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MANVILLE REPORTS THIRD QUARTER EARNINGS

 DENVER, Oct. 21 /PRNewswire/ -- Manville Corp. (NYSE: MVL) today reported third quarter net sales of $600.2 million, up slightly from $592.6 million in the third quarter of 1992. Net income applicable to common stock in the quarter was $7.2 million, or 6 cents per share, compared with income of $0.8 million, or 1 cent per share, last year. Results in the third quarter of 1993 included charges of $5.7 million for restructuring, $14.8 million of benefit from changes in the U.S. and German tax laws, and a $0.9 million gain, net of tax, due to finalization of the early extinguishment of debt. Excluding these unusual items, net loss applicable to common stock in the third quarter of 1993 would have been approximately $2.5 million, or 2 cents per share.
 Consolidated income from operations for the third quarter declined 10 percent to $46.2 million from $51.4 million in the comparable 1992 period. Schuller International Inc.'s fiber glass-based businesses had significantly higher operating earnings, while Riverwood International Corp.'s (NYSE: RVW) packaging systems and paper products businesses declined from the 1992 period. In addition, reflected in the corporate segment of income from operations was a loss arising from a joint venture serving the automotive markets, and losses principally due to an additional restructuring charge for former businesses and the disposal of an oil and gas property.
 The operating businesses of Schuller are represented by the combined results of the fiber glass-based Engineered Products and Building Products segments. Income from operations for these segments in the third quarter of 1993 was $35.4 million, up 60 percent from $22.1 million in the like period one year ago, on sales of $316.4 million, up 5 percent from $301.9 million in the like period of 1992.
 "Continuing productivity improvements are driving strong income growth on moderate sales increases in most of our businesses. Also, we've gained share with new products in tough commercial and industrial markets, such as mechanical insulation," said Richard A. Kashnow, president of Schuller International. "We're using process redesign to improve customer service and further streamline operations. We expect to continue good income leverage as the construction recovery continues."
 Riverwood, the company's packaging systems and paper products business, reported sales of $295.5 million, down 2 percent from $301.2 million in the third quarter of 1992. Riverwood's income from operations in the quarter was $23.9 million, down 28 percent from the like period a year ago. The primary reason for the decline was continued weak worldwide linerboard prices. The results in the third quarter were also affected by two eight-day shut-downs at the Macon, Ga. linerboard mill to manage inventory levels. In the Coated Board System, Riverwood continues to incur higher expense levels associated with expansion of multiple packaging markets and to be affected by unfavorable foreign exchange rates. Partially offsetting these declines was an increase from the wood products business which benefited from higher selling prices and improved productivity compared with 1992.
 "We expect that the trends experienced in the first nine months of 1993 will continue with some potential relief coming from a $25 per ton price increase announced by the paperboard industry for linerboard effective October 1, which appears to be holding," said Thomas H. Johnson, Riverwood president and chief executive officer. "In addition, we've announced a $25 per ton beverage carrier grade price increase effective January 1, 1994. So far, the Macon conversion is on budget and on schedule. In addition, the marketplace is responding favorably to our packaging machinery design and development program, as sales in our key machinery-based packaging business continue to show solid growth."
 Manville's chairman and chief executive officer, Tom Stephens, added, "Schuller's businesses are reaping the rewards of several years of disciplined productivity improvements. Those efforts continue, as Schuller implements the second phase of its program, which has a greater emphasis on re-engineering. At Riverwood, the company is paying the price today for profitable growth tomorrow. We are confident that the Macon conversion to coated board production will successfully position Riverwood to benefit from the rapid expansion in worldwide demand for multiple packaging systems for beer, soft drink and other consumer items."
 Nine Month Results
 For the first nine months, Manville reported sales of $1,690.7 million, up 3 percent from $1,644.9 million in the first nine months of 1992. Income from operations was $134.8 million, down 17 percent from $163.1 million in the like period last year. Income from operations reflected strong improvement at Schuller offset by a significant decline in earnings at Riverwood and substantially higher restructuring charges.
