PITTSBURGH--(BUSINESS WIRE)--Nov. 14, 2001--Reunion Industries, Inc. RUN, reported a net loss of $2.7 million, or $0.17 per share (basic and diluted), on sales of $38.7 million for the three months ended September 30, 2001.

Third quarter 2001 sales includes $30.0 million from the Company's Metals Group and $8.7 million from its Plastics Group. The Company had an operating loss of $1.8 million for the third quarter of 2001 on such sales. For the first nine months of 2001, the Company had a net loss of $2.5 million, or $0.16 per share (basic and diluted), on sales of $132.1 million and generated an operating profit of $3.4 million.

Although not strictly comparable due to the merger of Reunion and Chatwins Group, Inc. and the acquisition of Kingway Material Handling Company, both on March 16, 2000, the sale of its Irish plastics business in August 2000 and the acquisition of NPS Acquisition Corp. in January 2001, sales for the third quarter of 2000 were $48.7 million which resulted in an operating profit of $7.6 million and net income of $4.3 million. For the nine months ended September 2000, sales were $138.6 million with an operating profit of $14.2 million and a net income of $3.6 million. Operating profit for the third quarter and first nine months of 2000 includes a $4.9 million gain on the sale of the Company's Irish plastics business. The net income for the first nine months of 2000 includes losses from extraordinary items totaling $1.9 million related to the write-offs of deferred financing costs as the result of the refinancing of the Company in the merger.

Company President Kimball Bradley, in his comments on the third quarter, said, "Third quarter results reflect a continuing industrial economic downturn in several of the key markets served by the company which worsened in the third quarter. Although we have been reducing costs, improving processes and streamlining operations for the last twelve months in response to these conditions, the third quarter decline in volume adversely affected our liquidity and ability to absorb costs. In response to these conditions, we have determined to take actions to restructure our continuing businesses in order to improve productivity and operating performance. Though regrettable, these actions will include employee separations, facility shutdowns and disposal of non-strategic businesses. The company remains committed to our customers, shareholders and employees."

Reunion Industries is headquartered at 11 Stanwix Street, Suite 1400, Pittsburgh, Pennsylvania, 15222.

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 Company's plans and future results of operations, 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
                               September 30,         September 30,
                              2001      2000        2001      2000
                            --------  --------    --------  --------

Net sales                   $ 38,732  $ 48,692    $132,072  $138,589
                            ========  ========    ========  ========

Operating profit (loss)     $ (1,774) $  7,617    $  3,411  $ 14,188
                            ========  ========    ========  ========
Income (loss) from
  continuing operations     $ (2,720) $  4,711    $ (2,459) $  6,284
                            ========  ========    ========  ========

Net income (loss)           $ (2,720) $  4,294    $ (2,459) $  3,570
                            ========  ========    ========  ========
Income (loss) per share
  from continuing operations
  (basic and diluted)       $  (0.17) $   0.31    $  (0.16) $   0.49
                            ========  ========    ========  ========
Net income (loss) per share
  (basic and diluted)       $  (0.17) $   0.28    $  (0.16) $   0.28
                            ========  ========    ========  ========
Weighted average shares
  outstanding (basic)         15,587    15,236      15,585    12,564
                            ========  ========    ========  ========
Weighted average shares
  outstanding (diluted)       15,636    15,387      15,651    12,624
                            ========  ========    ========  ========

Contact Information:
Reunion Industries, Inc.
John M. Froehlich, 412/281-2111

© 2001 BusinessWire