% 21% Diluted EPS $ 0.34 $ 0.34 $ 0.39 $ 0.41 $ 1.47 --------------------------------------------------------- Diluted EPS Growth Over Prior Year 26% 17% 26% 17% 20% EBITDA/Diluted Share $ 0.82 $ 0.84 $ 0.91 $ 0.91 $ 3.49 --------------------------------------------------------- EBITDA Per Share Growth Over Prior Year 30% 25% 32% 20% 26% Cash Dividend Per Share $ 0.045 $ 0.045 $ 0.045 $ 0.045 $ 0.180 --------------------------------------------------------- Average Shares Outstanding (in 000's): Basic 37,697 37,876 37,939 38,028 37,880 --------------------------------------------------------- Diluted 38,905 39,241 39,332 39,679 39,307 --------------------------------------------------------- - --------------------- BALANCE SHEET DATA - --------------------- Net Primary Working Capital (PWC) $209,604 $212,552 $217,558 $207,978 --------------------------------------------------------- Net PWC as a % of Annualized Sales 25% 25% 23% 21% Debt $188,258 $196,467 $191,119 $174,594 --------------------------------------------------------- Percent Market Capitalization 26.4% 26.7% 23.5% 16.3% Percent Debt-to-Total Capital 40.2% 40.0% 37.0% 35.3% EBITDA Interest Coverage 8.7x 7.9x 8.6x 8.7x - --------------------- CASH FLOW DATA - --------------------- Depreciation and Amortization $ 7,526 $ 8,128 $ 8,111 $ 7,347 $ 31,112 --------------------------------------------------------- Capital Expenditures $ 8,606 $ 8,231 $ 9,365 $ 7,261 $ 33,463 --------------------------------------------------------- Cash Flow from Operations $ 17,800 $ 6,170 $ 23,934 $ 36,130 $ 84,034 ---------------------------------------------------------
FISCAL 1998 -------------------------------------------- Q1 Q2 Q3 YTD -- -- -- --- - --------------------- INCOME DATA - --------------------- Sales $273,154 $284,055 $304,471 $861,680 Percent Sales Growth Over Prior Year 31% 35% 31% 32% Operating Profit $ 31,675 $ 32,761 $ 38,645 $103,082 -------------------------------------------- Percent of Sales 11.6% 11.5% 12.7% 12.0% EBITDA $ 41,825(1) $ 44,423 $ 51,624(2) $137,872 -------------------------------------------- Percent of Sales 15.3% 15.6% 17.0% 16.0% - --------------------- SHARE DATA - --------------------- Basic EPS $ 0.45(1) $ 0.45 $ 0.51(2) $ 1.40 -------------------------------------------- Basic EPS Growth Over Prior Year 29% 29% 28% 28% Diluted EPS $ 0.42(1) $ 0.43 $ 0.49(2) $ 1.34 -------------------------------------------- Diluted EPS Growth Over Prior Year 24% 26% 26% 26% EBITDA/Diluted Share $ 1.04(1) $ 1.10 $ 1.28(2) $ 3.43 -------------------------------------------- EBITDA Per Share Growth Over Prior Year 27% 31% 41% 36% Cash Dividend Per Share $ 0.045 $ 0.045 $ 0.045 $ 0.135 -------------------------------------------- Average Shares Outstanding (in 000's): Basic 38,149 38,292 38,459 38,300 -------------------------------------------- Diluted 40,034 40,210 40,297 40,200 -------------------------------------------- - --------------------- BALANCE SHEET DATA - --------------------- Net Primary Working Capital (PWC) $201,886 $208,610 $205,157 -------------------------------- Net PWC as a % of Annualized Sales 18% 18% 17% Debt $283,181 $339,420 $372,244 -------------------------------- Percent Market Capitalization 24.9% 25.9% 29.7% Percent Debt-to-Total Capital 45.2% 48.4% 49.0% EBITDA Interest Coverage 8.1 x 7.1 x 7.6 x - --------------------- CASH FLOW DATA - --------------------- Depreciation and Amortization $ 9,671 $ 10,907 $ 11,599 $ 32,178 -------------------------------------------- Capital Expenditures $ 10,013 $ 11,558 $ 14,537 $ 36,108 -------------------------------------------- Cash Flow from Operations $ 17,120 $ 31,819 $ 29,310 $ 78,249 -------------------------------------------- (1) Excludes $1.71 million gain on life insurance proceeds or $0.14 per diluted share recorded at Zero. (2) Excludes $9.815 million gain on sale of Burbank, CA facility and ($4.5) million charge due to the discontinuance of a European subsidiary, $0.25 per diluted share recorded at Zero.
