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QUAKER STATE REPORTS INCREASED SECOND QUARTER EARNINGS

 OIL CITY, Pa., JULY 27 /PRNewswire/ -- Quaker State Corporation (NYSE: KSF) today reported a 37 percent increase in net income to $4,381,000, or $.16 per share, in the second quarter ended June 30, 1993, compared to $3,193,000, or $.12 per share, in the same quarter of 1992.
 Sales rose 3 percent to $195,092,000 in the second quarter 1993, compared to $189,717,000 in the same quarter last year.
 Figures for 1992 have been restated to account for the discontinuance of coal operations and the cumulative effect of FASB Standards 106 and 109 related to retiree health benefits and income taxes.
 For the first six months, Quaker State earnings from continuing operations improved 51 percent over the first half of 1992. Income for the period was $7,784,000, or $.29 per share, compared to income from continuing operations in 1992 of $5,165,000, or $.19 per share. Sales increased 3 percent to $374,894,000 compared to $363,164,000 in the first half of 1992.
 Second quarter results were favorably impacted by:
 -- A strong June for U.S. motor oil sales despite a continuing soft trend for overall motor oil sales;
 -- Outstanding sales performance in Canada which made Quaker State the number one motor oil in that country;
 -- A record $1.8 million operating profit by Truck-Lite Company, Inc., Quaker State's vehicular lighting subsidiary; and
 -- A 53 percent increase in operating profits to $2.7 million reported by the Heritage Insurance Group.
 Operating profits of the Quaker State Oil Marketing and Refining Division were $5.5 million in the second quarter, compared to $7 million in the previous year on sales of $116 million during the second quarter of both years. Improved motor oil pricing partially offset declines in fuel and product sales. Total international motor oil sales volume increased 18 percent over the second quarter of 1992, with improvements in Canada and Japan and in export sales to international distributors.
 Sales of Quaker State's fast lube subsidiaries declined 3 percent to $25.8 million, and operating profits fell 43 percent to $613,000 in the second quarter. The lower volume reflects the sale of 16 company-operated stores, reducing the total number of fast lube outlets operated and franchised to 434. Strongest car count gains were recorded by the company's Q Lube operations in Phoenix. Plans call for converting 57 stores in Atlanta, Tucson and the state of Utah to Q Lubes during the second half of this year.
 Improved natural gas prices and volumes combined with higher profits from timber sales to account for a 64 percent gain in second quarter profits for the Oil and Gas Production Division. Operating profits were $1.2 million on sales of $6.6 million, compared to operating profits of $734,000 and sales of $6.4 million in the second quarter of 1992.
 At Heritage Insurance Group, Inc., revenues from premiums earned and service charge fees were the highest in that company's history during the second quarter. Heritage also elected to realize substantial capital gains during this quarter. As a result, operating profits increased 53 percent to $2.7 million while sales and premium revenues rose 8 percent to $31.5 million.
 Truck-Lite Company, Inc. reported significantly improved profits from a substantial upturn in sales to the heavy duty truck market and automobile manufacturers. Operating profits in the second quarter of 1993 were $1.8 million compared to $18,000 in the same period of 1992. This was the second consecutive quarter in which the company reported record operating profits which for six months totalled $3.6 million, compared to a loss of $1.3 million in the first half of 1992.
 In early June, Herbert M. Baum was named chairman and chief executive officer of Quaker State Corporation, replacing Jack W. Corn who retired. Baum, most recently president of Campbell Soup North and South America, said, "Our number one goal is to increase sales and improve profitability of Quaker State's core motor oil marketing and refining and fast lube businesses. We have already started to implement changes in our advertising and sales promotion efforts, and we shall continue to provide our other subsidiaries with the resources they need for growth."
 QUAKER STATE CORPORATION AND SUBSIDIARIES
 (in thousands except per share data)
 Period Quarter Six Months
 Ended June 30 1993 1992 1993 1992
 (unaudited)
 Net Income (Loss) Per Share $.16 $.12 $.29 $(2.17)(A)
 Sales and Operating
 Revenues $ 195,092 $ 189,717 $ 374,894 $363,164
 Operating Profit 11,981 11,203 21,838 18,254
 Income From Continuing
 Operations
 Before Income Taxes and
 Cumulative Effect of
 Accounting Changes 5,766 5,742 10,834 7,565
 Net Income (Loss) 4,381 3,193 7,784 (58,982)(A)
 Weighted Average Capital
 Shares Outstanding 27,178 27,181 27,185 27,184
 (A)Includes the cumulative effect of accounting changes for FASB Standard Nos. 106 and 109 of $62,600,000 ($2.30 loss per share).
 /delval/
 -0- 7/27/93
 /CONTACT: Benton H. Faulkner of Quaker State, 814-676-7877/
 (KSF)


CO: Quaker State Corporation ST: Pennsylvania IN: OIL SU: ERN

KC -- PG014 -- 6185 07/27/93 11:29 EDT
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Date:Jul 27, 1993
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