 Net income applicable to common stock for the period was $51.9 million
compared with $6.4 million in 1992. Results in 1993 included a charge of $9.8 million for restructuring, a $14.8 million benefit due to U.S. and German tax law changes, $26.9 million of net tax benefit related to the company's common dividend in June, an $18.7 million tax refund, and Manville's portion of a $4.8 million Riverwood tax benefit based upon a change in the Brazilian tax law. The 1993 results also included $13.4 million in interest associated with the tax refund and a $0.9 million gain, net of tax, due to finalization of the early extinguishment of a portion of the Manville Personal Injury Settlement Trust (Trust) debt. Results in 1992 included a $9.4 million estimated charge, net of tax, taken for the expected $250 million prepayment of debt held by the Trust. Excluding these items, net loss applicable to common stock for the first nine months of 1993 would have been approximately $6 million, or 5 cents per share, compared with income of $15.8 million, or 13 cents per share, in the first nine months of 1992.
 Manville is an international holding company with two principal subsidiaries -- wholly owned Schuller International and 81.5-percent owned Riverwood International. Products sold by Schuller International include insulation, reinforcements, filtration and building products. Riverwood International is a global paperboard, packaging and packaging machinery company. Founded in 1858, Manville and its subsidiaries employ approximately 16,000 people at more than 50 locations worldwide. Manville and its subsidiaries had approximately $3.6 billion in assets as of Dec. 31, 1992.
 MANVILLE CORP.
 CONDENSED CONSOLIDATED STATEMENT OF INCOME
 (Thousands of dollars except per share amounts)
 (unaudited)
 Three Months Percentage
 Ended Sept. 30, Increase
 1993 1992 (Decrease)
 INCOME
 Net Sales $600,172 $592,642 1.3
 Cost of Sales 471,724 470,222 0.3
 Selling, General and
 Administrative 62,212 59,741 4.1
 Research, Development and
 Engineering 8,989 10,755 (16.4)
 Restructuring of Operations
 Gain (Loss) (5,728)
 Other Income (Loss), net (5,300) (543) 876.1
 Income from Operations 46,219 51,381 (10.0)
 Interest Income 2,586 6,607 (60.9)
 Interest Expense 35,276 40,257 (12.4)
 Profit Sharing Expense 2,902 1,347 115.4
 Income before Income Taxes 10,627 16,384 (35.1)
 Income Taxes (Benefit) (1,190) 9,011
 Income before Minority
 Interest and Extraordinary
 Item 11,817 7,373 60.3
 Minority Interest in
 Consolidated Subsidiary 329 (1,528)
 Income before Extraordinary
 Item 12,146 5,845 107.8
 Extraordinary Gain (Loss) on
 Early Extinguishment of
 Debt, net of tax 891
 Net Income 13,037 5,845 123.0
 Preference Stock Accretion (5,825) (5,079) 14.7
 Net Income Applicable
 to Common Stock $ 7,212 $ 766 841.5
 EARNINGS (LOSS) PER COMMON
 SHARE (AFTER PREFERENCE
 STOCK ACCRETION)
 Primary and Fully Diluted:
 Income before Minority
 Interest and Extraordinary
 Item $.05 $ .02
 Minority Interest in
 Consolidated Subsidiary (.01)
 Income before Extraordinary
 Item .05 .01
 Extraordinary Gain (Loss) on
 Early Extinguishment of
 Debt, net of tax .01
 Net Income $.06 $ .01
 MANVILLE CORP.
