/raid1/www/Hosts/bankrupt/TCR_Public/961121.MBX




InterNet Bankruptcy Library - News for November 21, 1996






Bankruptcy News For November 21, 1996



  1. Bradlees Reports 1996 Third Quarter Results; Company Cites Significant Financial Improvements Over
    Last Year

  2. Holly Products announces second quarter results and substantial reduction of losses

  3. Presidio Capital Corp. Announces Completion of TSA Securitization

  4. CompuServe Reports Expected Q2 Loss And Other Charges

  5. Harnischfeger Reports Record Fiscal Year-End Results




Bradlees Reports 1996 Third Quarter Results; Company Cites Significant Financial Improvements Over Last
Year


BRAINTREE, Mass., Nov. 21, 1996 - Bradlees Inc. (NYSE: BLE) today reported results for the third quarter of
fiscal 1996 (the 13 weeks ended November 2, 1996). Comparable stores sales for the third quarter increased
5%. Total sales for the third quarter were $420.3 million compared with $418.7 million for the third quarter of
fiscal 1995 (the 13 weeks ended October 28, 1995), despite the closing of 26 stores during this year (14 stores
closed during the third quarter and 12 stores closed during the second quarter). The loss before interest,
reorganization items and income taxes for the quarter was $13.1 million reflecting an improvement of $22.2
million compared with the loss before interest, reorganization items and income taxes of $35.3 million for the
same period last year. The 1996 third quarter loss before income taxes of $23.1 million represents an
improvement of $27.9 million or 54.7%, compared with the 1995 third quarter loss before income taxes of $51.0
million. The net loss for the quarter was $23.1 million, compared with a net loss of $38.6 million in 1995. The
prior year's pre tax loss was reduced by an income tax benefit of $12.4 million.


Borrowings under the Company's Debtor-In-Possession (DIP) financing facility were below planned levels. At
the close of the third quarter, the Company had available borrowing capacity of approximately $120 million
under its DIP facility, well in excess of its projected fourth quarter needs.


Sales for the three quarters (39 weeks) ended November 2, 1996 were $1.156 billion compared with $1.249
billion for the same period in 1995, reflecting, in part, the Company's closing of the 26 stores during this year.
Year-to-date comparable store sales declined 5.5%. The year-to-date loss before interest, reorganization items
and income taxes was $96.2 million, an improvement of $12.5 million or 11.6% over last year. This year's net
loss of $159.6 million includes a $35.5 million increase in charges for reorganization items, while last year's net
loss of $98.5 million included a $50.8 million income tax credit. No income tax credit was available to offset
losses in the current year.


Commenting on the third quarter results, Mark A. Cohen, Chairman and Chief Executive said, "We are
encouraged by our third quarter results, particularly our comparable store sales performance. Our strategy of
offering higher value assortments with improved fashion and quality, coupled with significant breakthroughs in
merchandise presentation and customer service, has begun to demonstrate positive results."


                                    BRADLEES, INC.
                         (Operating as Debtor-In-Possession)
                   CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                     (Unaudited)
                   (Dollars in thousands except per share amounts)
        

                                         13 Weeks ended         39 Weeks ended
                                           Nov. 2,    Oct. 28,    Nov. 2,
        Oct. 28,
        

                                        1996       1995        1996        1995
            Total sales                   $420,319   $418,656  $1,156,405
        $1,248,532
        

            Leased department sales         15,863     14,529      44,668
        43,367
        

            Net sales                      404,456    404,127   1,111,737
        1,205,165
        

            Cost of goods sold             291,396    288,417     794,767
        865,488
        

            Gross margin                   113,060    115,710     316,970
        339,677
        

        Leased department and other
             operating income                3,475      3,459       9,908
        10,529
        

            Total                          116,535    119,169     326,878
        350,206
        

        Selling, store operating,
         administrative and
             distribution expenses         120,741    141,694     392,715
        419,696
        

            Depreciation and amortization   10,595     12,781      32,071
        39,212
        

            Gain on disposition of propert  (1,689)       ---      (1,689)
        ---
        

        Loss before interest,
         reorganization items,
             and income taxes              (13,112)   (35,306)    (96,219)
        (108,702)
        

            Interest and debt expense        1,878      2,655       6,837
        19,577
        

            Reorganization items             8,083     13,066      56,549
        21,035
        

            Loss before income taxes       (23,073)   (51,027)   (159,605)
        (149,314)
        

            Income tax benefit                 ---     12,435
        ---      50,767
        

            Net loss                      ($23,073)  ($38,592)  ($159,605)
        ($98,547)
        

            Net loss per share:             ($2.02)    ($3.38)    ($13.99)
        ($8.63)
        

                                    BRADLEES, INC.
                         (Operating as Debtor-In-Possession)
                        CONDENSED CONSOLIDATED BALANCE SHEETS
                                     (Unaudited)
                                (Dollars in thousands)
        

            ASSETS                                      11/2/96   2/3/96
        10/28/95
        

        Current assets:
        Unrestricted cash and cash equivalents        $---   $63,012     $65,947
        Restricted cash and cash equivalents         9,030     1,194       1,083
         Total cash and cash equivalents             9,030    64,206      67,030
        Accounts receivable                         17,562    10,536      16,296
        Refundable income taxes                        ---    24,576         ---
        Inventories                                339,178   282,270     413,236
        Prepaid expenses                            10,458    10,008      10,915
        Deferred income taxes                          ---       ---      27,733
        Assets held for sale                         8,954     8,954         ---
         Total current assets                      385,182   400,550     535,210
        

