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MANVILLE REPORTS SECOND QUARTER EARNINGS

    DENVER, July 22 /PRNewswire/ -- Manville Corp. (NYSE: MVL) today reported second quarter net sales of $582.0 million, up 4.8 percent from $555.3 million in the second quarter of 1992.  Net income applicable to common stock in the quarter was $22.0 million, or 18 cents per share, compared with $1.1 million, or 1 cent per share, in the second quarter of 1992.  Results in the second quarter of 1993 included $26.9 million of net tax benefit related to the portion of the June dividend that was paid to the Manville Personal Injury Settlement Trust.  Excluding that net tax benefit and its effect on profit sharing expense, net loss applicable to common stock in the quarter would have been approximately $1.3 million, or 1 cent per share.
    Riverwood International Corp. (NYSE: RVW), the company's packaging systems and paper products business, reported net sales of $293.2 million, up 3.9 percent from $282.2 million in the second quarter of 1992.  Net sales in the second quarter of 1993 included $22.4 million from the Macon, Ga. mill which was acquired July 1, 1992.  Riverwood's income from operations for the quarter was $27.7 million, down 39.0 percent from the prior year.  The primary reasons for the decline were the inclusion of operating losses from the Macon mill, which wasn't included in the prior year results, and an earnings decline in Coated Board System results.  The loss at the Macon mill reflected weak linerboard pricing throughout the industry.  Coated Board System results included higher marketing and product development expenditures for machinery-based packaging systems in preparation for the Macon start up, and weak demand for coated board used in folding carton applications. However, the beverage carrier business continued to show growth and wood products was up significantly due to higher lumber and plywood pricing compared with a year ago, although prices have declined from their peak in the first quarter of 1993.
    "Riverwood's second quarter results continue to reflect the weak conditions in some of our markets," said Thomas H. Johnson, Riverwood president and chief executive officer.  "We are particularly affected by the decline in linerboard prices worldwide.  Based on our most recent view that weak conditions in the linerboard markets will continue, and our intent to continue our focus on marketing and packaging machinery development in the beverage markets, we expect Riverwood to show a significant decrease in 1993 income from operations compared with 1992."
    Johnson added, "Our capital expenditure program to upgrade and convert the Macon mill to coated board production is on budget and on schedule.  As to timing of that project, we now anticipate having limited coated board production available for the 1994 beverage season. We remain confident about the outlook for our main business -- Coated Board System -- for 1994 and beyond since the market is responding favorably to our machinery offerings."
    Combined second quarter sales for the fiber glass-based Engineered Products and Building Products segments, which together represent the operating businesses of Schuller International Inc., were $299.9 million in the quarter, up 6.7 percent from the second quarter of 1992.  Income from operations was $29.6 million, up 19.3 percent compared with the second quarter of last year.
    "The sharp improvement in building products earnings is driven by continuing strong performance by our building insulation and roofing systems businesses.  These units are gaining share in moderately stronger markets and are benefiting from ongoing productivity gains," said Richard A. Kashnow, president of Schuller International.  "The decrease in engineered products earnings is due largely to the European recession which has depressed sales for our Schuller GmbH unit. Overall, we're confident that our steady process of reengineering our businesses will yield continued income leverage on moderate sales growth."
    Tom Stephens, Manville's chairman, added, "Schuller is showing increasing strength despite the slow recovery in commercial and industrial markets and the recession in Europe.  At Riverwood, in addition to weak linerboard markets, the decline in year-to-year earnings is due to their investment in the Coated Board System -- reflected both in the acquisition of the Macon, Georgia facility and in up-front marketing and packaging machinery development expenditures. We are pleased that in June Manville was able to pay its second special dividend of $1.04 per share in light of an uncertain economy and in the midst of the largest capital expansion program in the history of the company."
    First half results
    For the first six months, Manville reported sales of $1,090.5 million, up 3.6 percent from $1,052.3 million in the first half of 1992.  Income from operations was $88.5 million, down 20.7 percent from $111.7 million in the first half of 1992 as improvement in Schuller's business was offset by a decline in earnings at Riverwood. Net income applicable to common stock was $44.7 million, or 36 cents per share, compared with $5.7 million, or 4 cents per share, in the first half of 1992.  Results in 1993 included the net tax benefit related to the portion of the June dividend paid to the Manville Personal Injury Settlement Trust, a U.S. income tax refund of $18.7 million plus related interest income of $13.4 million, and the company's share of a $4.8 million income tax benefit at Riverwood due to tax law changes in Brazil.  Excluding these items and their effect on profit sharing expense, 1993 first half results applicable to common stock would have been a loss of approximately $6.0 million, or 5 cents per share.
