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BFG TO REDUCE RESIN MANUFACTURING CAPACITY AND COSTS; INCURS $117.8 MILLION FOURTH-QUARTER PRE-TAX CHARGE

 BFG TO REDUCE RESIN MANUFACTURING CAPACITY AND COSTS;
 INCURS $117.8 MILLION FOURTH-QUARTER PRE-TAX CHARGE
 AKRON, Ohio, Dec. 3 /PRNewswire/ -- The BFGoodrich Company (NYSE: GR) today announced the phase out within the next two years of high-cost vinyl resin manufacturing operations at plants in Avon Lake, Ohio; Henry, Ill.; and Plaquemine, La. Vinyl compound manufacturing will continue at each of the three locations, and the company also will continue to produce specialty chemicals at Avon Lake and Henry.
 Primarily because of costs associated with the phase out of the Geon Vinyl Division's resin production lines at the three facilities, the company will incur a pre-tax charge of $117.8 million, or $77.9 million after tax, in the fourth quarter of 1991. The charge will reduce earnings per share in the fourth quarter by $3.07 per share. The pre-tax charge includes $11.5 million for a variety of actions being taken by the company's Specialty Polymers and Chemicals Division.
 BFGoodrich Chairman John D. Ong said the decision to phase out the high-cost vinyl resin production capacity was made after an extensive study conducted over the last year of Geon Vinyl Division manufacturing sites.
 "This is a key step in implementing our strategy of making the Geon Vinyl Division a more stable and consistent source of earnings. We have said that we plan to expand the specialty portions of our business and reduce the cost of manufacturing vinyl resins," Ong noted. "By focusing on our most competitive vinyl resin operations and eliminating the on-going expense of maintaining our high-cost facilities, we will increase the return on investment in this business."
 The vinyl resin production lines being phased out represent about 530 million pounds a year, which is nearly 25 percent of the company's resin manufacturing capacity in North America. The per-pound production cost at these operations is about 40 percent higher than the cost at the remaining facilities.
 "As an important part of our strategy, vinyl compounds will continue to be manufactured at Avon Lake, Henry and Plaquemine," William F. Patient, president of the Geon Vinyl Division, said. "We also will maintain a strong presence in the vinyl resin market so that we can provide outstanding service to our customers. In fact, we have the ability to increase low-cost vinyl resin capacity through incremental expansions of existing plants. We will consider taking advantage of that opportunity when conditions are right."
 About 225 positions will be eliminated at the three locations as the phase out takes place during the next two years.
 Geon Vinyl Division customers use vinyl resins and compounds for constructions applications, electrical equipment, appliance parts and many other applications. Geon Vinyl Division sales will be about $1.0 billion in 1991.
 The BFGoodrich Company also is a manufacturer of a wide range of specialty chemicals and is one of the world's leading providers of advanced aerospace products and services. BFG specialty chemicals are used in such products as cosmetics, pharmaceuticals, printing inks, adhesives and recording tapes. BFG Aerospace provides service to and installs equipment on virtually every kind of aircraft. Sales from the Aerospace and Specialty Chemicals businesses during 1991 are expected to be 60 percent of the company's total.
 -0- 12/3/91
 /CONTACT: Rob Jewell (media), 216-374-2999 or Tom Waltermire (investor), 216-374-2556/
 (GR) CO: The BFGoodrich Company ST: Ohio IN: CHM SU:


KK -- CL001 -- 8608 12/03/91 08:58 EST
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Publication:PR Newswire
Date:Dec 3, 1991
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