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BETHLEHEM STEEL REPORTS RESULTS FOR SECOND QUARTER 1992

 BETHLEHEM STEEL REPORTS RESULTS FOR SECOND QUARTER 1992
 BETHLEHEM, Pa., July 29 /PRNewswire/ -- Bethlehem Steel Corporation


(NYSE: BS) had net losses of $64 million and $109 million for the second quarter and first half of 1992 compared to net losses of $29 million and $68 million for the second quarter and first half of 1991.
 Results for 1992 include a $25 million charge to increase Bethlehem's reserve for loss contingencies in connection with certain litigation. Excluding the effects of this charge, Bethlehem's net loss for the second quarter of 1992 was $39 million, slightly better than the $45 million net loss reported for the first quarter of 1992. Steel production costs were lower in the second quarter than the previous quarter, but average realized steel prices were also lower for most of Bethlehem's products.
 Results for the second quarter and first half of 1992, compared to the same periods in 1991, reflect lower realized steel prices, a cause of which was unfairly traded imported steel, higher employment costs under the labor agreement with the United Steelworkers of America (USWA) and increased net financing expense resulting from additional borrowings and reduced interest income. Results of the Bar, Rod and Wire Division and trackwork fabrication operations are not included in 1992 results in view of the decision announced in January 1992 to exit those businesses.
 SEGMENT RESULTS
 Basic Steel Operations: This segment had losses from operations, including the $25 million litigation charge previously mentioned, of $44 million and $67 million for the second quarter and first half of 1992 compared to losses from operations of $14 million and $40 million for the comparable periods in 1991. This segment's steel shipments were approximately 2 percent and 4 percent higher in the second quarter and first half of 1992 than in the year earlier periods and would have been even higher, the company said, except for unfairly traded imported steel. However, the benefit of this higher volume was offset by lower average realized steel prices, higher employment costs under Bethlehem's labor agreement with the USWA and higher operating costs at the company's coal operations due to poor mining conditions. Bethlehem continued to incur start-up costs at Sparrows Point's newly modernized hot strip mill.
 The Rail Products and Pipe Division and the Structural Products Division, which represent about 17 percent of revenues, continue to be subject to intense competitive pressures. Bethlehem is now evaluating plans, including possible modernization programs, to further reduce costs and improve profitability.
 Steel Related Operations: This segment had losses from operations of $6 million and $14 million for the second quarter and first half of 1992 compared to losses of $6 million and $13 million for the same periods in 1991. Results for the second quarter and first half of 1991 include profits of Bethlehem's former Freight Car Division, which was sold in October 1991. The BethShip Division had improved results during the second quarter and first half of 1992 as work proceeded on a tunnel fabrication contract. The BethForge Division continues to experience losses due to weak markets for forgings and steel rolls.
 LIQUIDITY
 Cash and cash equivalents were $98 million at June 30, 1992, compared to $84 million at Dec. 31, 1991, and $119 million at June 30, 1991. Cash provided by operating activities was $19 million during the first six months of 1992 compared to cash used for operating activities of $61 million for the first six months of 1991. This improvement was due primarily to reductions in inventories.
 On June 19, 1992, Bethlehem filed a registration statement with the Securities and Exchange Commission for a proposed public offering of 10 million shares of common stock. Proceeds from the offering will be used to repay bank borrowings under Bethlehem's revolving credit agreements.
 Bethlehem currently plans to generate about $200 million from asset sales in 1992, principally from the sale of most of its coal operations, the related coal reserves and its trackwork fabrication operations. The timing and potential proceeds from the sale of the Lackawanna coke-making operations and the assets of the Bar, Rod and Wire Division are currently uncertain.
 Capital expenditures were $199 million for the first six months of 1992 compared to $235 million for the first half of 1991. Bethlehem currently estimates that 1992 capital expenditures will be approximately $375 million compared to $564 million in 1991.
 Bethlehem made pension contributions of $15 million during the second quarter of 1992. Additional contributions for the year will be considered as appropriate.
