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HANNA REPORTS FOURTH QUARTER RESULTS

 HANNA REPORTS FOURTH QUARTER RESULTS
 CLEVELAND, Jan. 22 /PRNewswire/ -- M.A. Hanna Company


(NYSE/MSE: MAH) today rep of $17.0 million ($.62 per share, fully diluted) in the fourth quarter of 1990. Results in both years were affected by non-operating events.
 In the 1991 fourth quarter Hanna realized a capital gain of $8.5 million from the sale of its interest in a coal mining affiliate, offset by a non-operating charge of $3.3 million for restructuring activities, including reserves for planned reductions in general and administrative expenses. In the 1990 fourth quarter Hanna benefitted from tax credits of $2.6 million from the utilization of operating loss carryforwards and a gain of $3.1 million from Hanna's iron ore affiliate, which realized income from the sale of a dock operation and a tax refund.
 Fourth-quarter net sales and operating revenues increased 12.2 percent to $302.7 million in 1991 from $269.7 million in 1990.
 For the year ended Dec. 31, 1991, net income was $1.9 million ($.03 per share, fully diluted). The full year results included a charge of $41.0 million for a recapitalization program and $3.3 million for restructuring offset by the gain of $8.5 million from the sale of the western coal interest. In 1990, net income was $55.9 million ($1.99 per share, fully diluted), which included a charge of $8.6 million for the write-off of receivables due from a bankrupt customer of Hanna's coal mining operation, offset by the fourth-quarter $3.1 million gain related to the company's iron ore affiliate and tax credits of $8.6 million.
 Annual sales and operating revenues in 1991 increased to $1.15 billion, from $1.12 billion in 1990.
 "1991 was a year of considerable progress toward our goal of transforming Hanna into a focused specialty chemicals company," said chairman and chief executive officer Martin D. Walker, "as we sold much of the natural resources segment, expanded our polymers segment and recapitalized the company, including the repurchase of 30 percent of our outstanding shares. Our operating performance was respectable in view of the prolonged recession although net income was dramatically impacted by our strategic activities."
 Hanna's formulated polymers segment recorded operating income of $17.9 million in the fourth quarter of 1991 and $71.6 million for the full year. Operating income in 1990 was $19.8 million in the fourth quarter and $83.0 million for the year from the polymers businesses.
 "We are confident that Hanna will experience solid growth in sales and earnings in 1992. The company's strong cash flow, which was $86.5 million from operations in 1991, should be more than sufficient to support Hanna's growth strategy," said Walker.
 M.A. Hanna Company is a leading international specialty chemicals company.
 M. A. HANNA COMPANY AND CONSOLIDATED SUBSIDIARIES
 CONSOLIDATED BALANCE SHEETS
 (Unaudited)
 December December
 31, 1991 31, 1990
 (Dollars in thousands except per share data)
 Assets
 Current Assets
 Cash and cash equivalents $ 24,478 $ 25,456
 Receivables 158,227 152,504
 Inventories 109,670 110,932
 Other 3,384 3,142
 Total current assets 295,759 292,034
 Net Property, Plant and Equipment 216,717 217,852
 Other Assets
 Goodwill and other intangibles 387,357 401,785
 Investments and other 132,671 152,869
 Total other assets 520,028 554,654
 TOTAL $1,032,504 $1,064,540
 Liabilities and Stockholders' Equity
 Current Liabilities
 Notes payable $ 2,145 $ 3,993
 Trade payables and accrued expenses 199,288 191,930
 Current portion of long-term debt 998 871
 Total current liabilities 202,431 196,794
 Other Liabilities 118,735 162,361
 Long-term Debt 330,880 137,711
 Stockholders' Equity 380,458 567,674
 TOTAL $1,032,504 $1,064,540
 Long-term Debt/Total Capital (percent) 46.5 19.5
