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SAFETY-KLEEN CORP. PROJECTS FOURTH QUARTER OPERATING RESULTS

 ELGIN, Ill., Dec. 15 /PRNewswire/ -- Donald W. Brinckman, chairman and chief executive officer of Safety-Kleen Corp. (NYSE: SK), said today that the company expects net earnings for 1992, before the cumulative effect of a change in accounting, will be approximately $45 million, or $.78 per share, on revenue of approximately $790 million. The company adopted Statement of Financial Accounting Standard No. 109 on accounting for income taxes during the first interim period of 1992. The cumulative prior years' effect of the change increased net earnings by $3.2 million or $.06 per share. In 1991, the company reported net earnings of $51,551,000, or $.90 per share, on revenue of $695,001,000.
 Brinckman said that this estimate is based on projected net earnings of approximately $12.5 million, or $.22 per share, and projected revenue of approximately $250 million, for the fourth quarter of 1992. In the fourth quarter of 1991 the company reported net earnings of $13,859,000, or $.24 per share on revenue of $222,648,000.
 Speaking before a group of investment analysts at William Blair & Co.,
Brinckman said, Our operating results in the fourth quarter continue to be impacted by losses from the Puerto Rico operations. In the third quarter, we reported a $7.6 million net charge for costs associated with environmental problems found during an internal investigation in Puerto Rico. Our plant in Manati, Puerto Rico is back in operation, but as we said in our third quarter report to shareholders, the cement kiln which serves as the outlet for alternative fuel produced at the Manati plant is currently unable to burn such fuel. We expect the kiln to be able to burn the alternative fuel in early 1993 following completion of certain environmental tests.''
 Brinckman said, Until the kiln in Puerto Rico is able to burn the alternative fuel, we must ship the fuel to the U.S. mainland, incurring substantially higher costs. We have instituted surcharges to our customers in Puerto Rico to cover a substantial portion of the added costs, but we have seen approximately a 35 percent decrease in revenue to-date in the fourth quarter 1992 compared to the fourth quarter last year. As a result, we anticipate a net loss of approximately $1.5 million in Puerto Rico in the fourth quarter 1992, compared to net income of $1.8 million in the fourth quarter of 1991.''
 We have also experienced some problems at one of the cement kilns we use
in the United States,'' Brinckman said. All cement companies burning hazardous waste alternative fuels must meet the requirements of the new Boiler and Industrial Furnace (BIF) regulations. One of the mainland kilns has been unable to burn these fuels at the same rate that it had prior to the BIF requirements. Until it is able to meet the requirements of the BIF regulations, we are incurring higher costs for transportation and other costs to ship alternative fuels to other kilns. We estimate these higher costs will reduce fourth quarter earnings by approximately $1 million. We expect the affected kiln will be able to meet the BIF regulations and return to normal burn rates within the next few months.''
 Brinckman added, A third item that will adversely impact our fourth quarter is a net earnings charge of approximately $1.3 million ($1.5 million pretax for hazardous waste fees and $0.4 million for penalties) to settle a dispute with the State of Kentucky regarding hazardous waste fees and environmental penalties. The state had asserted that the company owed over $4 million for these fees and penalties. Although we believe that we may have been able to reduce these assessments and penalties further through litigation with the state, we reached a settlement to avoid further legal costs and resolve the permit issues which could have disrupted operations at some of our facilities in Kentucky.''
 Brinckman added, Although we are projecting revenue for the full year to be up approximately 14 percent over 1991, we believe that to- date we have experienced little, if any, benefit from the economic recovery. Revenue of our core North American Automotive/Retail Repair Parts Cleaner Service will be up approximately 5 percent over 1991. The increase is due to higher prices, partially offset by lower volume. Typically, we would expect to experience a six to nine month lag between the start of a general economic recovery and an improvement in our Parts Cleaner Service, but it appears the improvement may take longer in the current recovery. We have experienced good growth in the Oil Recovery Service and Industrial Services in 1992. However, we believe that we would have experienced somewhat faster growth in the Industrial Services in a better economic climate.''
 In conclusion, Brinckman said he was enthusiastic about the long- term growth potential for the company, citing the company's premier position in the handling of waste automotive and industrial fluids. He said the company is currently developing additional services which will build on it strengths in handling fluid wastes.
 Safety-Kleen Corp. is the world's largest recycler of automotive and industrial hazardous and non-hazardous fluids. Safety-Kleen's common stock is traded on the New York Stock Exchange under the trading symbol SK.
 -0- 12/15/92
 /CONTACT: Robert W. Willmschen of Safety-Kleen, 708-697-8460/
 (SK)


CO: Safety-Kleen Corp. ST: Illinois IN: SU: ERP

TM -- NY088 -- 7468 12/15/92 18:23 EST
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Date:Dec 15, 1992
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