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EASTERN STAINLESS CORPORATION REPORTS SECOND QUARTER 1993 RESULTS

 BALTIMORE, July 29 /PRNewswire/ -- Eastern Stainless Corporation reported a net loss for the quarter ended June 30, 1993, of $1.6 million on sales of $36.0 million. This compares with a net loss of $1.2 million on sales of $34.6 in the same period a year ago. For the first six months of 1993, Eastern Stainless reported a $3.2 million net loss on revenues of $72.1 million, compared with a net loss of $1.8 million on revenues of $69.3 million during the year ago period.
 Second quarter revenues reflect some shipments that had been delayed due to equipment outages late in the first quarter. The benefits of a slight upturn in business and a general price increase in May were offset by continued high operating costs.
 Following through with its restructuring plans announced in January, Eastern discontinued it's melting operations on July 22, 1993. Future materials requirements will be met from other Armco operations.
 "It's difficult to close the door on an era," said Eastern Stainless president Robert C. Rubino. "But Eastern must take advantage of the efficiencies available within the Armco organization in order to be competitive in our markets."
 Eastern is currently engaged in labor negotiations with the United Steelworkers of America. Collective bargaining agreements covering approximately 77 percent of Eastern's work force have been extended to 12:01 a.m., Saturday, July 31.
 Baltimore-based Eastern Stainless, which is a majority-owned subsidiary of Armco Inc. (NYSE: AS) of Parsippany, N.J., manufactures and markets stainless steel plate and flat bar products.
 EASTERN STAINLESS CORPORATION
 Summary of Operations
 (Unaudited -- Dollars in thousands)
 Periods ended Three months Six months
 June 30, 1993 1992 1993 1992
 Net sales $35,981 $34,619 $72,072 $69,300
 Operating loss (1,217) (698) (2,444) (890)
 Net financing expense 426 523 831 935
 Loss before inc. taxes (1,643) (1,221) (3,275) (1,825)
 Inc. tax benefit - 27 - 45
 Loss before cumulative
 effect of acctg. change (1,643) (1,194) (3,275) (1,780)
 Cumulative effect of change
 in acctg. for inc. taxes - - 29 -
 Net loss $(1,643) $(1,194) $(3,246) $(1,780)
 -0- 7/29/93
 /CONTACT: Jim Herzog of Armco, 201-316-5276/
 (AS)


CO: Eastern Stainless Corporation ST: Maryland IN: MNG SU: ERN

SH -- NY032 -- 7187 07/29/93 10:01 EDT
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Publication:PR Newswire
Date:Jul 29, 1993
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