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ACME METALS REPORTS THIRD QUARTER NET LOSS OF $2,382,000, OR 44 CENTS PER SHARE; LOSS INCLUDES RESTRUCTURING CHARGE

 ACME METALS REPORTS THIRD QUARTER NET LOSS OF $2,382,000, OR
 44 CENTS PER SHARE; LOSS INCLUDES RESTRUCTURING CHARGE
 RIVERDALE, Ill., Oct. 26 /PRNewswire/ -- Acme Metals Incorporated (NASDAQ-NMS: ACME) today reported a third quarter net loss of $2,382,000, or 44 cents per common share, on sales of $94,792,000. The loss compares to net income of $229,000, or 4 cents per share, on sales of $98,545,000 in last year's third quarter.
 The 1992 third quarter loss includes a charge of $1,300,000, or 24 cents per share at the current effective tax rate, to cover costs of a previously announced 10 percent planned reduction in the company's salaried work force. Last year's third quarter benefited from a $6,000,000 sport sale of molten iron to another steel producer, which added 22 cents per share to 1991 income.
 For nine months, Acme has lost $3,115,000, or 58 cents per share, on sales of $293,135,000 in 1992. In 1991's first nine months, the company lost $1,398,000, or 26 cents per share, on sales of $282,680,000.
 "We remain disappointed by the slow economic recovery, a pace well below our expectations," commented Brian W.H. Marsden, Acme Metals' chairman, president and chief executive officer.
 "In addition, we are experiencing ongoing pressure on the selling price of our products, which has been only partially offset by internal cost control efforts," Marsden explained.
 "The $1,300,000 restructuring charge in the third quarter," he noted, "will cover costs related to the company's plans to reduce its salaried work force by 10 percent by year-end. In subsequent years, we expect to save approximately $4,000,000 annually on a pre-tax basis as a result of the work force reduction," Marsden added.
 Working capital at quarter's end was $85,623,000, down slightly from $87,504,000 at the end of the second quarter but up from $84,165,000 at year-end 1991. The current ratio at quarter's end was 2.5 to 1.
 Shareholder's equity stood at $147,702,000 or $27.51 per common share at the end of the third quarter, down from $150,120,000, or $27.95 per share, at the end of the second quarter and $150,664,000, or $28.13 per share, at year-end 1991.
 "Looking ahead, we have not seen any significant improvement in business conditions in the early weeks of the fourth quarter, but it's important to keep in mind that historically, the quarter is negatively affected by holiday shutdowns at customer plants," Acme's Marsden explained.
 Fourth quarter results should benefit from a gain related to the disposition of coal properties. The gain, as yet undetermined, is currently estimated at $1,000,000 on a pre-tax basis.
 However, the company will not be profitable for the year, Marsden noted.
 "Acme Metals, as we announced earlier, is proceeding with a feasibility study of options for installing a thin-slab caster/hot strip mill complex at its Riverdale, Ill., works. The installation under study would replace existing ingot pouring, ingot rolling, and narrow hot strip mill facilities and significantly increase Acme's competitiveness in steel and its downstream businesses," the Acme chairman noted.
 A decision on the project is expected in the first quarter of 1993. "If we decide to go ahead with this project, we would incur a one-time non-cash charge to write down assets that would be replaced and a provision to record estimated costs related to the associated restructuring," Marsden explained.
 "If a decision to proceed is made prior to the end of the first quarter, the impact, which cannot be quantified at this time, would be reflected in 1992 year-end financial statements,' he added.
 ACME METALS INCORPORATED
 UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET
 (in thousands)
 ASSETS 9/27/92 12/29/91
 Current assets $141,817 $134,192
 Investments and other assets 27,064 26,814
 Property, plant and equipment-net 122,401 129,730
 TOTAL ASSETS $291,282 $290,736
 LIABILITIES AND SHAREHOLDERS' EQUITY
 Current liabilities $ 56,194 $ 50,027
 Long-term debt 56,000 59,500
 Other long-term liabilities 31,386 30,545
 Shareholders' equity 147,702 150,664
 TOTAL LIABILITIES AND
 SHAREHOLDERS' EQUITY $291,282 $290,736
 ACME METALS INCORPORATED
 UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS
 FOR THE THREE MONTHS AND NINE MONTHS
 (in thousands except per share data)
 THIRD QUARTER NINE MONTHS
 9/27/92 9/29/91 9/27/92 9/29/91
 Net sales $94,792 $98,545 $293,135 $282,680
 COSTS AND EXPENSES:
 Cost of products sold 84,630 86,798 261,006 252,313
 Depreciation expense 3,617 3,524 11,196 10,477
 Gross profit 6,545 8,223 20,933 19,890
 S&A expense 6,751 7,095 21,387 20,909
 Restructuring costs 1,800 -- 1,800 --
 Operating income (loss) (2,006) 1,128 (2,254) (1,019)
 Interest expense 1,392 1,383 4,162 4,150
 Interest income 464 346 1,442 951
 Unusual income item-LTV
 assignment -- -- -- 1,241
 Other income-net 132 251 707 890
 Income (loss) before
 income taxes (2,802) 342 (4,267) (2,087)
 Income tax provision
 (credit) (420) 113 (1,152) (689)
 Net income (loss) $(2,382) $ 229 $(3,115) $(1,398)
 Net income (loss) per
 common share $(0.44) $0.04 $(0.58) $(0.26)
 NOTES:
 -- Per share amounts for 1992 and 1991 are based on the weighted average number of common and dilutive common equivalent shares outstanding during the nine-month period (5,411,871 in 1992 and 5,373,943 in 1991).
 -- The restructuring costs relate to a provision in the current year's third quarter associated with the company's plan to reduce its salaried workforce by 10 percent by year-end 1992.
 ACME METALS INCORPORATED
 UNAUDITED CONDENSED STATEMENT OF CASH FLOWS
 FOR THE NINE MONTHS ENDED SEPT. 27, 1992 and SEPT. 29, 1991
 (in thousands):
 For the nine months ended 9/27/92 9/29/91
 Net cash provided by operating activities $13,926 $18,059
 Capital expenditures (3,996) (8,798)
 Net cash used for investing activities (3,996) (8,798)
 Repurchase of common stock (144) (461)
 Other (42) 19
 Net cash used for financing activities (186) (442)
 Net increase in cash and cash equivalents 9,744 8,819
 Cash and cash equivalents:
 Beginning of period 31,734 21,067
 End of period $41,478 $29,886
 -0- 10/26/92
 /CONTACT: Charles Nekvasil of Acme Steel Co., 708-841-8383, ext. 2266/
 (ACME) CO: Acme Metals Incorporated ST: Illinois IN: MNG SU: ERN


SH -- NY093 -- 4950 10/26/92 15:12 EST
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Date:Oct 26, 1992
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