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RESTRUCTURING POSITIONS INLAND FOR IMPROVED PERFORMANCE

 RESTRUCTURING POSITIONS INLAND FOR IMPROVED PERFORMANCE
 CHICAGO, Jan. 16 /PRNewswire/ -- Inland Steel Industries, Inc. (NYSE: IAD) incurred a net loss of $275.1 million, or $9.88 per share, in 1991, including a $215 million restructuring provision ($165.1 million after tax) to write down uneconomic facilities at the Indiana Harbor Works steelmaking complex and provide for future work force reductions under an intensive cost-improvement program.
 The company's net loss before the restructuring provision was $110 million, or $4.55 per share, which compares with a net loss of $20.6 million, or $1.41 per share, in 1990. Sales fell 12 percent to $3.40 billion from $3.87 billion in 1990.
 For the fourth quarter, Inland's net loss was $191.3 million, or $6.44 per share. Excluding the $215 million provision, the loss was $26.2 million, or $1.11 per share. This was approximately half that of the 1990 fourth quarter, when the company lost $57.1 million, or $2.05 per share. Sales of $847 million were 7 percent below the year-ago quarter's $907.1 million.
 "1991 was a year of many negatives, which we are glad to have behind us," said Frank W. Luerssen, Inland's chairman and chief executive officer. "The recession sharply reduced shipments to the consumer durables markets and prices weakened across much of our product line. Steel prices in nominal terms stood at 1981 levels, and, in real terms, were down more than 30 percent over the decade. Moreover, costs, particularly those related to our steel labor contract, are high and continue to rise.
 "As a consequence, we are reviewing every aspect of our business to bring costs in line with today's realities," Luerssen added. "We took positive steps during the year to improve our cash flow and financial flexibility; our capital program is largely behind us, and our new facilities are performing well. We are confident that we will reap significant benefits from our modernization and restructuring programs when the next upturn in steel orders materializes."
 The asset write-downs include cokemaking facilities which must be shut down to meet Clean Air Act requirements; the ingot mold foundry, which became obsolete when steel operations became 100 percent continuously cast last year, and two blast furnaces built during World War II.
 The restructuring provision also includes estimated costs to reduce the total work force at Inland Steel Company by approximately 25 percent over the next several years and to trim Inland Steel Industries' headquarters staff. This will be accomplished by a systematic effort to streamline operations and improve productivity. Attrition is expected to absorb some of the reductions.
 Approximately 40 percent of the restructuring provision involves the write-off of assets with no expenditure of cash, while expenditures related to personnel reductions will be funded over several years. $205 million of the restructuring provision is being charged to the integrated steel segment and $10 million to general corporate expense.
 The write-off increased Inland Steel Company's operating loss for the year to $313.2 million from $108.2 million before the restructuring provision. This compares with an operating profit of $1.4 million in 1990. Sales for the year fell 14 percent to $1.90 billion from $2.21 billion as shipments declined 11 percent to 4.2 million tons and average prices slipped 3 percent. The steel segment operated at 74 percent of capability, compared with 82 percent in 1990.
 Excluding the write-off, the steel segment narrowed its operating loss in the 1991 fourth quarter to $18.1 million from a loss of $68.2 million in the year-ago quarter, when several facility outages adversely affected operations. Sales declined 4 percent to $495.1 million due to declines in both price and volume. However, the fourth quarter loss was somewhat greater than that of the third quarter of 1991.
 Operating profit for the Inland Materials Distribution Group, comprised of Joseph T. Ryerson & Son and J.M. Tull Metals, fell 10 percent to $16.2 million from $18.1 million a year ago. The 1990 results included a $9 million restructuring provision for work force reductions. Sales declined 9 percent to $1.66 billion from $1.83 billion, as business weakened in all sections of the country.
 In the fourth quarter, the steel service center segment had a small operating profit compared with a year-earlier operating loss of $3 million, which included a $3 million restructuring provision. Excluding the year-ago charge, profit improved slightly despite a 7 percent decline in sales to $389.5 million. Compared with the third quarter of 1991, operating performance fell as sales declined 5 percent.
 Inventories were reduced at the steel and service center segments by 14 percent and 11 percent, respectively, during the year, generating more than $125 million in cash. The company also raised $200 million from the sale of Series G preferred stock and Series T first mortgage bonds. At year-end, Inland had $47 million of cash and cash equivalents on hand, compared with $58 million a year ago. There was no short-term debt outstanding at the end of either period. The company's available bank credit agreements total $225 million.
 "We have no illusions that the months ahead are going to be anything but difficult," Luerssen said. "The outlook for steel orders, particularly from the automobile industry, remains weak. Nevertheless, we believe that our strategy is correct and that by wringing costs out of the system, we will accelerate our return to profitability."
 The company's wholly-owned Inland Steel Company subsidiary reported a net loss for 1991 of $385.3 million, compared with a net loss of $66.6 million in 1990.
