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KINARK REPORTS THIRD QUARTER RESULTS

 KINARK REPORTS THIRD QUARTER RESULTS
 TULSA, Okla., Oct. 16 /PRNewswire/ -- Kinark Corporation (AMEX: KIN)


today announced higher sales and earnings, before special items, for the third quarter ended Sept. 30, compared to the 1992 second quarter.
 Sales increased 16 percent to $8,621,000, compared to $7,409,000 in the second quarter on the strength of higher activity in antifreeze packaging and galvanizing. Earnings from the core businesses, excluding the special items, were $817,000, or 22 cents a share, an increase of 31 percent from the 1992 second quarter. The company reported a net loss for the quarter of $573,000, or 16 cents a share, which included special items that reduced earnings by $1,390,000, or 38 cents a share. Kinark earned $1,866,000, or 52 cents a share in the third quarter of 1991 on sales of $8,713,000.
 Paul R. Chastain, chairman and chief executive officer, said, "Excluding the special items, our total operating earnings for this third quarter were the second highest in the company's history. The company's chemical and galvanizing operations are profitable and making money despite the difficult economic environment," he added. The Lake River Terminals subsidiary continues to exceed its record earnings from a year ago, reflecting a stable demand for specialty chemical storage facilities in the Chicago region. Boyles Galvanizing is profitable, although tonnage of galvanizing production is off 15 percent from last year's peak. The Kinpak packaging subsidiary was profitable this quarter reflecting the seasonal demand for antifreeze.
 Mr. Chastain said, "The special items represented charges unrelated to the company's ongoing operations." These items included $250,000 for the settlement of environmental proceedings involving the disposal of waste material that occurred in the late 1970s, and $1,140,000 for all anticipated costs related to the hotel real estate the company had sold last year.
 For the nine months, total sales were $23,075,000, down 9 percent from $25,388,000 last year. Net earnings were $568,000, or 15 cents a share, compared to $4,476,000, or $1.25 a share for the nine months. Special items reduced earnings $1,390,000 in 1992 compared with an increase of $352,000 in 1991.
 Capital investment planned for new plant and equipment reached $2.9 million through the third quarter for an increase of 19 percent over the total for 1991. A rebuilt and expanded galvanizing plant in Hurst, Texas, will be fully operational in the fourth quarter and reinforces Boyles' position as the strongest galvanizer in that region. Funding for the increased capital program reflects the company's continued strong cash flow and adequate bank financing. Mr. Chastain said that the company's bank credit agreement would not be affected by the recent charges taken for special items.
 "We are pleased with the results for the quarter and particularly the excellent results being shown by chemicals storage at Lake River," Mr. Chastain said. "As we go forward, we view the economic outlook with a great deal of caution. We are confident that Kinark, based on its proven record of performance in difficult economic environments, can deal with the challenges ahead," Mr. Chastain said.
 Kinark Corporation (AMEX and PSE), with corporate headquarters in Tulsa, operates chemical facilities in Chicago and Montgomery, Ala., and supports industrial/commercial construction and metals corrosion protection with galvanizing plants in Denver, Louisville, Ky., Nashville, Tenn., St. Louis, Houston and Hurst, Texas.
 KINARK CORPORATION
 Consolidated Statement of Earnings -- Unaudited Interim Statement
 (Thousands of dollars, except per share)
 Periods ended Quarter Nine Months
 Sept. 30 1992 1991 1992 1991
 Net sales $8,621 $8,713 $23,075 $25,388
 Cost of sales 6,177 5,663 16,329 16,593
 Selling, administrative expenses 999 897 2,898 2,951
 Depreciation 402 391 1,204 1,239
 Income from operations 1,043 1,762 2,644 4,605
 Interest expense, net 147 223 471 378
 Other - Lowry Settlement 250 -- 250 --
 Income taxes 79 25 215 103
 Earnings from continuing operations 567 1,514 1,708 4,124
 Discont. opers. earnings (loss) (1,140) 352 (1,140) 352
 Net earnings (loss) (573) 1,866 568 4,476
 Earnings per share:
 Continuing operations $.15 $.42 $.46 $1.15
 Discontinued operations (.31) .10 (.31) .10
 Net earnings (loss) (.16) .52 .15 1.25
 Average shares outstanding (000) 3,680 3,596 3,699 3,592
 -0- 10/16/92
 /CONTACT: Carolyn A. Fredrich of Kinark Corporation, 918-494-0964/
 (KIN) CO: Kinark Corporation ST: Oklahoma IN: OIL SU: ERN


AH-CK -- NY019 -- 0871 10/16/92 10:45 EDT
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Date:Oct 16, 1992
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