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BF GOODRICH EXPECTS FOURTH QUARTER LOSS FROM OPERATIONS

 BF GOODRICH EXPECTS FOURTH QUARTER LOSS FROM OPERATIONS
 AKRON, Ohio, Jan. 7 /PRNewswire/ -- The BFGoodrich Company


(NYSE: GR) today announced that fourth quarter results from operations will be substantially below last year and financial analysts' current estimates. Based on operating performance through November and on preliminary results for December, the company expects to report a net loss, excluding one-time charges, of 75 to 85 cents per share, or $17 to $20 million, due primarily to adverse economic conditions.
 The company's Geon Vinyl Products segment is likely to report an operating loss of $25 to $30 million (pre-tax) for the quarter, excluding one-time items. On a comparable basis, Geon earned $4 million in last year's fourth quarter and $7 million in the third quarter of 1991.
 The decline in Geon performance from the third quarter stems from several factors:
 -- Reflecting the weak economy, demand for vinyl resins declined significantly, accentuated by a fourth-quarter seasonal decline.
 -- Because of lower demand, resin prices decreased slightly.
 -- Geon sharply cut plant operating rates. This allowed the division to enter 1992 with low inventory levels, but negatively affected fourth-quarter results.
 -- Raw material costs increased significantly because of conditions affecting hydrocarbon feedstocks.
 Although certain of these factors may improve in the first quarter, a return to adequate profitability at Geon requires a significantly stronger economy.
 The Geon operating loss excludes a fourth-quarter after-tax charge of about $5 million related to the pending sale of vinyl compounding operations in Venezuela.
 BFG's Specialty Chemicals segment has also been hurt by weak economic conditions, and operating results will be down about 45 percent from last year's fourth quarter, when the segment had operating income of $17 million.
 Goodrich's third business segment -- Aerospace -- will achieve record earnings for 1991 despite weak economic conditions, and the outlook for 1992 remains strong.
 "Goodrich retains ample financial capacity to sustain us during a prolonged recession, and this financial strength helped us weather the especially adverse conditions we faced in the fourth quarter," said John D. Ong, chairman and chief executive officer. "We have nevertheless intensified our efforts to control costs and carefully manage capital expenditures."
 Ong continued, "By establishing clear priorities for our financial resources, we can promote the growth of our specialty businesses, while still supporting the company's current dividend. Because of the actions we've taken in recent years, our three businesses are well-positioned to respond very positively when the economy rebounds."
 Goodrich previously announced that it will incur a pre-tax charge of $118 million ($78 million after tax, or $3.07 per share), primarily because of costs associated with the phase-out of high-cost vinyl resin operations at three locations. The company also previously announced that it will incur a one-time pre-tax charge of about $5 million in the fourth quarter (about $3.2 million after tax, or 13 cents per share), relating to costs associated with a voluntary retirement program.
 Net income for Goodrich totaled $14.1 million, or 47 cents per share, in the fourth quarter of 1990 and $26.1 million, or 78 cents per share, for the first nine months of 1991.
 BFGoodrich supplies components and services to the aerospace industry, and produces specialty chemicals, vinyl resins and compounds.
 -0- 1/7/92
 /CONTACT: Rob Jewell (media), 216-374-2999; or Tom Waltermire (investor), 216-374-2556, both of BFGoodrich/
 (GR) CO: BFGoodrich ST: Ohio IN: ARO CHM SU:


LC -- CL007 -- 7441 01/07/92 16:11 EST
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Publication:PR Newswire
Date:Jan 7, 1992
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