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ALLIS-CHALMERS REPORTS RESULTS

 ALLIS-CHALMERS REPORTS RESULTS
 MILWAUKEE, Aug. 14 /PRNewswire/ -- Allis-Chalmers Corporation today


reported a net loss of $112,000, or $.11 per share, in the second quarter of 1992 compared with net income of $77,000, or $.08 per share, in the same period of 1991.
 The per share figures reflect a 1-for-15 reverse stock split which was approved by shareholders at a Special Meeting of Shareholders on June 17, 1992 and became effective July 8, 1992. The reverse stock split reduced the number of common shares outstanding to 1,003,596 from 15,164,195.
 The loss was attributable primarily to an operating loss in the company's machine repair business, whose sales declined 49 percent from the 1991 second quarter level due to a reduced and more competitive market. Total Allis-Chalmers 1992 second quarter sales were $2.7 million, down from $3.5 million in 1991.
 Gross margin as a percentage of sales increased to 33.8 percent in the second quarter of 1992 from 32.2 percent in 1991, the result of improved gross margin in the company's molded fabric products business.
 For the first six months of 1992, Allis-Chalmers had a net loss of $180,000, or $.18 per share, versus 1991 net income of $274,000, or $.27 per share. This decline was a consequence of the machine repair business loss and reduced profitability in the molded fabric products business. Six month sales were $6.2 million in 1992 and $6.9 million in 1991.
 During the second quarter of 1992, a U.S. Bankruptcy Court issued a decision, based in part on the court's lack of jurisdiction, denying the company's challenge to legal issues raised by Internal Revenue Service (IRS) regulations which became final on Jan. 2, 1992, relating to the use of net operating loss carryforwards following corporate reorganizations. Although Allis-Chalmers was unable to obtain a judgment that would have prevented the IRS from applying its new regulations to the company, the court's ruling leaves the company in substantially the same position it was in prior to issuance of the final regulations. Allis-Chalmers noted that the decision and judge's opinion would not prejudice the company's right to defend itself in future litigation by using a prior Bankruptcy Court finding that the primary purpose of its 1988 plan of reorganization was not tax avoidance.
 ALLIS-CHALMERS CORPORATION
 (Dollars in thousands, except per share)
 Period ended Three months Six months
 June 30 1992 1991 1992 1991
 Sales $2,741 $3,508 $6,171 $6,896
 Net (loss) income (112) 77 (180) 274
 Average common shares 1,004 1,004 1,004 1,004
 (Loss) income per share (.11) .08 (.18) .27
 -0- 8/14/92
 /CONTACT: Dennis Thisted of Allis-Chalmers, 414-475-3343/ CO: Allis-Chalmers Corporation ST: Wisconsin IN: SU: ERN


LR-OS -- NY063 -- 0121 08/14/92 15:35 EDT
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Publication:PR Newswire
Date:Aug 14, 1992
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