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RESTRUCTURING CHARGE PRODUCES THIRD QUARTER LOSS AT HARNISCHFEGER INDUSTRIES

 MILWAUKEE, Aug. 25 /PRNewswire/ -- Amid stronger bookings compared to the same period last year, Harnischfeger Industries (NYSE: HPH) reported a net loss for the third quarter of fiscal 1993 -- the result of a $75 million pre-tax ($48.3 million after-tax) restructuring charge.
 For the quarter ended July 31, bookings rose to $272.8 million, up from $259.2 million a year earlier, primarily due to an increase in papermaking machinery and systems orders for Beloit Corporation. But the company reported a $45.1 million net loss, or $(1.78) per share, versus $11.6 million of net income, or $.40 per share, a year earlier, primarily a result of the restructuring charge.
 Third-quarter sales decreased to $310.1 million from $328.4 million. Backlog as of July 31 remained virtually unchanged from the prior quarter at $1 billion.
 The restructuring charge includes the closing of Beloit's Canadian paper machine manufacturing and rebuild facility and the consolidation of those operations in Beloit, Wis., as well as the opening of a new roll covering and service facility in Canada to continue serving that marketplace. It also covers reductions in worldwide inventories and improvements in manufacturing and repair parts capabilities for Harnischfeger Corporation's Mining Equipment Divisions, as well as other restructuring activities.
 For the first nine months of fiscal 1993, sales were $913.2 million, versus $1,022.2 million a year earlier, and bookings reached $822 million, compared to $867.9 million the prior year. The company posted a $40.9 million net loss, or $(1.51) per share, compared to $36 million of net income, or $1.23 per share, a year earlier.
 Harnischfeger Industries is a diversified international holding company that operates four subsidiaries involved in: papermaking machinery manufacturing (Beloit Corporation); surface mining and overhead material handling equipment manufacturing (Harnischfeger Corporation); and systems integration services (Harnischfeger Engineers, Inc. and Syscon Corporation.
 HARNISCHFEGER INDUSTRIES, INC.
 Consolidated Statement of Income
 (In thousands)
 Periods Ended Three months Nine months
 July 31 1993 1992 1993 1992
 Revenues
 Net sales $310,132 $328,377 $913,184 $1,022,234
 Other income 2,650 2,590 6,734 9,823
 Total 312,782 330,967 919,918 1,032,057
 Cost of sales 249,237 252,967 733,996 805,665
 Product development, selling
 and administrative expenses 52,267 53,146 156,889 155,016
 Restructuring charge 75,000 --- 75,000 ---
 Operating income (loss) (63,722) 24,854 (45,967) 71,376
 Interest expense -- net (6,017) (3,712) (16,528) (5,645)
 Inc. (loss) bef. provision
 (credit) for income taxes
 and minority interest (69,739) 21,142 (62,495) 65,731
 Provision (credit) for
 income taxes (19,200) 7,400 (16,700) 23,000
 Total (50,539) 13,742 (45,795) 42,731
 Minority interest 5,437 (2,137) 4,940 (6,745)
 Net income (loss) (45,102) 11,605 (40,855) 35,986
 Earnings (loss) per share $(1.78)(A) $(.40) $(1.51)(A) $(1.23)
 Average shares outstanding 25,405 29,142 27,003 29,361
 (A) The sum of the quarterly per share amounts does not equal the per share amount for the nine-month period, due to the effect of the purchase of 2.5 million shares for the Stock Employee Compensation Trust in April 1993, and the use of the weighted average shares outstanding method for calculating earnings per share.
 HARNISCHFEGER INDUSTRIES, INC.
 Business Segment Summary
 For three months ended July 31, 1993
 (In thousands)
 Net sales
 1993 1992
 Papermaking machinery
 and systems $148,163 $173,536
 Mining equipment 68,310 71,833
 Material handling equipment 26,601 24,645
 Systems group 67,058 58,363
 Total business segments 310,132 328,377
