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ALLIS-CHALMERS REPORTS RESULTS

 ALLIS-CHALMERS REPORTS RESULTS
 MILWAUKEE, March 27 /PRNewswire/ -- Allis-Chalmers Corporation today


reported net income of $363,000 in 1991, up from $84,000 in 1990.
 The improvement in performance was achieved on higher sales, improved gross margin and reduced marketing and administrative expenses.
 Sales totaled $13.3 million in 1991, an increase from $12.6 million in 1990, as a consequence of continued strong demand for machine repair services and broadened geographic coverage of that market.
 Sales rose to $5.8 million in 1991 from $4.1 million in 1990 in the machine repair market, which is served by Houston Dynamic Service, Inc. and Apparatus Repair Company, a Jan. 1, 1991 acquisition. That increase as partially offset by a reduction in sales at the company's molded fabric products business, B.R.B. Industries (BRB), to $7.5 million in 1991 from $8.5 million in 1990 due to a continued downturn in the apparel industry.
 Gross margin as a percentage of sales improved to 34.6 percent from 32.9 percent in 1990, mainly because of a more profitable mix of machine repair services provided in 1991.
 A decline in marketing and administrative expense to $3.8 million in 1991 from $4.1 million in 1990 was the result of fewer employees, lower legal expense and reduced expenses associated with acquisition searches.
 In the fourth quarter of 1991 Allis-Chalmers had net income of $5,000 compared with $138,000 in 1990. The decline was attributable to the benefit from one-time favorable items reported in the fourth quarter of 1990. Sales were $3.2 million and $2.9 million in 1991 and 1990, respectively.
 Allis-Chalmers is continuing its legal challenge to issues raised by Internal Revenue Service (IRS) regulations that were enacted into law Jan. 2, 1992. As originally proposed, the regulations would have jeopardized the company's ability to utilize net operating loss carryforwards remaining from its reorganization in 1988. The final regulations eliminated much of what Allis-Chalmers found objectionable in the proposed regulations. Nevertheless, the company continues to litigate the remaining issues that have been raised and threaten to nullify the Bankruptcy Court finding that the primary purpose of the company's plan of reorganization is not the avoidance of taxes. The company believes it has a good chance of obtaining a favorable ruling. An unfavorable ruling would leave the company in substantially the same position it was in prior to issuance of the regulations except it would not be permitted to raise as a defense the finding of the Bankruptcy Court regarding the tax avoidance purpose of the Plan.
 ALLIS-CHALMERS CORPORATION
 (Thousands, except per share)
 Three months 12 months
 1991 1990 1991 1990
 Sales 3,182 2,876 13,291 12,657
 Net income 5 138 363 84
 Average common shares 15,272 15,272 15,272 15,272
 Income per share -- -- .02 --
 -0- 3/27/92
 /CONTACT: Dennis Thisted of Allis-Chalmers, 414-475-3343/ CO: Allis-Chalmers Corporation ST: Wisconsin IN: SU: ERN


SH-KW -- NY044 -- 2443 03/27/92 15:12 EST
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Publication:PR Newswire
Date:Mar 27, 1992
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