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PRECISION CASTPARTS REPORTS EARNINGS

 PORTLAND, Ore., Jan. 18 /PRNewswire/ -- Precision Castparts Corp. (NYSE: PCP) today reported that a restructuring charge and an environmental charge recorded in the third quarter of the fiscal year ending March 31, 1993, have resulted in a loss for the quarter and for the nine months ending Dec. 27, 1992. William C. McCormick, president and chief executive officer of the Portland-based manufacturer of components for the aerospace, industrial turbine, electronic and health- care industries, said today that sales for the quarter decreased 28 percent to $107.9 million, down from a record $149.6 million in the prior year's third quarter. Income from operations, and before the charges for unusual items, amounted to $4.3 million for the quarter, or 23 cents per share, less than half the $9.9 million, or 56 cents per share, the
comparable amounts for the same period last year. As a result of special charges in the current year's quarter, the company experienced a net loss for the current quarter of $18.7 million, or $1.06 per share, compared with net income of $19.3 million, or $1.09 per share, in the prior year's third quarter.
 For the first three quarters of fiscal 1993, sales amounted to $350.4 million, down 20 percent from the prior year's $439.0 million. Income from operations before unusual items decreased 31 percent to $19.0 million, or $1.06 per share, from $27.5 million, or $1.56 per share, earned in the first nine months one year earlier. After unusual charges in fiscal 1993 and credits in fiscal 1992, the net loss for the current year's first nine months amounts to $4.0 million, or 23 cents per share, versus net income of $36.3 million, or $2.05 per share, for last year.
 In reporting today, McCormick said, "This quarter we took charges totaling approximately $27 million before taxes to cover one-time costs necessary to restructure our business to reflect the significant decrease in capital spending by the airline industry. These costs include approximately $5 million for employee severance, $17 million for consolidation and rearrangement of operations, and $5 million for write off of excess fixed assets." He also said that Precision plans to eliminate the use of a hazardous material from the manufacturing process at one of its manufacturing sites in Oregon and has reserved nearly $10 million before taxes relating to that purpose. McCormick said that earnings for last year's quarter included a $10.1-million reduction in income taxes, equal to 57 cents per share, which arose as a result of reaching an agreement with the Internal Revenue Service concerning research and development tax credits claimed on previous years' tax returns.
 The backlog of orders at Dec. 31, 1992, amounted to $427.2 million, down 25 percent from $567.9 million one year earlier. McCormick said that the current backlog reflects a change in customer order placement patterns from orders placed for delivery for the ensuing year to orders expected to be delivered near term.
 Aerospace sales, which account for 85 percent of the company's sales for the quarter, were down 31 percent reflecting the continued weak demand for new jet aircraft, both for commercial and military end use. Non-aerospace components were off 2 percent with lower casting sales nearly offset by increased sales in the company's metal injection molding business. "As a result of restructuring and reduced levels of employment, operating results are expected to improve in coming periods," McCormick said.
 PRECISION CASTPARTS CORP.
 SUMMARY OF RESULTS
 (In thousands, except per-share data)
 Three Months Nine Months
 Ended: Dec. 27, Dec. 29, Dec. 27, Dec. 29,
 1992 1991 1992 1991
 Net sales $107,900 $149,600 $350,400 $439,000
 Cost of goods sold 94,400 126,000 297,500 370,100
 Restructuring charges(A) 27,200 0 27,200 0
 Environmental charges(A) 9,900 0 9,900 0
 Other operating expenses(B) 0 1,800 0 2,700
 Gross margin (23,600) 21,800 15,800 66,200
 Selling and administrative
 expenses 7,800 10,400 24,500 28,100
 Interest (income) expense,
 net (100) (700) 0 700
 Income before provision for
 income taxes (31,300) 12,100 (8,700) 37,400
 Provision (credit) for
 income taxes(C) (12,600) (7,200) (4,700) 1,100
 Net income (loss) $(18,700) $ 19,300 $ (4,000) $ 36,300
 Net income (loss) per
 common share(D) $ (1.06) $ 1.09 $ (0.23) $ 2.05
 NOTE (A): During the third quarter of fiscal 1993, the company recorded a provision for restructuring charges of $27.2 million, equal to (95 cents) per share, and a provision for environmental charges of $9.9 million, equal to (34 cents) per share. The restructuring charges, which are in response to a significant and continuing industry decline in demand for aerospace components, provide for the estimated cost of employee severances, plant and office consolidations and rearrangements, and other operating asset write-offs at the company's Structurals and Airfoils divisions. The environmental charges provide for the elimination and clean-up of a hazardous material used at one of the company's manufacturing sites in Oregon.
 NOTE (B): During the third quarter of fiscal 1992, the company sold its United Kingdom operations for a pretax loss of $1.8 million, equal to (4 cents) per share. During the second quarter of fiscal 1992, the company closed its experimental powder metal facility in Ohio for a pretax loss of $0.9 million, equal to (4 cents) per share.
 NOTE (C): During the third quarter of fiscal 1992, the company recorded a $10.1-million tax benefit, equal to 57 cents per share, as a result of reaching agreement with the Internal Revenue Service concerning research and development tax credits for fiscal years 1986, 1987, 1988 and 1989.
 NOTE (D): Based on 17,900,000 and 17,700,000 shares outstanding.
 -0- 1/18/93
 /CONTACT: Roy Marvin of Precision Castparts, 503-653-4840/
 (PCP)


CO: Precision Castparts ST: Oregon IN: AIR SU: ERN

SW-LM -- SE010 -- 6047 01/18/93 18:11 EST
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Date:Jan 18, 1993
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