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DRAVO CORPORATION ISSUES EARNINGS

 DRAVO CORPORATION ISSUES EARNINGS
 PITTSBURGH, Oct. 22 /PRNewswire/ -- Dravo Corporation (NYSE: DRV)


today reported third quarter earnings of $4.6 million, or 27 cents per share, on revenue of $73.4 million. Earnings for the same period a year ago were $7.2 million, or 45 cents per share, on revenue of $82.5 million.
 Dravo's third quarter earnings include an extraordinary gain of 1 cent per share from the use of tax loss carryforwards which reduce tax liabilities. For the first nine months of 1992, earnings totaled $9.9 million, or 54 cents per share, on revenue of $205.4 million. Because of a second-quarter write-off for discontinued operations last year, Dravo reported a loss for the same 1991 period of $18.4 million, or $1.37 per share, on revenue of $221.8 million. Earnings for the first nine months of 1992 include an extraordinary gain of 8 cents from the use of tax loss carryforwards.
 Earnings for the third quarter from continuing operations totaled $4.5 million, or 26 cents per share, compared to $5.5 million, or 33 cents per share, in 1991. For the first nine months of 1992, continuing operations earned $8.7 million, or 46 cents per share, compared to $9.7 million, or 52 cents per share, in 1991.
 "Our results through the end of the third quarter reflect the persistence of recessionary conditions in most of our construction aggregates markets," commented Carl A. Torbert Jr., president and chief executive officer of Dravo. "Tonnage, revenue and income from our aggregates operations trailed results from a year ago for the quarter and the first nine months. Results from our lime operations were more favorable. While load factors at several utility lime customer locations continue to lag earlier periods, stronger than expected merchant lime sales from our Black River and Longview operations contributed to increases in tonnage, revenue and income from our lime operations for the quarter and year-to-date compared with a year ago.
 "To a considerable extent, the negative variances in the performance of our aggregates operations are concentrated in our Southeastern, Gulf Coast, and south Atlantic market areas," explained Torbert. "Sales have trended downward during the past two years, a circumstance rendered even more difficult along the U.S. Gulf Coast by the severe price competition -- and resulting downward pressure on profit margins -- in that region's crushed limestone market.
 "We have already taken steps to reduce operating and overhead costs in response to prevailing market conditions, and additional reductions will be forthcoming. We are also accelerating our efforts to find non-construction applications for our basic materials products, with the excellent performance or our Midwestern and offshore limestone products as solvent material in several new fluidized bed combustors an important development in this regard.
 "This shift in marketing emphasis will continue during 1993, but without a pick-up in construction activity during the next six months, we cannot expect an improvement in this segment of our business until well into 1993."
 Noting that construction work continues to go forward on two large lime-based flue gas desulfurization systems being developed by power companies in Dravo Lime Company's market area as part of federal Clean Air Act compliance programs, Torbert said that the utilities involved have not as yet made final decisions regarding lime supply agreements. "We are vigorously competing for this new business, and as the scope of our permitting and preliminary engineering activities indicates, we hope to supply a substantial portion of the material which these new systems will require."
 Commenting on Dravo's discontinued operations, Torbert noted that a series of formal mediation sessions has been scheduled during December with the City of Long Beach regarding lawsuits surrounding the waste-to-energy plant constructed by Dravo for the Southeast Energy Resource Recovery Facility in Long Beach. "We think both parties should be spared the time and expense that would be involved if this dispute is adjudicated in the courts, and we are committed to doing everything in our power to see to it that the mediation process reaches a successful conclusion," Torbert said.
 DRAVO CORPORATION AND SUBSIDIARIES
 Consolidated Statements of Operations
 (unaudited, $ in 000's, except per share data)
 Quarters Ended Periods Ended
 Sept. 30 Sept. 30
 1992 1991 1992 1991
 Revenue $73,379 $82,455 $205,449 $221,767
 Earnings before
 taxes from
 continuing oper. 5,088 7,343 10,902 12,919
 Provision for
 income taxes 610 1,857 2,180 3,259
 Earnings from
 continuing oper. 4,478 5,494 8,722 9,660
 Gain (loss) on
 disposal of
 discontinued
 oper., net -- 1,731 -- (28,061)
 Earnings (loss) before
 extraord. item 4,478 7,225 8,722 (18,401)
 Extraord. item 127 -- 1,199 --
 Net earnings (loss) 4,605 7,225 9,921 (18,401)
 Shares used in the
 computation of
 earnings per share 14,827 14,809 14,829 14,802
 Earnings (loss) per
 share:
 Continuing oper. $0.26 $0.33 $0.46 $0.52
 Discontinued oper. 0.00 0.12 0.00 (1.89)
 Extraord. item 0.01 0.00 0.08 0.00
 Total $0.27 $0.45 $0.54 ($1.37)
 -0- 10/22/92
 /CONTACT: Ron Sommer of Dravo, 412-566-5597/
 (DRV) CO: Dravo Corporation ST: Pennsylvania IN: OIL MNG SU: ERN


CD-LJ -- PG013 -- 3731 10/22/92 14:46 EDT
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