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LUKENS ANNOUNCES THIRD QUARTER EARNINGS

 COATESVILLE, Pa., Oct. 13 /PRNewswire/ -- Lukens Inc. (NYSE: LUC) today reported third quarter net earnings of $7.9 million, down 13 percent from 1992 third quarter results of $9.2 million.
 Earnings from continuing operations totaled $5.8 million in the third quarter, down from $6.5 million in the 1992 period.
 Lukens' Industrial Operations, which were restated as discontinued operations in the second quarter of 1993, reported third quarter earnings (after-tax) of $2.1 million, off 18 percent from the $2.7 million reported in the 1992 period.
 Primary earnings per share were $.51 for the quarter, with $.36 per share attributable to earnings from continuing operations. During the same period of 1992, primary earnings per share were $.62, with $.43 per share from continuing operations.
 "Our performance reflected lower results from the Lukens Steel Group, which continued to face competitive pricing pressures, a lower-value shipment mix and increased raw material costs," said R.W. Van Sant, chairman and chief executive officer of Lukens Inc. "In addition, third quarter earnings also were negatively affected by the adoption of new accounting principles for retirement health-care benefits (SFAS No. 106)."
 The company's third quarter sales of $211.4 million from continuing operations represented a 4 percent gain over last year's $203.1 million. The sales increase was attributed to higher shipment volumes in the Lukens Steel Group.
 "Fundamentally, the company is on solid footing with improving productivity, steady order rates, a growing stainless steel business and production facilities operating near capacity," said Van Sant. "Both of our steel groups are tracking their business plans at this point in the year.
 "Lukens Steel is navigating the transition period between the cyclical peak of the late 1980s and the economic upturn that slowly should occur in the next few years," he said. "Surplus capacity in the plate industry continues to put pressure on prices and, while plate industry sales will grow slightly in the coming year, they probably won't exceed the strong volumes of 1989-90."
 Van Sant said while the Washington Stainless Group's performance was good, it was not strong enough to offset the shortfall at Lukens Steel.
 "Unless we see a strong recovery in both the domestic and global economies, Lukens' earnings probably will not exceed present levels over the next 18 to 24 months," he said.
 "During this period, our aggressive $400 million capital investment program will be well under way," said Van Sant. "By 1995, we'll begin seeing earnings contributions as our $86 million Steckel Mill Advanced Rolling Technology starts manufacturing carbon, alloy and new stainless products at significantly lower cost," he said. "Our recently announced $14.5 million stainless melting project at Coatesville will firmly establish our position in the stainless plate business. Capital investments at Washington Steel also will enhance performance in the growing stainless sheet market."
 Lukens Steel Group
 Lukens Steel Group sales of $109.4 million were up 8 percent from last year's period sales of $101.6 million. The increase reflected strong shipment levels -- 174,000 tons in the third quarter of 1993 versus 154,800 tons in 1992. Despite improved volume, third quarter operating earnings of $8.1 million were down 18 percent from 1992 earnings of $9.9 million. While, as expected, carbon plate prices rose slowly, the unit saw a shift toward a lower-value shipment mix. This shift, combined with higher scrap costs, put pressure on margins. The order backlog at the end of the quarter was $57.5 million, down 16 percent from the beginning of the year.
 Washington Stainless Group
 Acquired by Lukens during the second quarter of 1992, the Washington Stainless Group, comprised of Washington Steel Corporation and Washington Specialty Metals Corporation, continued to record strong earnings.
 Results for the third quarter were $9.5 million, up 6 percent from $9.0 million in the comparable 1992 period. Sales increased slightly, from $101.5 million in the third quarter of 1992 to $102.0 million in 1993. Mill group shipments, including those to Washington's service center operations, were 43,600 tons during the period. Order backlog at the end of the quarter was $41.6 million, down 10 percent from the beginning of the year.
 Lukens Inc. is a Fortune 500 company whose subsidiaries supply carbon, alloy and clad plate steels; stainless sheet, strip and continuous mill plate; and industrial products and services.
 LUKENS INC.
 Consolidated Statements Of Earnings
 Third Quarter
 Thirteen Weeks Ended September 25, 1993 September 26, 1992
 Net Sales $211,405,000 $203,130,000
 Operating Costs and Expenses
 Cost of products sold 183,776,000 176,042,000
 Selling and
 administrative expenses 14,709,000 11,618,000
 Total operating costs
