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EAGLE-PICHER INDUSTRIES REPORTS SIGNIFICANT IMPROVEMENT IN FIRST QUARTER OPERATING RESULTS

 EAGLE-PICHER INDUSTRIES REPORTS SIGNIFICANT IMPROVEMENT
 IN FIRST QUARTER OPERATING RESULTS
 CINCINNATI, March 16 /PRNewswire/ -- Eagle-Picher Industries (NYSE: EPI) today announced that sales for the first quarter ended Feb. 29, 1992 were $134.2 million compared with $138.4 million for the first quarter of 1991. Operating income increased significantly to $7.1 million from an operating loss of $.6 million in 1991. Net income was $4.1 million or 37 cents per share compared with a net loss of $3.4 million or 31 cents per share for the first quarter of 1991. Fiscal 1991's first quarter results include sales of $4.7 million and an operating loss of $2.9 million from the company's Mat Division, which was closed later in the year. Sales from continuing operations in the first quarter of 1992 were essentially equal to those of last year while operating income increased to $7.1 million from $2.3 million. The company reported costs of $1.9 million related to the Chapter 11 reorganization cases during the quarter. At the end of the first quarter the company's cash position was $47.4 million.
 Thomas E. Petry, Eagle-Picher chairman, said, "Despite the continued sluggish economy, several factors contributed to the improved operating results. In the Automotive Group, Hillsdale Tool Division experienced significant improvement in operating efficiencies and also benefited from strength in the sales of light trucks. Hillsdale is an important supplier of transmission components for this market segment. The Plastics Division was able to reduce substantially losses experienced in the first quarter of 1991 due to improved volume levels. Wolverine Division, which serves all major automotive markets in North America, Japan, and Europe, had an excellent quarter and results of operations manufacturing precision molded rubber products improved significantly over the same period last year.
 "In the Machinery Group, operations serving the capital equipment market were adversely affected by low levels of capital spending. The Electronics Division was temporarily slowed by a fire in 1991 which destroyed part of its Joplin, Mo., facility; it is expected that the loss will be fully covered by insurance. Due to the uncertainties related to the future level of defense spending, the division has developed new products for the aerospace and commercial markets which should help offset any potential reductions in defense spending. Results of the Transicoil Division, an operation that serves the commercial and military aviation markets, trailed those of last year. In the Industrial Group, demand for diatomaceous earth products, products and services for environmental testing, and boron compounds was at a high level."
 Concerning the reorganization effort, Petry indicated, "In January 1992, the company's earlier request for the establishment of a bar date for asbestos-related claims, the date by which all such claims against the company must be filed, was granted by the U.S. Bankruptcy Court. The committee appointed in the reorganization cases to represent the interests of the asbestos personal injury claimants is seeking to appeal the decision of the Bankruptcy Court granting the company's request to establish a bar date for asbestos-related claims. The actual setting of such date will be the subject of a further order of the Bankruptcy Court.
 "The company also has requested authority from the Bankruptcy Court to collect medical, occupational, and product exposure information necessary to evaluate the extent of the company's liability with respect to asbestos personal injury claims. A lengthy controversy over this issue has developed and a hearing before the Bankruptcy Court with respect to this issue currently is scheduled for early April 1992. The company has made substantial progress toward reconciling the 5,600 claims that were received pursuant to the general bar date of Oct. 31, 1991. It is difficult to predict when the company will emerge from chapter 11 as there are many complicated issues to be addressed. These include issues related to asbestos personal injury claims, property damage claims, environmental matters, and other litigation." As stated in the 1991 annual report to shareholders:
 "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."
 Commenting on the future, Petry said, "Despite the lack of any apparent recovery in the economy, forecasts for the second quarter from the company's diversified operations suggest continued improvement in profitability."
 The figures follow:
 (Data in thousands except per share)
 Three Months ended Feb. 29 1992 1991
 Net sales $134,221 $138,377
 Operating income (loss) 7,054 (552)
 Other non-operating items (536) (2,164)
 Reorganization items (1,942) (421)
 Income (loss) before taxes 4,576 (3,137)
 Net income (loss) 4,076 (3,437)
 Net income (loss) per share .37 (.31)
 Average shares 10,978 10,978
 -0- 3/16/92
 /CONTACT: J. Rodman Nall of Eagle-Picher Industries, 513-721-7010/
 (EPI) CO: Eagle-Picher Industries ST: Ohio IN: SU: ERN


KK -- CL013 -- 8307 03/16/92 12:02 EST
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Date:Mar 16, 1992
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