 INLAND STEEL INDUSTRIES, INC. AND SUBSIDIARY COMPANIES
 Selected Income and Balance Sheet Data -- Unaudited
 (Dollars and Shares in Thousands)
 1991 1990
 Fourth Third Fourth Years
 Quarter Quarter Quarter 1991 1990
 NET SALES $ 846,954 $860,055 $907,094 $3,404,473 $3,870,387
 OPERATING COSTS
 Cost of goods sold,
 administrative and
 selling exp. 836,226 842,514 950,105 3,382,104 3,732,539
 Depreciation 29,028 29,076 27,821 118,249 118,775
 Integrated steel
 restructuring
 provision 205,000 -- -- 205,000 --
 Total 1,070,254 871,590 977,926 3,705,353 3,851,314
 OPERATING PROFIT
 OR (LOSS) (223,300) (11,535) (70,832) (300,880) 19,073
 General corporate
 expenses net of
 income items 4,888 7,967 10,158 23,460 17,109
 Interest and other
 expense on debt 11,010 10,038 8,525 46,767 38,702
 Corporate restructuring
 provision 10,000 -- -- 10,000 --
 LOSS BEFORE
 INCOME TAXES (249,198) (29,540) (89,515) (381,107) (36,738)
 Provision for
 income taxes 57,852Cr. 10,782Cr. 32,391Cr. 105,999Cr. 16,136Cr.
 NET LOSS $ (191,346) $(18,758) $(57,124) $ (275,108) $ (20,602)
 LOSS PER SHARE OF
 COMMON STOCK $(6.44) $ (.87) $ (2.05) $ (9.88) $ (1.41)
 Dividends on
 preferred stock $ 8,017 $ 8,040 $ 6,234 $ 30,505 $ 24,947
 Net loss applicable
 to common
 stock $ (199,363) $(26,798) $(63,358) $ (305,613) $ (45,549)
 Average shares of
 common stock and
 common stock
 equivalents 30,961 30,962 30,947 30,941 32,192
 Net loss as a
 percentage of
 net sales (22.6%) (2.2%) (6.3%) (8.1%) (.5%)
 Shares of common
 stock outstanding -
 end of period 30,958 30,958 30,886 30,958 30,886
 Cr. -- Credit
 SELECTED BALANCE SHEET AND CASH FLOW INFORMATION
 (dollars in millions)
 12/31/91 9/30/91 12/31/90
 Cash & Cash Equivalents $ 47.1 $ 33.8 $ 58.3
 Notes Payable - 95.0 -
 Net Liquidity Position 47.1 (61.2) 58.3
 Long-term Debt 764.8 652.0 691.7
 Stockholders' Equity 1,062.4 1,261.5 1,288.9
 INLAND STEEL INDUSTRIES, INC. AND SUBSIDIARY COMPANIES
 Summary Data for Business Segments (Unaudited)
 Dollars in Millions
 1991 1990
 Fourth Third Fourth Years
 Quarter Quarter Quarter 1991 1990
 NET SALES
 Integrated steel
 operations $ 495.1 $485.0 $518.1 $1,895.4 $2,208.5
 Steel service
 center operations 389.5 411.8 419.4 1,655.9 1,825.4
 Eliminations -
 intersegment
 sales (37.6) (36.8) (30.4) (146.8) (163.5)
 Total net sales $ 847.0 $860.0 $907.1 $3,404.5 $3,870.4
 OPERATING PROFIT OR (LOSS)
 Integrated steel
 operations $(223.1) $(13.2) $(68.2) $ (313.2) $ 1.4
 Steel service
 center operations .6 2.9 (3.0) 16.2 18.1
 Adjustments and
 eliminations (.8) (1.2) .4 (3.9) (.4)
 Total operating
 profit or (loss) $(223.3) $(11.5) $(70.8) $ (300.9) $ 19.1
 INLAND STEEL COMPANY AND SUBSIDIARY COMPANIES
 (A wholly owned subsidiary of Inland Steel Industries, Inc.)
 Selected Income and Operating Data - Unaudited
 (Dollars and Tons in Thousands)
 Three Months Ended
 Dec. 31, Years
 1991 1990 1991 1990
 Net sales $495,104 $518,182 $1,895,432 $2,208,538
 Operating costs 513,280 586,343 2,003,668 2,207,146
 Restructuring provision 205,000 -- 205,000 --
 Operating profit
 or (loss) (223,176) (68,161) (313,236) 1,392
 General corporate
 expense, net 1,789 7,833 15,295 25,162
 Interest expense 12,619 11,368 57,985 46,459
 Loss before inc. taxes (237,584) (87,362) (386,516) (70,229)
 Provision for income taxes 177Cr. 4,385Cr. 1,220Cr. 3,627Cr.
 Net loss $(237,407) $ (82,977) $ (385,296) $ (66,602)
 OPERATING DATA
 Net tons of raw steel
 produced 1,146 1,258 4,677 5,339
 Capability utilization
 rate (a) 75.8% 76.8% 73.9% 82.1%
 Net tons of steel mill
 products shipped 1,093 1,114 4,171 4,681
 Cr. -- Credit
 (a) -- Reflects reduction in annual raw steel capacity from 6.5 million to 6.0 million tons at Sept. 1, 1991 due to the elimination of ingot production.
 -0- 1/16/92
 /CONTACT: Robert Lefley of Inland Steel Industries, 312-899-3170/
 (IAD) CO: Inland Steel Industries, Inc. ST: Illinois IN: MNG SU: ERN


JT -- NY099 -- 0780 01/16/92 18:41 EST
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