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NL ANNOUNCES THIRD QUARTER 1993 RESULTS

    HOUSTON, Oct. 26 /PRNewswire/ -- NL Industries, Inc. (NYSE: NL) announced a net loss of $18.7 million, or $.37 per share, on sales of $202 million for the quarter ended Sept. 30, 1993.  The net loss for the third quarter of 1992 was $11.3 million, or $.22 per share, on net sales of $232 million.  NL's net loss for the first nine months of 1993 was $60.2 million, or $1.18 per share, on sales of $622 million.  The net loss for the comparable 1992 period was $59.1 million, or $1.16 per share, on sales of $694 million.  The 1992 nine-month results include one-time noncash charges of $31.8 million, or $.62 per share, resulting from the adoption of mandated accounting changes effective Jan. 1, 1992.
    Operating income of Kronos' titanium dioxide pigments ("TiO2") business in the third quarter and first nine months of 1993 declined $16.0 million and $29.1 million compared to the respective 1992 periods, as the effect of depressed TiO2 selling prices and the impact of production curtailments to reduce inventories were only partially offset by the reduction in start-up costs of Kronos' Louisiana plant, which commenced production during the first half of 1992.
    Rheox's operating income for the third quarter and first nine months of 1993 was slightly lower than the comparable 1992 periods as a result of the unfavorable impact of changes in currency exchange rates and slightly higher operating costs.
    Interest and dividend income for the third quarter and first nine months of 1993 declined from the comparable 1992 periods due to the lower amounts of funds available for investment.  General corporate expenses, net were lower in the third quarter of 1993 compared with the same period in 1992 due to lower litigation settlements and expenses. For the first nine months of 1993, general corporate expenses, net were higher than the comparable 1992 period primarily due to an increase in environmental remediation costs.
    Lower levels of indebtedness in 1993, principally the company's Deutsche mark denominated bank credit facility, and lower DM interest rates reduced interest expense compared to the 1992 periods.  Interest expense in 1992 reflected the benefit of $8.5 million of capitalized interest related to the Louisiana plant, which was completed in March 1992.
    The provision for income taxes differs from a normally expected rate primarily because of losses in certain countries for which no benefit is currently available.
    As previously announced, in October NL reported the formation of a manufacturing joint venture with Tioxide Group, Ltd. to own and operate the Louisiana TiO2 plant previously owned by Kronos and the sale of $250 million of 11 3/4 percent senior secured notes due 2003 and $100 million (proceeds) of 13 percent senior secured discount notes due 2005, the net proceeds of which were used to prepay $342 million (DM 552 million at the date of payment) of the DM bank credit facility.
    NL Industries, Inc., a major international producer of titanium dioxide pigments and specialty chemicals, is headquartered in Houston, Texas.  NL's common stock is traded on the New York and Pacific Stock Exchanges under the symbol "NL."
                        NL INDUSTRIES
        Condensed Consolidated Statements of Operations
          (Unaudited, in million, except per share data)
    Periods ended Sept. 30          Quarter            Nine Months
                              1992         1993      1992        1993
    Net sales:
     Kronos                  $204.6       $174.0     $609.3     $593.3
     Rheox                     27.7         28.1       84.7       82.7
    Total sales               232.3        202.1      694.0      622.0
    Operating income:
     Kronos                    21.8          5.8       59.5       30.4
     Rheox                      7.5          7.0       21.7       20.6
    Total operating income     29.3         12.8       81.2       51.0
    General corporate items:
     Interest and dividends    1.7           1.0       12.5        3.1
     Securities transactions  (1.3)           .6       (4.0)       2.5
     Expenses, net            (9.6)         (7.1)     (25.9)     (29.1)
     Interest expense        (31.4)        (23.4)     (90.8)     (75.9)
    Loss before income taxes (11.3)        (16.1)     (27.0)     (48.4)
    Income tax benefit
     (expense)                  .3          (2.4)        .6      (11.3)
    Minority interest          (.3)          (.2)       (.9)       (.5)
    Loss before cumulative effect of
     changes in accounting
     principles              (11.3)       (18.7)     (27.3)      (60.2)
    Cumulative effect of changes in
     accounting principles      --           --      (31.8)         --
    Net loss                 (11.3)       (18.7)     (59.1)      (60.2)
    Per share of common stock:
     Before cumulative effect of
     changes in accounting
     principles              (.22)         (.37)      (.54)      (1.18)
     Cumulative effect of changes
     in accounting principles --             --        (.62)        --
    Net loss               $ (.22)        $ (.37)   $ (1.16)   $ (1.18)
    Weighted average common
     shares outstanding      50.9           50.9       50.9       50.9
                        NL INDUSTRIES, INC.
                Condensed Consolidated Balance Sheets
                          (In millions)
    Periods ended                    Dec. 31, 1992       Sept. 30, 1993
                                                           (Unaudited)
      ASSETS
    Cash and cash equivalents               $ 87.3              $ 70.6
    Current marketable securities            100.6                48.5
    Other current assets                     447.9               358.1
    Noncurrent marketable securities          23.6                 9.1
    Other assets                              66.7               176.3
    Property and equipment                   746.0               733.1
                                          $1,472.1            $1,395.7
     LIABILITIES AND
      SHAREHOLDERS' DEFICIT
    Current maturities of long-term debt    $ 43.3             $ 154.7
    Other current liabilities                205.5               199.1
    Long-term debt                           992.0               850.6
    Other noncurrent liabilities             375.3               400.5
    Minority interest                          2.3                 2.8
    Shareholders' deficit                   (146.3)             (212.0)
                                          $1,472.1            $1,395.7
    Common shares outstanding                 50.9                50.9
                            NL INDUSTRIES, INC.
                              (In millions)
                   Condensed Consolidated Statements
                       of Shareholders' Deficit
                              (Unaudited)
    Nine months ended Sept. 30,               1992                1993
    Balance at beginning of period         $ (58.3)            $ (146.3)
    Net loss                                 (59.1)               (60.2)
    Dividends declared                       (17.8)                 --
    Currency translation and other
     adjustments                             (18.3)                (5.5)
    Purchases of treasury stock               (3.7)                 --
    Balance at end of period                (157.2)              (212.0)
                     Summary Consolidated Statements
                             of Cash Flows
                             (Unaudited)
    Nine months ended Sept. 30,               1992                1993
    Net cash provided (used) by:
     Operating activities                   $ (39.0)           $ (28.3)
     Investing activities                     315.0               35.7
     Financing activities                    (220.4)             (22.6)
    Net increase (decrease) in cash
     from operating, investing and
     financing activities                      55.6             (15.2)
    -0-             10/26/93
    CONTACT:  Dennis G. Newkirk, vice president & controller of NL Industries, Inc., 713-987-6332
    (NL) CO:  NL INDUSTRIES, INC. IN:  CHM SU:  ERN ST:  TX


-- NY109 -- X291 10/26/93
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Date:Oct 26, 1993
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