        Property excluding capital leases, net     147,987   170,247     210,859
        Property under capital leases, net          28,232    37,249      58,946
         Total property, plant and equipment, net  176,219   207,496     269,805
        

        Lease interests at fair value and lease
         acquisition costs, net                    180,161   186,626     240,187
        Assets held for sale                        10,153       ---         ---
        Other, net                                   3,714     3,990       1,556
        Total other assets                         194,028   190,616     241,743
        Total Assets                              $755,429  $798,662  $1,046,758
        

                                    BRADLEES, INC.
                         (Operating as Debtor-In-Possession)
                        CONDENSED CONSOLIDATED BALANCE SHEETS
                                     (Unaudited)
                                (Dollars in thousands)
        

        LIABILITIES AND STOCKHOLDERS'
             EQUITY (DEFICIENCY)                         11/2/96    2/3/96
        10/28/95
        

        Current liabilities:
            Accounts payable                            $218,565  $148,870
        $266,094
        

            Accrued expenses                              64,661    63,735
        55,303
        

            Short-term debt                               24,000
        ---        ---
        

            Current portion of capital lease obligations   2,110     2,602
        5,019
        

            Total current liabilities                    309,336   215,207
        326,416
        

        Long-term liabilities:
            Obligations under capital leases              47,534    53,396
        40,695
        

            Deferred income taxes                          8,581     8,581
        65,504
        

            Other long-term liabilities                   24,673    26,723
        28,573
        

             Total long-term liabilities                  80,788    88,700
        134,772
        

        Liabilities subject to settlement under
             the reorganization case                     569,581   539,765
        521,845
        

        Stockholders' equity (deficiency):
        Common stock  11,406,620 shares outstanding
         (11,417,958 shares outstanding at 10/28/95)
            Par value                                        115       115
        115
        

            Additional paid-in capital                   137,951   137,951
        137,954
        

            Unearned compensation                           (316)     (793)
        (945)
        

            Accumulated deficit                         (341,371) (181,766)
        (72,899)
        

            Treasury stock, at cost                         (655)     (517)
        (500)
        

             Total stockholders' equity (deficiency)    (204,276)  (45,010)
        63,725
        

        Total Liabilities and Stockholders'
             Equity (Deficiency)                        $755,429  $798,662
        $1,046,758
        

SOURCE Bradlees Inc./CONTACT: Coleman Nee of Bradlees, 617-380-8354/




Holly Products announces second quarter results and substantial reduction of losses


BALA CYNWYD, Pa.--Nov. 21, 1996--Holly Products Inc. (NASDAQ: HOPR, HOPRW, HOPRP; BSE: HOP,
HOPP) today announced results of its second quarter ended Sept. 30, 1996.


Results for the first two quarters of this year show a substantial turnaround for the company's wholly owned
subsidiary, Navtech Industries Inc., since the change in management earlier this year. Navtech posted
approximately $130,000 in operating profits as compared to a substantial loss for the same period last year.


The company is still experiencing one-time administrative expenses of approximately $900,000 associated with
supporting Country World Casinos Inc.'s Chapter 11 proceedings, as well as thecompany's settlement of
previously outstanding litigation and outstanding promotional fees to be expensed through March 1997.


William H. Patrowicz, president of Holly Products Inc., said, "Navtech continues to do well while Country
World finalizes its Chapter 11 proceedings. We look forward to continued progress and great expectations for
next year."


Holly Products Inc., headquartered in Bala Cynwyd, has a wholly owned subsidiary, Navtech Industries Inc. of
Shiprock, N.M., and a majority-owned subsidiary, Country World Casinos Inc. of Denver. Navtech is a
manufacturer and tester of electronic components for casino equipment, hotel equipment and signage. Country
World Casinos Inc. is a development corporation, whose plan is to construct a casino in Black Hawk, Colo., as
well as a hotel complex.


                      HOLLY PRODUCTS INC.
        

                                 Six months ended Sept. 30,
                                     1996            1995
        Net sales                  $  3,038,233    $  2,389,874
        Gross profit (loss)        $  1,037,664    $   (266,648)
        Total expenses             $  2,516,220    $  4,621,008
        Net (loss)                 $ (1,478,556)   $ (4,887,656)
        Loss per common share      $       (.07)   $       (.35)
        

CONTACT: Holly Products, Bala Cynwyd William H. Patrowicz, 610/617-0400 or Martin E. Janis & Co.,
Chicago Elliott Jacobson, 312/943-1100




Presidio Capital Corp. Announces Completion of TSA Securitization


HAMILTON, HM DX, Bermuda, Nov. 21, 1996 - Presidio Capital Corp., a British Virgin Islands Corporation
and the post- bankruptcy successor to Integrated Resources, Inc., announced today that the Company sold in a
private securitization transaction the Company's rights to a deferred payment stream that was originally generated
by Integrated's tax shelter annuity business ("Payment Rights"). Proceeds realized by the Company, net of the
placement fee, rating agency fees and reserves, was approximately $20.5 million.


