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BRENCO INCORPORATED ANNOUNCES PROVISION FOR ENVIRONMENTAL EXPENDITURES

 MIDLOTHIAN, Va., Jan. 17 /PRNewswire/ -- Brenco Incorporated (NASDAQ- NMS: BREN) announced today that it was making an additional provision of $2,300,000 to its reserve for environmental expenditures in connection with the cleanup of its former foundry site on Puddledock Road in Petersburg, Virginia. The project is close to completion, which is expected to occur by the end of the first quarter of 1994.
 Weather delays, extensive dewatering required on site, and substantially increased quantities of soil removed and processed were the principal causes for exceeding the project's original estimates. The additional provision covers both the excess costs incurred and the estimated remaining costs to complete the cleanup. The entire provision will be recorded in the results of the fourth quarter of 1993. The after-tax effect on earnings for the fourth quarter and for the year 1993 will be a reduction in net income of $1,414,500, or $.14 per share.
 In an unrelated transaction, Brenco also announced that it has just completed the sale of certain excess production equipment to an outside party for an amount in excess of $1,100,000. The transaction will be reported in the first quarter of 1994.
 The combined effect of these two events will be to increase the company's cash requirements for 1994 by approximately $700,000, for which management believes it has more than adequate cash reserves.
 -0- 1/17/94
 /CONTACT: Jacob M. Feichtner of Brenco, 804-794-1436/
 (BREN)


CO: Brenco Incorporated ST: Virginia IN: REA SU:

MM -- CH009 -- 1470 01/17/94 17:09 EST
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Publication:PR Newswire
Date:Jan 17, 1994
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