    Manville is an international holding company with two principal subsidiaries -- wholly owned Schuller International, and 80-percent owned Riverwood International.  Products sold by Schuller International include insulation, reinforcements, filtration and building products. Riverwood International is a global packaging systems and paper products company.  Founded in 1858, Manville and its subsidiaries employ approximately 16,000 people at more than 50 locations worldwide. Manville and its subsidiaries had approximately $3.6 billion in assets as of Dec. 31, 1992.
                         MANVILLE CORP.
           CONDENSED CONSOLIDATED STATEMENT OF INCOME
         (Thousands of dollars except per share amounts)
                           (unaudited)
                                        Three Months         Percentage
                                       Ended June 30,        Increase
                                     1993         1992      (Decrease)
    INCOME
    Net Sales                      $581,998     $555,334        4.8
    Cost of Sales                   450,879      428,475        5.2
    Selling, General and
     Administrative Expenses         61,695       56,503        9.2
    Research, Development and
     Engineering Expenses             9,858        7,933       24.3
    Restructuring of Operations
     (Loss) Gain                     (4,067)         697        ---
    Other (Loss), net                (4,184)         (92)   4,447.8
    Income from Operations           51,315       63,028      (18.6)
    Interest Income                   4,812        2,182      120.5
    Interest Expense                 38,823       27,257       42.4
    Profit Sharing Expense            6,385        3,807       67.7
    Income Before Income Taxes       10,919       34,146      (68.0)
    Income Taxes                    (17,489)      18,722        ---
    Income before Minority Interest
     and Extraordinary Item          28,408       15,424       84.2
    Minority Interest in
     Consolidated Subsidiary           (734)         ---        ---
    Income before Extraordinary
     Item                            27,674       15,424       79.4
    Extraordinary Loss on Early
     Extinguishment of Debt,
      net of tax                        ---       (9,385)       ---
    Net Income                       27,674        6,039      358.3
    Preference Stock Accretion       (5,629)      (4,907)      14.7
    Net Income Applicable
     to Common Stock               $ 22,045     $  1,132    1,847.4
    EARNINGS PER COMMON SHARE
     (AFTER PREFERENCE STOCK ACCRETION)
    Primary and Fully Diluted:
    Income before Minority Interest
     and Extraordinary Item           $ .19        $ .09        ---
    Minority Interest in
     Consolidated Subsidiary           (.01)         ---        ---
    Income before Extraordinary Item    .18          .09        ---
    Extraordinary Loss on Early
     Extinguishment of Debt,
      net of tax                        ---         (.08)       ---
    Net Income                        $ .18        $ .01        ---
                            MANVILLE CORP.
             CONDENSED CONSOLIDATED STATEMENT OF INCOME
           (Thousands of dollars except per share amounts)
                             (unaudited)
                                         Six Months          Percentage
                                       Ended June 30,        Increase
                                     1993        1992       (Decrease)
    INCOME
    Net Sales                    $1,090,546   $1,052,271        3.6
    Cost of Sales                   850,605      814,102        4.5
    Selling, General and
     Administrative Expenses        120,995      111,672        8.3
    Research, Development and
    Engineering Expenses             19,298       16,187       19.2
    Restructuring of Operations
     (Loss) Gain                     (4,067)         697        ---
    Other (Loss) Income, net         (7,037)         714        ---
    Income from Operations           88,544      111,721      (20.7)
    Interest Income                  22,123        4,269      418.2
    Interest Expense                 76,927       54,989       39.9
    Profit Sharing Expense           12,974        6,137      111.4
    Income Before Income Taxes       20,766       54,864      (62.2)
    Income Taxes                    (36,830)      30,175        ---
    Income before Minority Interest
     and Extraordinary Item          57,596       24,689      133.3
    Minority Interest in
     Consolidated Subsidiary         (1,871)         ---        ---
    Income Before Extraordinary
     Item                            55,725       24,689      125.7
    Extraordinary Loss on Early
     Extinguishment of Debt,
      net of tax                        ---       (9,385)       ---
    Net Income                       55,725       15,304      264.1
    Preference Stock Accretion      (11,068)      (9,648)      14.7
    Net Income Applicable to
     Common Stock                $   44,657   $    5,656      689.6
    EARNINGS PER COMMON SHARE
     (AFTER PREFERENCE STOCK ACCRETION)
    Primary and Fully Diluted:
    Income before Minority Interest
     and Extraordinary Item           $ .38        $ .12        ---
    Minority Interest in
     Consolidated Subsidiary           (.02)         ---        ---
    Income Before Extraordinary Item    .36          .12        ---
    Extraordinary Loss on Early
     Extinguishment of Debt,
      net of tax                        ---         (.08)       ---
    Net Income                        $ .36        $ .04        ---
                            MANVILLE CORP.