40 Page 4 APPLIED POWER INC.-RESTATED TO INCLUDE ZERO FINANCIAL DATA PACKAGE (UNAUDITED) ($'s in 000's, except per share amounts) FINANCIAL HIGHLIGHTS - --------------------
FISCAL 1997 ------------------------------------------------------------------------------------- INCOME DATA APW ZERO Q1 APW ZERO Q2 - -------------------- --- ---- -- --- ---- -- Sales $153,096 $54,664 $207,760 $157,170 $53,387 $210,557 Percent Sales Growth Over Prior Year 10% 12% 11% 15% 4% 12% Operating Profit $ 16,905 $ 6,782 23,687 $ 16,823 $ 6,861 $ 23,684 ------------------------------------------------------------------------------------- Percent of Sales 11.0% 12.4% 11.4% 10.7% 12.9% 11.2% EBITDA $ 22,706 $ 9,356 $ 32,062 $ 23,687 $ 9,334 $ 33,021 ------------------------------------------------------------------------------------- Percent of Sales 14.8% 17.1% 15.4% 15.1% 17.5% 15.7% - -------------------- SHARE DATA - -------------------- Basic EPS $ 0.35 $ 0.35 $ 0.34 $ 0.35 ------------------------------------------------------------------------------------- Basic EPS Growth Over Prior Year 21% 25% 17% 17% Diluted EPS $ 0.34 $ 0.34 $ 0.33 $ 0.34 ------------------------------------------------------------------------------------- Diluted EPS Growth Over Prior Year 21% 26% 22% 17% EBITDA/Diluted Share $ 0.80 $ 0.82 $ 0.83 0.84 ------------------------------------------------------------------------------------- EBITDA Per Share Growth Over Prior Year 21% 30% 24% 25% ------------------------------------------------------------------------------------- Cash Dividend Per Share $ 0.015 $ 0.030 $ 0.045 $ 0.015 $ 0.030 $ 0.045 Average Shares Outstanding (in 000's): Basic $ 27,396 $ 37,697 27,536 $ 37,876 ------------------------------------------------------------------------------------- Diluted $ 28,372 38,905 28,692 $ 39,241 ------------------------------------------------------------------------------------- - -------------------- BALANCE SHEET DATA - -------------------- Net Primary Working Capital (PWC) $154,522 $55,082 $209,604 $155,064 $57,488 $212,552 ------------------------------------------------------------------------------------- Net PWC as a % of Annualized Sales 25% 25% 25% 25% 27% 25% ------------------------------------------------------------------------------------- Debt $136,732 $51,526 $188,258 $144,945 $51,522 $196,467 ------------------------------------------------------------------------------------- Percent Market Capitalization 27.5% 23.8% 26.4% 26.9% 26.2% 26.7% Percent Debt-to-Total Capital 41.6% 36.8% 40.2% 42.3% 35.8% 40.0% EBITDA Interest Coverage 8.6 8.9 8.7x 7.4 9.2 7.9x - -------------------- CASH FLOW DATA - -------------------- Depreciation and Amortization $ 5,735 $ 1,791 $ 7,526 $ 6,254 $ 1,874 $ 8,128 ------------------------------------------------------------------------------------- Capital Expenditures $ 4,927 $ 3,679 $ 8,606 $ 5,935 $ 2,296 $ 8,231 ------------------------------------------------------------------------------------- Cash Flow from Operations $ 9,066 $ 8,734 $ 17,800 $ 5,049 $ 1,121 $ 6,170 -------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS - -------------------- FISCAL 1997 -------------------------------------------------------------------------------------- - -------------------- INCOME DATA APW ZERO Q3 APW ZERO Q4 Year - -------------------- --- ---- -- --- ---- -- ---- Sales $173,839 $58,546 $232,385 $186,212 $ 58,845 $247,057 $897,758 Percent Sales Growth Over Prior Year 18% 16% 17% 28% 5% 22% 15% Operating Profit $ 19,363 $ 7,613 $ 26,976 $ 19,792 $ 7,533 $ 27,325 $101,672 -------------------------------------------------------------------------------------- Percent of Sales 11.1% 13.0% 11.6% 10.5% 12.8% 11.1% 11.3% EBITDA $ 26,015 $ 9,961 $ 35,976 $ 26,001 $ 9,949 $ 35,950 $137,010 -------------------------------------------------------------------------------------- Percent of Sales 15.0% 17.0% 15.5% 13.8% 16.9% 14.6% 15.3% - -------------------- SHARE DATA - -------------------- Basic EPS $ 0.40 $ 0.40 $ 0.43 $ 0.42 $ 1.53 -------------------------------------------------------------------------------------- Basic EPS Growth Over Prior Year 18% 25% 26% 20% 21% Diluted EPS $ 0.39 $ 0.39 $ 0.41 $ 0.41 $ 1.47 -------------------------------------------------------------------------------------- Diluted EPS Growth Over Prior Year 18% 26% 24% 17% 20% EBITDA/Diluted Share $ 0.90 $ 0.91 $ 0.89 $ 0.91 $ 3.49 -------------------------------------------------------------------------------------- EBITDA Per Share Growth Over Prior Year 22% 32% 20% 20% 26% Cash Dividend Per Share $ 0.015 $ 0.030 $ 0.045 $ 0.015 $ 0.030 $ 0.045 $ 0.180 -------------------------------------------------------------------------------------- Average Shares Outstanding (in 000's): Basic 27,586 37,939 27,620 38,028 37,880 -------------------------------------------------------------------------------------- Diluted 28,808 39,332 29,076 39,679 39,307 -------------------------------------------------------------------------------------- - -------------------- BALANCE SHEET DATA - -------------------- Net Primary Working Capital (PWC) $156,555 $61,003 $217,558 $145,903 $ 62,075 $207,978 -------------------------------------------------------------------------------------- Net PWC as a % of Annualized Sales 23% 26% 23% 19% 26% 21% Debt $139,488 $51,631 $191,119 $123,091 $ 51,503 $174,594 -------------------------------------------------------------------------------------- Percent Market Capitalization 23.0% 24.9% 23.5% 14.0% 26.4% 16.3% Percent Debt-to-Total Capital 40.1% 34.8% 37.0% 36.0% 33.7% 35.3% EBITDA Interest Coverage 8.3 9.8 8.6x 8.6 9.2 8.7x - -------------------- CASH FLOW DATA - -------------------- Depreciation and Amortization $ 6,183 $ 1,928 $ 8,111 $ 5,491 $ 1,856 $ 7,347 $ 31,112 -------------------------------------------------------------------------------------- Capital Expenditures $ 7,346 $ 2,019 $ 9,365 $ 4,433 $ 2,828 $ 7,261 $ 33,463 -------------------------------------------------------------------------------------- Cash Flow from Operations $ 20,586 $ 3,348 $ 23,934 $ 30,129 $ 6,001 $ 36,130 $ 84,034 --------------------------------------------------------------------------------------
41 Page 5 APPLIED POWER INC.-RESTATED TO INCLUDE ZERO FINANCIAL DATA PACKAGE (UNAUDITED) ($'s in 000's, except per share amounts)
FINANCIAL HIGHLIGHTS - -------------------- FISCAL 1998 ------------------------------------------------------------ APW ZERO Q1 APW ZERO Q2 --- ---- -- --- ---- -- - -------------------- INCOME DATA - -------------------- Sales $208,689 $64,465 $273,154 $217,145 $66,910 $284,055 Percent Sales Growth Over Prior Year 36% 18% 31% 38% 25% 35% Operating Profit $ 23,009 $ 8,666 $ 31,675 $ 23,353 $ 9,408 $ 32,761 ------------------------------------------------------------ Percent of Sales 11.0% 13.4% 11.6% 10.8% 14.1% 11.5% EBITDA $ 30,557 $11,244 $ 41,825(1) $ 32,326 $12,076 $ 44,423 ------------------------------------------------------------ Percent of Sales 14.6% 17.4% 15.3% 14.9% 18.0% 15.6% - -------------------- SHARE DATA - -------------------- Basic EPS $ 0.44 $ 0.45(1) $ 0.43 $ 0.45 ------------------------------------------------------------ Basic EPS Growth Over Prior Year 26% 29% 26% 29% Diluted EPS $ 0.42 $ 0.42(1) $ 0.40 $ 0.43 ------------------------------------------------------------ Diluted EPS Growth Over Prior Year 24% 24% 21% 26% EBITDA/Diluted Share $ 1.04 $ 1.04(1) $ 1.10 $ 1.10 ------------------------------------------------------------ EBITDA Per Share Growth Over Prior Year 30% 27% 33% 31% Cash