[LOGO] Safety-Kleen Corp.
1000 N. Randall Road
Elgin, Illinois 60123
(847) 697-8460
For further information:
FOR IMMEDIATE RELEASE Contact: Larry Rudnick
(847) 468-2408
Maureen Fisk
(847) 468-2452
SAFETY-KLEEN COMMENTS ON
FIRST QUARTER 1997 ANTICIPATED EARNINGS
ELGIN, ILLINOIS -- MARCH 11, 1997 -- Safety-Kleen Corp. announced today that the
Company anticipates earnings for the first quarter, ending March 22, 1997, will
be approximately $0.20 per share. Safety-Kleen reported earnings of $0.23 per
share in the first quarter of 1996.
As discussed in its fourth quarter 1996 earnings release issued on Feb. 10,
1997, the Company continues to experience downward pressure on its lube oil
pricing due to the market's reaction to scheduled capacity increases in the
North American lube oil industry. Safety-Kleen President and CEO, John G.
Johnson, Jr., commented, "This added capacity continues to negatively impact our
base lube oil selling prices more than anticipated. As a result of this weak
lube oil market, we have deferred the planned expansion of our East Chicago
re-refinery," Johnson added. The Company expects that its Oil Recovery Service
will generate a net loss of approximately $1 million in the first quarter of
1997 compared to net earnings of $860,000 in the first quarter of 1996.
Safety-Kleen also noted that the first quarter results will be impacted by
incentives offered to its service representatives in 1996 designed to ensure
completion of all scheduled services by year-end. "We typically see a certain
number of scheduled services roll into the first quarter of the new year due to
the holidays," Johnson said. "This year-end push resulted in a boost to fourth
quarter 1996 revenue and earnings but we estimate that it negatively impacted
first quarter 1997 net earnings by approximately $1 million."
Johnson concluded, "With the exception of the Oil Recovery Service, we are
confident that our other services will produce the expected strong revenue
growth during the remainder of the year."
Safety-Kleen is an environmental and industrial service company dedicated to
helping businesses of all sizes recycle and process their waste streams.
Safety-Kleen stock is traded on the New York Stock Exchange under the symbol SK.
Further information may be obtained via the internet by contacting
[email protected].
PRIVATE SECURITIES LITIGATION REFORM ACT DISCLOSURE
This press release contains various forward-looking statements, including
earnings and revenue projections. There are many factors that could cause actual
results to differ materially, such as: adoption of new environmental laws and
regulations and changes in the way they are interpreted and enforced; general
business conditions such as the level of competition, changes in demand for the
Company's services and the strength of the economy in general; and changes in
prices for petroleum-based products. These and other factors are discussed in
the Company's Annual Report on Form 10-K and other documents filed with the
Securities and Exchange Commission.
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[RECYCLE LOGO] Printed on recycled paper.