The Payment Rights were sold to a trust which issued notes backed solely by the Payment Rights. As part of this
transaction, certificates evidencing the equity ownership of the trust (and entitlement to the residual of the
Payment Rights upon satisfaction of the notes in full) were issued and sold to two newly formed companies,
T-Two TSA LLC and T-Two TSA II LLC. The purchasers of the residual equity certificates are each owned 99%
by T-Two Holding, L.L.C. T-Two Holding, L.L.C. is also the indirect 99% owner of the residual interests
resulting from the contract right securitization completed in March 1996 and is obligated to undertake a rights
offering, or similar vehicle, of its equity to the shareholders of Presidio as soon as practicable.


Presidio Capital Corp. is engaged in the liquidation and disposition of the assets of Integrated, which were
acquired pursuant to the Sixth Amended Plan of Reorganization submitted by the Subordinated Bondholders
Committee and the Steinhardt Group. The plan of the reorganization was consummated on November 3, 1994.


This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities. The
securitization notes and certificates referred to in the press release have been sold. These securities have not
been registered under the Securities Act of 1933 and may not be sold in the United States or to U.S. persons
absent registration or an applicable exemption from registration requirements.


SOURCE Presidio Capital Corp./CONTACT: Christopher Weatherhill of Presidio, 441-295-9166/




CompuServe Reports Expected Q2 Loss And Other Charges


COLUMBUS, Ohio, Nov. 21, 1996 - The following text was issued last night via PRNewswire at 10:37 p.m.
EST. The full text is being repeated below, along with financial statements that were not sent last night:


CompuServe Corporation (Nasdaq: CSRV) today confirmed its previously forecast second-quarter loss,
announced an accelerated amortization of previously capitalized subscriber acquisition costs and disclosed a
shift in its marketing strategy to reduce costs and to focus on business and professional subscribers.


Consistent with the company's previous announcement, delays in the shipment of its new CompuServe 3.0
interface coupled with a continued decline in domestic CompuServe Interactive (CSi) membership resulted in a
second-quarter loss of $24.5 million, or 26 cents per share before special charges. The accelerated amortization
of previously capitalized subscriber acquisition costs produced an after-tax charge of $28.6 million, or 31 cents
per share. As part of the shift in strategy, CompuServe will withdraw its family-oriented WOW! online service
from the marketplace effective January 31, 1997, resulting in a one-time after-tax charge of $4.9 million, or 6
cents per share, for the second quarter. The total loss for the quarter, including the special charges, was $58
million, or 63 cents per share.


"Back-to-Basics" Global Strategy

CompuServe also announced a "back-to-basics" global strategy aimed at building on its leadership in the
business and professional market while focusing on profitable segments in the consumer market. The company
said it will continue pursuing growth in higher-margin European and other international consumer markets. In the
U.S. consumer market, it will continue to provide a distinctive experience in the CSi online and Internet service,
while focusing its retention and growth efforts on CSi's traditional and loyal base of users.


The company will launch "CompuServe for Business," an enhanced service built on its CSi service with content
specifically designed for business people and professionals. CompuServe for Business will be launched early
next year. In the same time frame, CompuServe plans to introduce enhanced offerings for the business and
professional sector in Europe as well.


"Going forward, we will emphasize our inherent strengths," said Bob Massey, CompuServe president and chief
executive officer. "We're going to refocus on our existing leadership among business, professional and technical
users, as well as our traditional base of consumer subscribers. These are segments with more stable subscriber
bases. This is where we built our name and reputation, and where we continue to be the undisputed leader.


"We will stop undifferentiated marketing to mass consumers," said Massey. "Like others in our industry, we were
bringing new users in the front door and seeing many go out the back. Our revised strategy will enable us to
reduce costs by eliminating mass consumer marketing.


"When we launched our WOW! service earlier this year, we felt it was the right product for the time," he said.
"Since that time, much has changed in terms of market entrants, pricing and the high cost to compete in the mass
consumer market. We intend to focus our resources in those sectors where we can profitably expand our
business."


Network Services

The CompuServe Network Services division continued impressive growth in the second quarter. It added 52
corporate customers, bringing the total to 1,061 corporations, with wide area intranet connectivity as well as
applications and system management. Revenues from Network Services grew 33 percent over last year's quarter
to $63.6 million and represented nearly 30 percent of total company revenues.


"CompuServe Network Services continues to outpace the strong overall growth in the corporate data
communications market," Massey said. "Over the past few years, revenues have increased well over 30 percent
annually, while attracting a growing base of Fortune 1000 customers under long-term contracts for outsourced
data communications, intranet solutions and applications hosting."


Interactive Services

As of October 31, 1996, CompuServe had 3,312,000 direct subscribers worldwide, flat with the 3,313,000
reported as of July 31, 1996. International subscribers grew by 56,000 to 1,120,000 while North American users
declined by 57,000 to 2,192,000. CompuServe's Japanese licensee, NIFTY-Serve, had 2,029,000 subscribers, up
from 1,864,000 at the end of the prior quarter.


Subscribers to WOW!, introduced 7 months ago, increased to 102,000 from 92,000 while subscribers to
SPRYNET, CompuServe's Internet-only access service, grew to 218,000 from 163,000 a quarter earlier.


