Robertson-Ceco reports third quarter 1994 results.

BOSTON--(BUSINESS WIRE)--Nov. 15, 1994--Robertson-Ceco Corp. (NYSE:RHH) reported a third quarter 1994 net loss of $15.4 million, or $.97 per share, on revenues of $102.7 million.

This compares to a third quarter 1993 net loss of $5.5 million, or $.59 per share, on revenues of $106.0

Included in the 1994 third quarter loss is a $2.1 million restructuring charge associated with downsizing measures taken at the company's corporate headquarters, a $9.8 million charge related to the company's plan to sell its Cupples Products Division and its remaining European Building Products operations and a $6.0 million charge associated with discontinued operations.

The third quarter of 1993 operating results include a $9.7 million loss on the sale of the company's U.K. Subsidiary which was sold in November 1993 and a $5.4 million extraordinary gain from the exchange offer for the company's 15.5% Subordinated Debentures, due 2000, which was completed in July of 1993.

All share amounts include the effect of the company's exchange offer and a one for 16.5 reverse stock split which took place in July of 1993.

During the third quarter of 1994, the company's Cupples Products Division and European Building Products operations recorded revenues of $7.8 million and net losses of $.6 million, compared to revenues of $9.9 million and losses of $1.2 million during the same period in 1993.

Excluding the effects of the restructuring charge, the net losses and the loss on the sales of the company's Cupples Products Division and European Building Products operations, and the loss from discontinued operations, the company's third quarter 1994 net income was $3.1 million.

During the third quarter of 1993 the U.K. Subsidiary recorded revenues and net losses of $8.1 million and $1.4 million, respectively.

Net income for the third quarter of 1993, when adjusted to exclude the loss on sale and net losses of the Cupples Products Division and the European Building Products operations, the loss on sale and net losses of the sold U.K. Subsidiary, and the interest expense and extraordinary gain related to the company's tendered 15.5% Subordinated Debentures due 2000, was $2.0 million.

For the nine months ended Sept. 30, 1994, Robertson-Ceco Corp. reported a net loss of $20.0 million or $1.27 per share compared with a net loss of $17.9 million or $4.80 per share for the same period in 1993.

The operating results for the nine months ended Sept. 30, 1994 include restructuring charges of $3.1 million, a $9.8 million charge related to the company's plan to sell its Cupples Products Division and its remaining European Building Products operations, and a loss from discontinued operations of $6.0 million.

During the nine months ended Sept. 30, 1994, the company's Cupples Products Division and European Building Products operations reported revenues and net losses of $24.3 million and $4.7 million, respectively, compared with revenues and net losses of $31.8 million and $3.8 million, respectively, during the same period of 1993.

In the nine months ended Sept. 30, 1993, the company's operating results include a loss on the sale of the U.K. Subsidiary of $9.7 million, interest expense of $6.4 million on the company's tendered 15.5% Subordinated Debentures, due 2000, and an extraordinary gain related to the exchange of such debentures of $5.4 million.

During the nine months ended Sept. 30, 1993 revenues and net losses from the sold U.K. Subsidiary were $23.1 million and $4.4 million respectively.

Net income for the nine months ended Sept. 30, 1994, excluding the effects of the restructuring charges, the net losses and loss related to the sales of the company's Cupples Products Division and European Building Products operations, and the loss from discontinued operations, was $2.8 million.

During the same period of 1993, the company's net income excluding the net losses and loss on sale of the sold U.K. Subsidiary, the net losses of the Cupples Products Division and European Building Products operations, and the interest expense and extraordinary gain associated with the tendered 15.5% Subordinated Debentures, due 2000, was $1.1 million.

The company announced that the Board of Directors approved the sale of the company's Cupples Products Division to a management group led by a member of the company's board of directors and that the company had entered into a letter of intent for the proposed sale.

The company further indicated that they had commenced negotiations for the sale of their remaining European Building Products operations.

The company also announced that, in view of the company's existing liquidity situation, along with projected working capital and capital expenditure needs for existing businesses, and the anticipated bonding requirements relating primarily to the company's concrete construction group, the company had hired an outside investment banking firm to explore the possibility of selling the company's Concrete Construction Group.

Additionally, the company reported that the board of directors approved entering into a letter of intent to sell the Concrete Construction Group to an entity controlled by the company's chief executive officer.

