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CARPENTER TECHNOLOGY CORPORATION ADOPTS NEW ACCOUNTING RULES IN FISCAL 1993

 READING, Pa., July 13 /PRNewswire/ -- Carpenter Technology Corporation (NYSE: CRS) announced today that it will adopt Statement of Financial Accounting Standard (SFAS) 106 on Employers' Accounting for Postretirement Benefits Other Than Pensions and SFAS 109 on Accounting for Income Taxes in its fiscal year ended June 30, 1993.
 The initial effect of adoption of these two new standards will be recognized by recording as of July 1, 1992, a non-cash charge of $75 million after taxes or $9.32 per share. This net charge represents an after-tax charge of $87 million for SFAS 106 and a credit of $12 million for SFAS 109, reflecting application of the new standards to prior years.
 In addition, earnings for the first three quarters of the year ended June 30, 1993, will be reduced by approximately $4.5 million after taxes or $.56 per share. Full year 1993 results will be reduced by approximately $6.4 million after tax, or $.80 per share, as a result of the continuing effects of these standards, excluding the initial retroactive effects of adoption.
 SFAS 106 requires recognition of estimated future costs of postretirement medical and life insurance benefits earned by current and retired employees. These costs have previously been accounted for as they were incurred. SFAS 109 requires the use of current income tax rates in calculating deferred tax liabilities.
 The combined effects of adopting these new accounting standards will be a charge of approximately $10.12 per share in fiscal 1993, resulting in a loss for the company. Excluding the effects of these standards, Carpenter expects that earnings for its June 1993 quarter will exceed those of the March 1993 quarter which were $1.50 per share. Earnings are expected to be announced in late July.
 /delval/
 -0- 7/13/93
 /CONTACT: John A. Schuler, treasurer of Carpenter Technology, 215-208-2165/
 (CRS)


CO: Carpenter Technology Corporation ST: Pennsylvania IN: MNG SU: ERP

LJ-JR -- PH009 -- 0824 07/13/93 10:48 EDT
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Publication:PR Newswire
Date:Jul 13, 1993
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