CompuServe's new online interface, CompuServe 3.0, was launched in late September, with distribution of the
product to current and recently canceled subscribers commencing in the month of October. Overall unsolicited
feedback has been positive. Because of the timing of the release of the new software, it had little effect on second
quarter revenues.


Revenues Up

For the quarter ended October 31, 1996, CompuServe reported revenues of $214.3 million, 14 percent higher
than the year-earlier period and 3 percent higher than the preceding quarter. Interactive Services revenues rose 8
percent versus year-ago levels, driven largely by the continued growth of the company's international business.
Versus the previous quarter, Interactive Services revenues grew 2 percent despite a slight decline in overall
membership as higher service usage drove an increase in per-member revenues. These increases, coupled with
the continued growth in Network Services, were not enough to overcome the continuing high cost of the network
infrastructure, the operation of the WOW! service and the distribution of the new CompuServe 3.0 interface. The
majority of the expected savings attributable to the restructuring and profit improvement initiatives announced in
late August will be realized in the third and fourth quarters.


Accelerated Amortization of Subscriber Acquisition Costs The accelerated amortization of previously
capitalized subscriber acquisition costs reflects a combination of a decline in overall subscriber retention rates, a
more prolonged decline in per-member revenues and the generally unfavorable economics of the company's
flat-priced WOW! service and SPRYNET Internet access service.


The most recent data suggested that the rate of capitalized cost amortization be accelerated to correlate with the
recent rates of customer retention and lower member revenue streams. Accordingly, the results for the second
quarter reflect an accelerated writedown of previously deferred costs totaling $45.3 million ($28.6 million after
tax). This assumes that the capitalized costs of CSi subscriber acquisition are expensed at the rate of 50 percent
in the first three months, 30 percent over the next nine months and 20 percent in the subsequent year. Under the
previous policy, such costs were expensed at the rate of 60 percent in the first 12 months and 40 percent in the
subsequent year. The amount also includes the total writedown of previously capitalized subscriber acquisition
costs for WOW! and SPRYNET reflecting the high costs to support these high usage, flat-priced customer groups.
At quarter-end, the remaining unamortized subscriber costs totaled $50.2 million.


Founded in 1969, CompuServe provides the world's most comprehensive online/Internet access through its three
brands - CompuServe, WOW! and SPRYNET. Through CompuServe, its Japanese Licensee NIFTY-Serve and
its affiliates around the world, more than 5 million home and business users in more than 185 countries are
connected online and to the Internet. CompuServe Network Services manages complex global data
communication environments for more than 1,000 corporate customers. With world headquarters in Columbus,
Ohio, CompuServe's offices include European centers in London, Munich,, Amsterdam, Zurich and Paris.


Except for historical information contained herein, the matters set forth in this press release are forward-looking
statements that are subject to risks and uncertainty which could cause actual results to differ materially.
CompuServe cannot assure for example, that its interface software will be widely accepted by its membership,
that its strategy and related marketing programs will produce the anticipated results or that churn and subscriber
growth will be materially impacted by these interfaces and marketing efforts.


                             COMPUSERVE CORPORATION
                       CONSOLIDATED STATEMENTS OF EARNINGS
             (AMOUNTS IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
        

                                       3 Months Ended           6 Months Ended
                                          October 31               October 31
        REVENUES                       1996        1995         1996        1995
          Interactive Services
                revenues                 $144,093    $132,925     $285,507
        $267,117
        

              Network Services revenues    63,607      47,649      122,885
        92,713
        

              Other revenues                6,643       7,800       14,593
        15,093
        

                TOTAL REVENUES            214,343     188,374      422,985
        374,923
        

        COSTS AND EXPENSES
              Costs of revenues           146,185      91,035      285,881
        173,265
        

              Marketing                   110,923      37,016      169,954
        64,593
        

              General and administrative   11,280      11,745       20,774
        21,378
        

          Depreciation and
                amortization               27,864      17,335       54,717
        31,857
        

              Product development           4,736       7,508       11,792
        14,490
        

              Nonrecurring items            7,850         ---       25,563
        ---
        

            TOTAL COSTS AND
                  EXPENSES                308,838     164,639      568,681
        305,583
        

            OPERATING EARNINGS/(LOSS)     (94,495)     23,735     (145,696)
        69,340
        

            INTEREST INCOME                 2,380         ---        5,511
        ---
        

            EARNINGS/(LOSS) BEFORE TAXES  (92,115)     23,735     (140,185)
        69,340
        

            INCOME TAX EXPENSE/(BENEFIT)  (34,080)      9,769      (52,535)
        28,539
        

            NET EARNINGS/(LOSS)          ($58,035)    $13,966     ($87,650)
        $40,801
        

            EARNINGS/(LOSS) PER SHARE      ($0.63)      $0.19       ($0.95)
        $0.55
        

        WEIGHTED AVERAGE COMMON
              SHARES OUTSTANDING       92,600,000  74,200,000   92,600,000
        74,200,000
        

                               COMPUSERVE CORPORATION
                            CONSOLIDATED BALANCE SHEETS
                               (AMOUNTS IN THOUSANDS)
        

                                                        October 31     April 30
                                                           1996          1996
        

