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EAGLE-PICHER INDUSTRIES ANNOUNCES FOURTH QUARTER AND YEAR-END RESULTS

 EAGLE-PICHER INDUSTRIES ANNOUNCES
 FOURTH QUARTER AND YEAR-END RESULTS
 CINCINNATI, Feb. 5 /PRNewswire/ -- Eagle-Picher Industries (NYSE: EPI) today announced that sales for the fourth quarter ended Nov. 30, 1991 were $153.7 million compared with $175.0 million in 1990. Operating income was $7.9 million for the quarter compared with $13.4 million. Net income was $2.4 million or 22 cents per share compared with $1.8 million or 15 cents per share in the fourth quarter of 1990.
 For the fiscal year ended Nov. 30, 1991 sales were $598.6 million compared with $699.3 million in 1990. Operating income was very weak at the beginning of the year and improved each quarter. For the full year, operating income totalled $18.8 million compared with $47.7 million the year before. After factoring in a loss of $12.3 million from the closing or sale of operations in 1991 compared with a gain of $16.7 million in 1990, reorganization costs of $12.1 million in 1991 and other non-operating items in both years, the company experienced a net loss of $15.8 million or $1.44 per share in 1991 compared with net income of $39.4 million or $3.64 per share in 1990. Operating cash flow remained strong throughout the year.
 Thomas E. Petry, Eagle-Picher chairman, indicated, "A very sluggish economy in 1991 caused lower sales volumes as major markets served by the company were weak. There were several noteworthy developments which occurred during fiscal 1991:
 - The company and several of its subsidiaries filed for
 reorganization under chapter 11 of the U.S. Bankruptcy
 Code on Jan. 7, 1991. The filings resulted from the
 company's inability to overcome the cost of its asbestos
 personal injury litigation. During the five years prior
 to the filings, approximately $540 million had been spent
 on asbestos settlement costs and legal expenses. The
 Chapter 11 filings stayed this litigation and stopped
 this cash drain.
 - In fiscal 1991, the company generated $38 million
 positive cash flow from operations. The company's cash
 position was $54 million as of Nov. 30, 1991, after
 repaying $37 million in secured debt earlier in the year.
 - The company consummated a $66 million post-petition
 financing agreement that provides a revolving credit
 facility of $42 million. This facility was approved by
 the court and is more than sufficient to meet the
 company's needs.
 - Major markets served by the company remained weak
 during the year. Operating results strengthened as the
 year progressed notwithstanding a very sluggish economy."
 In addition, the company indicated that shareholders, customers and suppliers should be aware of the following matters related to the Chapter 11 reorganization:
 - During the Chapter 11 cases, the company has been and
 continues to operate its businesses in the ordinary
 course and continues to maintain and enhance its
 operations.
 - The court, at the company's request, set a bar date of
 Oct. 31, 1991 for all parties to file their pre-petition
 claims against the company, other than those claims arising
 from the sale of asbestos-containing products. Approximately
 5,600 claims have been filed and the company is making
 substantial progress toward reconciling these claims.
 - Similarly, in January of 1992, the company's earlier
 request for the establishment of a bar date for asbestos
 related claims was granted by the court. The actual
 setting of such date will be the subject of a further
 order of the court. The company has also requested
 authority from the court to collect medical, occupational
 and product exposure information necessary to evaluate
 the extent of its liability with respect to asbestos
 personal injury claims. A lengthy controversy over this
 issue has developed and has not yet been resolved.
 Petry also said, "Having filed for relief under Chapter 11 of the U.S. Bankruptcy Code due to the pressure of asbestos litigation costs, the company's primary goal now is to develop a reorganization plan that will satisfactorily address all of the company's pre-petition liabilities and permit the company to emerge from Chapter 11 as a viable, appropriately capitalized, competitive enterprise. Management believes that this objective is achievable. When the company will emerge is very difficult to predict because there are many complicated and complex issues which must be addressed. These issues include issues with respect to asbestos personal injury claims, asbestos property damage claims, environmental matters, and other litigation. The company achieved significant efficiencies at some major operations that resulted in lower breakeven levels. Operations are now positioned to enjoy substantial profit improvements with any increases in business activity."
 (Data in thousands except per share)
 Three Months ended November 30 1991 1990
 Net sales $153,696 $174,987
 Operating income 7,917 13,373
 Gain (loss) on sale or disposition
 of operations 1,549 (824)
 Other non-operating items (1,483) (11,158)
 Reorganization items (4,348) --
 Income before taxes 3,635 1,391
 Net income 2,435 1,791
 Net income per share .22 .15
 Average shares 10,978 10,938
 Year ended November 30 (audited) 1991 1990
 Net sales $598,631 $699,347
 Operating income 18,849 47,704
 Gain (loss) on sale or disposition
 of operations (12,326) 16,727
 Other non-operating items (7,311) (20,371)
 Reorganization items (12,124) --
 Income (loss) before taxes (12,912) 44,060
 Net income (loss) (15,812) 39,360
 Net income (loss) per share (1.44) 3.64
 Average shares 10,978 10,812
 -0- 2/5/92
 /CONTACT: J. Rodman Nall of Eagle-Picher Industries, 513-721-7010/
 (EPI) CO: Eagle-Picher Industries ST: Ohio IN: SU: ERN


KK -- CL005 -- 7188 02/05/92 12:26 EST
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Date:Feb 5, 1992
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