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ENGLISH CHINA CLAYS REPORTS EARNINGS FOR SIX MONTHS ENDING JUNE 30, 1992; RIGHTS ISSUE COMPLETED, INTERIM DIVIDEND DECLARED

 ENGLISH CHINA CLAYS REPORTS EARNINGS FOR SIX MONTHS ENDING


JUNE 30, 1992; RIGHTS ISSUE COMPLETED, INTERIM DIVIDEND DECLARED
 NEW YORK, Sept. 9 /PRNewswire/ -- English China Clays plc (NYSE: ENC), the U.K. based industrial minerals company, today announced that profits before tax for the six months ended June 30, 1992 were 40.8 million pounds ($77.5 million) compared to 53.2 million pounds ($101.0 million) in the six month period ending June 30, 1991. Net sales were 479.4 million pounds ($910.9 million) compared to 511.8 million pounds ($972.4 million) in the prior year. The financial information contained herein is in accordance with UK GAAP which differs in certain respects from US GAAP.
 Profits after taxation were 29.4 million pounds ($55.8 million) compared to 35.6 million pounds ($67.6 million) in 1991. Earnings per American Depositary Share (one ADS equals three ordinary shares) was 30.66 pence ($0.58) compared to 37.89 pence ($0.72) in the six months to June 30, 1991. Earnings per share for the half year to June 30, 1991 has been adjusted by a factor of 1.043 to correct for the bonus element in the Rights Issue announced on February 25, 1992.
 A gross interim dividend of 8.8 pence per ordinary share (26.4 pence per ADS) was declared, payable in December 1992, to shareholders of record on October 15, 1992. The gross dividend paid to U.S. investors is subject to a 15 percent U.K. withholding tax. The dollar amount of the dividend per ADS will depend on the prevailing exchange rate on the payment date.
 Commenting on the results, Andrew Teare, group chief executive said, "We are maintaining the pace of our strategic and operational restructuring. The proposed sale of Haul Waste Ltd., a waste disposal company, announced on August 14, 1992, will further concentrate our activities in industrial minerals and construction materials." Teare also stated, "Overall trading conditions remain difficult, but the Group remains well placed to benefit from a recovery in its markets."
 Segment Results ECC International:
 For the six months ended June 30, 1992, ECC International's sales were 296.6 million pounds ($563.6 million) compared to 295.1 million pounds ($560.7 million) in the comparable prior year period. Operating profits were 46.5 million pounds ($88.4 million) compared to 48.9 million pounds ($92.9 million) in the comparable prior year period.
 Net sales increased marginally due to increased volumes in the U.S. and Pacific markets, excluding Southern Clay Products which was sold in 1991, but in the European markets, where conditions remain difficult, demand was lower and competition impacted on the company's ability to increase prices. Overall volumes of industrial minerals decreased by 2 percent.
 Operating profit decreased as a result of lower volumes in Europe of higher-margin products to the paper coating industry which were largely offset by increased calcium carbonate and kaolin volumes to the United States markets.
 ECC Construction Materials:
 Net sales for the Construction Materials segment in the first six months of 1992 were 170.1 million pounds ($323.2 million) compared to 162.0 million pounds ($307.8 million) in the comparable prior year period. Operating profit was 7.5 million pounds ($14.2 million) compared to 11.3 million pounds ($21.5 million) in the prior year.
 Net sales increased due to sales growth from the U.S. operations and the contribution for the first time from the Flanagan acquisition (an aggregates and ready-mix concrete business based in Denver, Colorado) completed in April 1992. In the U.K., despite the continuing adverse effect of the U.K. recession on building products and construction aggregates and lower product prices, net sales remained at similar levels to the 1991 half year due to higher sales volumes.
 Operating profit was affected by the severe effects of the U.K. recession and in particular its impact on U.K. construction activity, brought lower results in both the construction aggregates and building products businesses. The U.K. restructuring program is in progress and will reduce numbers employed by a further 400. Operations in the United States showed improvements in volumes and profits.
 ECC Construction:
 For the first six months of 1992, sales were 12.7 million pounds ($24.1 million) compared to 18.8 million pounds ($35.7 million) in the prior year. Operating profits were 4.5 million pounds ($8.5 million) compared to 8.9 million pounds ($16.9 million) in the prior year. The Group completed sales of 136 new houses in the first six months of 1992, compared to 216 in the comparable prior year period. The decline in sales was due to the lower demand in the U.K. housing market.
