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INDRESCO INC. REPORTS RESULTS

 DALLAS, Dec. 16 /PRNewswire/ -- INDRESCO Inc. (NYSE: ID) today reported a loss of $65.7 million or $2.42 per share for the year ended Oct. 31, 1992, reflecting the company's actual performance for the three months following its August "spin-off" from Dresser Industries, Inc. and the "pre spin-off" results for the nine months ended July 31, of the industrial businesses (reported as discontinued operations by Dresser). For the previous year, INDRESCO's pro forma results indicate net earnings of $4.3 million or $0.16 per share.
 Consolidated sales revenues were $558.7 million, down 9.5 percent from the 1991 level. The company's share of sales revenues of its unconsolidated partnership operations were $465.2 million compared to $544.4 million in 1991.
 Ralph W. Ytterberg, chairman and chief executive officer stated that the 1992 losses primarily reflected non-cash items and had the effect of reducing shareholders' equity to $343.4 million at Oct. 31 from $399.3 million a year earlier. He said the company ended the year with a cash position in excess of a $30.0 million and no significant debt. A key factor that contributed to the negative results in 1992, according to Ytterberg, was higher pre-tax losses in the Komatsu Dresser construction equipment joint venture ($54.0 million versus $37.4 million) due to the continuing effect of recessionary conditions in key market areas, as well as significant restructuring and cost reduction programs designed to improve profitability. He also cited the effect of a change in accounting for income taxes (FAS 109) and non-recurring expenses related to the "spin-off."
 The company also recently announced the adoption of Financial Accounting Standards (FAS) 106 relative to post-retirement health benefits, effective Nov. 1, 1992. This mandated, non-cash charge is estimated to result in a one-time charge to 1993 earnings of up to $55 million or $2.00 per share. The annual expense resulting from the adoption of FAS 106 is expected to be comparable with the company's pre-adoption costs, reflecting a new and more efficient health care package.
 For the fourth quarter, the company reported a loss of $38.4 million or $1.40 per share versus net earnings of $3.2 million or $0.12 per share in 1991. The Komatsu Dresser joint venture (50 percent owned) contributed a $22.7 million pre-tax loss to INDRESCO's operating results.
 In commenting on the outlook, Ytterberg said INDRESCO had made significant progress in adapting to the pressures of the recession and was in excellent position to build shareholder value. He went on to say that most of the company's major customers currently were expecting the 1993 global economy and their served markets to approximate the levels experienced in 1992. He said it was premature to assess the potential effect of infrastructure programs emanating from Washington on the 1993 and 1994 results.
 INDRESCO is comprised of the former Industrial businesses of Dresser Industries, Inc., spun-off to shareholders in August 1992. Its businesses are classified into three segments: Minerals and Refractory Products, Air Equipment, and Mining and Construction Equipment.
 INDRESCO INC. AND SUBSIDIARIES
 Consolidated Condensed Statements of Earnings
 (In millions except per share data)
 Periods ended Three months Year
 Oct. 31 1992 1991 1992 1991
 Net sales and service
 revenue $149.4 $162.2 $558.7 $617.6
 Cost of sales
 and services 120.1 125.1 427.6 470.9
 Gross earnings 29.3 37.1 131.1 146.7
 Selling, engineering,
 administrative and
 general expenses 33.7 28.5 122.1 119.3
 Earnings (loss) from
 operations before
 partnership operations (4.4) 8.6 9.0 27.4
 Earnings (loss) from
 partnership operations (23.3) (4.4) (54.0) (38.2)
 Earnings (losses) from
 operations (27.7) 4.2 (45.0) (10.8)
 Other income (deductions)
 Expenses related
 to spin-off (11.0) -- (11.0) --
 Pension plan settlements -- -- 2.4 10.7
 Other, net 0.7 0.5 2.8 6.1
 Total other income
 (deductions) (10.3) 0.5 (5.8) 16.8
 Earnings (loss) before
 income taxes (38.0) 4.7 (50.8) 6.0
 Income taxes (0.4) (2.4) 0.7 (3.1)
 Earnings (loss) before
 extraordinary item (38.4) 2.3 (50.1) 2.9
 Tax benefits from loss
 carryforwards -- 0.9 -- 1.4
 Net earnings (loss) before
 cumulative effect of
 accounting change (38.4) 3.2 (50.1) 4.3
 Cumulative effect of
 accounting change -- -- (15.6) --
 Net earnings (loss) ($38.4) $3.2 ($65.7) $4.3
 Pro forma earnings (loss)
 per common share
 Earnings (loss) before
 extraordinary item ($1.40) $0.09 ($1.85) $0.11
 Extraordinary item -- 0.03 -- 0.05
 Cumulative effect of
 accounting change -- -- (0.57) --
 Net earnings (loss) ($1.40) $0.12 ($2.42) $0.16
 Average common shares
 outstanding 27.4 26.9 27.1 26.8
 -0- 12/16/92
 /CONTACT: Gene E. Leeson of INDRESCO, 214-953-4505/
 (ID)


CO: INDRESCO Inc. ST: Texas IN: SU: ERN

SM -- NY090 -- 7925 12/16/92 17:31 EST
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Date:Dec 16, 1992
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