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QUAKER STATE ANNOUNCES 1991 EARNINGS

 QUAKER STATE ANNOUNCES 1991 EARNINGS
 OIL CITY, Pa., Jan. 30 /PRNewswire/ -- Quaker State Corporation


(NYSE: KSF) today reported net income for 1991 of $22,709,000 ($.84 cents per share).
 This compares to net income in 1990 of $19,557,000 ($.72 per share). Sales and operating revenues for the year were $813,622,000, compared to $874,050,000 in 1990.
 Net income for 1991 includes $7,170,000 ($.26 per share), the cumulative effect resulting from implementation of FASB Accounting Standard No. 96. This standard requires that accruals for deferred taxes recorded in prior years, when tax rates were higher, be adjusted to the current lower rates. This adjustment will be recorded in the first quarter of 1991.
 Operating profits in 1991 totalled $39,691,000, vs. $43,093,000 in 1990. The 1990 operating profit included an unusual pretax gain of $5,398,000 ($.13 per share after tax) recorded from the sale of the McKean Refinery and Emlenton Wax Plant.
 For the fourth quarter, Quaker State reported net income of $3,567,000 ($.14 per share) and sales of $200,784,000. This compares to net income of $4,528,000 ($.17 per share) and sales of $215,776,000 in the fourth quarter of 1990.
 In 1991, the company's core petroleum refining and marketing operation, Quaker State Oil Refining Corporation, reported operating profits of $36.8 million, compared to $18.8 million in 1990 exclusive of the plant sale. The improvement resulted from improved margins for refined products, lower crude oil costs, and continued stringent control of marketing, sales and personnel expenses, and occurred despite a decline in motor oil volume which was industry-wide.
 Quaker State's fast lube operation had revenues of $98.5 million in 1991, an increase of six percent over 1990. However, this unit reported its first-ever loss of $1.1 million in 1991, compared to a profit of $6.1 million in 1990. The loss is attributable to accruals of $3 million for environmental and impaired asset exposures and also to lower car counts throughout 1991 in many markets as a result of the slow national economy.
 The coal business also reported an operating loss of $2.7 million in 1991, compared to a loss of $4.1 million in 1990. In 1991, the loss is attributable primarily to costly start-up charges at the Shrewsbury mine in West Virginia. Operations at The Helen Mining Company subsidiary in Pennsylvania improved significantly, and it reported a profit in the second half following installation of new roof shields.
 Oil and gas exploration and production results were hard-hit by low oil prices and continued sluggish demand for natural gas. This group reported operating profits of $2.8 million on sales of $24.3 million, compared to a 1990 profit of $8.6 million on sales of $27.2 million. The company continued an aggressive drilling program for natural gas in anticipation of future sales and price increases.
 Heritage Insurance Group, Inc., reported an operating profit of $3 million in 1991, compared to $2.8 million in 1990 and a sales increase of 12 percent to $107.5 million. The profit improvement resulted from increased realized investment gains and strong demand for Heritage's extended warranty policies. These helped offset weak sales of the company's credit life and accident insurance policies caused by depressed auto sales.
 Truck-Lite Company, Inc. reported an operating loss of $323,000 in 1991, compared to a profit of $4 million in 1990. A fourth quarter profit of $922,000 could not overcome earlier losses caused primarily by cut-backs of orders from auto producers in the first half of 1991. Also in 1991, Truck-Lite invested extensively in new equipment and personnel retraining at its Falconer, N.Y. plant, which was converted exclusively to production of auto parts, and at a new computerized distribution center and warehouse in McElhattan, Pa.
 The company's dock facilities reported operating profits of $2 million on sales of $5.6 million, a decline of about $500,000 in both sales and profits.
 Chairman and Chief Executive Officer Jack W. Corn said, "1991 was another difficult and often turbulent year. The recession impacted many of our businesses, which are tied both to consumer buying patterns in general and to auto sales in particular. Yet, we increased profits in our core lubricants business by 96 percent despite the fact that the motor oil industry suffered through the deepest sales decline in our memory. As the economy turns up, we believe that Quaker State's sales and profits can improve vigorously."
 For the Quarter For the Year
 Ended Ended
 12/31/91 12/31/90 12/31/91 12/31/90
 (unaudited)
 (in thousands, except per share data)
 Net Income Per Share $.14 $.17 $.84(A) $.72
 Sales and Operating
 Revenues $200,784 $215,776 $813,622 $874,050
 Operating Profit 8,493 9,917 39,691 43,093
 Income Before
 Income Taxes 2,942 6,128 19,914 26,757
 Net Income 3,567 4,528 22,709(A) 19,557
 Weighted Average
 Capital Shares
 Outstanding 27,171 27,155 27,167 27,155
 (A) Includes the cumulative effect of an accounting change of $7,170 ($.26 per share).
 -0- 1/30/92
 /CONTACT: Benton H. Faulkner of Quaker State, 814-676-7877/
 (KSF) CO: Quaker State Corporation ST: Pennsylvania IN: OIL SU: ERN


CD -- PG010 -- 5322 01/30/92 14:15 EST
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Date:Jan 30, 1992
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