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INTERMET REPORTS FOURTH QUARTER LOSS AND RESTATES EARNINGS FOR EFFECT OF ACCOUNTING CHANGES

 ATLANTA, Feb. 12 /PRNewswire/ -- Intermet Corporation (NASDAQ: INMT) today reported a net loss in the fourth quarter of $3.0 million ($0.12 per share). For the full year Intermet had a net loss of $29.9 million ($1.31 per share). The annual results include a $34.5 million charge ($1.52 per share) for the cumulative effect of adopting Statement of Financial Accounting Standards ("SFAS") No. 106, which changed the method of accounting for retiree health care costs. The full year results also include income of $6.1 million ($0.27 per share) for the cumulative effect of adopting SFAS No. 109, which changed the method of accounting for income taxes. Both of these statements were adopted retroactive to the first quarter of 1992. In addition to the cumulative effects noted above, adoption of these statements lowered income before accounting changes by $3.5 million during 1992.
 In 1991 Intermet reported net income of $2.5 million ($0.12 per share) in the fourth quarter and $8.8 million ($0.42 per share) for the full year. Net income for 1991 included a nonrecurring gain of $7.3 million ($0.35 per share) from the sale of a subsidiary, of which $1.9 million ($0.09 per share) was recorded in the fourth quarter.
 Net sales for the fourth quarter rose 32 percent to $104.5 million from $79.2 million in 1991, while sales for the full year were $402.0 million in 1992 compared to $319.8 million in 1991. A significant part of the increase in 1992 sales over 1991 was due to the acquisition of PBM Industries, Inc. on March 31, 1992. Other factors contributing to the sales growth were an increase in shipments to automotive customers, including new orders for Ford I-Beams and GM brake calipers, and the expansion of the company's machining operations.
 Commenting on the adoption of SFAS No. 106 and No. 109, John D. Ernst, vice president of finance and CFO stated, "Adoption of these two accounting standards is mandatory in 1993. We concluded that early adoption of these accounting changes in the fourth quarter of 1992 would facilitate financial comparisons as we proceed into 1993 due to the required restatement of 1992 quarterly results." He added, "Although recognition of future retiree-related health care costs does reduce shareholders' equity, it does not affect cash flow and in no way impacts the financial strength of Intermet."
 George W. Mathews, Jr., chairman and chief executive, stated, "While our operating results did not meet our expectations, 1992 was nevertheless an exciting year for Intermet. Our financial strength was enhanced as a result of our stock offering, private debt placement and significant increase in our bank revolver borrowing capacity. These actions enabled us to continue with our previously-announced capital expenditure program. We look forward to realizing the benefits of this program later in 1993 and in the years that follow."
 The results reported are unaudited and subject to adjustment.
 The Intermet board of directors declared a quarterly dividend of $0.04 per share, payable March 11, 1993 to shareholders of record Feb. 25, 1993.
 Atlanta-based Intermet Corporation and its subsidiaries provide precision iron parts to automotive and industrial customers primarily in North America and Europe.
 INTERMET CORPORATION
 Fourth Quarter Ended Dec. 31, 1992 1991
 Net Sales $104,458,000 $79,216,000
 Gross Profit 5,702,000 8,229,000
 Operating Profit (Loss) (3,228,000) 376,000
 Income (Loss) Before Taxes
 and Minority Interest (3,999,000) 1,974,000
 Income Tax Benefit (945,000) (144,000)
 Net Income (Loss) (3,046,000) 2,505,000
 Per Share ($0.07) $0.02
 Weighted Average
 Shares Outstanding 24,691,000 20,941,000
 Twelve Months Ended Dec. 31, 1992 1991
 Net Sales $401,951,000 $319,784,000
 Gross Profit 40,144,000 36,429,000
 Operating Profit 5,830,000 7,563,000
 Income Before Taxes, Minority
 Interest and Cumulative
 Effect of Accounting
 Changes 2,307,000 11,860,000
 Provision for Income Taxes 4,310,000 3,078,000
 Income (Loss) Before
 Cumulative Effect
 of Accounting Changes (1,515,000) 8,803,000
 Cumulative Effect of
 Accounting Changes (26,421,000) --
 Net Income (Loss) (29,936,000) 8,803,000
 Per Share ($0.20) $0.42
 Weighted Average
 Shares Outstanding 22,783,000 20,951,000
 -0- 2/12/93
 /CONTACT: John D. Ernst, chief financial officer of Intermet Corporation, (404) 431-6000, or Desmond Towey, or Bernadette McLaughlin both of Desmond Towey & Associates, 212-888-7600, or Ken Paneral, CFA of Desmond Towey & Associates, 708-729-8521, all for Interment Corporation/
 (INMT)


CO: Intermet Corporation ST: Georgia IN: MAC SU: ERN

LD -- NY003 -- 6038 02/12/93 08:55 EST
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Publication:PR Newswire
Date:Feb 12, 1993
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