The letter of intent is contingent upon, among other things, the negotiation and execution of a definitive agreement and obtaining necessary consents of third parties.

The sale of the Concrete Construction Group, if consummated, is expected to close in the fourth quarter of 1994 and will result in a book gain.

Michael E. Heisley, chief executive officer, commented on the actions by saying, "The company has been under considerable liquidity constraints for some time and the actions being taken were necessary to continue the viability of the company. The sale of the Cupples Division and the remaining European Building Products operations will eliminate operating entities which were experiencing significant operating losses and negative cash flow, and the sale of the Concrete Construction Group will provide the company with needed capital and will further improve liquidity by eliminating the letter of credit collateral requirements necessary to support the division's existing and growing bonding needs."

The Concrete Construction Group reported revenues $18.8 million and $16.7 million for the three months ended Sept. 30, 1994 and 1993, respectively, and net income of $1.1 million and $1.5 million for the comparable periods of 1994 and 1993.

For the nine months ended Sept. 30, 1994 and 1993, the Concrete Construction Group reported revenues of $49.0 million and $45.4 million, respectively, and net income of $3.4 million and $2.3 million, respectively.

Heisley further commented by saying that, "With the sales of these businesses, the company plans to focus its efforts on its Metal Buildings businesses and on expanding its Asia/Pacific operations."

Heisley went on to say, "The company is very pleased with the operating results of the Metal Buildings Group which has experienced a 71% increase in operating profits for the nine months ended Sept. 30, 1994 when compared to the similar period in 1993 and has experienced a 27% increase in backlog at Sept. 30, 1994 compared with Sept. 30, 1993."

Headquartered in Boston, Robertson-Ceco Corp. provides commercial and industrial construction products and services worldwide. Products and services include the design, manufacture and installation of pre-engineered metal buildings, industrial cladding and roofing profiles, and architectural wall panels.

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                      Robertson-Ceco Corp.
         Condensed Consolidated Statement of Operations
                          (Unaudited)
         (Amounts in thousands, except per share data)

                             Three months ended  Nine months ended
                                  Sept. 30,          Sept. 30,
                             1994          1993  1994         1993

Revenues                     $102,695  $106,043  $279,803  $280,429
Costs and expenses:
   Cost of sales               85,239    89,333   238,066   239,203
   Selling, general
    and administrative         13,565    16,188    39,446    45,559
   Restructuring expense        2,078      ---      3,125      ---
     Total                    100,882   105,521   280,637   284,762

Operating Income (Loss)         1,813       522      (834)   (4,333)
Other Income (Expense):
   Interest expense            (1,255)   (1,825)   (3,556)   (9,518)
   Loss on businesses
    sold/held for sale         (9,800)   (9,700)   (9,800)   (9,700)
   Other income (expense)-net     (16)      188       489       411
      Total                   (11,071)  (11,337)  (12,867)  (18,807)

Loss from Continuing Operations
 before Provision for
  Taxes on Income              (9,258)  (10,815)  (13,701)  (23,140)
Provision for Taxes on Income     115        63       265       125
Loss from Continuing
 Operations                    (9,373)  (10,878)  (13,966)  (23,265)
Loss from Discontinued
 Operations                    (6,000)      ---    (6,000)    ---
Loss before
 Extraordinary Items          (15,373)  (10,878)  (19,966)  (23,265)
Extraordinary Gain on
 Debt Exchange                   ---      5,367      ---      5,367

Net Income (Loss)            $(15,373)  $(5,511) $(19,966) $(17,898)

Net Income (Loss) Per Common Share (1):
   Continuing Operations        $(.59)   $(1.16)    $(.89)   $(6.23)
   Discontinued Operations       (.38)       ---     (.38)    ---
   Extraordinary Items            ---       .57      ---       1.43
Net Income (Loss) Per
 Common Share                   $(.97)    $(.59)   $(1.27)   $(4.80)

Weighted Average Number of Common
    Shares Outstanding         15,773     9,402    15,773     3,752


(1) Per share amounts reflect the exchange offer for the company's
15.5% Subordinated Debentures due 2000 and preferred stock effective
July 14, 1993 and the 1 for 16.5 reverse stock split which was
effective July 23, 1993.

CONTACT: Robertson-Ceco Corp., Boston

John C. Stills, 617/424-5500