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 CLEVELAND, July 28 /PRNewswire/ -- Specialty Chemical Resources, Inc. (AMEX: CHM), continuing its recovery from a devastating December fire at one of its two production facilities, today reported net earnings for the six months ended June 30, 1993, of $584,000 or $.15 per share on a weighted average of 3,938,000 shares outstanding. Sales for the period were $21,402,000. In the same period last year, the Cleveland-based company had a net loss of $185,000 or $.07 per share on 2,754,000 shares outstanding. Sales for the like period of 1992 were $24,501,000.
 Second quarter net earnings of $325,000 or $.08 per share compared to the like period in 1992 of $769,000 or $.20 per share. Shares outstanding were 3,939,000 in 1993 and 3,768,000 in 1992. Sales for the period in 1993 were $11,127,000 compared to $13,302,000 in 1992. Second quarter results, as in the first quarter, were substantially impacted by the Dec. 13, 1992, fire which severely damaged Specialty Chemical's Macedonia, Ohio, plant and reduced manufacturing capacity by 80 percent. The company said that while new production lines in the rebuilt plant were beginning to come on stream in the second quarter, production output had not yet reached the levels maintained during 1992. Second quarter sales increased 8.3 percent over those of the first quarter. Net earnings increased 25.5 percent.
 Commenting on the first half and second quarter operating results, Edwin M. Roth, chairman and chief executive officer, stated, "We are pleased that we were able to maintain our customer base and deliver more products to our customers in the second quarter because of the partial reconstruction of our production facilities and continued outsourcing. We are looking forward to returning to normalcy by the end of the third quarter with a more efficient plant."
 Insurance is expected to cover the replacement cost of the damaged facility, equipment and inventory as well as certain business interruption costs. The new production facility made up of the latest "state of the art" filling equipment will increase the company's production capacity by more than 25 percent over the pre-fire level.
 Product mix during the second quarter led to improved gross profit margins over the like period in 1992. The company's research and development group have continued to produce a flow of new products which they expect to start delivering late in the third quarter.
 The company reported a strong financial position. Current assets of $20,563,000 are 2.8 times current liabilities. Working capital amounted to $13,348,000. Shareholders' equity as of June 30, 1993 was $29,543,000 equal to $7.50 per share.
 Specialty Chemical Resources is a custom formulator of specialty chemical products in aerosol containers. The company's products include: cleaners, lubricants, adhesives, sealants, waxes, polishes, degreasers, coatings, paints, gasket compounds and anti-statics.
 (Amounts in thousands except per share amounts)
 Three Months
 Periods ended June 30 1993 1992 (C)
 Net sales $11,127 $13,302
 Gross profit 2,451 2,528
 Operating profit 643 903
 Interest expense 135 148
 Other (income) expenses:
 Write-off of original
 issue discount (A) --- ---
 Write-off of deferred
 financing costs (A) --- ---
 Other (income) (8) (14)
 Income (loss) before taxes 516 769
 Taxes 191 ---
 Net income (loss) $325 $769
 Earnings (loss) per share $.08 $.20
 Weighted average shares
 outstanding (B) 3,939 3,768
 Six Months
 Periods ended June 30 1993 1992 (C)
 Net sales $21,402 $24,501
 Gross profit 4,640 4,931
 Operating profit 1,126 1,773
 Interest expense 223 838
 Other (income) expenses:
 Write-off of original
 issue discount (A) --- 191
 Write-off of deferred
 financing costs (A) --- 945
 Other (income) (21) (16)
 Income (loss) before taxes 924 (185)
 Taxes 340 ---
 Net income (loss) $584 $(185)
 Earnings (loss) per share $.15 $(.07)
 Weighted average shares
 outstanding (B) 3,938 2,754
 (Dollars in thousands)
 June 30, 1993 Dec. 31, 1992 (C)
 Current assets
 Cash $ 1 $ 79
 Receivables 12,989 6,786
 Inventory 7,417 5,685
 Other 156 129
 Total Current Assets $20,563 $12,679
 Net fixed assets 4,577 4,861
 Other 23,551 23,980
 Total Assets $48,691 $41,520
 Current liabilities
 Accounts payable $ 6,484 $ 3,192
 Other 731 1,276
 Total Current Liabilities $ 7,215 $ 4,468
 Long-term debt 9,955 6,055
 Defered taxes 1,978 2,039
 Shareholders' equity 29,543 28,958
 Total Liabilities and Shareholders'
 Equity $48,691 $41,520
 (A) -- Non-recurring, non-cash write-off of original issue discount and deferred financing costs related to retirement of debt with common stock offering proceeds.
 (B) -- Weighted average shares outstanding include common stock equivalents except in loss periods whereby they would be anti-dilutive.
 (C) -- 1992 balance sheets and income statement have been restated to reflect the retroactive application of F.A.S. 109 effective Jan. 1, 1990.
 -0- 7/28/93
 /CONTACT: Corey B. Roth of Specialty Chemical Resources, Inc., 216-468-1380/

CO: Specialty Chemical Resources, Inc. ST: Ohio IN: CHM SU: ERN

AR -- CL022 -- 6889 07/28/93 16:02 EDT
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Publication:PR Newswire
Date:Jul 28, 1993

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