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LUKENS' EPS REBOUND FROM FIRST QUARTER -- WASHINGTON STEEL MAKES POSITIVE CONTRIBUTION

 LUKENS' EPS REBOUND FROM FIRST QUARTER --
 WASHINGTON STEEL MAKES POSITIVE CONTRIBUTION
 COATESVILLE, Pa., July 17 /PRNewswire/ -- Lukens Inc. (NYSE: LUC) today reported second quarter sales of $241,512,000, 36 percent higher than sales of $177,978,000 for the same quarter last year.
 Second quarter earnings of $10,144,000, or $1.14 per share, were double first quarter 1992 earnings per share. Second quarter net earnings in 1991 were $12,958,000, or $1.48 a share.
 First half results include sales and operating earnings of Washington Steel from April 24, the date Lukens completed the acquisition. Sales for the first half of 1992 were $381,595,000, compared to $334,110,000 for the 1991 first half. Net earnings for the 1992 first half of $15,384,000, or $1.70 per share, compared to $21,774,000, or $2.48 per share, for the first half of 1991. First half results in 1992 were impacted by the combination of a steelworkers' strike which ended in January, low plate steel prices, and the decline in pipeline construction.
 R.W. Van Sant, chairman and chief executive officer of Lukens Inc., said, "We are pleased that Lukens' second quarter performance improved over the first quarter. Each group recorded improved results and Washington reported its first contribution since being acquired on April 24. These results represent continuing progress towards our long- term objectives. The improved results, even though below last year's second quarter, were attained in an economic environment that was considerably more difficult than in 1991. Last year, Lukens Steel's results and the excellent performance of the Corrosion Protection Group combined to produce a record second quarter."
 Van Sant announced the formation of the Washington Stainless Steel Group, which includes Washington Steel Corporation and Washington Specialty Metals Corporation. Washington Steel is one of the country's leading manufacturers of stainless steel sheet, strip and continuous mill products. Washington Specialty Metals' service centers are the largest volume distributors of flat rolled stainless steel in North America.
 The Washington Stainless Steel Group sales, from April 24 through June 30, were $79,114,000. Operating earnings for the same period were $4,852,000. The group shipped 44,983 tons during the two-month period.
 The Lukens Steel Group, which includes Lukens Steel Company, the third largest domestic plate steel producer, reported second quarter 1992 sales of $108,039,000, and operating earnings of $12,454,000. This compares to sales of $116,315,000 and operating earnings of $16,398,000 in the second quarter of 1991. Measured against the strike-impacted first quarter of 1992, Lukens Steel Group operating earnings increased 35 percent. The group's sales and operating earnings for the first half of 1992 were $208,128,000 and $21,667,000, respectively. In 1991, Lukens Steel Group sales through the first half were $231,280,000; operating earnings for the same period were $29,747,000.
 Although second quarter plate steel shipments of 164,000 tons were down slightly from the 168,000 tons shipped for the same quarter last year, the second quarter shipments were 5 percent higher than the 157,000 tons shipped in the first quarter of 1992. While the average price of $657 per ton is an increase of 3 percent over the first quarter, it is still below last year's average price of $692 per ton.
 Van Sant said, "Even though pricing for carbon plate steel remains low, second quarter order volume for plate steel is stronger than it has been since 1989. The Lukens Steel Group backlog of $78,479,000 at the end of the first half reflects a decline due to the higher mix of carbon product. Backlog at the end of the first half of 1991 was $95,609,000.
 The Corrosion Protection Group 1992 second quarter sales of $26,994,000 were reduced from the $36,387,000 sales of 1991, due to the expected decrease in mega-pipeline construction activity. Second quarter operating earnings of $2,998,000 compare to $5,020,000 from the 1991 second quarter.
 First half sales of $45,819,000 generated operating earnings of $3,266,000 for the Corrosion Protection Group. For the same period in 1991, sales were $55,579,000 and operating earnings were $5,707,000. The backlog at the end of the quarter was $24,871,000 compared to $58,374,000 at the end of the 1991 second quarter.
 The Safety Products Group second quarter sales of $19,372,000 were 6 percent higher than the 1991 sales of $18,362,000 for the same period. Operating earnings of $2,066,000 were reduced slightly from 1991 second quarter operating earnings of $2,100,000 due to lower glass bead prices and costs associated with restructuring of plant facilities.