               CONDENSED CONSOLIDATED BUSINESS SEGMENTS
                        (Thousands of dollars)
                            (unaudited)
                                        Three Months         Percentage
                                       Ended June 30,        Increase
                                     1993         1992      (Decrease)
    NET SALES
    Riverwood International
     Paperboard/Packaging          $293,213     $282,233        3.9
    Schuller Operating Segments
     Engineered Products            126,906      132,490       (4.2)
     Building Products              172,980      148,571       16.4
      Total                         299,886      281,061        6.7
    Corporate & Eliminations        (11,101)      (7,960)      39.5
    Total Company Net Sales        $581,998     $555,334        4.8
    INCOME FROM OPERATIONS
    Riverwood International
     Paperboard/Packaging          $ 27,700     $ 45,441      (39.0)
    Schuller Operating Segments
     Engineered Products             14,580       17,781      (18.0)
     Building Products               15,020        7,039      113.4
      Total                          29,600       24,820       19.3
    Corporate & Eliminations         (5,985)      (7,233)     (17.3)
    Total Company Income
     from Operations               $ 51,315     $ 63,028      (18.6)
                        MANVILLE CORP.
            CONDENSED CONSOLIDATED BUSINESS SEGMENTS
                   (Thousands of dollars)
                        (unaudited)
                                          Six Months         Percentage
                                        Ended June 30,       Increase
                                      1993         1992     (Decrease)
    NET SALES
    Riverwood International
     Paperboard/Packaging        $  553,940   $  531,499        4.2
    Schuller Operating Segments
     Engineered Products            252,148      259,597       (2.9)
     Building Products              301,946      275,201        9.7
      Total                         554,094      534,798        3.6
    Corporate & Eliminations        (17,488)     (14,026)      24.7
    Total Company Net Sales      $1,090,546   $1,052,271        3.6
    INCOME FROM OPERATIONS
    Riverwood International
     Paperboard/Packaging        $   49,551   $   77,569      (36.1)
    Schuller Operating Segments
     Engineered Products             27,130       33,989      (20.2)
     Building Products               24,114       11,909      102.5
      Total                          51,244       45,898       11.6
    Corporate & Eliminations        (12,251)     (11,746)       4.3
    Total Company Income
     from Operations             $   88,544   $  111,721      (20.7)
                           MANVILLE CORP.
          Notes to Condensed Consolidated Statement of Income
                            (unaudited)
    --  For the quarter ended June 30, 1993, the company reported a net income tax benefit of $17.5 million which included a $33.9 million tax benefit on the portion of the June special common dividend that was paid to the Manville Personal Injury Settlement Trust, partially offset by an additional deferred tax asset valuation allowance of $7.0 million.
    The year to date income tax benefit at June 30, 1993 of $36.8 million also includes the effect of a U.S. income tax refund and changes to Brazilian income tax rates.
    As a result of a retroactive change in U.S. income tax regulations regarding the payment of add-on minimum tax and the treatment of certain tax preference items for the years 1977 through 1986, the company is entitled to a federal income tax refund plus accrued interest.  During the first six months of 1993 the company received $32.1 million from the U.S. Internal Revenue Service, which has been recorded as a reduction to income tax expense of $18.7 million and an increase to interest income of $13.4 million.
    Recent changes in Brazil's tax laws provide for the accelerated payment of deferred income taxes on inflationary profits at reduced rates.  As a result of these changes, Riverwood International Corp. ("Riverwood"), the company's Paperboard and Packaging Products subsidiary, recognized a net income tax benefit of approximately $4.8 million in the first quarter of 1993.
    --  During the second quarter of 1992, Riverwood completed an initial public offering of 12.1 million common shares, or 19.5 percent, of Riverwood's common stock.  As a result, the Condensed Consolidated
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Date:Jul 22, 1993
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