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HANNA REPORTS RECORD QUARTERLY SALES, HIGHER EARNINGS

 HANNA REPORTS RECORD QUARTERLY SALES, HIGHER EARNINGS
 CLEVELAND, July 22 /PRNewswire/ -- M.A. Hanna Company


(NYSE/MSE: MAH) today reported that sales from continuing operations during the second quarter reached a record $332.8 million, up 20 percent over sales of $278.4 million in the second quarter a year ago. Volume growth exceeded 10 percent. Sales for the first six months increased 17 percent to $629.7 million, up from $536.7 million for the same period last year. Eight percentage points of the increase for the quarter and the first six months were due to sales from Fiberchem, which was acquired in June of 1991.
 Net earnings for the second quarter were $8.3 million ($.42 cents per share, fully diluted), compared with $6.1 million ($.22 per share, fully diluted) in earnings from continuing operations in the corresponding period of 1991. In the second quarter of 1991, net income from total operations was $10.8 million ($0.40 per share, fully diluted) including businesses that were divested last year.
 Net income in the first six months of 1992 was $11.8 million ($.60 per share, fully diluted), 25 percent higher than the $9.4 million ($.35 per share, fully diluted), earned from continuing operations last year.
 Hanna's formulated polymers segment reported sales of $326.4 million in the second quarter of 1992 compared with $271.2 million in the corresponding period of 1991. Strong sales gains continued in rubber and plastics compounding and resin distribution.
 Operating income from the polymers segment in the second quarter of 1992 grew 31 percent to $23.4 million from $17.8 million in the corresponding period of 1991. Sales, general and administrative expenses decreased to 12.5 percent of sales from 14.8 percent in the second quarter of 1991.
 Commenting on operations, Martin D. Walker, chairman and chief executive officer, said, "As volumes continue to improve in the polymer businesses, gross margin should show improvement as it did in the second quarter, when the margin improved one percentage point over the prior quarter. We will continue to shift general and administrative costs into marketing and technical development as we move into end markets which provide opportunity to expand our gross margins."
 "We are pleased with our progress toward achieving our goals for 1992, especially the sales and earnings targets. Although the second half goal ($.95 per share) is challenging, it is achievable if the economy continues its slow, steady growth."
 M.A. Hanna Company is a leading international specialty chemicals company.
 M. A. HANNA COMPANY AND CONSOLIDATED SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF INCOME
 (Unaudited)
 Three Months Ended
 June 30
 1992 1991
 (Dollars in thousands except per share data)
 Net Sales and Operating Revenues $332,847 $278,406
 Costs and Expenses
 Cost of goods sold and operating expenses 258,387 210,731
 Selling, general and administrative 41,508 41,099
 Depreciation, depletion and amortization 11,510 10,779
 Other income (1,586) (773)
 Interest on debt 7,902 4,803
 Other expenses 1,696 1,310
 319,417 267,949
 Income from continuing operations
 before income taxes 13,430 10,457
 Income Taxes 5,104 4,398
 Income from continuing operations 8,326 6,059
 Income from Discontinued Operations - 4,750
 Net income $ 8,326 $ 10,809
 Income per share of common stock
 Primary
 Continuing operations $ .44 $ .23
 Discontinued operations - .18
 Net income $ .44 $ .41
 Fully diluted
 Continuing operations $ .42 $ .22
 Discontinued operations - .18
 Net income $ .42 $ .40
 Average number of common shares
 Primary 19,041,147 26,457,107
 Fully diluted 19,635,459 27,050,686
 Six Months Ended
 June 30
 1992 1991
 (Dollars in thousands except per share data)
 Net Sales and Operating Revenues $629,737 $536,655
 Costs and Expenses
 Cost of goods sold and operating expenses 491,440 407,387
 Selling, general and administrative 80,678 80,328
 Depreciation, depletion and amortization 22,762 21,730
 Other income (3,009) (1,691)
 Interest on debt 15,432 9,589
 Other expenses 3,390 2,866
 610,693 520,209
 Income from continuing operations
 before income taxes 19,044 16,446
 Income Taxes 7,237 7,044
 Income from continuing operations 11,807 9,402
 Income from Discontinued Operations - 6,698
 Net income $ 11,807 $ 16,100
 Income per share of common stock
 Primary
 Continuing operations $ .62 $ .36
 Discontinued operations - .25
 Net income .62 $ .61
 Fully diluted
 Continuing operations $ .60 $ .35
 Discontinued operations - .25
 Net income $ .60 $ .60
 Average number of common shares
 Primary 18,965,612 26,428,283
 Fully diluted 19,574,722 27,011,134
 M. A. HANNA COMPANY AND CONSOLIDATED SUBSIDIARIES
 CONSOLIDATED BALANCE SHEETS
 (Unaudited)
 June December
 30, 1992 31, 1991
 (Dollars in thousands)
 Assets
 Current Assets
 Cash and cash equivalents $ 68,933 $ 24,478
 Receivables 201,389 158,227
 Inventories 122,849 109,670
 Other 8,127 3,384
 Total current assets 401,298 295,759
 Net Property, Plant and Equipment 225,226 216,717
 Other Assets
 Goodwill and other intangibles 404,649 387,357
 Investments and other 71,368 132,671
 Total other assets 476,017 520,028
 $1,102,541 $1,032,504
 Liabilities and Stockholders' Equity
 Current Liabilities
 Notes payable $ 1,896 $ 2,145
 Trade payables and accrued expenses 238,512 199,288
 Current portion of long-term debt 766 998
 Total current liabilities 241,174 202,431
 Other Liabilities 114,519 118,735
 Long-term Debt 355,316 330,880
 Stockholders' Equity 391,532 380,458
 Total $1,102,541 $1,032,504
 Long-term Debt/Total Capital 47.6 percent 46.5 percent
 -0- 7/22/92
 /CONTACT: Barbara A. Gould of M.A. Hanna, 216-589-4085/
 (MAH) CO: M.A. Hanna Company ST: Ohio IN: CHM SU: ERN


KK -- CL019 -- 2092 07/22/92 16:17 EDT
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