Exhibit 99.1
NEWS RELEASE
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CONTACT: Kevin McDermed
913 367 2121
NYSE: FDY
ATCHISON CASTING CORPORATION COMPLETES
SALE OF SUBSIDIARY
Atchison, Kansas - February 21, 2002 - Atchison Casting Corporation
(NYSE:"FDY") today announced the sale, on February 20, 2002, of
substantially all of the assets of its Los Angeles Die Casting Inc. subsidiary
to Del Mar Industries, Inc. Los Angeles Die Casting produces precision aluminum
and zinc die castings for the computer, communications and recreation
industries.
Approximately $2.4 million of the cash portion of the proceeds will be used
to retire outstanding indebtedness, with the remainder available for working
capital purposes.
For fiscal years 2000 and 2001, Los Angeles Die Casting recorded net sales
of $9.5 million and $8.2 million, respectively, and net income of $280,000 and
$61,000, respectively, excluding an impairment charge of $2.7 million in the
fourth quarter of fiscal 2001. For the first half of fiscal 2001 and fiscal
2002, Los Angeles Die Casting recorded net income/(loss) of $58,000 and
($15,000), respectively, on sales of $4.5 million and $3.6 million,
respectively.
As previously announced, the Company completed the sale of Jahn Foundry
Corp. on December 20, 2001.
ACC produces iron, steel and non-ferrous castings for a wide variety of
equipment, capital goods and consumer markets.
This press release contains forward-looking statements that involve risks
and uncertainties. Such statements include the Company's expectations as to
future performance. Among the factors that could cause actual results to differ
materially from the forward looking statements are the following: costs of
closing foundries, business conditions and the state of the general economy,
particularly the capital goods industry, the strength of the U.S. dollar,
British pound sterling and the Euro, interest rates, the Company's ability to
renegotiate or refinance its lending arrangements, utility rates, the
availability of labor, the successful conclusion of union contract negotiations,
the results of any litigation arising out of the accident at Jahn Foundry,
results of any litigation or regulatory proceedings arising from the accounting
irregularities at the Pennsylvania Foundry Group, the competitive environment in
the casting industry and changes in laws and regulations that govern the
Company's business, particularly environmental regulations.
ATCHISON CASTING CORPORATION
400 SOUTH FOURTH STREET o P.O. BOX 188 o ATCHISON, KANSAS 66002-0188
o (913) 367-2121 o FAX (913) 367-2155