 Operating Operating
 profit before Restructuring profit after Operating
 restructuring charge restructuring profit
 1993 1992
 Papermaking
 machinery
 and systems $6,894 $(40,000) $(33,106) $18,174
 Mining equipment 4,396 (33,500) (29,104) 6,296
 Material handling
 equipment 1,636 0 1,636 2,427
 Systems Group 2,316 0 2,316 2,264
 Total business
 segments 15,242 (73,500) (58,258) 28,981
 Corporate
 administration (3,964) (1,500) (5,464) (4,127)
 Interest
 expense - net (6,017) 0 (6,017) (3,712)
 Inc. (loss) bef.
 provision for
 inc. taxes and
 minority interest 5,261 (75,000) (69,739) 21,142
 Backlog at
 Orders Booked end of period
 1993 1992 7/93 4/93
 Papermaking machinery
 and systems $179,455 $142,861 $515,314 $484,022
 Mining equipment 50,516 57,169 62,740 80,534
 Material handling
 equipment 29,119 25,341 56,023 53,505
 Systems Group 13,674 33,875 393,596 446,980
 Total business segments 272,764 259,246 1,027,673 1,065,041
 HARNISCHFEGER INDUSTRIES, INC.
 Business Segment Summary
 For nine months ended July 31, 1993
 (In thousands)
 Net Sales
 1993 1992
 Papermaking
 Machinery and
 Systems $431,895 $528,102
 Mining equipment 219,193 230,319
 Material Handling Equipment 84,809 83,826
 Systems Group 177,287 179,967
 Total Business Segments 913,184 1,022,234
 Operating Restructuring Operating Operating
 Profit Before Charge Profit After Profit
 Restructuring Restructuring
 1993 1992
 Papermaking
 Machinery and
 Systems $17,140 $(40,000) $(22,860) $49,523
 Mining equipment 15,723 (33,500) (17,777) 21,466
 Material Handling
 Equipment 3,516 0 3,516 6,203
 Systems Group 5,169 0 5,169 6,774
 Total Business
 Segments 41,548 (73,500) (31,952) 83,968
 Corporate
 administration (12,515) (1,500) (14,015) (12,590)
 Interest expense
 - net (16,528) 0 (16,528) (5,645)
 Income (loss) before
 provision for income
 taxes and minority
 interest 12,505 (75,000) (62,495) 65,731
 Orders Booked Backlog at
 end of period
 1993 1992 07/93 10/92
 Papermaking Machinery
 and Systems $502,840 $479,895 $515,314 $444,369
 Mining equipment 170,414 212,233 62,740 111,519
 Material Handling
 Equipment 78,769 92,391 56,023 62,043
 Systems Group 69,950 83,375 393,596 500,933
 Total Business Segments 821,993 867,894 1,027,673 1,118,864
 Corporate administration
 Interest expense - net
 Income (loss) before
 provision for income
 taxes and minority interest
 HARNISCHFEGER INDUSTRIES, INC.
 Condensed Balance Sheet
 (In thousands)
 7/31/93 10/31/92
 Assets
 Current assets:
 Cash and cash equivalents $116,682 $171,397
 Accounts receivable - net 326,594 424,982
 Inventories 216,673 242,115
 Other current assets 40,152 41,040
 700,101 879,534
 Property, plant and equipment - net 388,949 366,932
 Intangible assets 149,417 128,577
 Investment in Measurex 66,595 68,480
 Other assets 53,515 64,224
 Total assets 1,358,577 1,507,747
 Liabilities and Shareholders' Equity
 Current liabilities:
 Short-term notes payable,
 including current portion
 of long-term obligations 73,171 58,509
 Trade accounts payable 142,216 178,575
 Employee compensation and benefits 48,018 60,497
 Advance payments and progress billings 44,323 47,454
 Accrued warranties 44,273 37,940
 Other current liabilities 106,961 80,484
 $458,962 $463,459
 Long-term obligations 244,033 244,803
 Other liabilities 80,120 105,750
 Minority interest 91,924 102,358
 Shareholders' equity 483,538 591,377
 Total liabilities and shareholders'
 equity 1,358,577 1,507,747
 -0- 8/25/93
 /CONTACT: Francis M. Corby, Jr., senior vice president, finance and chief financial officer of Harnischfeger Industries, Inc., 414-797-6518/
 (HPH)


CO: Harnischfeger Industries, Inc. ST: Wisconsin IN: SU: ERN

PS-MO -- NY030 -- 0369 08/25/93 13:16 EDT
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Date:Aug 25, 1993
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