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RUST INTERNATIONAL INC. REPORTS RESULTS FOR FIRST QUARTER

 BIRMINGHAM, Ala., April 18 /PRNewswire/ -- Rust International Inc. (NYSE: RST) today reported net income for the three months ended March 31 of $14.0 million, or $.17 per share, versus $16.6 million, or $.21 per share, for the year earlier period. Revenue was $386.1 million compared with $351.4 million in last year's first quarter.
 The results for the first quarter of 1994 were adversely affected by severe weather in parts of the U.S. resulting in temporary delays on numerous projects. In addition, the award and start-up of certain large projects were postponed, further impacting first quarter results.
 During the quarter, the company continued its acquisition program in the U.S. and overseas. Internationally, the acquisition of Kennedy and Donkin Limited was completed. This 950-person U.K.-based engineering firm adds extensive engineering and design expertise and experience in the utility power industry. Domestically, the acquisitions of Wahler Associates and Lichliter/Jameson & Associates were completed, expanding the company's environmental consulting expertise in California and the Southwest.
 Also during the quarter, Rust was awarded contracts for environmental investigation and design services at Brooks Air Force Base in San Antonio, Texas, and Robbins Air Force Base in Georgia. These projects could encompass up to $125 million of task orders over five years. Rust has also been notified for its selection as one of the contractors selected to bid on numerous remediation opportunities at Tinker Air Force Base near Oklahoma City; Eglin Air Force Base outside Fort Walton Beach, Fla.; Kelly Air Force Base near San Antonio, Texas; and Hill Air Force Base, Ogden, Utah.
 In reviewing the results for the first quarter, Rodney C. Gilbert, president and CEO, commented, "While we are disappointed with our financial results for the first quarter, we are encouraged about the outlook for the balance of 1994. Our recent acquisitions and project awards have enhanced our corporate capabilities, expanded our geographic coverage and provided a foundation for improved results in the future. We also see additional opportunities to expand our businesses both domestically and internationally."
 Rust International, based in Birmingham, Ala., provides engineering, construction, environmental and infrastructure consulting, environmental remediation and other on-site industrial services. Rust, whose shares are traded on the New York Stock Exchange, is a majority-owned subsidiary of WMX Technologies, Inc.
 RUST INTERNATIONAL INC. AND SUBSIDIARIES
 Consolidated Statements of Income
 (Dollars in Thousands Except Per Share Data)
 Three Months Ended March 31 1993 1994
 REVENUE $351,374 $386,140
 Operating expenses $288,970 $318,721
 Selling & administrative expenses 36,119 43,573
 Interest expense 704 4,840
 Interest income (445) (629)
 Minority interest and sundry, net (933) (4,009)
 Income before income taxes $ 26,959 $ 23,644
 Provision for income taxes 10,340 9,630
 NET INCOME $ 16,619 $ 14,014
 Average shares and equivalent
 shares outstanding 79,898 83,342
 Earnings per common and
 common equivalent share $.21 $.17
 -0- 4/18/94
 /CONTACT: Jann Blitz (media) 205-995-7620, or Harold Ingalls (analysts), 205-995-6619, both of Rust/
 (RST)


CO: Rust International, Inc. ST: Alabama IN: CON SU: ERN

WB -- NY069 -- 7673 04/18/94 12:19 EDT
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Publication:PR Newswire
Date:Apr 18, 1994
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