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GEON ANNOUNCES ADDITIONAL COST REDUCTIONS

 CLEVELAND, Nov. 10 /PRNewswire/ -- The Geon Company (NYSE: GON) today announced additional cost reduction steps to be implemented in 1994. These new initiatives are part of the company's ongoing program to reengineer and streamline its operations while continuing the company's growth.
 Today's announcement includes the elimination of 160 additional positions during 1994, representing approximately 8 percent of Geon's workforce. Reductions will take place at the Geon headquarters, R&D operations and at several plants. In addition, certain non-employment related overhead costs will be reduced as well. To provide for employee separation costs, the company will establish a $9.7 million pre-tax reserve during the fourth quarter of 1993. The reserve will also cover separation costs related to the recently announced reductions in the executive staff.
 "Over a year ago, we embarked on a whole new way of running this business," said Bill Patient, Geon's chairman and chief executive officer. "We operate in a very competitive industry and it has been essential that we substantially streamline our operations. The cost reductions we have implemented over the past year have significantly improved our results even though margins in the vinyl plastics industry remain at low levels. As a result, we were able to report third quarter net income of $5.5 million compared to a loss last year of $6.6 million. The steps we are announcing today will reduce our costs by $12 million per year when fully implemented. Our manufacturing capability will not be reduced by these actions."
 The Geon Company is a leading producer of vinyl plastic (PVC) resins and North America's largest producer of vinyl compounds. Vinyl plastics are used in a wide variety of applications, including building products, household appliances and business machines. Geon's sales in 1992 were $900 million. It was a division of The B. F. Goodrich Company before becoming a public company in April of this year.
 -0- 11/10/93
 /CONTACT: Dennis Cocco, director of marketing, of The Geon Company, 216-447-6538/
 (GON)


CO: The Geon Company ST: Ohio IN: CHM SU:

BM -- CL006 -- 2606 11/10/93 09:07 EST
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Publication:PR Newswire
Date:Nov 10, 1993
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