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HANNA REPORTS RECORD SALES, DOUBLE DIGIT EARNINGS GROWTH

 HANNA REPORTS RECORD SALES,
 DOUBLE DIGIT EARNINGS GROWTH
 CLEVELAND, Oct. 20 /PRNewswire/ -- M.A. Hanna Company (NYSE/MSE: MAH) today reported that third-quarter sales increased 15 percent, operating income climbed 13 percent and earnings per share from continuing operations grew 52 percent compared with the levels of the third quarter of 1991.
 Sales for the third quarter of 1992 were $355.7 million, a 15 percent increase over sales of $308.8 million in the third quarter of 1991. Income from continuing operations in the third quarter of 1992 increased 13 percent to $9.2 million compared with income of $8.2 million from continuing operations in
the third quarter of 1991, excluding a non-recurring charge. Earnings per share from continuing operations increased 52 percent to $.47 in the third quarter of 1992 from $.31 in the third quarter of 1991.
 Third quarter results in both 1992 and 1991 included non-recurring items. In the 1992 period, Hanna realized a net gain of $7.8 million, comprised of $9.2 million from the settlement of a bankruptcy claim owed to a former natural resources affiliate, offset by a $1.4 million charge for a claim related to a silicon operation sold in 1988. In the 1991 period, Hanna recorded a non-recurring charge of $41 million related to a recapitalization and restructuring program. Net income in the third quarter of 1992 was $17.0 million ($.86 per share, fully diluted), compared with a loss in the 1991 period of $27.7 million ($1.25 per share, fully diluted).
 In the third quarter of 1992, earnings from the formulated polymers segment increased 18 percent to $24.9 million on sales growth of 16 percent.
 "Our polymer operations continue to perform well despite a lackluster economy. Margins improved in plastics compounding and distribution and we maintained strong sales growth," said Martin D. Walker, chairman and chief executive officer. "Working capital improved from 11 percent of sales to 10.7 percent of sales and SG&A improved from 13.4 percent to 12.2 percent."
 Sales for the nine months ended Sept. 30, 1992 were $985.4 million, a 17 percent increase over sales of $845.5 million for the same period of 1991. Earnings from continuing operations for the first nine months of 1992 were $21.1 million ($1.07 per share, fully diluted), 20 percent higher than the $17.6 million ($.64 per share, fully diluted) earned from continuing operations, excluding the non-recurring charge for recapitalization last year.
 "Hanna continues to show strong growth in sales and earnings, outperforming the economy and the plastics industry," Walker said. "We experienced a stall in the economic recovery in the third quarter, which slightly slowed our growth rate. We expect steady growth in sales and earnings in the fourth quarter; however, it will be difficult to achieve our $1.55 per share earnings goal for the year without significant improvement in the overall economy."
 M.A. Hanna Company is a leading international specialty chemicals company. Primary businesses of M.A. Hanna are plastics and rubber compounding, color and additive concentrates, and distribution of engineered plastic shapes and resins.
