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OM GROUP REPORTS THIRD QUARTER, NINE MONTH RESULTS

 CLEVELAND, Nov. 1 /PRNewswire/ -- OM Group, Inc. (NASDAQ-NMS: OMGI) today reported net income of $3.8 million, or 37 cents a share, based on 10,337,514 weighted shares outstanding, for its third quarter ended Sept. 30, 1993. Net income for the quarter included $103,000, or 1 cent a share, of foreign exchange gains.
 Prior year net income was $6.1 million, or 59 cents a share, but included $3.2 million, or 31 cents a share, of foreign exchange gains, due primarily to the decline in the value of the Finnmark versus the U.S. dollar.
 Sales reported for the period were $43 million, compared to $45.6 million for the prior year period, and reflected a 15 percent gain in physical volume of products sold, which helped offset a decline in cobalt- and nickel-based product selling prices.
 For the nine months ended Sept. 30, the manufacturer of value added metal-based specialty chemicals reported record net income of $11.8 million, or $1.14 a share, compared to net income of $10.9 million, or $1.06 a share, in the year-ago period. Nine month net income included $1.3 million of foreign exchange gains, or 13 cents a share, versus $2.7 million, or 26 cents a share, for the prior year.
 Sales for the 1993 nine months were $139.1 million, as compared to $155.9 million for the prior year, and included an 11 percent physical volume increase that partially offset the effect of the decline in cobalt and nickel prices during the period.
 "The fundamentals of our business remain strong," said James P. Mooney, president and chief executive officer. "Results for both the quarter and nine months were in line with expectations. As anticipated, OMG was impacted by lower selling prices for our cobalt- and nickel- based products and lower currency gains as a result of the relative stability in value of the Finnmark versus the U.S. dollar," he said.
 On Oct. 12, 1993, OM Group completed an initial public stock offering of 11 million shares priced at $14 a share, through an underwriting syndicate led by Lehman Brothers, Donaldson, Lufkin & Jenrette and Goldman, Sachs & Co. Following the offering and exercise of the over-allotment option, OMG now has 12,506,250 shares outstanding. In the prospectus, the company said it expects to pay quarterly cash dividends of $.07 per share beginning in February 1994 for the quarter ended Dec. 31, 1993.
 The company's principal product lines include metal carboxylates, metal salts and metal powders sold to diverse industries including catalysts, ceramics, coatings, electronics, magnetic tapes, petroleum refining, plating and other specialty chemicals.
 Headquartered in Cleveland, the company operates manufacturing facilities in Franklin, Pa.; Kokkola, Finland, and Ezanville, France, and has approximately 300 employees worldwide.
 OM GROUP, INC.
 CONDENSED CONSOLIDATED STATEMENTS OF INCOME
 (Thousands of dollars, except per share data)
 Three Months Ended Nine Months Ended
 September 30 September 30
 1993 1992 1993 1992
 OPERATIONS
 Net sales $43,037 $45,635 $139,136 $155,869
 Cost of products sold 31,384 32,710 104,798 122,677
 Total 11,653 12,925 34,338 33,192
 Selling, general and
 administrative expenses 5,095 4,981 15,225 15,212
 INCOME FROM OPERATIONS 6,558 7,944 19,113 17,980
 OTHER INCOME (EXPENSE)
 Interest expense (974) (1,353) (3,072) (3,686)
 Interest income 189 74 369 313
 Foreign exchange gain 103 3,160 1,314 2,718
 Total (682) 1,881 (1,389) (655)
 INCOME BEFORE INCOME
 TAXES 5,876 9,825 17,724 17,325
 Income taxes 2,078 3,734 5,909 6,382
 NET INCOME $3,798 $ 6,091 $11,815 $10,943
 Net income per share (A) $0.37 $0.59 $1.14 $1.06
 (A) -- Based on average shares outstanding of 10,337,514.
 OM GROUP, INC.
 CONDENSED CONSOLIDATED BALANCE SHEETS
 (Thousands of dollars)
 Sept. 30, Dec. 31,
 1993 1992
 (Unaudited) (Audited)
 ASSETS
 CURRENT ASSETS
 Cash and cash equivalents $ 4,800 $ 5,003
 Accounts receivable 25,667 21,521
 Inventories 59,408 56,820
 Other current assets 5,058 5,858
 Total Current Assets 94,933 89,202
 PROPERTY, PLANT AND EQUIPMENT
 Land 298 303
 Buildings and improvements 22,394 17,717
 Machinery and equipment 52,039 52,045
 Furniture and fixtures 2,069 1,696
 Total Property, Plant and
 Equipment 76,800 71,761
 Less accumulated depreciation 17,738 11,616
 Total 59,062 60,145
 OTHER ASSETS
 Unprocessed inventory 24,975 ---
 Goodwill and other intangible
 assets 20,988 21,684
 Other assets 1,813 1,552
 TOTAL ASSETS $201,771 $172,583
 LIABILITIES AND STOCKHOLDERS' EQUITY
 CURRENT LIABILITIES
 Current portion of long-term debt $12,000 $8,000
 Accounts payable 21,066 23,823
 Other accrued expenses 5,167 4,805
 Total Current Liabilities 38,233 36,628
 LONG TERM LIABILITIES
 Long-term debt 45,740 48,491
 Contract payable 17,390 ---
 Deferred income taxes 7,501 6,533
 Other long-term liabilities 906 869
 STOCKHOLDERS' EQUITY
 Preferred stock $0.01 par value:
 Authorized 2,000,000 shares;
 no shares issued or outstanding
 Common stock, $0.01 par value:
 Authorized 30,000,000 shares;
 issued and outstanding
 10,156,250 shares 102 102
 Capital in excess of par value 72,646 72,496
 Retained earnings 19,498 7,683
 Foreign currency translation
 adjustments (245) (219)
 Total stockholders equity 92,001 80,062
 TOTAL LIABILITIES AND STOCKHOLDERS'
 EQUITY $201,771 $172,583
 -0- 11/1/93
 /CONTACT: James J. Roop or John Cregan of Watt, Roop & Co., 216-566-7019, for OM Group/
 (OMGI)


CO: OM Group, Inc. ST: Ohio IN: CHM SU: ERN

AR -- CL033 -- 9333 11/01/93 16:57 EST
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