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UNC REPORTS 36 PERCENT INCREASE IN NET EARNINGS FOR 1991

 UNC REPORTS 36 PERCENT INCREASE IN NET EARNINGS FOR 1991
 ANNAPOLIS, Md., Feb. 11 /PRNewswire/ -- UNC Incorporated (NYSE: UNC) announced today that net earnings in 1991 increased 36 percent over its 1990 results.
 The company reported that net earnings were $6.9 million, or $.40 per share, compared with $5.1 million, or $.30 per share, in 1990. Sales for the year were $360.6 million, a 1 percent increase over 1990 sales of $356.3 million. The company also stated that free cash flow of $10.5 million was generated in 1991, and was used to reduce outstanding debt. The results achieved were in line with expectations.
 In another positive development, UNC announced late in the fourth quarter of 1991 that the company had reached a $67.5 million final settlement with the U.S. Government to resolve a 1978 uranium lease dispute. Net proceeds of approximately $50 million in cash (received in January, 1992) will be used to reduce the company's debt, principally the 11 1/2 percent Senior Subordinated Debentures. This action will result in a substantial and permanent reduction of its total future annual interest expense in the range of $5 million, and will deleverage the company and improve the debt-to-capitalization ratio from 55.3 percent to 47.1 percent.
 As a result of current industry and market conditions and certain other events which occurred during the latter part of 1991, the company recorded a number of adjustments during the fourth quarter. These non- cash charges included reductions in the carrying values of certain accounts receivable; inventories; goodwill; and assets of discontinued operations; and the write-off of bond issue and discount costs related to debt to be retired in 1992. The company stated that these actions will serve to substantially strengthen and reduce the risk in its balance sheet.
 These adjustments combined with the U.S. Government settlement produced the following 1991 results: an after-tax loss from continuing operations of $25.5 million, or $(1.49) per share; a loss in extraordinary items of $1.7 million, or $(.10) per share; earnings from discontinued operations of $34.1 million, or $1.99 per share; and net earnings of $6.9 million, or $.40 per share. This compares with $5.1 million, or $.30 per share, in 1990.
 In commenting on these results, Dan A. Colussy, chairman and chief executive officer of UNC, said, "We are pleased with our results from operations for 1991 since we have met all of our earnings growth and debt reduction expectations. We also expect to realize a substantial improvement in our earnings during 1992 as a result of reduced debt, lower interest expense, and operating earnings growth. Our improved operations, combined with a strengthened balance sheet and a strong industry position, elevate UNC to a new level of financial strength and stability, and will provide more flexibility in pursuing new business opportunities. These factors will enable UNC to fully capitalize on the recovery and resumption of growth in the aviation industry."
 UNC Incorporated, listed on the New York Stock Exchange, is engagedines; and in providing aircraft maintenance and pilot training services.
 UNC INCORPORATED & SUBSIDIARIES
 (In thousands, except per-share amounts)
 Periods ending Three Months 12 Months
 Dec. 31 1991 1990 1991 1990
 Sales $96,213 $91,611 $360,571 $356,255
 Operating Income (loss) (25,600) 6,388 (6,629) 22,344
 Pretax Earnings (loss) (30,370) 1,968 (24,133) 6,725
 Earnings (loss) from
 Continuing Operations (30,350) 1,794 (25,485) 5,219
 Earnings (Loss) from
 Discontinued Operations 34,100 34,100 (128)
 Extraordinary Item (1,700) (1,700)
 Net Earnings 2,050 1,794 6,915 5,091
 Earnings (Loss) per Share:
 Continuing Operations $(1.77) $ .10 $(1.49) $ .31
 Discontinued Operations 1.99 1.99 (.01)
 Extraordinary Item (.10) (.10)
 Net Earnings $ .12 $ .10 $ .40 $ .30
 Average shares: 17,138 17,116 17,128 17,082
 -0- 2/11/92
 /CONTACT: David L. Dragics of UNC Incorporated, 410-266-7333/
 (UNC) CO: UNC Incorporated ST: Maryland IN: AIR SU: ERN


CC-MP -- PH003 -- 8649 02/11/92 08:34 EST
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Date:Feb 11, 1992
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