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PECHINEY INTERNATIONAL REPORTS CONSOLIDATED RESULTS FOR THE FIRST HALF OF 1992

 PECHINEY INTERNATIONAL REPORTS CONSOLIDATED
 RESULTS FOR THE FIRST HALF OF 1992
 GREENWICH, Conn., Sept. 21 /PRNewswire/ -- The following statement is being issued by Pechiney International in Paris today:
 -- Before exceptional gains, earnings are at about 1991 levels
 -- Marked increase in earnings expected for the second half of 1992
 The first half of 1992 was marked by two transactions, which are decisive for Pechiney International's future:
 -- The refocusing of the business mix on packaging and turbine components, following the transfer to Pechiney of aluminum and international trade activities.
 -- An increase in capital through the exercise of warrants issued in 1989.
 These transactions had non-recurring consequences which have been recorded in the consolidated results for the first half of 1992, and recurring consequences (in particular, a decrease in financial expenses) which had only a very limited impact on earnings for the period. Also integrated into the results for the first six months of 1992 have been reserves for certain recent decisions to restructure the turbine components activity (Howmet), which will have a permanent positive impact; as well as reserves for risks where such reserves appeared appropriate.
 The principal consolidated figures, in millions of French francs, are as follows. They are compared to the results for the same period in 1991, restated to reflect the scope of consolidation as it applied on June 30, 1992.
 First Half 1992 First Half 1991
 Restated Published
 Exchange rate for the US$
 vis-a-vis the FF 5.475 5.54 5.54
 Net sales 18,297 18,664 22,637
 Earnings from operations
 before financial expense 1,374 1,509 1,572
 Net financial expense 664 832 893
 Earnings from operations
 after financial expense 710 677 679
 Other income and expense 1,114 (25) (29)
 Income before goodwill amort. 1,545 392 385
 Net income after goodwill amort. 1,419 266 257
 If non-recurring elements are excluded, earnings for the period are at about the same level as those for the first six months of 1991. This development masks a decline in operating profit (earnings from operations before financial expense) amounting to 8.9 percent stated in French francs (FF 1,374 million vs. FF 1,509 million in the 1991 period) and 6.3 percent in U.S. dollars ($251 million vs. $268 million), which was more than offset by a decrease in net financial expense.
 The decline in operating profit is due entirely to the turbine components activity, whose contribution amounted to FF 204 million (US$37 million), compared to FF 385 million (US$70 million) for the first half of 1991. A decline in earnings was already noticeable during the second half of 1991 and was amplified further by the worsening conditions in commercial aircraft markets for new and replacement parts. As a result, the U.S. subsidiary, Howmet, will shortly implement measures intended to reduce costs; the effect of these measures on earnings should be felt as early as 1993.
 The packaging sector's contribution to operating profit rose 3.7 percent stated in French francs (FF 1,170 million vs. FF 1,128 million in the 1991 period) and 7 percent in U.S. dollars ($214 million vs. $200 million in 1991); it represents 85 percent of Pechiney International's consolidated operating profit. Major trends observed included: Beverage containers showed satisfactory earnings due to gains in sales volume and productivity, despite eroding sales prices. Personal care products achieved good progress in sales and earnings. For food packaging, conditions varied by geographic areas; a restructuring program for the North American food can activities was actively pursued. Because of the strong seasonal nature of certain packaging activities, results for the first half cannot be extrapolated to estimate those for the whole year. Based on currently available data, the packaging sector should report for 1992 a gain of approximately 10 percent in its operating profit stated in U.S. dollars, which should reach, or even exceed, US$500 million, compared to $453 million in 1991.
 The forecasts mentioned above, and the full impact of a major reduction in Pechiney International's debt resulting from the transfer of aluminum and international trade activities and the exercise of warrants (which generated FF 3,845 million and FF 1,671 million, respectively), make it possible to anticipate a noticeable increase in earnings for the second half of 1992. For continuing operations, and before amortization of goodwill:
 -- Income for the year should exceed FF 1 billion, compared to FF 890 million on a comparable basis in 1991.
 -- Income per share should increase from FF 11.60 reported for 1991 on a comparable basis, despite a rise in the number of shares from 76.5 million to 86 million.
 -0- 9/21/92
 /CONTACT: Ilse Minkenberg of Pechiney, 203-625-8836/ CO: Pechiney International; Pechiney Corp. ST: Connecticut IN: SU: ERN


TS-CK -- NY047 -- 1679 09/21/92 12:32 EDT
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Date:Sep 21, 1992
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