Reunion Industries Announces Third Quarter 2000 Results

PITTSBURGH--(BUSINESS WIRE)--Nov. 15, 2000--Reunion Industries, Inc. (AMEX -RUN), reported net income of $4.5 million, or $0.30 per share basic ($0.29 diluted), on sales of $48.6 million for the three months ended September 30, 2000.

Third quarter 2000 sales includes $35.3 million from the Company's Metals Group and $13.3 million from its Plastics Group. The Company's agricultural operations have been reclassified as discontinued operations because of the previously reported sale of substantially all of the property on October 27, 2000. The Company had an operating profit of $7.4 million for the third quarter of 2000, including a $4.5 million gain on the previously announced sale of the Plastics Group's Irish operations. The three month results included net losses from discontinued operations of $0.2 million, primarily related to adjustments to the gain on the 1999 sale of the grating operations resulting from completion of arbitration proceedings.

For the first nine months of 2000, the Company had net income of $4.0 million, or $0.31 per share (basic and diluted), on sales of $136.2 million and generated an operating profit of $13.8 million, including the $4.5 million gain on the sale of the Irish operations. The nine month results include net losses from discontinued operations of $0.5 million, related to the agricultural operations and the adjustments to the gain on the 1999 sale of the grating operations, and net losses from extraordinary items of $1.1 million, related to the write-offs of deferred financing costs in the first quarter of 2000 as the result of the refinancing of the Company in its merger with the former Chatwins Group, Inc.

Although not comparable due to the merger of Reunion and Chatwins Group, Inc. on March 16, 2000 and the simultaneous acquisition of Kingway Material Handling Company, income from continuing operations was $4.7 million, or $0.32 per share (basic), for the quarter ended September 30, 2000 on sales of $48.6 million versus a loss of $0.1 million, or $0.02 loss per share, on sales of $26.5 million for the same quarter in 1999. For the nine months ended September 30, 2000, the Company reported income from continuing operations of $5.5 million, or $0.44 per share (basic), on sales of $136.2 million versus a loss of $0.1 million, or $0.05 loss per share, on sales of $88.1 million for the same period in 1999.

Company President Kimball Bradley, in his comments on the third quarter, said "We continue to reduce debt through the divestiture of our ancillary business assets. Since the merger in March of this year, the company has paid down approximately $30 million of the total outstanding debt. We are committed to strengthening our balance sheet, deleveraging the company and creating shareholder value. The core business units are focused on continuous improvement and elevating the level of service we provide to our customers."

Reunion Industries is headquartered at 11 Stanwix Street, Suite 1400, Pittsburgh, Pennsylvania, 15222. The Metals Group, through its five manufacturing divisions, designs, manufactures and markets a broad range of metal fabricated and machined industrial parts and products, including seamless steel pressure vessels, fluid power cylinders, industrial cranes and structures for bridges, leaf springs and material handling systems. The Plastics Group manufactures high volume, precision plastics products and thermoset compounds and provides engineered plastics services.

This press release contains forward-looking statements as defined by Section 21E of the Securities Act of 1934, as amended, concerning the Company's expectations about the sales of businesses and estimated proceeds, future results of operations, financial position and cash flows, which are dependent on future events, including events beyond the control of the Company. Additional information on potential factors and risks that could affect the company's future operations are contained in the Company's reports and filings with the Securities and Exchange Commission.

                       REUNION INDUSTRIES, INC.
                  CONSOLIDATED SUMMARY OF OPERATIONS
             (in thousands, except per share information)
                              (unaudited)


                               3 Months Ended     9 Months Ended
                               Sept. 30, 2000     Sept. 30, 2000

Net sales                         $ 48,576           $136,195
                                  ========           ========

Operating profit                  $  7,400           $ 13,810
                                  ========           ========

Net income                        $  4,503           $  3,995
                                  ========           ========
Income applicable to
  common stockholders             $  4,503           $  3,900
                                  ========           ========

Net income per share
  (basic)                         $   0.30           $   0.31
                                  ========           ========
Net income per share
  (diluted)                       $   0.29           $   0.31
                                  ========           ========

Weighted average shares
  outstanding (basic)               15,236             12,564
                                  ========           ========
Weighted average shares
  outstanding (diluted)             15,387             12,624
                                  ========           ========

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