 For the first half of 1992, the Safety Products Group had sales of $32,382,000 and operating earnings of $2,684,000. In 1991, the group reported sales of $31,824,000 and operating earnings of $2,586,000 for the first half. The backlog at the end of the 1992 second quarter was $4,819,000, compared to $5,932,000 for the same period in 1991.
 Diversified Group sales for the quarter were $7,993,000, compared to $6,914,000 in last year's second quarter. Operating earnings increased substantially to $591,000 in 1992 compared to $310,000 in the second quarter last year. First half 1992 sales were $16,152,000, compared to sales of $15,427,000 in the first half of 1991. Operating earnings for the first half were $1,462,000 in 1992, compared to $1,624,000 in the 1991 comparable period. The backlog at the end of the 1992 second quarter was $2,129,00, compared to $2,419,000 for the same period last year.
 On July 1, Lukens announced that it intends to pay a stock dividend on the basis of one new share for each two shares held. The record date for the stock dividend has not been determined, but is expected to be a date soon after the completion of Lukens' previously announced offering of common stock and will not be later than Oct. 31, 1992.
 Van Sant said, "Business conditions affecting most of the company's operations improved steadily during the second quarter." He noted that the Washington Steel acquisition will allow Lukens to participate in broader sectors of the steel market. Van Sant continued, "Overall, we are pleased with the results of our strategy to grow and build value."
 Lukens Inc. is a Fortune 500 company whose subsidiaries supply carbon, alloy and clad plate steel; stainless sheet, strip and continuous mill products; pipe coating and cathodic corrosion protection services; reflective and industrial glass beads and highway safety products; industrial screening, heavy materials-handling equipment and transportation services.
 This earnings release was filed with the SEC in Lukens' Current Report on Form 8-K, dated July 17, 1992.
 LUKENS INC.
 SECOND QUARTER 1992
 Second Quarter Year-to-Date
 13 Weeks Ended 16 Weeks Ended
 6/27/92 6/29/91 6/27/92 6/29/91
 Net Sales $241,512,000 $177,978,000 $381,595,000 $334,110,000
 Operating
 Earnings 20,323,000 20,506,000 28,539,000 34,438,000
 Earnings
 Before Taxes 16,645,000 20,568,000 25,096,000 34,562,000
 Net Earnings 10,144,000 12,958,000 15,384,000 21,774,000
 Net Sales (pct.) 4.2 7.3 4.0 6.5
 Earnings Per Common Share:
 Primary $1.14 $1.48 $1.70 $2.48
 Fully Diluted 1.05 1.35 1.59 2.28
 Common Shares &
 Equivalents Outstanding:
 Primary 8,580,000 8,457,000 8,562,000 8,438,000
 Fully Diluted 9,698,000 9,560,000 9,671,000 9,547,000
 LUKENS INC.
 Segment Financial Data
 Second Quarter Year-To-Date
 1992 1991 1992 1991
 NET SALES:
 Lukens Steel $108,039,000 $116,315,000 $208,128,000 $231,280,000
 Washington
 Stainless 79,114,000 --- 79,114,000 ---
 Safety Products 19,372,000 18,362,000 32,382,000 31,824,000
 Corrosion
 Protection 26,994,000 36,387,000 45,819,000 55,579,000
 Diversified 7,993,000 6,914,000 16,152,000 15,427,000
 Total $241,512,000 $177,978,000 $381,595,000 $334,110,000
 OPERATING EARNINGS (LOSS):
 Lukens Steel $12,454,000 $16,398,000 $21,667,000 $29,747,000
 Washington
 Stainless 4,852,000 --- 4,852,000 ---
 Safety Products 2,066,000 2,100,000 2,684,000 2,586,000
 Corrosion
 Protection 2,998,000 5,020,000 3,266,000 5,707,000
 Diversified 591,000 310,000 1,462,000 1,624,000
 Corporate (2,638,000) (3,322,000) (5,392,000) (5,226,000)
 Total 20,323,000 20,506,000 28,539,000 34,438,000
 /delval/
 -0- 7/17/92
 /CONTACT: W. Evelyn Walker of Lukens, 215-383-2504/
 (LUC) CO: Lukens Inc. ST: Pennsylvania IN: MNG SU: ERN


MK -- PH004 -- 0098 07/17/92 09:06 EDT
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Date:Jul 17, 1992
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