        CURRENT ASSETS
          Cash and cash equivalents                     $100,064      $280,646
          Investments                                     85,353        29,345
          Receivables                                    111,237       119,186
          Other current assets                            98,908        56,713
            TOTAL CURRENT ASSETS                         395,562       485,890
        

        INTANGIBLE ASSETS                                 16,098        22,809
        PROPERTY AND EQUIPMENT, net                      384,679       348,059
        

        OTHER ASSETS
          Deferred subscriber acquisition costs, net      50,213        96,636
          Other Assets                                    14,402        12,434
            TOTAL OTHER ASSETS                            64,615       109,070
        

            TOTAL ASSETS                                $860,954      $965,828
        

        CURRENT LIABILITIES                             $133,374      $138,399
        DEFERRED INCOME TAXES                             43,268        56,763
        STOCKHOLDERS' EQUITY                             684,312       770,666
          TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY    $860,954      $965,828
        

                              COMPUSERVE CORPORATION
                       CONSOLIDATED STATEMENTS OF CASH FLOWS
                              (AMOUNTS IN THOUSANDS)
        

                                            3 Months Ended      6 Months Ended
                                              October 31           October 31
                                                 1996           1996      1995
        

        CASH FLOWS FROM OPERATING ACTIVITIES
          Net Earnings                         ($58,035)     ($87,650)  $40,801
          Depreciation and amortization          27,864        54,717    31,857
          Deferred subscriber acquisition costs (13,017)      (39,832)  (28,920)
          Amortization of deferred
            subscriber acquisition costs         67,242        86,255     2,821
          Provision for deferred taxes          (19,961)      (14,405)   17,750
          Changes in net working capital          3,843       (39,271)  (16,402)
            Net cash flow from operating
              activities                          7,936       (40,186)   47,907
        

        CASH FLOWS FROM INVESTING ACTIVITIES
           Purchases of property and equipment  (22,669)      (85,557)  (96,637)
           Purchase of short-term investments       ---      (119,008)      ---
           Maturities of short-term investments  63,000        63,000       ---
           Other, net                               432         1,169    (7,869)
             Net cash flow from investing
               activities                        40,763      (140,396) (104,506)
        

        CASH FLOWS FROM FINANCING ACTIVITIES
          Advances from parent                      ---           ---    57,374
          Net cash flow from financing activities     0             0    57,374
        

        NET INCREASE/(DECREASE) IN CASH AND
          CASH EQUIVALENTS                       48,699      (180,582)      775
        CASH AND CASH EQUIVALENTS AT BEGINNING
          OF PERIOD                              51,365       280,646     4,913
        CASH AND CASH EQUIVALENTS AT END
          OF PERIOD                            $100,064      $100,064    $5,688
        INVESTMENTS                             $85,353       $85,353       ---
        

                                 CompuServe Corporation
                                  Other Quarterly Data
        

                                     10/31/95    4/30/96    7/31/96   10/31/96
        

        Network Data
        Network Customers              863         966       1,009       1,061
        Commercial Customer
          Hours                 10,728,000  13,476,000  19,544,000  24,650,000
        Online Subscriber Hours 24,853,000  43,702,000  38,111,000  38,276,000
        Total Ports                 51,511      59,860      70,404      77,639
        Total Points of Presence       443         461         485         501
        

        Online/Internet Services
          Subscribers
        North America            2,027,000   2,337,000   2,249,000   2,192,000
        International              734,000   1,015,000   1,064,000   1,120,000
          Total CompuServe
            Hosted               2,761,000   3,352,000   3,313,000   3,312,000
        Licensee                 1,286,000   1,674,000   1,864,000   2,029,000
          Total                  4,047,000   5,026,000   5,177,000   5,341,000
        

        Subscribers by Service
        CSi                      2,684,000   3,157,000   3,059,000   2,992,000
        WOW!                            --      63,000      92,000     102,000
        SpryNet                     90,000     132,000     163,000     218,000
        

        CSi Quarterly Subscriber
          Retention Rates
        At the End of Month 3          N/A          63%         57%         55%
        At the End of Month 6          N/A          59%         47%         44%
        At the End of Month 9          N/A         N/A          45%         36%
        At the End of Month 12         N/A         N/A         N/A          36%
        

                                        FY 1996               FY 1997
                                          Fees/Usage   Total ..  Fees/Usage
        Total ..
        

        Average Revenue Per Customer
        First Quarter                   $18.59     $19.11     $14.20     $14.48
        Second Quarter                  $17.06     $17.54     $14.77     $15.06
        Third Quarter                   $16.11     $16.88         --         --
        Fourth Quarter                  $16.45     $16.71         --         --
        

            .. Includes revenues from merchandising, advertising and
        transaction fees.
        

SOURCE CompuServe Corporation /CONTACT: Steve Conway, Media, 614-538-3829, or Herb Kahn,
Analysts, 614-538-3556, both of CompuServe; or Karl Plath, General Information, 312-640-6738, or Julie
Creed, Analysts, 312-640-6742, or Beth Gallanis, Media, 312-640-6737, all of the Financial Relations Board/




Harnischfeger Reports Record Fiscal Year-End Results


MILWAUKEE, WI - Nov. 21, 1996 - Harnischfeger Industries, Inc. (NYSE: HPH) Chairman and Chief Executive
Officer Jeffery T. Grade today announced significant increases in operating results and bookings for the
company's fiscal fourth quarter and year ended Oct. 31, 1996.


