Johns Manville Reports Record First Quarter Results /

Establishes Positive Momentum for 1999 DENVER (PROTEXT) - Johns Manville Corporation (NYSE: JM) todayreported record results for the first quarter of 1999. Net incomewas $37.7 million, or 23 cents per diluted share, a 45 percentincrease compared with underlying net income of $26 million, or16 cents per share, in the first quarter of 1998. This increaseis primarily due to accretion from recent acquisitions, continuedsold-out conditions and price recovery in building insulation,improved performance in roofing and mats and fibers productlines, and productivity gains across the business. The effectivetax rate in the first quarter of 1999 was 35 percent comparedwith an effective rate of approximately 26 percent in the year-ago period. Income from operations increased 44 percent to $65million in the first quarter of 1999 compared with $45.1 millionin the same period last year. Net sales increased 27 percent in the first quarter of 1999 to$495.8 million, compared with $389.3 million in the first quarterof 1998, setting a new quarterly sales record. Acquisitionscontributed approximately $67 million to the sales increase inthe first quarter, with the balance attributable to continuedstrong demand for building insulation, roofing and mats andfibers product lines. "I am very pleased with our first quarter results and believethis performance establishes positive momentum for the remainderof 1999," said Jerry Henry, Chairman and CEO. "Buildinginsulation had an exceptional quarter and we are judiciouslyadding capacity to meet continued strong demand in this business.In Roofing, despite continued pricing pressures in roofinginsulation products, we generated sales increases as the roofingseason kicked in towards the end of the quarter. And, inEngineered Products, our spunbond acquisition is performingbetter than anticipated and our North American fiber glass matsand fibers business is operating at capacity. These factors,along with a continued focus on productivity improvements acrossthe business, helped make this a record first quarter for JohnsManville. "The outlook for the remainder of 1999 is positive, withcontinued strength anticipated across most of the business,"added Mr. Henry. "The filtration and European mats and fibersbusinesses are starting to show improvement, and we arecautiously optimistic that they will continue on this positivetrack as we move forward." Segment Review Insulation The Insulation segment, which includes building,commercial/industrial and OEM insulations, reported net sales of$193 million in the first quarter, up 17 percent compared with$164.4 million in the first quarter of 1998. This increase wasprimarily driven by strong volumes and a significantly improvedpricing environment in building insulation, volume gains in pipe,air handling and OEM insulations, as well as significant salesincreases from the company's ComfortTherm(TM) residential retailinsulation product, due to a recent advertising campaign andstrong sales force performance. Income from operations inInsulation more than doubled in the first quarter to $39.1million, from $18.5 million in the comparable period last year.This increase is primarily due to strength in building insulationpricing, and productivity improvements across the segment. To continue to satisfy robust demand, Johns Manville hasincreased its low-cost, high-quality production of buildinginsulation. The company expanded production at its McPherson,Kansas plant. The expansion, which involved adding a secondbuilding insulation module to an existing line, was completed inthe first quarter, ahead of schedule and within budget. Inaddition, on March 31, 1999, Johns Manville announced that itwill increase its fiber glass insulation production and enhanceits insulation products line with the expansion of its plant inWinder, Georgia. The new production line, which is expected tobecome operational in July 2000, will allow the company toincrease production capacity and will strengthen JM's position asa leader in building and commercial/industrial insulationmarkets. Roofing Systems The Roofing Systems segment reported higher sales in the firstquarter of 1999, up 16 percent to $121.8 million, from $105.4million in first quarter last year. Sales gains in roofing havebeen fueled predominantly by significant volume increases and byacquisitions completed over the last two years. In addition,roofing season activity, which typically begins in mid- March,was stronger than last year's first quarter due to more favorableweather conditions. Income from operations in this segmentincreased eight percent in the first quarter of 1999 to $4.7million from $4.4 million in the comparable period of 1998,despite continued pricing pressures in polyisocyanurate foamroofing insulation. This situation is expected to improve withannounced price increases in "polyiso" and other Roofing Systemsproduct lines scheduled for the second quarter of 1999. Engineered Products The Engineered Products segment, which includes mats andfibers, glass fabrics and air filtration products, reported netsales of $190.5 million in the first quarter of 1999, a 51percent increase compared with $125.9 million in the firstquarter of 1998. This increase was largely fueled by acquisition-related gains from the Hoechst spunbond acquisition, completed onJanuary 1, 1999. In addition, JM's North American fiber glassmats and fibers business is operating at capacity with particularstrength in roofing mat and gypsum fiber, which added to salesgrowth. Income from operations for the quarter in the EngineeredProducts Group was $21.2 million, down five percent from $22.3million in the same period last year. Despite significantearnings contribution from the spunbond acquisition and improveddomestic mats and fibers performance, this decline is the resultof continued weakness in JM's filtration and European businesses,due to soft economic markets in Europe and Asia in the firstquarter. In addition, Engineered Products' results were adverselyaffected in the first quarter by a scheduled furnace rebuild andone-time costs associated with the spunbond acquisition. Thefurnace rebuild was completed successfully in the quarter and isnow fully operational, allowing the company to meet strong demandin its North American mats and fibers product lines. "We are very pleased with the performance of our spunbondacquisition; it has exceeded our expectations in the firstquarter," said Mr. Henry. "We closed the acquisition at the startof the quarter and the increase in our Engineered Products salesclearly illustrates its impact on the business." Johns Manville (NYSE: JM) is a leading manufacturer andmarketer of premium-quality building products. The 141-year-oldDenver-based company had sales of $1.8 billion in 1998. JohnsManville employs approximately 9,200 people and operates 54manufacturing facilities in North America, Europe and China.Additional information can be found at www.jm.com. This news release contains "forward looking statements" withinthe meaning of the federal securities laws with respect to thecompany's financial results and its future operations and, assuch, concern matters that are not historical facts. Thesestatements are subject to risks and uncertainties that couldcause actual results to differ materially from those expressed insuch statements. Important factors that could cause suchdifferences are discussed in the company's periodic reports onForms 10-Q and 10-K that are filed with the Securities andExchange Commission and are incorporated herein by reference.