Dividend Per Share $ 0.015 $ 0.030 $ 0.045 $ 0.015 $ 0.030 $ 0.045 ------------------------------------------------------------ Average Shares Outstanding (in 000's): Basic 27,682 38,149 27,775 38,292 ------------------------------------------------------------ Diluted 29,302 40,034 29,439 40,210 ------------------------------------------------------------ - -------------------- BALANCE SHEET DATA - -------------------- Net Primary Working Capital (PWC) $138,379 $63,507 $201,886 $144,763 $63,847 $208,610 ------------------------------------------------------------ Net PWC as a % of Annualized Sales 17% 25% 18% 17% 24% 18% Debt $231,672 $51,509 $283,181 $287,847 $51,573 $339,420 ------------------------------------------------------------ Percent Market Capitalization 27.4% 17.5% 24.9% 28.8% 16.6% 25.9% Percent Debt-to-Total Capital 49.9% 31.5% 45.2% 54.1% 30.5% 48.4% EBITDA Interest Coverage 7.4 11.3 8.1x 6.1 12.5 7.1 - -------------------- CASH FLOW DATA - -------------------- Depreciation and Amortization $ 7,661 $ 2,010 $ 9,671 $ 8,664 $ 2,243 $ 10,907 ------------------------------------------------------------ Capital Expenditures $ 7,247 $ 2,766 $ 10,013 $ 6,910 $ 4,648 $ 11,558 ------------------------------------------------------------ Cash Flow from Operations $ 9,741 $ 7,379 $ 17,120 $ 17,699 $14,120 $ 31,819 ------------------------------------------------------------
--------------------------------------------------- APW ZERO Q3 Q4 YTD --- ---- -- -- --- - -------------------- INCOME DATA - -------------------- Sales $241,653 $62,818 $304,471 $861,680 Percent Sales Growth Over Prior Year 39% 7% 31% 32% Operating Profit $ 29,036 $ 9,609 $ 38,645 $103,082 --------------------------------------------------- Percent of Sales 12.0% 15.3% 12.7% 12.0% EBITDA $ 38,607 $12,992 $ 51,624(2) $137,872 --------------------------------------------------- Percent of Sales 16.0% 20.7% 17.0% 16.0% - -------------------- SHARE DATA - -------------------- Basic EPS $ 0.54 $ 0.51(2) $ 1.40 --------------------------------------------------- Basic EPS Growth Over Prior Year 35% 28% 28% Diluted EPS $ 0.51 $ 0.49(2) $ 1.34 --------------------------------------------------- Diluted EPS Growth Over Prior Year 31% 26% 26% EBITDA/Diluted Share $ 1.31 $ 1.28(2) $ 3.43 --------------------------------------------------- EBITDA Per Share Growth Over Prior Year 46% 41% 36% Cash Dividend Per Share $ 0.015 $ 0.030 $ 0.045 $ 0.135 --------------------------------------------------- Average Shares Outstanding (in 000's): Basic 27,911 38,459 38,300 --------------------------------------------------- Diluted 29,539 40,297 40,200 --------------------------------------------------- - -------------------- BALANCE SHEET DATA - -------------------- Net Primary Working Capital (PWC) $146,920 $58,237 $205,157 ----------------------------------------- Net PWC as a % of Annualized Sales 15% 23% 17% Debt $321,689 $50,555 $372,244 ----------------------------------------- Percent Market Capitalization 33.7% 17.0% 29.7% Percent Debt-to-Total Capital 55.1% 28.6% 49.0% EBITDA Interest Coverage 6.5 15.5 7.6x - -------------------- CASH FLOW DATA - -------------------- Depreciation and Amortization $ 9,421 $ 2,178 $ 11,599 $ 32,178 --------------------------------------------------- Capital Expenditures $ 10,027 $ 4,510 $ 14,537 $ 36,108 --------------------------------------------------- Cash Flow from Operations $ 22,305 $ 7,005 $ 29,310 $ 78,249 ---------------------------------------------------
(1) Excludes $1.71 million gain on life insurance proceeds or $0.14 per diluted share recorded at Zero. (2) Excludes $9.815 million gain on sale of Burbank, CA facility and ($4.5) million charge due to the discontinuance of a European subsidiary, $0.25 per diluted share recorded at Zero. 42