 and expenses 198,485,000 187,660,000
 Operating Earnings 12,920,000 15,470,000
 Interest income 10,000 68,000
 Interest expense (4,061,000) (4,856,000)
 Earnings Before Income Taxes 8,869,000 10,682,000
 Income tax expense 3,097,000 4,181,000
 Earnings From Continuing Operations -
 Before Cumulative Effect
 of Accounting Changes 5,772,000 6,501,000
 Discontinued Operations
 Earnings from operations,
 net of tax 2,177,000 2,664,000
 Earnings Before Cumulative Effect
 of Accounting Changes 7,949,000 9,165,000
 Cumulative Effect of Accounting Changes
 Postretirement benefits - SFAS No. 106 --- ---
 Income taxes - SFAS No. 109 --- ---
 Net Earnings (Loss) 7,949,000 9,165,000
 Earnings (Loss) Per Common Share
 Before Cumulative Effect of Accounting Changes
 Primary $.51 $.62
 Fully Diluted .48 .58
 After Cumulative Effect of Accounting Changes
 Primary .51 .62
 Fully Diluted .48 .58
 Common Shares & Equivalents Outstanding
 Primary 14,799,000 14,057,000
 Fully Diluted 16,425,000 15,695,000
 LUKENS INC.
 Consolidated Statements Of Earnings
 Year To Date
 Thirty-nine Weeks Ended September 25, 1993 September 26, 1992
 Net Sales $659,392,000 $490,985,000
 Operating Costs and Expenses
 Cost of products sold 574,224,000 426,178,000
 Selling and
 administrative expenses 40,784,000 28,101,000
 Total operating costs
 and expenses 615,008,000 454,279,000
 Operating Earnings 44,384,000 36,706,000
 Interest income 35,000 777,000
 Interest expense (12,385,000) (9,143,000)
 Earnings Before Income Taxes 32,034,000 28,340,000
 Income tax expense 12,068,000 11,096,000
 Earnings From Continuing Operations -
 Before Cumulative Effect
 of Accounting Changes 19,966,000 17,244,000
 Discontinued Operations
 Earnings from operations,
 net of tax 3,690,000 7,305,000
 Earnings Before Cumulative Effect
 of Accounting Changes 23,656,000 24,549,000
 Cumulative Effect of
 Accounting Changes
 Postretirement benefits -
 SFAS No. 106 (67,222,000) ---
 Income taxes - SFAS No. 109 1,321,000 ---
 Net Earnings(Loss) (42,245,000) 24,549,000
 Earnings (Loss) Per Common Share
 Before Cumulative Effect of Accounting Changes
 Primary $1.50 $1.76
 Fully Diluted 1.41 1.65
 After Cumulative Effect of Accounting Changes
 Primary (2.95) 1.76
 Fully Diluted (2.95) 1.65
 Common Shares & Equivalents Outstanding
 Primary 14,798,000 13,248,000
 Fully Diluted 16,427,000 14,901,000
 LUKENS INC.
 Business Group Results
 Third Quarter
 1993 1992
 NET SALES
 Lukens Steel $109,384,000 $101,605,000
 Washington Stainless 102,021,000 101,525,000
 Total 211,405,000 203,130,000
 OPERATING EARNINGS (LOSS)
 Lukens Steel 8,114,000 9,863,000
 Washington Stainless 9,473,000 8,968,000
 Corporate (4,667,000) (3,361,000)
 Total 12,920,000 15,470,000
 Third Quarter YTD
 1993 1992
 NET SALES
 Lukens Steel $336,524,000 $310,346,000
 Washington Stainless 322,868,000 180,639,000
 Total 659,392,000 490,985,000
 OPERATING EARNINGS (LOSS)
 Lukens Steel 27,234,000 31,639,000
 Washington Stainless 29,661,000 13,820,000
 Corporate (12,511,000) (8,753,000)
 Total 44,384,000 36,706,000
 LUKENS INC.
 Other Information
 Third Quarter
 1993 1992
 Depreciation and Amortization $11,579,000 $11,441,000
 Backlog 119,357,000 135,467,000
 Shipped Tons
 Lukens Steel Group 174,000 154,800
 Washington Stainless Group 51,000 53,500
 Third Quarter YTD
 1993 1992
 Depreciation and Amortization $34,046,000 $28,449,000
 Shipped Tons
 Lukens Steel Group 538,700 475,400
 Washington Stainless Group 161,700 98,500
 LUKENS INC.
 Consolidated Statements Of Earnings (in 000s)
 1992 Discontinued Operations Presentation
 First Second Third Fourth
 Quarter Quarter Quarter Quarter 1992
 Net Sales $100,360 $187,495 $203,130 $204,787 $695,772
 Operating Costs
 and Expenses
 Cost of products
 sold 87,400 162,736 176,042 175,796 601,974
 Selling and
 admin. expenses 6,491 9,992 11,618 13,877 41,978
 Total op. costs &
 expenses 93,891 172,728 187,660 189,673 643,952
 Operating Earnings 6,469 14,767 15,470 15,114 51,820
 Interest income 563 146 68 49 826
 Interest expense (400) (3,887) (4,856) (4,420) (13,563)
 Earnings Before
 Income Taxes 6,632 11,026 10,682 10,743 39,083
 Income tax
 expense 2,527 4,388 4,181 4,193 15,289
 Earnings From
 Continuing Op. 4,105 6,638 6,501 6,550 23,794
 Earnings From
 Discontinued Op. 1,135 3,506 2,664 1,956 9,261
 Net Earnings 5,240 10,144 9,165 8,506 33,055
 Primary Earnings
 Per Common Share
 Continuing Opers. $.29 $.49 $.43 $.42 $1.63
 Discontinued
 Operations .09 .27 .19 .13 .68
 Total .38 .76 .62 .55 2.31
 Fully Diluted Earnings
 Per Common Share
 Continuing Opers. $.28 $.46 $.41 $.40 $1.56
 Discontinued
 Operations .08 .24 .17 .12 .61
 Total .36 .70 .58 .52 2.17
 /delval/
 -0- 10/13/93
 /CONTACT: Rick Whitmyre of Lukens, 215-383-2504/
 (LUC)


CO: Lukens, Inc. ST: Pennsylvania IN: MNG SU: ERN

CC-LJ -- PH014 -- 1632 10/13/93 11:38 EDT
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Date:Oct 13, 1993
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