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SOUTHDOWN REPORTS THIRD QUARTER EARNINGS

 SOUTHDOWN REPORTS THIRD QUARTER EARNINGS
 HOUSTON, Oct. 30 /PRNewswire/ -- Southdown, Inc. (NYSE: SDW)


reported net earnings of $0.3 million, which after subtracting preferred dividends resulted in a net loss of $0.05 per share, for the three months ended Sept. 30, 1992. This compares with a net loss of $9.7 million, or $0.65 per share, in the third quarter of 1991. The third quarter 1992 earnings include a $0.8 million gain related to the final determination of contingencies of the company's oil and gas operations that were sold in 1989. For the nine months ended Sept. 30, 1992, the company's net loss was $14.1 million, or $1.05 per share, compared with a net loss of $19.4 million, or $1.38 per share, in the first nine months of 1991. Earnings remain depressed because of the continued weakness in construction activity.
 Operating earnings from the cement segment were $20.3 million and $45.6 million in the third quarter and first nine months of 1992, respectively, compared with $11.7 million and $37.5 million, respectively, in the comparable periods a year ago. Cement operating earnings improved primarily as a result of higher sales volumes and lower per unit costs.
 The concrete products operating loss was $2.4 million and $8.0 million in the third quarter and first nine months of 1992, respectively, compared with an operating loss of $3.4 million and $7.5 million, respectively, in the comparable periods a year ago. The reduction in the concrete products operating loss in the third quarter of 1992 compared with a year ago was the result of an improvement in the Florida operations which was only partially offset by the further deterioration in the southern California operations. The environmental services business generated an operating loss of $3.1 million and $8.0 million in the third quarter and first nine months of 1992, respectively, compared with an operating loss of $1.3 million and $2.8 million, respectively, in the same periods a year ago. An increase in resource recovery earnings was more than offset by higher losses at the hazardous waste processors.
 Corporate and other expenses were $5.3 million and $20.2 million in the third quarter and first nine months of 1992, respectively, compared with $11.8 million and $26.0 million, respectively, in the comparable periods a year ago. The third quarter 1992 numbers include a $2.7 million nonrecurring gain compared with a $2.9 million nonrecurring charge in the prior year quarter. Interest expense totaled $10.8 million and $34.3 million in the third quarter and first nine months of 1992, respectively, compared with $10.8 million and $29.8 million, respectively, in the same periods in 1991. In addition, in 1991, the company incurred losses related to a joint venture which was sold in January 1992.
 Southdown is one of the leading U.S. cement and ready-mixed concrete companies. The company manufactures cement in eight plant locations around the country and markets ready-mixed concrete in Florida and southern California. In addition, the company is engaged in the environmental services business, including waste processing, recycling and resource recovery.
 SOUTHDOWN, INC. AND SUBSIDIARIES
 CONSOLIDATED SUMMARY OF OPERATIONS
 (in millions, except per share amounts -- Unaudited)
 Three Months Ended Nine Months Ended
 September 30, September 30,
 1992 1991 1992 1991
 Revenues
 Cement $96.7 $94.7 $256.5 $248.4
 Concrete products 40.6 49.0 119.9 137.2
 Environmental services 10.4 9.0 32.4 27.0
 Corporate and other 0.3 0.3 0.6 1.4
 Intersegment sales (8.8) (11.7) (26.1) (31.4)
 Total $139.2 $141.3 $383.3 $382.6
 Earnings (loss) from
 operations:
 Cement $ 20.3 $ 11.7 $ 45.6(A) $ 37.5
 Concrete products (2.4) (3.4) (8.0) (7.5)
 Environmental services (3.1)(B) (1.3) (8.0)(B) (2.8)
 Corporate and other (5.3)(C) (11.8)(D) (20.2)(C) (26.0)
 Total 9.5 (4.8) 9.4 1.2
 Equity in net loss of
 unconsolidated joint
 venture -- (0.6) -- (3.7)
 Interest expense (10.8) (10.8) (34.3) (29.8)
 Loss from continuing
 operations before
 income taxes (1.3) (16.2) (24.9) (32.3)
 Estimated income tax
 benefit (expense) 0.8 6.5 10.0 12.9
 Loss from continuing
 operations (0.5) (9.7) (14.9) (19.4)
 Gain on discontinued
 operations, net of
 income taxes 0.8(E) -- 0.8(E) --
 Net earnings (loss) $ 0.3 $(9.7) $(14.1) $(19.4)
 Earnings (loss) per
 common share (F):
 Primary
 Loss from continuing
 operations $(0.10) $(0.65) $ (1.10) $(1.38)
 Gain on discontinued
 operations, net of
 income taxes 0.05(E) -- 0.05(E) --
 Total $(0.05) $(0.65) $ (1.05) $(1.38)
 Fully diluted
 Loss from continuing
 operations $(0.10) $(0.65) $ (1.10) $(1.38)
 Gain on discontinued
 operations, net of
 income taxes 0.05(E) -- 0.05(E) --
 Total $(0.05) $ (0.65) $ (1.05) $(1.38)
 Average shares
 outstanding:
 Primary 16.9 16.9 16.9 16.9
 Fully diluted 20.3 20.3 20.3 20.3
 (A) Includes $3.6 million additional charge for remediation of inactive cement kiln dust disposal site and $1.2 million charge as the estimated liability for unpaid use taxes and penalty and interest due thereon.
 (B) Includes $450,000 and $1.1 million in charges as the estimated cost related to the decontamination of equipment and incineration of PCB materials for the three and nine months ended September 30, 1992, respectively.
 (C) Includes $2.7 million and $5.4 million in non-recurring gains for the three and nine months ended September 30, 1992, respectively.
 (D) Includes recognition of an additional $2.9 million book loss to be realized on the sale of the Florida aggregate operations.
 (E) Additional gain recognized on the reversal of contingency accrual recorded in conjunction with the 1989 sale of the Company's oil and gas operations.
 (F) During the nine months ended September 30, 1992 and 1991, dividends on preferred stock amounted to $3.7 million and $3.9 million, respectively. Dividends on preferred stock for the three months ended Sept. 30, 1992 and 1991 amounted to $1.2 million.
 -0- 10/30/92
 /CONTACT: James L. Persky or Karen A. Twitchell of Southdown, Inc., 713-650-6200/
 (SDW) CO: Southdown, Inc. ST: Texas IN: SU: ERN


KD -- NY073 -- 7207 10/30/92 14:41 EST
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