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DRESSER INDUSTRIES REPORTS EARNINGS

 DRESSER INDUSTRIES REPORTS EARNINGS
 DALLAS, Dec. 20 /PRNewswire/ -- Dresser Industries, Inc. (NYSE: DI),


today reported net earnings of $146.8 million or $1.09 per share, off from $184.4 million or $1.36 per share a year earlier. The decline primarily reflected higher losses in the Komatsu Dresser construction equipment joint venture as well as lower earnings in other industrial operations that were hurt by the U.S. recession and weak economic activity globally.
 Consolidated sales and service revenues of $4.67 billion were up 4 percent in 1991 from $4.48 billion the prior year. Total pro forma sales and service revenues, which included the company's share of major unconsolidated joint ventures, were $6.15 billion, up 3 percent from $5.95 billion a year earlier.
 John J. Murphy, chairman, chief executive and president, said core upstream and downstream energy-related operations, including Dresser's share of major joint ventures, performed well in 1991. The company's consolidated oilfield equipment and service operations and the Western Atlas International joint venture had stronger combined results than a year earlier despite a 19 percent decline in the domestic rig count during the last half of 1991. "Those businesses benefited from increasing their activity in foreign markets where drilling and product and service margins are improving," he noted.
 Dresser's three energy-related joint ventures -- M-I Drilling Fluids (64 percent owned), Dresser-Rand (50 percent owned) and Western Atlas International (30 percent owned) -- substantially increased their profitability in 1991. However, the Komatsu Dresser joint venture (50 percent owned) contributed a $37.3 million pre-tax loss to Dresser's operating results due to depressed construction equipment markets, which have been adversely affected by the domestic recession and the related "credit crunch" that is making it difficult for many businesses to borrow from lending institutions.
 For the fourth quarter of 1991, Dresser reported net earnings of $60.5 million or $0.45 per share, compared to $73.9 million or $0.55 per share in 1990.
 Murphy termed 1991 "a solid year for Dresser, considering the adverse economic conditions we faced," and said the company is "positioned to capitalize on future improvements in the operating environment.
 "The economic recovery has been slower than we had hoped it would be," he added, "but low interest rates and other governmental actions to stimulate the economy should benefit our markets, including construction equipment. Our oilfield equipment and service operations are capitalizing on improving drilling activity in international markets, and our energy processing and conversion equipment and engineering services operations are deriving additional market impetus from more stringent environmental requirements throughout the world, especially in regard to reformulating fuels and reducing refinery emissions."
 Headquartered in Dallas, Dresser is a major supplier of highly engineered products and services primarily utilized in energy-related activities throughout the world.
 DRESSER INDUSTRIES, INC.
 (In millions except per share data)
 Periods ended Three Months Year
 Oct. 31 1991 1990 1991 1990
 Net sales & service
 revenues $1,253.0 $1,372.6 $4,670.0 $4,480.3
 Earnings before taxes,
 minority interest &
 equity earnings 82.5 101.6 211.9 262.7
 Income taxes (29.0) (33.8) (84.7) (94.1)
 Minority interest in
 earnings of subsidiaries (4.2) (2.7) (14.0) (11.1)
 Equity in earnings of
 unconsolidated affiliates 7.7 4.7 26.6 16.8
 Net earnings before
 extraordinary item 57.0 69.8 139.8 174.3
 Tax benefit from loss
 carryforwards 3.5 4.1 7.0 10.1
 Net earnings $ 60.5 $ 73.9 $ 146.8 $ 184.4
 Earnings per share:
 Earnings before
 extraordinary item $0.42 $0.52 $1.04 $1.29
 Extraordinary item 0.03 0.03 0.05 0.07
 Net earnings $0.45 $0.55 $1.09 $1.36
 Average common shares
 outstanding 134.3 136.0 134.2 135.9
 -0- 12/20/91
 /CONTACT: Kenneth C. Rueckert of Dresser, 214-740-6757/
 (DI) CO: Dresser Industries, Inc. ST: Texas IN: OIL SU: ERN


GK -- NY031 -- 4317 12/20/91 11:28 EST
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Date:Dec 20, 1991
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