 CONDENSED CONSOLIDATED STATEMENT OF INCOME
 (Thousands of dollars except per share amounts)
 (unaudited)
 Nine Months Percentage
 Ended Sept. 30, Increase
 1993 1992 (Decrease)
 INCOME
 Net Sales $1,690,718 $1,644,913 2.8
 Cost of Sales 1,322,329 1,284,324 3.0
 Selling, General and
 Administrative 183,207 171,413 6.9
 Research, Development and
 Engineering 28,287 26,942 5.0
 Restructuring of Operations
 Gain (Loss) (9,795) 697
 Other Income (Loss), net (12,337) 171
 Income from Operations 134,763 163,102 (17.4)
 Interest Income 24,709 10,876 127.2
 Interest Expense 112,203 95,246 17.8
 Profit Sharing Expense 15,876 7,484 112.1
 Income Before Income Taxes 31,393 71,248 (55.9)
 Income Taxes (Benefit) (38,020) 39,186
 Income before Minority
 Interest and Extraordinary
 Item 69,413 32,062 116.5
 Minority Interest in
 Consolidated Subsidiary (1,542) (1,528) 0.9
 Income before Extraordinary
 Item 67,871 30,534 122.3
 Extraordinary Gain (Loss)
 on Early Extinguishment
 of Debt, net of tax 891 (9,385)
 Net Income 68,762 21,149 225.1
 Preference Stock Accretion (16,893) (14,727) 14.7
 Net Income Applicable to
 Common Stock $ 51,869 $ 6,422 707.7
 EARNINGS (LOSS) PER COMMON
 SHARE (AFTER PREFERENCE
 STOCK ACCRETION)
 Primary and Fully Diluted:
 Income before Minority
 Interest and Extraordinary
 Item $ .42 $ .14
 Minority Interest in
 Consolidated Subsidiary (.01) (.01)
 Income before Extraordinary
 Item .41 .13
 Extraordinary Gain (Loss)
 on Early Extinguishment
 of Debt, net of tax .01 (.08)
 Net Income $ .42 $ .05
 MANVILLE CORP.
 CONDENSED CONSOLIDATED BUSINESS SEGMENTS
 (Thousands of dollars)
 (unaudited)
 Three Months Percentage
 Ended Sept. 30, Increase
 1993 1992 (Decrease)
 NET SALES
 Riverwood International
 Paperboard/Packaging $295,538 $301,220 (1.9)
 Schuller Operating Segments
 Engineered Products 126,457 130,095 (2.8)
 Building Products 189,916 171,809 10.5
 Total 316,373 301,904 4.8
 Corporate & Eliminations (11,739) (10,482) 12.0
 Total Company Net Sales $600,172 $592,642 1.3
 INCOME FROM OPERATIONS
 Riverwood International
 Paperboard/Packaging $ 23,903 $ 33,213 (28.0)
 Schuller Operating Segments
 Engineered Products 13,724 7,931 73.0
 Building Products 21,722 14,173 53.3
 Total 35,446 22,104 60.4
 Corporate & Eliminations (13,130) (3,936) 233.6
 Total Company Income
 from Operations $ 46,219 $ 51,381 (10.0)
 MANVILLE CORP.
 CONDENSED CONSOLIDATED BUSINESS SEGMENTS
 (Thousands of dollars)
 (unaudited)
 Nine Months Percentage
 Ended Sept. 30, Increase
 1993 1992 (Decrease)
 NET SALES
 Riverwood International
 Paperboard/Packaging $ 849,478 $ 832,719 2.0
 Schuller Operating Segments
 Engineered Products 378,605 389,692 (2.8)
 Building Products 491,862 447,010 10.0
 Total 870,467 836,702 4.0
 Corporate & Eliminations (29,227) (24,508) 19.3
 Total Company Net Sales $1,690,718 $1,644,913 2.8
 INCOME FROM OPERATIONS
 Riverwood International
 Paperboard/Packaging $ 73,455 $ 110,782 (33.7)
 Schuller Operating Segments
 Engineered Products 40,854 41,920 (2.5)
 Building Products 45,836 26,082 75.7
 Total 86,690 68,002 27.5
 Corporate & Eliminations (25,382) (15,682) 61.9
 Total Company Income
 from Operations $ 134,763 $ 163,102 (17.4)
 MANVILLE CORP.
