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FMC REPORTS FIRST QUARTER RESULTS

 CHICAGO, April 15 /PRNewswire/ -- FMC Corp. (NYSE: FMC) today reported first quarter income of $45 million compared with record first quarter income of $55 million before special charges in 1992. Sales were $902 million, slipping 3 percent from last year's quarter.
 Primary earnings per share were $1.23 compared with $1.49 per share before special charges last year. After special charges of $9 million related to debt refinancing, and $184 million for changes in accounting for postretirement benefits, net loss for the first quarter of 1992 was $138 million, or $3.77 per share. The year-ago results were restated to reflect last year's adoption of Financial Accounting Standards No. 106 (Postretirement Benefits Other Than Pensions).
 Earnings of $78 million before interest and taxes compared with $96 million in 1992. This decrease reflects the expected decline in precious metals and continued difficult market conditions in parts of the chemicals businesses. Interest expense of $16 million fell 18 percent in the quarter, primarily due to lower debt levels and favorable interest rates.
 Review of Operations
 Industrial chemicals sales fell 5 percent in the quarter, and profits declined, reflecting weak demand and difficult economic conditions in Europe and Japan, coupled with the slow economic rebound in North America. Export prices for soda ash were lower due to increased worldwide competition. Hydrogen peroxide prices continued to weaken in North America because of excess industry capacity. Lithium volumes declined due to weaker demand in several market segments, including the aluminum industry. Phosphorus chemical sales and profits fell due to lower volumes to the U.S. home laundry detergent market.
 Performance chemicals sales of $206 million rose 10 percent, but profits fell compared with the exceptionally strong results recorded last year. The profit decline primarily reflects lower agricultural chemical volumes in the United States, and reduced pharmaceutical ingredient volumes in Europe where government pressures to control health care costs and the recessionary economy have slowed orders. International agricultural chemical sales remained strong in the quarter, but domestic volumes were lower, reflecting the expected phasedown of granular Furadan and slower early season demand. First quarter 1993 results benefited from the acquisition of Ciba-Geigy's worldwide flame retardant and water treatment additives businesses, which occurred late in the first quarter of 1992.
 Precious metals revenues declined 12 percent to $40 million, and, as expected, profits fell. Lower realized gold prices and higher costs contributed to the declining profits. Gold production decreased slightly in the quarter to 102,000 ounces compared with 104,000 ounces last year.
 Defense systems sales of $233 million fell 13 percent in the quarter, but profits were equal with last year. Better cost performance offset lower deliveries of the M113 armored personnel carrier, which ended production in the fourth quarter of 1992, and reduced royalties and technology fees associated with international units. Earlier this week, the company announced it had been awarded a new four-year contract to upgrade the M109A6 self-propelled howitzer. The contract, valued at $317 million, covers production of 630 artillery systems, with deliveries scheduled through October 1998. Defense backlog stood at $1.3 billion at the end of the quarter, unchanged from the beginning of the year.
 Machinery and equipment sales rose 1 percent to $190 million, and profits increased. Food machinery profits rose due to better than expected results at the citrus processing equipment business. Energy and transportation equipment results improved in the quarter due primarily to higher airline equipment shipments. As previously announced, the company signed an exclusive letter of intent to acquire Kongsberg Offshore a.s., a wholly owned subsidiary of Siemens a.s. The proposed acquisition, expected to be completed in the second quarter, will strengthen the company's position in the rapidly growing subsea equipment market. Machinery and Equipment backlog stood at $313 million at the end of the quarter compared with $341 million at year end, reflecting lower orders for energy equipment.
 Outlook
 According to Robert N. Burt, chairman, president and chief executive officer: "First quarter results were consistent with our expectations. Our businesses in Europe and our industrial chemicals businesses worldwide continue to suffer adverse market pressures, making us cautious in our outlook for the rest of this year. In addition, our defense business continues to adapt to the realities of lower defense budgets, while our gold mine at Paradise Peak will end production this year."
 Burt also noted: "We remain committed to pursuing growth opportunities that meet our return standards, and are in industries and markets that we understand. More importantly, we have been seizing these opportunities when appropriate, as evidenced by the acquisition of Ciba-Geigy's flame retardant and water treatment additives businesses, the proposed joint venture with Harsco's BMY Combat Systems Division, and the proposed acquisition of Kongsberg Offshore. We have a strong worldwide base and a new regional organization in place to continue to identify and capitalize on global opportunities."
 FMC CORP. AND CONSOLIDATED SUBSIDIARIES
 Consolidated Statements of Income
 (Unaudited and in millions, except per-share amounts)
 Three months ended March 31 1993 1992
 Sales $901.7 $933.9
 Other revenue 3.7 4.2
 Total revenue 905.4 938.1
 Operating costs 829.0 845.7(A)
 Other (income) and expense, net (1.3) (3.8)
 Total costs and expenses 827.7 841.9
 Income from continuing operations
 before interest and taxes 77.7 96.2
 Interest expense (net) 15.9 19.5
 Income from continuing operations 61.8 76.7
 Provision for income taxes 16.4 22.2
 Income before extraordinary item and
 cumulative effect of change in
 accounting principle 45.4 54.5(A)
 Extraordinary item related to debt
 refinancing, net of taxes -- (9.2)
 Cumulative effective of change in
 accounting principle, net of taxes -- (183.7)(B)
 Net income (loss) 45.4 (138.4)
 Earnings per common share:
 Primary:
 Income before extraordinary item
 and cumulative effect of change in
 accounting principle $1.23 $1.49
 Extraordinary item -- (0.25)
 Cumulative effect of change in
 accounting principle -- (5.01)
 Net income (loss) 1.23 (3.77)
 Fully diluted:
 Income before extraordinary item and
 cumulative effect of change in
 accounting principle 1.19 1.42
 Extraordinary item -- (C)
 Cumulative effect of change in
 accounting principle -- (C)
 Net income 1.19 (C)
 Average number of shares used in
 earnings per share computations:
 Primary 36.9 36.7
 Fully diluted 39.8 39.6
 (A) -- Restated to reflect a net-of tax increase in postretirement expense of $0.2 million.
 (B) -- Reflects the cumulative effect of change in accounting for postretirement benefits, effective Jan. 1, 1992.
 (C) -- Per-share amounts are antidilutive.
 Summaries of Sales by Industry Segment
 (Unaudited and in millions)
 Three months ended March 31 1993 1992
 Industrial chemicals $236.5 $248.2
 Performance chemicals 205.9 186.8
 Precious metals 39.7 44.9
 Defense systems 233.0 268.3
 Machinery and equipment 189.5 187.4
 Eliminations (2.9) (1.7)
 Total 901.7 933.9
 -0- 4/15/93
 /CONTACT: Pat Brozowski, 312-861-6104, or (investors) Chuck Thomas, 312-861-6678, both of FMC Corp./
 (FMC)


CO: FMC Corp. ST: Illinois IN: MAC SU: ERN

CK -- NY043 -- 6163 04/15/93 11:02 EDT
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Date:Apr 15, 1993
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