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NACCO INDUSTRIES ANNOUNCES FOURTH QUARTER CHARGE

 MAYFIELD HEIGHTS, Ohio, Jan. 14 /PRNewswire/ -- NACCO Industries, Inc. (NYSE: NC) today announced that it will record a one-time charge estimated to be in the range of $80 million to $120 million after tax in the quarter ended Dec. 31, 1992 to fully accrue for costs imposed on the company by the recently enacted Coal Industry Retiree Health Benefit Act of 1992. NACCO has previously disclosed that certain provisions of that legislation will require Bellaire Corporation (a wholly owned subsidiary of NACCO) to incur additional costs for medical expenses of United Mine Worker retirees, approximately half of whom were never employed by Bellaire. As previously announced, based upon preliminary information, annual payments required by this legislation are estimated to be in the range of $3.0 to $5.0 million after tax. The payments would tend to diminish over time, but could continue as long as 40 to 50 years, or as long as eligible participants remain in the plan.
 Previous disclosures estimating the annual cash payment requirements associated with this liability indicated that the appropriate accounting treatment for the liability was uncertain. The Financial Accounting Standards Board, acting through its Emerging Issues Task Force, has recently concluded that companies such as Bellaire, which no longer operate in the bituminous coal industry, are required to fully accrue their total estimated obligation pursuant to the Act. The final charge will be accounted for as an "extraordinary item" and will be reflected in NACCO's 1992 financial statements. Management is continuing to review the available data regarding retiree medical costs, actuarial assumptions regarding participants, and the appropriateness of the assignment of participants to Bellaire in order to determine the final amount of the charge.
 Alfred M. Rankin, Jr., president and chief executive officer, stated, "We believe that the imposition of this liability on Bellaire is grossly unfair. This new law affects Bellaire retroactively by abrogating former and existing National Bituminous Coal Wage agreements between the Bituminous Coal Operators Association and the United Mine Workers of America. The courts have interpreted these agreements to require current signatories to the BCOA/UMWA agreements to fund medical expenses for UMWA retirees, thereby ensuring payment of their retiree medical benefits. The law transfers significant amounts of the cost of these benefits from current BCOA members to Bellaire, and to a number of other former BCOA members, to cover retiree health care benefits of former employees. Bellaire had adequately provided for its retired employees' medical benefits since all requirements of the union agreements to which it was signatory were fully satisfied by Bellaire prior to the termination of its involvement in the mining of bituminous coal. In addition, the law assigns to Bellaire the responsibility to pay for benefits of roughly an equal number of retired miners who never were employed by any of our companies. The costs now being imposed on Bellaire are more than 50 times greater than the average annual profits made by all of the bituminous coal mines involved during the twenty year period from 1960 to 1980. Further, Bellaire would have passed these costs on to its former customers pursuant to mining contracts had the law been in effect at the time the projects were in operation. We hope that Congress will reconsider this legislation and we believe that the legislation as it stands may be challenged in the courts."
 NACCO Industries is a holding company with four operating subsidiaries. Hyster-Yale Materials Handling, Inc. is a world leader in the design and manufacture of forklift trucks, marketed under the Hyster(TM) and Yale(TM) brand names. The North American Coal Corporation mines and markets lignite coal primarily as fuel for power generation by electric utilities. Hamilton Beach/Proctor-Silex, Inc. is a leading manufacturer of small electric appliances. The Kitchen Collection, Inc. is a national specialty retailer of kitchenware and small electric appliances.
 -0- 1/14/93
 /CONTACT: Steven M. Billick, vice president and controller of NACCO Industries, 216-449-9600/
 (NC)


CO: NACCO Industries ST: Ohio IN: MNG SU: ACC

KK -- CL009 -- 4804 01/14/93 10:47 EST
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Date:Jan 14, 1993
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