JOHNS MANVILLE CORPORATION

CONDENSED CONSOLIDATED STATEMENT OF INCOME

(Thousands of dollars except per share amounts)

(Unaudited)

Three Months

Ended March 1,

1999 1998

Net Sales

$495,758 389,336

Cost of Sales

359,929 293,588

Selling, General and Administrative

53,751 42,900

Research, Development and Engineering

9,714 7,615

Other Income (Expense), net

(7,357) (103)

Income from Operations

65,007 45,130

Interest Income

628 1,865

Interest Expense

7,644 12,058

Income before Income Taxes and Cumulative

Effect of Accounting Change

57,991 34,937

Income Tax Expense

20,297 8,907

Income before Cumulative Effect of

Accounting Change

37,694 26,030

Cumulative Effect of a Change in

Accounting for Furnace Rebuilds,

net of tax 27,409

Net Income

$ 37,694 $53,439

Three Months

Ended March31,

EARNINGS PER COMMON SHARE

1999 1998

Basic:

Income before Cumulative Effect of

Accounting Change

$.24 $.16

Cumulative Effect of a Change in

Accounting for Furnace Rebuilds,

net of tax .17

Net Income

$.24 $.33

Diluted:

Income before Cumulative Effect of

Accounting Change

$.23 $.16

Cumulative Effect of a Change in

Accounting for Furnace Rebuilds,

net of tax .17

Net Income

$.23 $.33

JOHNS MANVILLE CORPORATION

CONDENSED CONSOLIDATED BUSINESS SEGMENTS

(Thousands of dollars)

(Unaudited)

Three Months

Ended March31,

NET SALES

1999 1998

Insulation

$192,982 $164,379

Roofing Systems

121,838 105,423

Engineered Products

190,548 125,852

Eliminations

(9,610) (6,318)

$495,758 $389,336

INCOME FROM OPERATIONS

Insulation

$ 39,105 $ 18,509

Roofing Systems

4,706 4,367

Engineered Products

21,196 22,254

$ 65,007 $ 45,130

(Millions ofdollars)

March 31, December 31,

OTHER INFORMATION:

1999 1998

Cash and Marketable Securities

$ 39.9

$ 16.5

Total Debt

571.9 591.9

Three Months

Ended March 31,

1999 1998

Depreciation and Amortization

$ 28.4

$ 23.3

Capital Expenditures

(excluding acquisitions)

31.3 22.4 JOHNS MANVILLE CORPORATION

Notes to Condensed Consolidated Statement of Income

(Unaudited) (a) The Company's effective tax rates were approximately 35percent and 26 percent in 1999 and 1998, respectively. These arelower than statutory rates primarily due to tax deductions theCompany receives when the Manville Personal Injury SettlementTrust (the "Trust") pay claimants or makes distributions to aspecific settlement fund from dividends paid on, or proceedsreceived from disposition of, Company stock held by the Trust.The Company benefited from such distribution to the settlementfund of dividends paid during both years and stock sale proceedsduring 1998. (b) Effective January 1, 1998, the Company changed its methodof accounting for glass furnace rebuild costs to thecapitalization method from the allowance method. The cumulativeeffect of this change in accounting principle increased 1998 netincome by $27.4 million, net of taxes of $17.9 million. Refer to the Company's 1998 Annual Report for additionalinformation relative to its accounting policies, operations andfinancial position. ots Original Text Service: Johns ManvilleCorporation Internet: http://www.newsaktuell.de Contact:Investors: John Cummings, 303-978-4914, or Media: Tom Rafferty,303-978-2038, both of Johns Manville Corporation Company NewsOn-Call: http://www.prnewswire.com/comp/527775.html or fax, 800-758-5804, ext. 527775 Web site: http://www.jm.com

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