 Notes to Condensed Consolidated Statement of Income
 (unaudited)
 -- For the quarter ended Sept. 30, 1993, Manville reported an income tax benefit of $1.2 million. This was due to a change in the U.S. federal tax rate to 35 percent from 34 percent, increasing the value of Manville's U.S. deferred tax asset by approximately $11.6 million and a benefit of $3.2 million due to a reduction in German tax rates offset by higher foreign effective tax rates and taxes on expected repatriations of undistributed earnings.
 -- The year-to-date income tax benefit at Sept. 30, 1993 of $38.0 million also includes the effect of the common dividend that was paid to the Manville Personal Injury Settlement Trust ("PI Trust"), a U.S. income tax refund and changes to Brazilian income tax rates.
 In the second quarter, the company reported a $33.9 million tax
 benefit on the portion of the June common dividend that was paid
 to the PI Trust, partially offset by an additional deferred tax
 asset valuation allowance of $7.0 million.
 As a result of a retroactive change in U.S. income tax
 regulations regarding the payment of add-on minimum tax and the
 treatment of certain tax preference items for the years 1977
 through 1986, Manville was entitled to a federal income tax
 refund plus accrued interest. During the first and second
 quarters of 1993 Manville received $32.1 million from the U.S.
 Internal Revenue Service, which has been recorded as a reduction
 to income tax expense of $18.7 million and an increase to
 interest income of $13.4 million.
 Recent changes in Brazil's tax laws provide for the accelerated
 payment of deferred income taxes on inflationary profits at
 reduced rates. As a result of these changes, Riverwood
 International Corp. ("Riverwood"), the company's Paperboard
 and Packaging Products subsidiary, recognized a net income tax
 benefit of approximately $4.8 million in the first quarter of
 1993.
 -- Manville purchased an additional 3,448,276 shares of Riverwood's common stock in September of 1993, increasing Manville's ownership percentage to approximately 81.5 percent from approximately 80.5 percent.
 During the second quarter of 1992, Riverwood completed an initial public offering of 12.1 million common shares, or 19.5 percent, of Riverwood's common stock. As a result, the Condensed Consolidated Statement of Income reflects the minority shareholders' interest in Riverwood's earnings of $1.5 million for both the nine months ended Sept. 30, 1993 and 1992. In July 1992, a portion of the net proceeds from the equity offering was used for the acquisition of a linerboard mill located in Macon, Ga. The Condensed Consolidated Statement of Income as well as the segment data reported for the Paperboard and Packaging Products segment includes the results of the Macon linerboard mill since July 1992.
 -- Concurrent with Manville's purchase of additional Riverwood shares in September 1993, Riverwood sold in the United States and Europe $125 million of 6.75 percent 10-year Convertible Subordinated Notes.
 -- During the third quarter of 1993, Manville made a prepayment on its outstanding bond obligations to the PI Trust. The prepayment consisted of $150 million of cash, net of certain costs, and the assignment to the PI Trust of $100 million, plus accrued interest, of currently outstanding Riverwood notes held by Manville. An extraordinary gain of $0.9 million, net of related income taxes of $0.5 million, was recorded in August 1993 to adjust the estimated extraordinary loss recorded in 1992. In June 1992, Manville recorded an estimated extraordinary loss of $9.4 million, net of related income tax benefit of $5.8 million, in anticipation of this prepayment and exchange.
 Refer to Manville's 1992 Annual Report for additional information relative to its reorganization proceedings, accounting policies, operations and financial position.
 -0- 10/21/93
 /CONTACT: Sharon Sweet of Manville, 303-978-4694/
 (MVL RVW)


CO: Manville Corp. ST: Colorado IN: CST PAP SU: ERN

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