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ALLIS-CHALMERS REPORTS FIRST QUARTER 1993 RESULTS

 MILWAUKEE, May 14 /PRNewswire/ -- Allis-Chalmers Corporation today reported a net loss of $971,000 in the first quarter of 1993 including a one-time, non-cash charge of $1,029,000 related to certain postretirement benefits. The charge reflects the accounting change required by Statement of Financial Accounting Standards No. 106 (FAS No. 106), "Employers' Accounting for Postretirement Benefits Other Than Pensions."
 A net loss per common share of 96 cents during the first quarter of 1993 consists of income per share of 6 cents before the cumulative effect of the accounting change and a loss per share of $1.02 for the accounting adjustment under FAS No. 106.
 In the first quarter of 1992, Allis-Chalmers had a net loss of $68,000, or 7 cents per share.
 The adjustment required by FAS No. 106 represents the discounted present value of expected future health care benefits for a group of retirees of a former division of Allis-Chalmers. The company has a contractual obligation to reimburse the former division a portion of the actual cost of medical and life insurance claims for those certain retirees.
 Allis-Chalmers' sales in the first quarter of 1993 totaled $2.9 million, down from $3.4 million in the 1992 period, with declines in sales of each of the company's two operations.
 Gross margin, as percentage of sales, improved to 32 percent in the first quarter of 1993 from 26 percent in 1992, the result mainly of reduced manufacturing costs and the closing of Apparatus Repair Company in September 1992. With reductions in cost of sales and marketing and administrative expenses, Allis-Chalmers had income from operations of $73,000 in the first quarter of 1993 compared with a loss from operations of $40,000 in the 1992 quarter.
 ALLIS-CHALMERS CORPORATION
 (In thousands, except per share)
 Three months ended March 31 1993 1992
 Sales $ 2,897 $3,430
 Net income (loss):
 Before cumulative effect of accounting change 58 (68)
 Cumulative effect of accounting change (1,029) --
 Net (loss) $ (971) $ (68)
 Average common shares (A) 1,003 1,003
 Income (loss) per share:
 Before cumulative effect of accounting change $ .06 $(.07)
 Cumulative effect of accounting change (1.02) --
 Net loss per common share $ (.96) $(.07)
 (A) -- 1992 has been restated for a 1-for-15 reverse stock split.
 -0- 5/14/93
 /CONTACT: Dennis Thisted of Allis-Chalmers, 414-475-3343/


CO: Allis-Chalmers Corporation ST: Wisconsin IN: SU: ERN

GK-WB -- NY073 -- 8797 05/14/93 16:46 EDT
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Publication:PR Newswire
Date:May 14, 1993
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