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SPECIALTY CHEMICAL RESOURCES REPORTS FIRST QUARTER EARNINGS

 CLEVELAND, May 12 /PRNewswire/ -- Specialty Chemical Resources, Inc. (AMEX: CHM), recovering from a devastating December fire at one of two production facilities, today reported net earnings of $259,000, or seven cents per share, on sales of $10,275,000 for the first quarter ended March 31. Per share earnings are based on a weighted average of 3,935,000 shares outstanding.
 In the like period last year, the Cleveland-based custom formulator of specialty chemical products had a net loss of $954,000, or 55 cents per share on the 1,740,000 average shares then outstanding. Sales were $11,199,000. First quarter 1992 results included non-cash, non- recurring charges of $945,000 in deferred financing costs and a $191,000 original issue discount associated with the first quarter 1992 retirement of all prior indebtedness. Excluding such charges, the company had pro forma net income of $119,000, or six cents per share, on an average of 1,914,000 shares outstanding.
 First quarter 1993 results were achieved despite a December 13, 1992, fire which severely damaged Specialty Chemical's Macedonia, Ohio, plant and reduced manufacturing capacity by 80 percent. The company said that first quarter sales were adversely impacted by the lost production capacity and that operating profits were affected by expenses associated with replacing the lost production. On the positive side, interest expenses declined from $690,000 in the 1992 first quarter to $88,000 in the three months ended March 31, 1993, largely as a consequence of the first quarter 1992 debt retirement.
 Edwin M. Roth, chairman and chief executive officer, reported that the company was on schedule in restoring the fire-damaged Macedonia plant and its four aerosol filling lines. He said the first of the new replacement lines was activated in late April and would be followed by a second line within a couple of weeks. Lines three and four are expected to be operational in the June-July period.
 Roth said the new lines, made up of the latest state-of-the-art filling equipment, would increase the production capacity of the Macedonia plant by more than 25 percent over the pre-fire level.
 "We look to return to normal operations sometime in the third quarter with a more efficient, cost-effective plant," Roth said. Insurance is expected to cover the replacement cost of the damaged facility, equipment and inventory as well as certain business interruption costs. There were no injuries or chemical releases associated with the fire.
 The company said that it had maintained its customer base by outsourcing some production and through the installation, in a five-week December-January period, of a highly automated aerosol filling line at its Twinsburg, Ohio, plant which was operated on a three-shift basis.
 The company reported a strong financial position. Current assets as of March 31 were $17,411,000, 2.5 times current liabilities. Working capital amounted to $10,417,000. Shareholders' equity as of March 31, 1993, was $29,217,000, or $7.42 per share.
 Specialty Chemical is a custom formulator of specialty chemical products in aerosol containers. Products include cleaners, sealants, gasket compounds, lubricants, waxes, adhesives, paints, coatings, degreasers, polishes, anti-statics and tire inflators.
 SPECIALTY CHEMICAL RESOURCES, INC.
 Income Statements (Unaudited)
 (Amounts in thousands except per share amounts)
 THREE MONTHS
 Period ended March 31 1993 1992 (C)
 Net sales $10,275 $11,199
 Gross profit 2,188 2,403
 Operating profit 484 871
 Interest Expense 88 690
 Other (income) expenses:
 Write-off of original issue
 discount (A) --- 191
 Write-off of deferred financing
 costs (A) --- 945
 Other (income) (12) (1)
 Income (loss) before taxes 408 (954)
 Taxes 149 ---
 Net income (loss) $259 $(954)
 Earnings (loss) per share $.07 $(.55)
 Weighted average shares
 Outstanding (B) 3,935 1,740
 (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.
 Balance Sheets (Unaudited)
 March 31 Dec. 31
 ASSETS 1993 1992 (C)
 Current assets
 Cash $45 $79
 Receivables 10,986 6,786
 Inventory 6,186 5,685
 Other 194 129
 Total $17,411 $12,679
 Net fixed assets 4,715 4,861
 Other 23,766 23,980
 Total assets $45,892 $41,520
 March 31 Dec. 31
 LIABILITIES 1993 1992 (C)
 Current liabilities
 Current debt --- ---
 Accounts Payable 5,862 3,192
 Other 1,133 1,276
 Total $6,995 $4,468
 Long-term debt 7,702 6,055
 Deferred taxes 1,978 2,039
 Shareholders' equity 29,217 28,958
 Total Liabilities and
 shareholders' equity $45,892 $41,520
 (C) 1992 balance sheets and income statement have been restated to reflect the retroactive application of F.A.S. 109 effective January 1, 1990.
 -0- 5/12/93
 /CONTACT: Corey Roth of Specialty Chemical Resources, Inc., 216-468-1380/
 (CHM)


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

AR -- CL031 -- 7776 05/12/93 17:14 EDT
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Date:May 12, 1993
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