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PECHINEY REPORTS CONSOLIDATED RESULTS FOR THE FIRST HALF OF 1993; GROUP REPORTS NET LOSS FOR THE PERIOD

 PARIS, Sept. 21 /PRNewswire/ -- The following was issued today by the Pechiney Group:
 The recession in Europe and very low aluminum ingot prices have led to a consolidated loss of 397 million French francs (FF) for the first six months of 1993; for the corresponding period in 1992, the group's results were close to break-even if exceptional items are excluded (including exceptional items, the group's net income for the 1992 period amounted to FF 782 million).
 This overall result reflects very different situations with regard to the level of earnings and the nature of problems encountered in the various group activities.
 -- Pechiney International, 67 percent-owned by Pechiney, consists of packaging and turbine components activities. Its contribution to the group's earnings was clearly positive and at a higher level than in the first half of 1992. A reduction in operating profit (earnings from operations before financial expense), due primarily to slower growth in the beverage can market and lower selling prices, was more than offset by lower financial expense and income tax. The more difficult environment in which these activities operate today does not put in question prospects for their expansion and increase in profitability.
 -- The contribution made by a second group, consisting of Pechiney's other activities except for aluminum metal, amounted to practically zero overall. Most of the difficulties encountered, which explain lower earnings from aluminum fabrication and related industrial activities, are related to the current economic recession in Europe.
 -- Losses from Pechiney's aluminum metal activities, generated mainly by those operations located in the Netherlands and France, exceeded the loss reported for the group as a whole. The excess of primary aluminum existing on the world market has reached such a level that production capacity curtailments announced so far by major producers and the decision by the European Community to impose temporary quotas on Russian metal exports have had, up to now, no enduring positive impact on aluminum metal quotations.
 The principal consolidated figures for the first half of 1993, in millions of French francs, follow. They are compared to the results for the same period in 1992, restated to reflect the same scope of consolidation.
 PECHINEY GROUP
 First Half 1993 1992
 Sales 31,308 34,014
 Earnings from operations
 before financial expense 1,106 1,832
 consisting of:
 -- packaging 905 1,182
 -- aluminum (163) 272
 -- turbine components 195 196
 -- related industrial activities 16 55
 -- international trade 221 199
 -- holding company (68) (72)
 Net financial expense 1,013 1,176
 Income before goodwill amortization (299) 871
 Net income after goodwill amortization (397) 782
 It should be noted that earnings for the first half of 1992 took into account the non-recurring effects of certain strategic measures, particularly the exceptional gain from the sale of Pechiney's nuclear fuel activities. Identical accounting principles and methods were used to prepare the statements for the two periods, except for inventory valuation in the aluminum fabricating activity. This difference in accounting methods had no effect on operating profit, but had a FF 75 million positive impact on net income, for the first half of 1993.
 The persistently serious imbalance in the worldwide aluminum market and its adverse consequences on selling prices do not allow anticipation of the group's return to profitability in the second half of 1993. However, the loss for the second half of the year should be noticeably less than that reported for the first half. For the second half, operating profit should advance due to the usual beneficial effects of seasonal factors on packaging's performance. To this should be added the positive impact of further savings from restructuring measures decided in late 1992, as well as the effect of the U.S. dollar's appreciation, provided it is maintained.
 -0- 9/21/93
 /CONTACT: Ilse Minkenberg, 203-625-8836, for Pechiney/


CO: Pechiney Group ST: IN: SU: ERN

TS-CK -- NY042 -- 4182 09/21/93 12:54 EDT
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Date:Sep 21, 1993
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