 Adjustments to Income:
 Market conditions within the U.K. construction industry have become increasingly difficult. As a result, the carrying values of the Group's U.K. housing land and property held for refurbishment have been reassessed and the company considers it appropriate to write down these carrying values by 11.2 million pounds in the 1992 half year.
 Given the continuing difficult market conditions further rationalization has been necessary in the U.K. Construction Materials Division and this has resulted in a provision of 4.5 million pounds to cover redundancy and other restructuring costs.
 A credit of 2.4 million pounds has been taken following the reduction in U.K. pension contributions resulting from a decrease in the number of employees following the 1990 restructuring exercise.
 The net effect of these items is an exceptional charge in the 1992 half year of 13.3 million pounds.
 Liquidity and Capital Resources:
 Net borrowings decreased by 4.4 million pounds in the 1992 half year from 133.4 million pounds at Dec. 31, 1991 to 129.0 million pounds at June 30, 1992. During 1992 the company completed a rights issue of 6 new ordinary shares for every 25 ordinary shares. This raised 209.2 million pounds net of expenses and was used principally to redeem $350 million of the company's $400 million auction preferred American depositary shares at a cost of 199.7 million pounds.
 Arrangements are being made to raise around $250 million medium to long term debt through a public bond offering in the United States, subject to suitable market conditions. The proposed offering will be made solely by means of a prospectus to be filed with the Securities and Exchange Commission in the U.S. Net proceeds of the proposed issue will be used to re-finance borrowings from the multi-currency credit facility, included within short-term debt as at June 30, 1992, arranged to finance the acquisition of Georgia Kaolin. The borrowings under this facility, which is available until May 1993, were included within long- term debt as at December 31, 1991.
 English China Clays is the world's leading producer of kaolin, which is one of the most important minerals used in the manufacture of paper. The company is also a major supplier of calcium carbonate, ball clay and other industrial minerals to companies worldwide. The company is also one of the largest suppliers of pre-cast concrete products in the United Kingdom. The company's construction materials activities also include the production of aggregates and coated stone. Approximately 20 percent of the company's sales are generated in the US.
 Note 1: The figures for the year ended December 31, 1991 published in the preliminary announcement have been extracted from the company's statutory accounts. The auditors have given an unqualified report on the full statutory accounts for the year. A copy of the statutory accounts for the year to December 31, 1991 has been filed with the Registrar of Companies.
 Note 2: Dollar figures represent the U.K. sterling results of English China Clays plc converted to U.S. dollars at $1.90 which is the noon buying rate of the Federal Reserve Bank of New York on June 30, 1992.
 Note 3: In December 1991 the Urgent Issues Task Force of the U.K. Accounting Standards Board issued a consensus which requires that the profit or loss arising on the sale of a previously acquired business or subsidiary should be determined by including the attributable amount of purchased goodwill where it has previously been charged directly against reserves. This consensus is applicable for accounting periods ending on or after January 23, 1992 and adoption requires restatement of prior years' financial statements. The Group has adopted this consensus and accordingly the extraordinary loss in the 1991 half year has been increased by 16.1 million pounds, in respect of goodwill previously charged against reserves, to 36.1 million pounds. This restatement had no effect on total shareholders' equity.
 ENGLISH CHINA CLAYS PLC
 Preliminary Announcement of Results
 (In millions)
 The following is a summary of the announcement issued to The Stock Exchange, London, on September 9, 1992.