Net sales increased 16 percent to $712 million in the fourth quarter, up from $614 million in the same quarter last
year as a result of continued strong performance by all three core businesses: mining equipment, pulp and paper
machinery, and material handling.


Fourth-quarter income from continuing operations, before Beloit Corporation pre-tax restructuring charges of
$43.0 million, increased 37 percent to $41.6 million ($0.87 per share) from $30.3 million ($0.65 per share). Net
income in the quarter after restructuring charges was $19.8 million ($0.41 per share) compared to $23.4 million
($0.51 per share) in the same quarter last year.


Fourth-quarter bookings of $851 million improved 30 percent from levels of a year ago. Each of the company's
businesses continues to experience strong order and sales activity for original equipment and aftermarket support
products and services.


Record net sales for the fiscal year of $2,864 million increased 33 percent over 1995 sales of $2,152 million.
Income from continuing operations in fiscal 1996 before the restructuring charge was $136.0 million ($2.88 per
share) compared to $84.8 million ($1.83 per share) last year. Record net income of $114.2 million ($2.42 per
share) after the restructuring charge compared to $57.4 million ($1.24 per share) in fiscal 1995.


Fiscal year 1996 bookings of $3,001 million were 33 percent above 1995, with record bookings in all segments.
Order backlogs were $1,432 million at fiscal year end, compared to $1,032 million at the close of 1995.


"The company's increasingly strong operating results and bookings reflect ongoing strengths in our businesses on
a global basis," said Grade. "Harnischfeger's commitment to improving its Economic Value Added (EVA)
performance resulted in further progress during the year. For the first time, each of our businesses generated
positive EVA for our shareholders, which equates to at least 12 percent after tax on invested capital."


Mining

Sales of $349 million for the mining segment, including P&H Mining Equipment and Joy Mining Machinery, were
up 36 percent from the same quarter last year. Operating profit of $49.3 million was 39 percent higher than in the
same quarter last year. Bookings of $404 million were up 38 percent over the same period in 1995.


For the fiscal year, mining sales increased 49 percent to $1,406 million. Operating profit was $183.1 million, up
50 percent. The return on sales for the year was 13.0 percent. Bookings were up 45 percent to $1,406 million,
reflecting the strength of original equipment orders, including three new Model 9020 draglines in Australia and a
large, multi-unit order for Joy in Russia.


"Machinery orders and margins in our mining businesses continue to improve," Grade said. "The softness in
underground mining in the U.S. has begun to improve and the integration of Longwall with Joy continues on track.
In the important aftermarket segment of the mining business, both P&H and Joy have continued to focus on
growth."


Pulp and Paper Machinery

Beloit Corporation's sales were $266 million in the fourth quarter versus $289 million in the same period last
year, reflecting the completion of several large orders in the previous fiscal year. In the quarter, Beloit's
operating profit before restructuring rose 15 percent to $25.6 million and bookings were $368 million, up 38
percent over the same quarter the previous year.


For fiscal 1996, Beloit posted sales of $1,135 million, up 17 percent over fiscal 1995. Operating profit before
restructuring was up 63 percent to $91.5 million and the return on sales increased to 8.1 percent. Bookings for
1996 for Beloit totaled $1,270 million, up 25 percent, and backlog at year end was $846 million compared with
$680 million at the end of 1995.


Beloit's $43.0 million pre-tax restructuring charge, taken during the quarter, is based on its revised strategic plan.
The charge reflects the elimination or rearrangement of selected fixed assets and the expected reduction of
worldwide headcount by up to 7 percent or about 500 employees.


Grade said, "Beloit's strategic redirection positions the company to aggressively expand its Mill Services
business serving the pulp and paper industry and also to refocus its manufacturing and engineering operations into
global 'Centers of Excellence.' The company is dedicated to becoming more efficient and responsive to changing
customer needs in all markets, and in particular, in the rapidly growing Pacific Rim."


Material Handling

Fourth-quarter sales of $97 million in the quarter were up 41 percent over the equivalent year-earlier period.
Operating profit rose 69 percent to $12.4 million. For fiscal 1996, P&H Material Handling sales grew to $323
million, up 35 percent over 1995. Operating profit for the year increased 45 percent to $33.1 million, with return
on sales at 10.2 percent, and bookings of $325 million were up 23 percent.


"The P&H Material Handling results reflected continued high levels of demand for original equipment in
traditionally strong North American and U.K. markets plus the growing Pacific Rim region. Of equal importance,
P&H Material Handling continues to significantly expand its network of service and repair centers to meet the
needs of overhead crane users wherever they may be located," Grade said.


Harnischfeger Industries, Inc. (NYSE: HPH) is an international holding company with business segments
involved in the manufacture and distribution of equipment for surface mining (P&H Mining Equipment),
underground mining (Joy Mining Machinery), pulp and papermaking (Beloit Corporation), and material handling
(P&H Material Handling).