 During the second quarter of 1992, Bethlehem borrowed an additional $25 million under its $270 million loan agreement to fund construction of the two hot-dip galvanizing lines being built at the Sparrows Point and Burns Harbor plants, and $179 million was outstanding under this agreement at June 30, 1992. Bethlehem will continue to borrow under this agreement as construction progresses on these new facilities. The Sparrows Point line is scheduled for completion during the second half of 1992, and the Burns Harbor line is scheduled for completion in early 1993.
 At June 30, 1992, Bethlehem's $100 million 1990 credit agreement was fully borrowed and $238 million was available for borrowing under Bethlehem's 1987 credit agreement. At June 30, 1992, the maximum amount available for borrowing under the 1987 credit agreement was $438 million which will be reduced by approximately $31 million on a quarterly basis through Dec. 15, 1995. In addition, the maximum loan amount under the 1990 credit agreement will be reduced from $100 million to $75 million on Sept. 28, 1992, and the agreement is scheduled to expire on Sept. 28, 1993. Bethlehem is currently negotiating a new, four-year revolving credit agreement to replace the 1987 credit agreement.
 During the first six months of 1992, Bethlehem repaid about $56 million of debt and capital lease obligations. Major uses of cash during the remainder of 1992 include planned capital expenditures, anticipated pension contributions, and repayment of approximately $48 million of debt and capital lease obligations. Bethlehem said it expects to maintain an adequate level of liquidity for the remainder of 1992.
 DIVIDENDS
 The board of directors today declared dividends of $1.25 per share on Bethlehem's $5 Cumulative Convertible Preferred Stock and 62-1/2 cents per share on Bethlehem's $2.50 Cumulative Convertible Preferred Stock, each payable Sept. 10, 1992, to holders of record on Aug. 10. No dividend was declared on Bethlehem's Common Stock.
 TRADE MATTERS
 Following the expiration of voluntary steel export restraint arrangements with 28 foreign countries on March 31, 1992, and the suspension of negotiations to achieve a Multilateral Steel Agreement (MSA), Bethlehem and 11 other domestic steel producers filed 48 antidumping (AD) and 36 countervailing duty (CVD) petitions against 21 foreign countries. The petitions, filed on June 30, 1992, cover flat- rolled carbon steel products representing more than half of domestic steel shipments and request the enforcement of our trade laws to offset the injury to the domestic industry from subsidized and dumped imported steel. Looking ahead, Bethlehem said it continues to support efforts to achieve an effective MSA which would open foreign markets and put an end to ongoing subsidization of national steel industries.
 OUTLOOK
 For the balance of 1992 Bethlehem expects a moderate improvement in steel demand and currently estimates that 1992 industry shipments will be about 81 million tons compared to the 79 million tons shipped in 1991.
 Although Bethlehem expects to report a loss for the third quarter of 1992, an anticipated improvement in the economy, higher levels of steel demand and effective remedies to deal with unfairly traded steel imports should provide opportunities for improved results later this year and in 1993, the company said.
 BETHLEHEM STEEL CORPORATION
 Consolidated Statements of Income
 (dollars in millions, except per share data)
 (Unaudited)
 Periods ended Three Months Six Months
 June 30 1992 1991 1992 1991
 NET SALES $1,014.3 $1,115.0 $2,009.7 $2,170.6
 Costs and Expenses:
 Cost of Sales 962.6 1,028.8 1,880.9 2,018.9
 Depreciation 63.2 64.1 130.6 122.4
 Selling, administrative
 and general expense 38.9 42.0 78.7 82.5
 TOTAL COSTS AND EXPENSES 1,064.7 1,134.9 2,090.2 2,223.8
 Loss from Operations (50.4) (19.9) (80.5) (53.2)
 Financing Income (Expense):
 Interest and other
 financing costs (14.6) (11.4) (30.4) (21.2)
 Interest and other
 income 1.1 2.7 2.4 7.1
 LOSS BEFORE INCOME TAXES (63.9) (28.6) (108.5) (67.3)
 Provision for Income Taxes -- 0.5 -- 1.0
 NET LOSS (63.9) (29.1) (108.5) (68.3)
 Preferred and Preference
 Stock Dividends 6.2 6.2 12.3 12.3
 NET LOSS APPLICABLE
 TO COMMON STOCK $ (70.1) $(35.3) $(120.8) $(80.6)
 Loss Per Common Share $(0.92) $(0.46) $(1.58) $(1.06)
 Average shares
 outstanding (thousands) 76,552 75,970 76,507 75,937
 Production Data:
 Steel products shipped
 (thousands of net tons) 2,335 2,129 4,681 4,133
 Raw steel produced
 (thousands of net tons) 2,639 2,598 5,439 5,258
 Utilization of
 production capability
 (percent) 66 65 68 66
 /delval/
 -0- 7/29/92
 /CONTACT: Henry Von Spreckelsen of Bethlehem Steel, 215-694-3711/
 (BS) CO: Bethlehem Steel Corporation ST: Pennsylvania IN: MNG SU: ERN DIV


LJ -- PH015 -- 4502 07/29/92 10:29 EDT
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Date:Jul 29, 1992
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