 Six months ended June 30 Twelve months ended Dec. 31
 1992 1992 1991 1991 1991 1991
 Pounds US$ Pounds US$ Pounds US$
 Sales
 ECC Intn'l 296.6 563.6 295.1 560.7 584.9 1,111.3
 ECC
 Construction
 Materials 170.1 323.2 162.0 307.8 344.3 654.2
 ECC
 Construction 12.7 24.1 18.8 35.7 42.6 80.9
 479.4 910.9 475.9 904.2 971.8 1,846.4
 Discontinued
 Operations 0.0 0.0 35.9 68.2 40.1 76.2
 479.4 910.9 511.8 972.4 1,011.9 1,922.6
 Operating Profit
 ECC Int'l 46.5 88.3 48.9 92.9 97.7 185.6
 ECC Construction
 Materials 7.5 14.2 11.3 21.5 24.1 45.8
 ECC
 Construction 4.5 8.6 8.9 16.9 14.3 27.2
 58.5 111.1 69.1 131.3 136.1 258.6
 Discontinued
 Operations 0.0 0.0 (1.4) (2.7) (1.4) (2.7)
 58.5 111.1 67.7 128.6 134.7 255.9
 Group expenses
 less income (3.8) (7.2) (3.1) (5.9) (5.0) (9.5)
 Group operating
 profit 54.7 103.9 64.6 122.7 129.7 246.4
 Net interest
 expense (0.6) (1.1)(11.4) (21.7) (16.5) (31.3)
 Profit before
 exceptional
 items 54.1 102.8 53.2 101.0 113.2 215.1
 Exceptional
 items (13.3) (25.3) 0.0 0.0 2.2 4.2
 Profit on
 ordinary
 activities
 before
 taxation 40.8 77.5 53.2 101.0 115.4 219.3
 Taxation on
 profit on
 ordinary
 activities (11.4) (21.7)(17.6) (33.4) (31.5) (59.9)
 Profit on
 ordinary
 activities
 after
 taxation 29.4 55.8 35.6 67.6 83.9 159.4
 Minority
 interests (0.6) (1.1) (0.8) (1.5) (1.2) (2.3)
 Profit before
 extraordinary
 items 28.8 54.7 34.8 66.1 82.7 157.1
 Extraordinary
 items 0.0 0.0 (36.1) (68.6) (36.1) (68.6)
 Preference
 dividends (3.4) (6.4) (6.6) (12.5) (12.9) (24.5)
 Profits
 attributable
 to ordinary
 shareholders 25.4 48.3 (7.9) (15.0) 33.7 64.0
 Ordinary
 dividends
 (millions) 16.2 30.8 13.9 26.4 42.4 80.6
 Earnings
 per share 10.22p $0.194 12.63p $0.240 31.25p $0.594
 Earnings per
 ADS 30.66p $0.582 37.89p $0.720 93.75p $1.782
 Note: For convenience, Dollar figures represent the U.K. sterling results of the Group converted at 1 pound sterling to $1.90, which is the noon buying rate as announced by the Federal Reserve Bank of New York on June 30, 1992.
 ENGLISH CHINA CLAYS PLC
 Summary of Group Balance Sheet (unaudited)
 The following is a summary of the announcement issued to The Stock Exchange, London, on September 9, 1992.
 Pounds Millions $ Millions at $1.90:Pound 1.00
 6/30/92 12/31/91 6/30/92 12/31/92
 (Unaudited) (Unaudited)
 Fixed Assets 700.2 707.5 1,330.4 1,344.3
 Current Assets 541.0 533.3 1,027.9 1,013.2
 Current
 Liabilities (401.1) (223.6) (762.1) (424.8)
 Net Current
 Assets 139.9 309.7 265.8 588.4
 Total Assets
 less Current
 Liabilities 840.1 1,017.2 1,596.2 1,932.7
 Loan Capital,
 Taxation and
 Deferred
 Income (75.6) (258.7) (143.6) (491.5)
 Total Net
 Assets 764.5 758.5 1,452.6 1,441.2
 Called up
 Share Capital 67.1 55.9 127.5 106.2
 Reserves 695.5 695.3 1,321.5 1,321.1
 762.6 751.2 1,449.0 1,427.3
 Minority
 Interests 1.9 7.3 3.6 13.9
 Total Capital
 and Reserves 764.5 758.5 1,452.6 1,441.2
 Note: For convenience, Dollar figures represent the U.K. sterling results of the Group converted at 1.00 pound sterling to $1.90, which is the noon buying rate as announced by the Federal Reserve Bank of New York on June 30, 1992.
 -0- 9/9/92
 /CONTACT: Thomas C. Franco or Jeffrey G. Gibson of Broadgate Consultants, 212-229-2222, for English China Clays/
 (ENC) CO: English China Clays plc ST: New York IN: PAP SU: ERN


TS-LD -- NY006 -- 7378 09/09/92 09:28 EDT
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