                            HARNISCHFEGER INDUSTRIES, INC.
                           CONSOLIDATED STATEMENT OF INCOME
                                              (000)
        

                                              Three Months Ended
                                                  October 31,
                                              1996          1995
        

                                               $             $
        REVENUES
          Net sales                          711,986       614,021
          Other income                         3,477         9,253
                                             715,463       623,274
        

        COST OF SALES                        517,158       475,075
        PRODUCT DEVELOPMENT,
          SELLING AND
          ADMINISTRATIVE EXPENSES            116,615        88,654
        RESTRUCTURING CHARGE                  43,000            --
        

        OPERATING INCOME                      38,690        59,545
        

        INTEREST EXPENSE - NET               (16,254)       (8,767)
        

        INCOME BEFORE JOY MERGER COSTS,
          GAIN ON SALE OF MEASUREX
          INVESTMENT, PROVISION FOR
          INCOME TAXES AND MINORITY
          INTEREST                            22,436        50,778
        

        PROVISION FOR INCOME TAXES            (6,300)      (17,800)
        

        MINORITY INTEREST                      3,643        (2,708)
        

        INCOME BEFORE JOY MERGER COSTS
          AND GAIN ON SALE OF
          MEASUREX INVESTMENT                 19,779        30,270
        

        JOY MERGER COSTS (Net of tax
          credit of $6,075)                       --            --
        

        GAIN ON SALE OF MEASUREX
          INVESTMENT  (Net of taxes
          of $11,000)                             --            --
        

        INCOME FROM CONTINUING OPERATIONS,
         after the 1996 restructuring
         charge of $21,830 and the 1995
         Joy merger costs and gain
         on sale of Measurex investment       19,779        30,270
        

        LOSS FROM AND NET LOSS ON SALE OF
          DISCONTINUED OPERATION, net of
          applicable income taxes                 --        (6,825)
        

        EXTRAORDINARY LOSS ON RETIREMENT
          OF DEBT, net of applicable
          income taxes                            --            --
        

        NET INCOME                            19,779        23,445
        

        EARNINGS PER SHARE                     $             $
          Income from continuing
           operations, before 1996
           restructuring charge and 1995
           Joy merger costs and gain on
           sale of Measurex investment          0.87          0.65
        

          Income from continuing
           operations                           0.41          0.65
          Loss from and net loss on sale
           of discontinued operation              --         (0.14)
          Extraordinary loss on
           retirement of debt                     --            --
        

          Net income per share                  0.41          0.51
        

        AVERAGE SHARES OUTSTANDING            47,560        46,680
        

                                              Twelve Months Ended
                                                  October 31,
                                              1996          1995
        

                                               $             $
        REVENUES
          Net sales                        2,863,931     2,152,079
          Other income                        23,639        32,208
                                           2,887,570     2,184,287
        

        COST OF SALES                      2,166,775     1,671,932
        PRODUCT DEVELOPMENT,
          SELLING AND
          ADMINISTRATIVE EXPENSES            433,776       330,990
        RESTRUCTURING CHARGE                  43,000            --
        

        OPERATING INCOME                     244,019       181,365
        

        INTEREST EXPENSE - NET               (62,258)      (40,713)
        

        INCOME BEFORE JOY MERGER COSTS,
          GAIN ON SALE OF MEASUREX
          INVESTMENT, PROVISION FOR
          INCOME TAXES AND MINORITY
          INTEREST                           181,761       140,652
        

        PROVISION FOR INCOME TAXES           (63,600)      (48,575)
        

        MINORITY INTEREST                     (3,944)       (7,230)
        

        INCOME BEFORE JOY MERGER COSTS
          AND GAIN ON SALE OF
          MEASUREX INVESTMENT                114,217        84,847
        

        JOY MERGER COSTS (Net of tax
          credit of $6,075)                       --       (11,384)
        

        GAIN ON SALE OF MEASUREX
          INVESTMENT  (Net of taxes
          of $11,000)                             --        18,657
        

        INCOME FROM CONTINUING OPERATIONS,
         after the 1996 restructuring
         charge of $21,830 and the 1995
         Joy merger costs and gain
         on sale of Measurex investment      114,217        92,120
        

        LOSS FROM AND NET LOSS ON SALE OF
          DISCONTINUED OPERATION, net of
          applicable income taxes                 --       (31,235)
        

        EXTRAORDINARY LOSS ON RETIREMENT
          OF DEBT, net of applicable
          income taxes                            --        (3,481)
        

        NET INCOME                           114,217        57,404
        

        EARNINGS PER SHARE                     $             $
          Income from continuing
           operations, before 1996
           restructuring charge and 1995
           Joy merger costs and gain on
           sale of Measurex investment          2.88          1.83
        

          Income from continuing
           operations                           2.42          1.99
          Loss from and net loss on sale
           of discontinued operation              --         (0.67)
          Extraordinary loss on
           retirement of debt                     --         (0.08)
        

          Net income per share                  2.42          1.24
        

        AVERAGE SHARES OUTSTANDING            47,196        46,218
        

                              HARNISCHFEGER INDUSTRIES, INC.
                                 BUSINESS SEGMENT SUMMARY
                       FOR THE THREE MONTHS ENDED OCTOBER 31, 1996
                                          (000)
        

                                                  Net Sales
                                              1996          1995
        

                                                $            $
        Mining Equipment                     349,372       256,441
        

