U.S. Can Reports Strong Second Quarter Results

Oak Brook, Ill. (PROTEXT) - U.S. Can Corporation's (NYSE: USC)second quarter earnings increased 89% over the second quarter of1998 before an extraordinary item related to early debtrepurchases, according to U.S. Can Chairman and CEO Paul W.Jones. "I am pleased with the continuing progress being made onbehalf of our shareholders. Net earnings of $7.1 million or $0.53per share ($6.3 million or $0.47 per share after extraordinaryitem) compares favorably with the $3.8 million or $0.28 per sharereported in the second quarter of last year," he added. Jonescited strengthening sales, improved productivity, higheroperating margins and lower interest expense as the primarycontributors to the strong results. Jones stated that, "We remain encouraged by the results of oursecond quarter and look forward to continuing improvement duringthe second half of this year relative to 1998. Our focus on cashflow has resulted in debt reduction of $31 million from year end1998 levels." For the quarter ended July 6, 1999, U.S. Can reported netsales of $187 million, an increase of 2% from the second quarterof 1998. The Company also reported first half sales of $372million, a decrease of 1% from the $376 million reported in thefirst half of 1998. Strong second quarter sales in aerosol andpaint helped narrow the six-month shortfall. Gross margin of 15.2% in the second quarter of 1999 comparesfavorably to the 12.8% reported in the second quarter of 1998.Gross margin of 14.6% for the half compares to 12.4% reported inthe first half of 1998. Second quarter 1999 margins reflectstrong aerosol demand, improved performance in Europe andexcellent productivity in our paint and general line operations.Operating margins of 10.6% and 10.1% for the second quarter andfirst half of 1999 also compared favorably to the 8.3% and 8.0%reported during the corresponding periods of 1998. Interest expense of $7.3 million in the second quarter and$14.9 million for the first half of 1999 represented a reductionof 13% from the corresponding periods of 1998. This decrease isthe result of continuing emphasis on cash and working capitalmanagement coupled with controlled capital programs. During thesecond quarter an extraordinary loss net of tax of $0.8 millionwas recorded to cover the redemption premium on the portion ofthe Company's 10-1/8% subordinated notes, which had beenredeemed. Diluted earnings per share before extraordinary item of$0.53 and after extraordinary item of $0.47 recorded in thesecond quarter of 1999 compares to $0.28 reported in the secondquarter of last year. Diluted earnings per share year-to-date in1999 are $0.94 ($0.88 after extraordinary item). This compares to$0.52 recorded in the first half of 1998. U.S. Can Corporation is a leading manufacturer of steelcontainers for personal care, household, automotive, paint andindustrial products in the United States and Europe, as well asplastic containers in the United States. Certain statements in this release constitute "forward-lookingstatements" within the meaning of the Federal securities laws.Such statements involve known and unknown risks and uncertaintieswhich may cause the Company's actual results, performance orachievements to be materially different than future results,performance or achievements expressed or implied in this release.By way of example and not limitation and in no particular order,known risks and uncertainties include the timing of, and netproceeds realized from, divestitures; the timing and cost ofplant closures; the level of cost reduction achieved throughrestructuring; the success of new technology; changes in marketconditions or product demand; loss of important customers;changes in raw material costs; and currency fluctuations. Inlight of these and other risks and uncertainties, the inclusionof a forward-looking statement in this release should not beregarded as a representation by the Company that any futureresults, performance or achievements will be attained. otsOriginal Text Service: U.S. Can Corporation Internet:http://www.newsaktuell.de Contact: John L. Workman, ExecutiveVice President and Chief Financial Officer of U.S. CanCorporation, Tel.: (in the USA) 630-571-2531 Web site:http://www.uscanco.com

Subscribers please note that material bearing the slug"PROTEXT" is not part of CTK's news service and is not to bepublished under the "CTK" slug. Protext is a commercial serviceproviding distribution of press releases from clients, who areidentified in the text of Protext reports and who bear fullresponsibility for their contents.

PROTEXT