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EASTERN STAINLESS CORPORATION REPORTS THIRD QUARTER 1993 RESULTS

 BALTIMORE, Md., Nov. 15 /PRNewswire/ -- Eastern Stainless Corporation reported a net loss of $4.0 million on sales of $24.4 million for the quarter ended Sept. 30, 1993 compared with a net loss of $2.5 million on sales of $31.9 million in the same period a year ago. For the nine months ended Sept. 30, 1993, Eastern Stainless reported a $7.2 million net loss on revenues of $96.5 million compared to a net loss of $4.3 million on revenues of $101.2 million during the same period in the prior year.
 The slight upturn in business that Eastern experienced in the first half of the year fell off somewhat in the third quarter of 1993. In addition, the drop in third quarter revenues reflects the impact of Eastern discontinuing its melting operations on July 22, 1993, and the sale early in the quarter of certain equipment used to produce a cold- rolled stainless sheet product. These actions are part of Eastern's restructuring plans that were announced in January.
 "We are taking a hard look at our business and aggressively implementing the steps needed to match our assets and overhead costs with the operations remaining at Eastern," said Eastern Stainless President Robert M. Visokey. In August, the Company concluded negotiations with the United Steelworkers of America which resulted in two-year collective bargaining agreements covering approximately 77 percent of Eastern's work force. Among other features, the new contracts, while providing employees with quality health care also offer substantial cost savings for the Company through managed health care programs. Eastern Stainless is a majority-owned subsidiary of Armco Inc. (NYSE: AS), Parsippany, N.J. Eastern Stainless, headquartered here, manufactures and markets stainless steel plate and flat bar products.
 EASTERN STAINLESS CORPORATION
 Summary of Operations
 (Unaudited, dollars in thousands)
 Period ended Three Months Nine Months
 Sept. 30, 1993 1992 1993 1992
 Net sales $ 24,395 $ 31,929 $ 96,467 $101,229
 Operating loss (3,615) (2,140) (6,059) (3,030)
 Net financing expense 371 384 1,202 1,319
 Loss before inc.taxes (3,986) (2,524) (7,261) (4,349)
 Income tax benefit --- --- --- 45
 Loss before
 cumulative effect
 of acctg. change (3,986) (2,524) (7,261) (4,304)
 Cum. effect of change in
 acctg for inc.taxes --- --- 29 ---
 Net loss $ (3,986) $ (2,524) $ (7,232) $ (4,304)
 -0- 11/15/93
 /CONTACT: James A. Herzog for Eastern Stainless Corporation, 201-316-5276/
 (AS) CO: Eastern Stainless Corporation ST: Maryland IN: MNG SU: ERN


MP -- NY056 -- 4322 11/15/93 10:43 EST
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Publication:PR Newswire
Date:Nov 15, 1993
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