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 MEXICO, Mo., April 19 /PRNewswire/ -- A.P. Green Industries, Inc. (NASDAQ-NMS: APGI) today announced its results for the first quarter of 1994.
 Net sales for the three months ended March 31 were $37.5 million, $2 million lower than the $39.5 million posted in the first quarter of 1993. Net earnings for the first quarter of 1994 were $181,000, or $0.05 per share, compared to earnings of $1.3 million, or $0.33 per share reported for the first quarter of 1993.
 The Company's first quarter 1994 results included the adoption of an accounting standard, FAS 112, "Employers Accounting for Post-employment Benefits." Net earnings before the effect of this adoption of $436,000, or $0.11 per share were reduced approximately $255,000, or $0.06 per share. Several other factors contributed to the reduction in sales and earnings. APG Lime Corp. experienced reductions in earnings as a result of a delay in bringing the new kiln in New Braunfels, Texas on line and the curtailment of production at the Kimballton, Va. facility for several days because of power failures caused by severe weather conditions. Refractory sales were hurt by weather related factors in the Northeastern United States, and reduced operating rates of the Company's aluminum customers. During the first quarter, further personnel reductions were made in the Company's Canadian subsidiary. An after-tax charge of approximately $200,000 to cover the cost of these reductions was made in the first quarter. The benefits of these reductions will be realized in future periods.
 During the first quarter and in accordance with new accounting pronouncements, the Company "grossed up" its balance sheet to reflect expected asbestos-related liabilities and related expected insurance recoveries under its policies. This action has no earnings effect.
 Paul F. Hummer, chairman of the board, president and chief executive officer said. "While the first part of the quarter reflected reductions in sales and earnings because of the weather, the delay in bringing on line the kiln in New Braunfels and the provision for personnel reductions, I am pleased to report that the last half of the quarter showed significant signs of improvement. I am confident that the last part of the quarter is more reflective of future results than the first part.
 "We continue to take steps to bring our costs down without reducing our quality and service levels. The reductions we made in our Canadian subsidiary during the quarter are examples of those steps. While the move reduced earnings in the short term, the positive effects will be seen in subsequent periods."
 A.P. Green Industries, Inc., headquartered in Mexico, Mo., mines, processes, manufactures and distributes specialty minerals and mineral- based products, including industrial lime products and refractories in both the United States and international markets. The Company operates 13 plants in the United States, Canada and the United Kingdom.
 Period Ended March 31
 (Dollars in thousands except per share data)
 Three Months
 1994 1993
 Net sales $ 37,503 $ 39,505
 Cost of sales 31,397 31,666
 Gross profit 6,106 7,839
 Expenses and other income
 Selling & administrative expenses 5,969 6,016
 Interest expense 263 265
 Interest income (318) (288)
 Other income, net (353) (262)
 Earnings before taxes and cumulative
 effect of an accounting change 545 2,108
 Income tax expense 109 774
 Earnings before cumulative effect of
 an accounting change 436 1,334
 Cumulative effect of an accounting change
 Postemployment benefits, net of tax (255) --
 Net earnings $ 181 $ 1,334
 Earnings per common share before
 cumulative effect of an accounting change $ 0.11 $ 0.33
 Cumulative effect of an accounting change
 Postemployment benefits, net of tax (0.06) --
 Earnings per common share $ 0.05 $ 0.33

 As of March 31,
 (Dollars in thousands)
 1994 1993
 Current assets $113,207 $104,348
 Property, plant and equipment, net 80,505 82,123
 Non-current projected insurance
 recovery-asbestos 118,333 141,303
 Other assets 10,203 9,291
 Total $322,248 $337,065
 Liabilities and Stockholders' Equity
 Current liabilities $ 58,857 $ 56,341
 Deferred income taxes 15,009 14,272
 Postretirement benefits other than pensions 14,606 13,614
 Long-term debt 12,126 12,256
 Projected asbestos claims 120,779 144,586
 Stockholders' equity 100,871 95,996
 Total $322,248 $337,065
 -0- 4/19/94
 /CONTACT: Gary L. Roberts, Vice President, Chief Financial Officer and Treasurer of A.P. Green Industries, 314-473-3626/

CO: A.P. Green Industries, Inc. ST: Missouri IN: MNG SU: ERN

SP -- NY084 -- 8188 04/19/94 12:55 EDT
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Publication:PR Newswire
Date:Apr 19, 1994

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