 M. A. HANNA COMPANY AND CONSOLIDATED SUBSIDIARIES
 CONSOLIDATED BALANCE SHEETS
 (Unaudited)
 September December
 30, 1992 31, 1991
 (Dollars in thousands except per share data)
 Assets
 Current Assets
 Cash and cash equivalents $ 71,995 $ 24,478
 Receivables 212,679 158,227
 Inventories 128,604 109,670
 Other 8,442 3,384
 Total current assets 421,720 295,759
 Net Property, Plant and Equipment 226,248 216,717
 Other Assets
 Goodwill and other intangibles 412,163 387,357
 Investments and other 83,862 132,671
 Total other assets 496,025 520,028
 Total $1,143,993 $1,032,504
 Liabilities and Stockholders' Equity
 Current Liabilities
 Notes payable $ 1,647 $ 2,145
 Trade payables and accrued expenses 251,183 199,288
 Current portion of long-term debt 774 998
 Total current liabilities 253,604 202,431
 Other Liabilities 113,731 118,735
 Long-term Debt 368,109 330,880
 Stockholders' Equity 408,549 380,458
 Total $1,143,993 $1,032,504
 Long-term Debt/Total Capital (pct) 47.4 46.5
 M.A. HANNA COMPANY AND CONSOLIDATED SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF INCOME
 (Unaudited)
 Three Months Ended
 September 30
 1992 1991
 (Dollars in thousands except per share data)
 Net Sales and Operating Revenues $355,713 $308,828
 Costs and Expenses
 Cost of goods sold and operating expenses 275,595 234,718
 Selling, general and administrative 43,455 41,500
 Depreciation, depletion and amortization 13,074 10,993
 Other income (1,539) (735)
 Interest on debt 8,487 5,340
 Other expenses 2,262 37,070
 Total 341,334 328,886
 Income(loss) from continuing operations
 before income taxes and extraordinary
 item 14,379 (20,058)
 Income Taxes 5,130 6,781
 Income(loss) from continuing operations
 before extraordinary item 9,249 (26,839)
 Income from Discontinued Operations 7,756 5,115
 Income(loss) before extraordinary item 17,005 (21,724)
 Extraordinary Item - (5,969)
 Net income(loss) 17,005 (27,693)
 Dividends on Redeemable Preferred Stock - 1,031
 Net Income(loss) applicable to
 common stock $ 17,005 $(28,724)
 Income(loss) per share of common stock:
 Primary
 Continuing operations $ .48 $ (1.21)
 Discontinued operations .41 .22
 Extraordinary - (.26)
 Net income(loss) $ .89 $ (1.25)
 Fully diluted
 Continuing operations $ .47 $ (1.21)
 Discontinued operations .39 .22
 Extraordinary - (.26)
 Net income(loss) $ .86 $ (1.25)
 Dividends per common share $ .1625 $ .1625
 Average number of common shares
 Primary 19,128,641 23,032,032
 Fully diluted 19,832,890 23,615,043
 Nine Months Ended
 September 30
 1992 1991
 (Dollars in thousands except per share data)
 Net Sales and Operating Revenues $985,450 $845,483
 Costs and Expenses
 Cost of goods sold and operating expenses 767,035 642,105
 Selling, general and administrative 124,133 121,828
 Depreciation, depletion and amortization 35,836 32,723
 Other income (4,548) (2,426)
 Interest on debt 23,919 14,929
 Other expenses 5,652 39,936
 Total 952,027 849,095
 Income(loss) from continuing operations
 before income taxes and extraordinary
 item 33,423 (3,612)
 Income Taxes 12,367 13,825
 Income(loss) from continuing operations
 before extraordinary item 21,056 (17,437)
 Income from Discontinued Operations 7,756 11,813
 Income(loss) before extraordinary item 28,812 (5,624)
 Extraordinary Item - (5,969)
 Net income(loss) 28,812 (11,593)
 Dividends on Redeemable Preferred Stock - 1,031
 Net Income(loss) applicable to
 common stock $ 28,812 $(12,624)
 Income(loss) per share of common stock:
 Primary
 Continuing operations $ 1.11 $ .73
 Discontinued operations .41 .47
 Extraordinary - (.24)
 Net income(loss) $ 1.52 $ (.50)
 Fully diluted
 Continuing operations $ 1.07 $ (.73)
 Discontinued operations .40 .47
 Extraordinary - (.24)
 Net income(loss) $ 1.47 $ (.50)
 Dividends per common share $ .4875 $ .4625
 Average number of common shares
 Primary 19,010,526 25,286,028
 Fully diluted 19,664,381 25,878,449
 -0- 10/20/92
 /CONTACT: Barbara Gould of M.A. Hanna, 216-589-4085/
 (MAH) CO: M.A. Hanna ST: Ohio IN: CHM SU: ERN


KK -- CL006 -- 2054 10/20/92 09:30 EDT
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Date:Oct 20, 1992
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