        Pulp and Paper Machinery             266,049       289,130
        

        P&H Material Handling                 96,565        68,450
        

            Total Business Segments          711,986       614,021
        

                                               Operating Profit
                                              1996          1995
        

                                               $             $
        Mining Equipment                      49,336        35,611
        

        Pulp and Paper Machinery              25,575        22,297
        Restructuring Charge                 (43,000)           --
            Total                            (17,425)       22,297
        

        P&H Material Handling                 12,373         7,304
        

            Total Business Segments           44,284        65,212
        

        Corporate Administration              (5,594)       (5,667)
        

        Interest Expense - Net               (16,254)       (8,767)
        

        Income before Provision for Income
             Taxes, Minority Interest, and
             1995 Joy Merger Costs and Gain
             on Sale of Measurex Investment   22,436        50,778
        

                                                 Orders Booked
                                               1996          1995
        

                                               $             $
        Mining Equipment                     403,607       292,478
        

        Pulp and Paper Machinery             368,069       266,984
        

        P&H Material Handling                 79,626        94,153
        

            Total Business Segments          851,302       653,615
        

                                                 Backlog at
                                                End of Period
                                             10/96         07/96
        

                                               $             $
        Mining Equipment                     453,480       399,245
        

        Pulp and Paper Machinery             846,137       744,117
        

        P&H Material Handling                132,550       149,489
        

            Total Business Segments        1,432,167     1,292,851
        

                              HARNISCHFEGER INDUSTRIES, INC.
                                 BUSINESS SEGMENT SUMMARY
                           FOR THE YEAR ENDED OCTOBER 31, 1996
                                          (000)
        

                                                   Net Sales
                                               1996          1995
        

                                                $            $
        Mining Equipment                   1,405,936       941,779
        

        Pulp and Paper Machinery           1,134,779       970,418
        

        P&H Material Handling                323,216       239,882
        

            Total Business Segments        2,863,931     2,152,079
        

                                               Operating Profit
                                              1996          1995
        

                                               $             $
        Mining Equipment                     183,141       122,116
        

        Pulp and Paper Machinery              91,511        56,062
        Restructuring Charge                 (43,000)           --
            Total                             48,511        56,062
        

        P&H Material Handling                 33,107        22,850
        

            Total Business Segments          264,759       201,028
        

        Corporate Administration             (20,740)      (19,663)
        

        Interest Expense - Net               (62,258)      (40,713)
        

        Income before Provision for Income
          Taxes, Minority Interest, and
          1995 Joy Merger Costs and Gain
          on Sale of Measurex Investment     181,761       140,652
        

                                                  Orders Booked
                                               1996          1995
        

                                               $             $
        Mining Equipment                   1,406,381 (1)   972,419
        

        Pulp and Paper Machinery           1,269,507 (2) 1,016,273
        

        P&H Material Handling                324,887       263,649
        

            Total Business Segments        3,000,775     2,252,341
        

                                                  Backlog at
                                                End of Period
                                             10/96         10/95
        

                                               $             $
        Mining Equipment                     453,480       221,540
        

        Pulp and Paper Machinery             846,137       679,625
        

        P&H Material Handling                132,550       130,879
        

            Total Business Segments        1,432,167     1,032,044
        

        (1)  Does not include backlog assumed in the purchase of Longwall
        International totaling $231,495.
        

        (2)  Does not include backlog assumed in the purchase of IMPCO totaling
        $31,784.
        

                              HARNISCHFEGER INDUSTRIES, INC.
                                 CONDENSED BALANCE SHEET
                                          (000)
        

                                           October 31,   October 31,
                                              1996          1995
        

                                               $             $
        Assets
        Current assets:
           Cash and cash equivalents          36,936       239,043
           Accounts receivable - net         667,786       499,953
           Inventories                       547,115       416,395
           Other current assets              132,261        57,999
           Businesses held for sale           26,152            --
        

                                           1,410,250     1,213,390
        

        Property, plant and
          equipment - net                    634,045       487,656
        

        Intangible assets                    551,866       214,739
        

        Other assets                          93,868       124,982
        

        Total Assets                       2,690,029     2,040,767
        

        Liabilities and Shareholders'
          Equity
        Current liabilities:
           Short-term notes payable,
            including current portion
            of long-term obligations          49,633        22,802
           Trade accounts payable            346,056       263,750
           Employee compensation and
            benefits                         160,488       100,041
           Advance payments and
            progress billings                155,199       154,401
           Accrued warranties                 50,718        43,801
           Other current liabilities         315,033       138,508
        

                                           1,077,127       723,303
        

        Long-term obligations                657,765       459,110
        

        Liability for postretirement
          benefits                            78,814       101,605
        

        Deferred income taxes                 54,920        34,805
        

        Other liabilities                     54,266        73,057
        

        Minority interest                     93,652        89,611
        

        Shareholders' equity                 673,485       559,276
        

        Total Liabilities and
         Shareholders' Equity              2,690,029     2,040,767
        

SOURCE Harnischfeger Industries, Inc./CONTACT: Francis M. Corby, Jr., Executive Vice President, Finance
and Administration, 414-486-6518; James C. Benjamin, V.P. And Controller, 414-486-6870; or David A.
Brukardt, Dir., Corp. Comm., 414-486-6474, all of Harnischfeger Industries/