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ACME METALS WILL REDUCE SALARIED WORK FORCE 10 PERCENT; PROVISION WILL AFFECT THIRD QUARTER RESULTS

 ACME METALS WILL REDUCE SALARIED WORK FORCE 10 PERCENT;
 PROVISION WILL AFFECT THIRD QUARTER RESULTS
 RIVERDALE, Ill., Sept. 24 /PRNewswire/ -- Acme Metals Incorporated (NASDAQ-NMS: ACME) has begun a program to reduce its salaried work force by 10 percent by year end, Brian W.H. Marsden, Acme chairman, president and chief executive officer told financial analysts attending a tour and presentations at its Chicago-area operations.
 "We believe this reduction, and the cost savings it will generate, are necessary to improve Acme's long-term competitiveness," he pointed out.
 The first step in the program was an early retirement offer, which will lead to approximately 35 job eliminations. The second step, already begun, will eliminate 40 more salaried positions.
 "Annual savings from this force reduction should total $4 million. However, a third quarter provision, yet undetermined, will be required to cover the additional pension liability prompted by early retirements and severance costs," Marsden added.
 Third quarter results will also be negatively affected by lower-than-anticipated volume and weak selling prices, primarily in Acme's commercial steel business.
 As a result, Acme expects third quarter results to deteriorate from second quarter levels. The company lost $949,000, or 18 cents per common share, in the second quarter.
 The company announced that a tentative agreement has been reached with the United Steelworkers of America locals at its Chicago and Riverdale locations to extend the existing labor agreements to Jan. 31, 1993. This extension will be voted on by the local membership in early October and will permit time for a new long-term labor agreement to be negotiated.
 The company also stated that its feasibility study for a thin slab caster/new hot strip mill at its Riverdale location is proceeding on schedule with a decision expected in the first quarter of 1993.
 Acme Metals Incorporated, through its operating subsidiaries, is a fully integrated producer of steel, steel strapping and strapping tools, welded steel pipe and tube, auto and light truck jacks. Its common stock is traded on NASDAQ's National Market system with the symbol: ACME.
 -0- 9/24/92
 /CONTACT: Charles A. Nekvasil, director of public and investor relations of Acme Metals Incorporated, 708-849-2500/
 (ACME) CO: Acme Metals Incorporated ST: Illinois IN: MNG SU:


TS -- NY039 -- 3069 09/24/92 11:46 EDT
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Publication:PR Newswire
Date:Sep 24, 1992
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