 M. A. HANNA COMPANY AND CONSOLIDATED SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF INCOME
 (Unaudited)
 Fourth Quarter
 1991 1990
 (Dollars in thousands except per share data)
 Net sales and operating revenues $302,719 $269,712
 Costs and Expenses
 Cost of goods sold and operating expenses 232,724 201,516
 Selling, general and administrative 42,737 40,536
 Depreciation, depletion and amortization 10,505 9,350
 TOTAL 285,966 251,402
 Income from operations 16,753 18,310
 Other (Income)Expense
 Other income (808) (537)
 Interest on debt 8,292 4,418
 Other expenses (A) 6,495 2,054
 Income(loss) from continuing
 operations before income taxes
 and extraordinary item 2,774 12,375
 Income Taxes 2,085 4,428
 Income(loss) from continuing operations
 before extraordinary item 689 7,947
 Income from discontinued operations (B) 12,779 9,101
 Income before extraordinary item 13,468 17,048
 Extraordinary item (C) - -
 Net income 13,468 17,048
 Dividends on Preferred Stock
 Preferred Stock - -
 Net income applicable to common stock $ 13,468 $ 17,048
 Income(loss) per share of common stock:
 Primary
 Continuing operations $ .04 $ .30
 Discontinued operations .68 .33
 Extraordinary - -
 Net income(loss) $ .72 $ .63
 Fully diluted
 Continuing operations $ .04 $ .29
 Discontinued operation .66 .33
 Extraordinary - -
 Net income(loss) $ .70 $ .62
 Average number of common shares:
 Primary 18,763,351 26,874,879
 Fully diluted 19,311,591 27,271,911
 Year Ended December 31
 1991 1990
 (Dollars in thousands except per share data)
 Net sales and operating revenues $1,148,202 $1,119,405
 Costs and Expenses
 Cost of goods sold and operating expenses 874,829 842,293
 Selling, general and administrative 164,565 156,362
 Depreciation, depletion and amortization 43,228 41,671
 TOTAL 1,082,622 1,040,326
 Income from operations 65,580 79,079
 Other (Income)Expense
 Other income (3,234) (4,553)
 Interest on debt 23,221 18,301
 Other expenses (A) 46,431 5,285
 Income(loss) from continuing
 operations before income taxes
 and extraordinary item (838) 60,046
 Income Taxes 15,910 18,259
 Income(loss) from continuing operations
 before extraordinary item (16,748) 41,787
 Income from discontinued operations (B) 24,592 14,084
 Income before extraordinary item 7,844 55,871
 Extraordinary item (C) (5,969) -
 Net income 1,875 55,871
 Dividends on Preferred Stock
 Preferred Stock 1,031 -
 Net income applicable to common stock $ 844 $ 55,871
 Income(loss) per share of common stock:
 Primary
 Continuing operations $ (.75) $ 1.52
 Discontinued operations 1.04 .51
 Extraordinary (.25) -
 Net income(loss) $ .04 $ 2.03
 Fully diluted
 Continuing operations $ (.75) $ 1.49
 Discontinued operations 1.03 .50
 Extraordinary (.25) -
 Net income(loss) $ .03 $ 1.99
 Average number of common shares:
 Primary 18,763,351 26,874,879
 Fully diluted 19,311,591 27,271,911
 (A) - 1991 full year results include a non-operating loss of $35,007,000 related to the repurchase of shares of the company's common stock held by Brascan Limited; 1991 full year and fourth quarter results include $4,640,000 related to miscellaneous restructuring activities.
 (B) - 1991 full year and fourth quarter results include a non-operating gain of $8,469,000 from the sale of Western Coal interests; 1990 full year results include a non-operating loss of $11,500,000 from Colowyo Coal Company related to Colorado-Ute bankruptcy filing and a related tax benefit of $2,900,000.
 (C) - 1991 full year results include a non-operating loss of $9,627,000 related to the in substance defeasance of the company's 12-1/2 percent Senior Subordinated Notes and a related tax benefit of $3,658,000.
 -0- 1/22/92
 /CONTACT: Barbara A. Gould of M.A. Hanna, 216-589-4085/
 (MAH) CO: M.A. Hanna Company ST: Ohio IN: CHM SU: ERN


KK -- CL005 -- 2105 01/22/92 09:16 EST
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