Amcast Reports First Quarter 1999 Sales and Earnings Gains.

DAYTON, Ohio--(BUSINESS WIRE)--Dec. 17, 1998--Amcast Industrial Corporation (NYSE:AIZ) today reported increased sales and earnings for the first quarter of fiscal 1999 ended November 29.

Sales for the quarter were $146.0 million compared to $141.0 million in 1998. Net income was $10.0 million ($1.09 per diluted share) versus $4.6 million (49 cents per diluted share) in the first quarter last year before the cumulative effect of an accounting change.

A major event in the quarter was consummation of the previously announced sale of Amcast's valve business, Superior Valve Company, on October 16. The company reported a pretax gain of $9 million on the sale. Without the gain on the sale, the company would have reported net income of $4.7 million (51 cents per diluted share).

Commenting on the results, John H. Shuey, chairman and chief executive officer, said, "Overall performance in the first quarter was in line with management expectations. The markets continued to be strong for our copper and brass plumbing fittings, aluminum automobile wheels, and our line of performance-critical aluminum automotive components."

Sales in the company's Flow Control segment were $39.2 million in the first quarter of 1999 compared to $37.1 million a year ago. Operating income was $5.7 million in fiscal 1999 versus $5.2 million in 1998. The increase in Flow Control operating income was primarily due to the results of Lee Brass, partly offset by the disposition during the quarter of Superior Valve. The plumbing fittings business is meeting aggressive price competition that was partly offset in the quarter by lower material costs and efficiency gains in the manufacturing facilities.

"Our Lee Brass unit, acquired in March of 1998, performed very well," Shuey said. "In the first quarter, Lee has added significantly to sales and operating income in our primary area of focus for Flow Control, the plumbing wholesale market. We are achieving the synergies we had expected upon the transfer of production of our Flagg Brass product line to Lee Brass in fiscal 1998."

Sales of Engineered Components were $106.8 million in the first quarter of fiscal 1999 compared to $103.9 million in 1998. Operating income increased nearly 13 percent to $8.1 million in the first quarter from $7.2 million last year. Sales volume was up nearly 10 percent year-over-year; however, lower aluminum costs reflected in our pricing largely offset the sales gain. The volume and mix of products sold were the primary contributors to the operating income advance. Sales to General Motors were very strong early in the quarter, which challenged capacity in some of the company's production facilities, resulting in overtime and expediting costs.

"Demand for aluminum wheels remains robust in Europe and North America, which has both benefited and challenged our operations in the United States and Italy," Shuey said.

"Our underbody aluminum components business experienced a tremendous surge in demand after the General Motors work stoppage. Despite the demand-driven need for additional labor, extensive overtime, and priority distribution services, we handled the increased customer demand profitably, with the exception of Casting Technology Company (CTC), our joint venture company."

Looking ahead to the balance of fiscal year 1999, Shuey said, "The turmoil in the economies of Asia and Latin America have impacted many companies in North America and Europe. However, we do not see any significant impact in our specific markets stemming from these problems. We continue to enjoy robust housing and automobile markets.

"Although there is little evidence of a slowdown in the U.S. economy, dips are inevitable. We have built some softening of the economy into our plans and believe Amcast has the ability to generate good performance in such an environment."

Amcast Industrial Corporation is a leading manufacturer of technology-intensive metal products. Its two business segments are brand name Flow Control Products marketed through national distribution channels, and Engineered Components for original equipment manufacturers. The company serves the automotive, construction, and industrial sectors of the economy.

This release includes "forward-looking statements" which are subject to change based on various factors and uncertainties that may cause actual results to differ significantly from expectations. These factors include, among others, general economic conditions less favorable than expected, fluctuating demand in the automotive and housing industries, price pressures in the company's automotive and flow control businesses, effectiveness of production improvement plans, inherent uncertainties in connection with international operations and foreign currency fluctuations, and labor relations at the company and its customers. -0-

                         STATEMENTS OF INCOME

($ in thousands except per share amounts)

                                               Three Months Ended
                                            ________________________
                                            November 29  November 30
                                                1998        1997
                                            ___________  ___________
Net sales                                   $ 146,024    $ 140,979
Cost of sales                                 121,177      117,383
                                            ___________  ___________
                             Gross Profit      24,847       23,596

Selling, general and
 administrative expenses                       13,677       13,267
Gain on sale of  business                      (9,023)        --
                                            ___________  ___________
                         Operating Income      20,193       10,329

Equity in loss of joint venture
and other (income) and expense                     51         (518)
Interest expense                                3,585        3,468
                                            ___________  ___________
           Income before Income Taxes and
   Cumulative Effect of Accounting Change      16,557        7,379

Income taxes                                    6,528        2,819
                                            ___________  ___________
          Income before Cumulative Effect
                     of Accounting Change      10,029        4,560

Cumulative effect of accounting change,
 net of tax                                      --         (8,588)
                                            ___________  ___________
                        Net Income (Loss)   $  10,029    ($  4,028)
                                            ___________  ___________
                                            ___________  ___________
Basic Earnings per Share:
Income before cumulative effect of
 accounting change                          $    1.09    $    0.49

Cumulative effect of accounting change           --          (0.93)
                                            ___________  ___________
Net income (loss)                           $    1.09    $   (0.44)
                                            ___________  ___________
                                            ___________  ___________
Diluted Earnings per Share:
Income before cumulative effect of
accounting change                           $    1.09    $    0.49

Cumulative effect of accounting change           --          (0.93)
                                            ___________  ___________
Net income (loss)                           $    1.09    $   (0.44)
                                            ___________  ___________
                                            ___________  ___________
Average number of shares
 outstanding- Basic                             9,207        9,184

Average number of shares
 outstanding- Diluted                           9,217        9,266



                       CONDENSED BALANCE SHEETS

($ in thousands)
                                            November 29   August 31
                                               1998         1998
                                            ___________  ___________
Current Assets
Cash and cash equivalents                    $ 24,283     $  7,022
Accounts receivable                           107,592      111,066
Inventories                                    78,765       84,255
Other current assets                           21,731       20,308
                                            ___________  ___________
                                              232,371      222,651

Property, Plant and Equipment                 257,433      260,117
Goodwill                                       61,277       62,555
Other Assets                                   16,630       18,127
                                            ___________  ___________
                                             $567,711     $563,450
                                            ___________  ___________
                                            ___________  ___________
Current Liabilities
Accounts payable                             $ 75,770     $ 72,887
Current debt                                   25,349       23,248
Other current liabilities                      47,806       39,587
                                            ___________  ___________

                                              148,925      135,722

Long-Term Debt                                193,146      217,199
Deferred Liabilities                           52,444       49,715
Shareholders' Equity                          173,196      160,814
                                            ___________  ___________

                                             $567,711     $563,450
                                            ___________  ___________
                                            ___________  ___________