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NATIONAL GYPSUM COMPANY ANNOUNCES 1992 SECOND QUARTER RESULTS

 NATIONAL GYPSUM COMPANY ANNOUNCES 1992 SECOND QUARTER RESULTS
 CHARLOTTE, N.C., Aug. 6 /PRNewswire/ -- National Gypsum Company today announced financial results for the three and six months ended June 30, 1992.
 Second quarter net revenues were $273.8 million, compared with $280.2 million for the same quarter last year. The Company experienced a $10.4 million operating loss for the second quarter, compared with a $2.8 million operating loss during the second quarter of 1991. A net loss of $11.3 million was realized during this year's second quarter, compared with a $5.9 million loss during the same period last year. Net cash provided by operating activities during the 1992 second quarter was $1.6 million, compared with $12.1 million during the same quarter in 1991.
 For the first six months, net revenues were $550.9 million, compared with $556.7 million during the same period in 1991. The Company incurred a net loss of $29.4 million during the first half of 1992, compared with a net loss of $9.1 million during the same period in 1991. This year's first half results included $21.8 million in bankruptcy expenses which contained an approximate $10 million non-cash provision to increase the Company's estimate of the net liability subject to compromise for asbestos-related claims. Net cash used by operating activities during the first six months of 1992 was $2.4 million, compared with net cash provided of $31.4 million during the same period in 1991.
 Peter C. Browning, chairman and chief executive officer, said that the decline in revenues for the second quarter was primarily attributable to a decrease in billings by The Austin Company. Browning said that gypsum wallboard sales volume for the 1992 second quarter increased approximately 2 percent over the same period last year but declined approximately 8 percent from this year's unusually strong first quarter. He also said that average wallboard prices for this year's second quarter were virtually even with those for the same period last year and were approximately 6 percent higher than for this year's first quarter.
 "We are pleased that our price increase instituted April 1 has been sustained through the second quarter. Despite the success of that increase, it is important to keep in mind that the first quarter average prices were at their lowest level since the spring of 1978. We have scheduled another price increase for August 1 as part of our ongoing effort, along with cost reductions, to improve margins despite the overcapacity in our industry which continues to generate intense competition," Browning stated.
 He also said that the increased operating loss for this year's second quarter related primarily to The Austin Company's decline in construction service margins that resulted from increased competition for fewer available projects and due to an increase in the portion of net revenues attributable to construction services, which are less profitable than Austin's engineering and design services. Browning said that the decrease in net cash provided by operating activities reflects a reduction in cash collected from customers by The Austin Company and increased payments of bankruptcy-related expenses.
 NATIONAL GYPSUM COMPANY
 CONSOLIDATED STATEMENTS OF OPERATIONS
 FOR THE SECOND QUARTERS AND SIX MONTHS OF 1992 AND 1991
 Three months ended 6/30/92 6/30/91
 (thousands)
 Net revenues $273,775 $280,198
 Cost of products and services sold 249,074 247,620
 Selling, general and administrative
 expense 23,371 23,383
 Depreciation, depletion and
 amortization 11,731 12,000
 Operating loss (10,401) (2,805)
 Interest expense (contractual
 interest for 1992 -- $36,792;
 1991 -- $35,427) 997 1,016
 Other income (expense) -- net 1,631 1,095
 Bankruptcy expenses 7,037(a) 5,892
 Income tax benefit 5,459 2,706
 Net loss (11,345) (5,912)
 Net cash provided by operating
 activities 1,634 12,177
 Six months ended 6/30/92 6/30/91
 (thousands)
 Net revenues $550,886 $556,686
 Cost of products and services sold 502,469 491,764
 Selling, general and administrative
 expense 46,334 45,685
 Depreciation, depletion and
 amortization 23,246 23,795
 Operating loss (21,163) (4,558)
 Interest expense (contractual
 interest for 1992 -- $73,586;
 1991 -- $70,965) 1,996 2,143
 Other income (expense) -- net 2,082 2,260
 Bankruptcy expenses 21,818(a) 10,974
 Income tax benefit 13,457 6,314
 Net loss (29,438) (9,101)
 Net cash (used) provided by
 operating activities (2,358) 31,443
 NOTE:
 (a) Bankruptcy expenses include the provision for allowed claims, bankruptcy-related professional fees and other items. The Company is still evaluating claims for the purpose of estimating amounts expected to be allowed for consideration in the Plan of Reorganization. During the first quarter of 1992, the Company recorded a provision for allowed claims of approximately $10 million to increase its estimate of the net liability subject to compromise for all asbestos-related claims to approximately $115 million as of March 31, 1992.
 -0- 8/6/92
 /CONTACT: J. Michal Conaway, Vice President and Chief Financial Officer, National Gypsum Company, 214-969-3422/ CO: National Gypsum Company ST: North Carolina IN: CST SU: ERN


CM -- CH003 -- 7445 08/06/92 09:12 EDT
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Date:Aug 6, 1992
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