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HARNISCHFEGER INDUSTRIES REPORTS STRONG 1991 RESULTS

 HARNISCHFEGER INDUSTRIES REPORTS STRONG 1991 RESULTS
 MILWAUKEE, Dec. 2 /PRNewswire/ -- Harnischfeger Industries, Inc.


(NYSE: HPH), today reported its second-best year ever in 1991, softening the effects of a lingering domestic recession with record results from its mining equipment segment and strong showings by its papermaking machinery and material handling equipment (MHE) segments.
 Net sales totalled $1.6 billion, compared to record sales of $1.8 billion in 1990. Income from operations totalled $64.6 million ($2.08 per share) compared to the record $70.0 million ($2.18 per share) in 1990. Backlog as of Oct. 31 stood at $1.4 billion, compared to nearly $1.6 billion at year-end 1990.
 Reflecting its global customer base, Harnischfeger Corporation's Mining Equipment division turned in one of its best performances, with operating profit of $30.4 million on record sales of $312.0 million. The MHE division reported operating profit of $12.1 million -- a 45 percent increase over 1990 -- despite slightly lower sales of $112.1 million. The Paper Group reported its second-best year ever, with $88.5 million in operating profit on sales of $935.8 million.
 "We anticipate that 1992 will pose significant challenges, particularly with the domestic recession showing little sign of recovery," said Chairman and Chief Executive Officer William W. Goessel. "We remain well positioned for a continued recession, as well as the inevitable economic upturn, due to our large installed equipment bases and the demand for our products and services in critical industries around the world."
 Harnischfeger Industries is a diversified international holding company that operates four subsidiaries involved in: papermaking machinery manufacturing (Beloit Corporation); surface mining and overhead material handling equipment manufacturing (Harnischfeger Corporation); and systems integration services (Harnischfeger Engineers, Inc. and Syscon Corporation).
 HARNISCHFEGER INDUSTRIES, INC.
 Consolidated Statement of Income
 (Dollars in thousands)
 Period ended Three months Year
 Oct. 31 1991 1990 1991 1990
 Revenues
 Net sales $388,988 $479,011 $1,584,114 $1,761,805
 Other income 4,497 5,300 19,361 15,195
 Total 393,485 484,311 1,603,475 1,777,000
 Cost of sales 303,062 386,715 1,264,847 1,438,100
 Product development,
 selling and admin. exps. 56,137 60,982 217,708 215,383
 Operating income 34,286 36,614 120,920 123,517
 Interest income - net 548 1,232 4,535 8,202
 Income bncome
 taxes (12,550) (11,950) (45,150) (44,800)
 Total 22,284 25,896 80,305 86,919
 Minority interest (3,657) (5,304) (15,695) (16,911)
 Income from operations 18,627 20,592 64,610 70,008
 Income tax benefit from
 recognition of operating
 loss carryforwards -- -- -- 3,050
 Net income 18,627 20,592 64,610 73,058
 Earnings per share
 Income from operations 0.61 0.65 2.08 2.18
 Income tax benefit -- -- -- 0.09
 Net income 0.61 0.65 2.08 2.27
 Average shares
 outstanding 30,466 31,885 31,097 32,216
 Business Segment Summary
 For The Three Months Ended Oct. 31, 1991
 (Dollars in Thousands)
 Net Sales Operating Profit
 1991 1990 1991 1990
 Papermaking machinery
 and systems 226,108 294,055 23,244 29,884
 Mining equipment 76,573 84,652 10,908 6,416
 Material handling
 equipment 26,936 33,701 2,151 2,240
 Systems group 59,371 66,603 2,095 3,481
 Total business segments 388,988 479,011 38,398 42,021
 Corporate administration (4,112) (5,407)
 Interest income - net 548 1,232
 Income before provision
 for income taxes and
 minority interest 34,834 37,846
 Backlog at
 Orders Booked end of period
 1991 1990 10/91 7/91
 Papermaking machinery
 and systems 162,177 210,334 510,384(A) 595,478
 Mining equipment 76,322 83,612 135,051 135,302
 Material handling
 equipment 21,369 37,439 58,681 64,248
 Systems group 26,843 74,426 733,877 766,405
 Total Business Segments 286,711 405,811 1,437,993 1,561,433
 (A) Includes impact of unfavorable translation adjustments of $21,163 caused by movements in exchange rates.
 Business Segment Summary
 For The Year Ended Oct. 31, 1991
 (dollars in thousands)
 Net Sales Operating Profit
 1991 1990 1991 1990
 Papermaking machinery
 and systems $935,764 $1,105,042 $88,460 $98,347
 Mining equipment 311,963 303,678 30,404 25,347
 Material handling
 equipment 112,096 117,531 12,103 8,353
 Systems group 224,291 235,554 8,348 11,741
 Total business segments 1,584,114 1,761,805 139,315 143,788
 Corporate administration (18,395) (20,271)
 Interest income - net 4,535 8,202
 Income before provision
 for income taxes and
 minority interest 125,455 131,719
 Backlog at
 Orders Booked End of Period
 1991 1990 10/91 10/90
 Papermaking machinery
 and systems $776,801 $858,433 $510,384(A) $738,150
 Mining equipment 277,475 302,111 135,051 169,539
 Material handling
 equipment 102,530 112,683 58,681 68,247
 Systems group 383,874 255,942 733,877 574,294
 Total Business Segments 1,540,680 1,529,169 1,437,993 1,550,230
 (A) -- Includes impact of unfavorable translation adjustments of $68,803 caused by movements in exchange rates.
 Condensed Balance Sheet
 (dollars in thousands)
 Oct. 31 1991 1990
 Assets
 Current assets:
 Cash and cash equivalents $220,400 $239,756
 Accounts receivable - net 428,302 461,886
 Inventories 259,852 259,132
 Other current assets 34,699 48,920
 Total 943,253 1,009,694
 Property, plant and equipment - net 331,314 323,913
 Intangible assets 108,201 107,561
 Investment in Measurex 70,320 64,941
 Investment in Century II -- 37,108
 Other assets 53,794 33,272
 Total assets 1,506,882 1,576,489
 Liabilities and shareholders' equity
 Current liabilities:
 Short-term notes payable 31,307 30,557
 Current portion of long-term obligations 23,885 6,503
 Trade accounts payable 170,256 183,890
 Employee compensation and benefits 71,267 67,498
 Advance payments and progress billings 116,344 205,303
 Accrued warranties 63,518 58,082
 Other current liabilities 90,276 92,298
 Total 566,853 644,131
 Long-term obligations 111,805 115,199
 Other liabilities 134,371 138,408
 Minority interest 99,435 96,162
 Shareholders' equity 594,418 582,589
 Total liabilities and shareholders' equity 1,506,882 1,576,489
 -0- 12/2/91
 /CONTACT: Francis M. Corby, Jr., senior vice president finance and chief financial officer of Harnischfeger Industries, 414-797-6518/
 (HPH) CO: Harnischfeger Industries, Inc. ST: Wisconsin IN: SU: ERN FC-OS -- NY048 -- 8418 12/02/91 14:23 EST
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Date:Dec 2, 1991
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