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GENCORP CHAIRMAN AND CEO SPEAKS TO SHAREHOLDERS AT ANNUAL MEETING MARCH 31, 1993

 AKRON, Ohio, March 31 /PRNewswire/ -- On March 31, 1993, GenCorp (NYSE: GY) Chairman and CEO A. William Reynolds spoke to shareholders at the company's annual meeting. He reviewed the company's 1992 performance, commented on the first quarter of 1993, and discussed GenCorp's outlook for the remainder of the year. Following is the full text of his remarks:
 I'd like to take just a few minutes to review our 1992 performance, comment briefly on the first quarter of 1993, and discuss our outlook for the remainder of this year.
 GenCorp's sales in 1992 were $1.9 billion, about three percent below 1991. Our net income in 1992 was 70 cents per share, down from $1.00 in 1991 -- although that decrease is somewhat misleading.
 In 1992, we elected to restructure our automotive reinforced plastics business. The consolidation, which we announced in the fourth quarter, is taking place throughout 1993. Because we absorbed the financial impact last year, our net income declined from 1991; however, excluding that one-time charge, net income in 1992 was actually 13 percent higher than the previous year, reflecting improved operating performance and a drop in interest expense.
 In the first quarter of 1993, GenCorp delivered a substantial earnings improvement. Net income in the first quarter of 1993 was $6.1 million, or 19 cents per share, nearly tripling our 1992 performance. The increase was due to slightly higher operating profit and a significant reduction in interest expense.
 Lower interest expense was the single biggest contributor to our improved net income in the first quarter of 1993. Interest expense was $13 million in the first quarter of 1992, compared to $8.5 million this year. The refinancing activities which we completed last summer are already paying off. The combination of our new credit agreements and the general decline in interest rates has helped improve our bottom line.
 As we have paid down our debt since 1987, we have gradually improved our balance sheet. We expect our equity to grow modestly in the short term while our debt remains at a fairly consistent level. We will be reducing our capital expenditures to a level very near our depreciation.
 We have generated a great deal of cash flow since our restructuring, and we expect to continue improving our cash flow from operations. Lower capital expenditures combined with higher operating profits and reduced interest expense will contribute to that improvement.
 In spite of challenges facing several of our businesses today, we are well positioned to benefit from the cyclical upturn in the economy in our commercial businesses. Also, we have prepared ourselves for reductions in defense expenditures. Our management team is committed to using our technological capability and market strengths to deliver superior performance for shareholders, customers, employees, and society.
 We are confident that we will make GenCorp one of the most respected diversified companies in the world.
 And now I'd like to introduce a man who has been instrumental in moving GenCorp toward our vision -- a retiring board member and former president and chairman whose leadership and direction GenCorp has relied upon for more than 47 years.
 He was the architect of many success stories throughout our history -- from the creation of the original chemicals division to the company's growth as an aerospace and defense contractor. He helped lead our diversification into many of the businesses that make up GenCorp today.
 And although this will be his last annual meeting as a member of our board, I'm certain he will remain a friend of our company for many years to come. Ladies and gentlemen, Jerry O'Neil.
 -0- 3/31/93
 /CONTACT: George Carson, communications, GenCorp Inc., 216-869-4294/
 (GY)


CO: GenCorp Inc. ST: Ohio IN: ARO AUT SU:

BM -- CL014 -- 1553 03/31/93 13:54 EST
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Date:Mar 31, 1993
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