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KERR REPORTS 1991 RESULTS

 KERR REPORTS 1991 RESULTS
 LOS ANGELES, March 2 /PRNewswire/ -- Kerr Glass Manufacturing


Corporation (NYSE: KGM) today reported a net loss applicable to common stockholders (after deduction for preferred stock dividends) of $3,408,000 or 93 cents per common share (primary and fully diluted) for the year ended Dec. 31, 1991, compared to a net loss applicable to common stockholders of $2,081,000 or 57 cents per common share (primary and fully diluted) in 1990. The net loss in 1991 included an after-tax loss of $2,982,000, or 81 cents per common share (primary and fully diluted), in connection with the sale of Kerr's commercial glass container business, which was consummated on Feb. 28, 1992. The 1991 net loss also included an after-tax benefit of $886,000 or 24 cents per common share (primary and fully diluted), which represents the cumulative effect of a change in accounting associated with the discontinued commercial glass container business.
 The company has restated its results to present as discontinued operations the company's commercial glass container business. Excluding the results of the discontinued commercial glass container business, the company reported a net loss from continuing operations of $2,146,000 (before preferred stock dividends) in 1991 compared to a net loss of $1,410,000 (before preferred stock dividends) in 1990.
 The company said the increase in the loss from continuing operations in 1991, as compared to 1990, was a result of a substantial loss in the metal crown business in 1991, as compared to a small loss in 1990. The loss in the metal crown business in 1991 was primarily due to quality problems which contributed to lower sales and manufacturing inefficiencies. The company stated that the quality problems are being addressed by a $2,400,000 remachining project to be completed by mid- 1992.
 Roger W. Norian, chairman, president and chief executive officer, said that earnings of the consumer products business increased in 1991, compared to 1990, primarily due to lower costs and improved pricing. Earnings of the plastic products business increased in 1991, compared to a year ago, due primarily to higher sales and the favorable impact of cost reduction programs.
 Net sales from continuing operations in 1991 were $145,357,000 compared to $150,423,000 in the prior year. The decrease in sales was due to lower sales of metal crowns.
 Earnings of the discontinued commercial glass container business increased in 1991 compared to 1990 due to price increases in excess of cost increases.
 Net loss from continuing operations for the three months ended Dec. 31, 1991, was $1,332,000 compared to a net loss from continuing operations of $2,044,000 a year ago, due to improved results in the plastic products and consumer products businesses and lower corporate general and administrative expenses. The loss in the metal crown business increased substantially in the fourth quarter of 1991 compared to the fourth quarter of 1990.
 Net sales from continuing operations for the three months ended Dec. 31, 1991, were $27,597,000 compared to $30,572,000 a year ago. The decrease in net sales of the three months was due to lower sales of metal crowns and consumer products.
 Generally, the company's sales and earnings are higher in the second and third quarters and lower in the first and fourth quarters because of the seasonal nature of its operations.
 Kerr, headquartered in Los Angeles, is a major producer of plastic packaging products, home canning supplies and metal crowns.
 KERR GLASS MANUFACTURING CORPORATION
 Results of Operations
 (In thousands, except per share amounts)
 Periods ended Year Three Months
 Dec. 31 1991 1990 1991 1990
 (Audited) (Unaudited)
 Net sales $145,357 $150,423 $27,597 $30,572
 Loss from cont. opers.
 before income taxes (3,042) (2,335) (1,980) (3,365)
 Benefit for income taxes (896) (925) (648) (1,321)
 Loss from cont. opers. (2,146) (1,410) (1,332) (2,044)
 Discontinued operations:
 Earns. from discont. opers. 1,663 158 212 350
 Loss on sale of commercial
 glass container
 business (A) (2,982) -- (2,982) --
 Cumulative effect of change
 in accounting related to
 discontinued opers. (B) 886 -- -- --
 Total earnings (loss)
 related to discont. opers. (433) 158 (2,770) 350
 Net loss (2,579) (1,252) (4,102) (1,694)
 Preferred stock dividends 829 829 208 208
 Net loss applicable to
 common stockholders (3,408) (2,081) (4,310) (1,902)
 Net earnings (loss) per
 common share, primary
 and fully diluted (C):
 Earnings (loss) per common
 share from cont. opers. ($0.81) ($0.61) ($0.42) ($0.62)
 Total earnings (loss) per
 common share related to
 discontinued operations (0.12) 0.04 (0.75) 0.10
 Net loss per common share ($0.93) ($0.57) ($1.17) ($0.52)
 Weighted average number of
 common shares outstanding 3,675 3,675 3,675 3,675
 Common shares outstanding
 at end of period 3,675 3,675
 NOTE: The company sold its commercial glass container business in early 1992, and, accordingly, has reflected the results of the discontinued commercial glass container business operations separately from continuing operations in the above table.
 (A) -- During the fourth quarter of 1991, the company reported an after-tax loss of $2,982,000 or 81 cents per common share, which includes both a gain on the sale of assets and reserves for other estimated costs to be incurred in connection with the sale.
 (B) -- Effective Jan. 1, 1991, the company changed its method of accounting to include substantially all new machine repair parts in other assets. The purchase cost of certain new machine repair parts was previously charged directly to expense. The cumulative effect of this change (as of Jan. 1, 1991) relating to the new repair parts previously expensed, was to increase earnings of the discontinued operations during the year ended Dec. 31, 1991, by $886,000 ($1,438,000 pre-tax income net to income taxes of $552,000) or 24 cents per common share. The period- to-period pro forma effect on prior years' financial statements was not material. The company believes this change is preferable because it provides a better matching of costs with related revenues and more accurately reflects the value of machine repair parts.
 (C) -- Fully diluted net earnings (loss) per common share reflect, when dilutive, 1) the incremental common shares issuable upon the assumed exercise of outstanding stock options, and 2) the assumed conversion of the preferred stock and the elimination of the related preferred stock dividends. Antidilution occurred in the years and three months ended Dec. 31, 1991 and 1990.
 -0- 3/2/92
 /CONTACT: D. Gordon Strickland, senior vice president-finance and chief financial officer of Kerr, 310-284-2585/
 (KGM) CO: Kerr Glass Manufacturing Corporation ST: California IN: SU: ERN


GK-TS -- NY008 -- 3756 03/02/92 08:47 EST
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