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IMC FERTILIZER REPORTS FISCAL '93 FINANCIAL RESULTS; WEAK PRICES, SPECIAL CHARGES RESULT IN LOSS FOR YEAR AND QUARTER

 NORTHBROOK, Ill., July 29 /PRNewswire/ -- IMC Fertilizer Group, Inc. (NYSE: IFL) today reported a net loss of $167.1 million, or $7.57 per share, for the company's fiscal year ended June 30, 1993. The loss compares with last year's reported loss of $74.6 million or $3.38 per share.
 Net sales for the year were $897 million, a 15 percent decrease from fiscal 1992 when net sales were $1.059 billion.
 Fiscal 1993 results include a one-time charge of $47.1 million for the cumulative effect on prior years of a change in accounting for post retirement benefits as a result of the adoption of Statement of Financial Accounting Standards (SFAS) No. 106, as of July 1, 1992. Fiscal 1993 also includes a charge of $109.1 million related to the settlement of litigation resulting from the May 1991 explosion at a facility managed by the company in Sterlington, La., and a charge of $11.4 million related to the settlement of the dispute over the insurance claim receivable resulting from the water inflow at the company's Canadian potash mine.
 Fiscal 1992 results included a charge of $165.5 million as a result of a change in accounting for income taxes upon adoption of SFAS No. 109 and a gain of $18.2 million from the sale of IMC Fertilizer's ammonia facility at Sterlington.
 Excluding the non-recurring items noted above for both fiscal years, the company's 1993 net earnings totaled $.5 million, or 2 cents per share, compared with fiscal 1992 earnings of $72.7 million, or $3.30 per share.
 The fourth quarter net loss was $22.8 million, or $1.04 per share, including the charge for the insurance claim settlement described above, compared with net earnings of $7.6 million, or 35 cents per share in 1992. Sales of the fourth quarter totaled $255.9 million, compared with $279.7 million for the same period a year ago.
 "While these results are clearly disappointing, they also are not reflective of the company's underlying long-term potential," said Wendell F. Bueche, president and chief executive officer. "During fiscal 1993 we confronted and successfully resolved several obstacles to our future success and recorded, where appropriate, the one-time charges necessary to put them behind us. Our results also were hurt by a fall in the price of phosphate soil nutrients to their lowest level in 20 years.
 "Moving forward, however, we should begin realizing tangible benefits from the year's major accomplishments," said Bueche. "These include meaningful savings from the recently completed joint venture with Freeport-McMoRan and from our ongoing cost-reduction program, as well as removal of the uncertainty that existed due to pending major litigation. We remain cautiously optimistic that current signs of a strengthening of demand and prices could benefit the company for the fiscal year. However, the first quarter will continue to be difficult due to persistently lower overseas demand and the resulting lower-than- acceptable price levels, mainly for phosphate-based products."
 IMC Fertilizer is one of the world's leading producers of phosphate rock and potash, two basic crop nutrients. It also is the world's largest manufacturer of concentrated phosphates, and a producer of sulphur, oil and natural gas.
 IMC FERTILIZER GROUP, INC.
 (Dollars in millions except per share amounts)
 Periods ended Quarter Year
 June 30 1993 1992 1993 1992
 Net sales $255.9 $279.7 $897.1 $1,058.5
 Costs of goods sold 232.6 231.3 772.2 829.0
 Gross margins 23.3 48.4 124.9 229.5
 Selling, administrative
 and general expenses 14.8 24.7 60.4 68.1
 Sterlington litigation
 settlement(A) -- -- 169.1 --
 Other operating (income)
 and expense, net(B) 35.2 5.2 21.8 (31.4)
 Operating earnings (loss) (26.7) 18.5 (126.4) 192.8
 Interest earned and other
 non-operating (income)
 and expense, net (.7) (.5) 6.1 6.9
 Interest charges 13.8 10.2 44.8 44.5
 Earnings (loss) before
 income taxes (39.8) 8.8 (177.3) 141.4
 Provision (credit) for
 income taxes (17.0) 1.2 (57.3) 50.4
 Earnings before cumulative
 effect of accounting changes (22.8) 7.6 (120.0) 90.9
 Cumulative effect of
 accounting changes(C) -- -- (47.1) (165.5)
 Net earnings (loss) $(22.8) $7.6 $(167.1) $(74.6)
 Earnings (loss) per share(D)
 Earnings before cumulative
 effect of accounting changes $(1.04) $0.35 $(5.44) $4.12
 Cumulative effect of
 accounting changes (D) -- -- (2.13) (7.50)
 Net earnings (loss) $(1.04) $0.35 $(7.57) $(3.38)
 (A) -- Reflected the settlement of litigation resulting from the May 1991 explosion at a facility managed by the company in Sterlington. La.
 (B) -- In 1993, included fourth quarter charges of $32.4 million related to the settlement of the dispute over the insurance claim receivable resulting from the water inflow at the company's Canadian potash mine and $3.0 million from the settlement of an environmental issue, partially offset by a gain of $8.1 million in August 1992 from the resolution of a contract dispute with a major uranium oxide customer. In 1992, included a gain of $34.2 million from the sale of the company's ammonia production facility at Sterlington, partially offset by a fourth quarter charge of $5.3 million from the temporary shutdown and mothballing on the company's uranium production facilities.
 (C) -- In 1993, reflected the cumulative effect of an accounting change for periods prior to July 1, 1992, resulting from the adoption of Statement of Financial Accounting Standards (SFAS) No. 106, "Employers' Accounting for Postretirement Benefits Other Than Pensions." In 1992, reflected the cumulative effect of an accounting change resulting from the adoption of SFAS No. 109, "Accounting for Income Taxes."
 (D) -- Earnings per share were based on the weighted average number of shares and equivalent shares outstanding. Shares used in the calculations totaled 22.1 million shares for the quarters and years ended June 30, 1993 and 1992.
 -0- 7/29/93
 /CONTACT: Thomas C. Pasztor, 708-205-4801, or (investors) John E. Galvin, 708-205-4814, both of IMC Fertilizer/
 (IFL)


CO: IMC Fertilizer Group, Inc. ST: Illinois IN: CHM SU: ERN

TS-SB -- NY029 -- 7444 07/29/93 11:09 EDT
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Date:Jul 29, 1993
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