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KEENE REPORTS LOWER FIRST QUARTER SALES AND EARNINGS

 KEENE REPORTS LOWER FIRST QUARTER SALES AND EARNINGS
 NEW YORK, April 9 /PRNewswire/ -- Keene Corporation (NASDAQ: KEEN)


today reported that sales and earnings declined in the first quarter of 1992 compared with the 1991 period as a result of continued softness in defense-related markets at Keene's Reinhold Industries, Inc. subsidiary.
 Reinhold is a custom manufacturer of heat-absorbing composite materials, structural composite components and sheet molding compounds for a variety of aerospace, defense and commercial applications.
 Sales for the first quarter declined 37 percent to $2,536,000. Net income totalled $689,000, or 7 cents per share, compared with net income of $904,000, or 9 cents per share, in the first quarter of 1991.
 The average yield on Keene's investment portfolio was 7.1 percent and 7.5 percent during the first quarter if 1992 and 1991, respectively.
 Although defense-related sales at Reinhold remain weak, operating gross margin rates have improved as a result of cost-reduction actions taken during 1991. Lower first quarter income reflects the decline in sales at Reinhold coupled with a decline in investment income resulting from lower interest rates and a smaller average investment portfolio.
 During the first quarter, Reinhold purchased 100 percent of the outstanding common stock of Reynolds and Taylor, Inc., a manufacturer of composite components serving the defense and aerospace markets. This acquisition is expected to expand Reinhold's participation in the nation's cornerstone tactical defense programs, as well as accelerate Reinhold's growth in commercial aerospace markets.
 Asbestos Litigation
 Keene continued to adhere to its Asbestos Compensation Program launched in July 1990 by paying settlements only on meritorious cases in amounts based upon specific disease ailments and geographic locations.
 In the first quarter if 1992, Keene incurred costs of $13.5 million for indemnities and defense legal fees compared with costs of $12.8 million in the first quarter of 1991. This reflects an increasing acceptance of the Asbestos Compensation Program by plaintiffs' lawyers and a continued reduction in defense legal fees.
 KEENE CORPORATION
 Statements of Sales and Earnings
 (In thousands except per share data)
 Three months ended March 31 1992 1991
 Net sales $2,536 $4,050
 Net income $689 $904
 EPS $.07 $.09
 Shares outstanding 10,442 10,442
 -0- 4/9/92
 /CONTACT: Frances O'Brien of Keene, 212-577-1900/
 (KEEN) CO: Keene Corporation ST: New York IN: SU: ERN


AH-SM -- NY048 -- 6751 04/09/92 11:51 EDT
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Publication:PR Newswire
Date:Apr 9, 1992
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