TCR_Public/960208.MBX BANKRUPTCY CREDITORS' SERVICE, INC.


Bankruptcy News for - February 8, 1996



  1. KMART CORPORATION REPORTS JANUARY SALES INCREASE
  2. Hexcel Reports Fourth Quarter and 1995 Results; Operating Results Reflect Improved Sales and Margins



KMART CORPORATION REPORTS JANUARY SALES INCREASE

        
        TROY, Mich., February 8, 1996 - Kmart Corporation
        


        (NYSE: KM) today reported, on a comparable store basis, consolidated
        sales rose 5.5% for the four-week period ended January 24, 1996 over
        sales for the four weeks ended January 25, 1995.  January sales in
        U.S. Kmart stores increased 7.5% on a comparable store basis.
        


        Total sales for the four week period from consolidated operations
        increased 2.9%, excluding sales of the divested Borders Group,
        OfficeMax and The Sports Authority operations.  On that basis, sales
        amounted to $1.954 billion in January 1996, versus sales of
        $1.898 billion for the same period last year.
        


        Sales from consolidated operations for the 13 weeks ended January
        24, 1996 were $10.089 billion, up 2.2% from the $9.877 billion for
        the prior year and excluding sales of the divested Borders Group,
        OfficeMax and The Sport Authority operations.  On a comparable store
        basis, consolidated sales rose 3.7% for the same period.
        


        Sales from consolidated operations for the 52 weeks ended January
        24, 1996 were $33.948 billion, up 4.4% from the $32.514 billion for
        the 52 weeks of 1995, excluding sales of the divested Borders Group,
        OfficeMax and The Sports Authority operations.  On a comparable
        store basis, consolidated sales rose 4.3% for the same period.
        


        Kmart Corporation serves America with 2,171 Kmart and 167 Builders
        Square retail outlets, and operates 147 stores internationally.

        
        Kmart Corporation common stock is listed on the New York, Pacific
        and Chicago Stock Exchanges.
   

     
                              KMART CORPORATION
                              SALES BY BUSINESS
        
                                    4 Weeks Ended     % Change
                                                     All   Comparable
        (Millions U.S. $)         1-24-96  1-25-95  Stores   Stores
        
        General Merchandise
          United States           $ 1,706  $ 1,634    4.3      7.5
          International                97       87   12.0     11.6   (a)
        Total General Merchandise   1,803    1,721    4.7      7.7
        
        Builders Square               151      177  (14.7)   (14.8)
        
        Total Kmart               $ 1,954  $ 1,898    2.9      5.5
        
                                   13 Weeks Ended     % Change
                                                    All   Comparable
        (Millions U.S. $)         1-24-96 1-25-95  Stores   Stores
        General Merchandise
          United States           $ 9,075 $ 8,793    3.2      5.9
          International               422     405    4.2      3.7    (a)
        Total General Merchandise   9,497   9,198    3.3      5.8
        
        Builders Square               592     679  (12.8)    (10.7)
        
        Total Kmart               $10,089 $ 9,877    2.2      3.7
        
                                   52 Weeks Ended     % Change
                                                     All   Comparable
        (Millions U.S. $)         1-24-96  1-25-95  Stores   Stores
        
        General Merchandise
          United States           $30,037  $28,386    5.8      5.6
          International             1,272    1,177    8.1      3.0   (a)
        Total General Merchandise  31,309   29,563    5.9      5.5
        
        Builders Square             2,639    2,951  (10.6)    (8.7)
        
        Total Kmart               $33,948  $32,514    4.4      4.3
        
        (a) International Comparable Store Sales Change is calculated on
            sales in the applicable local currency.


        CONTACT:  Robert M. Burton of Kmart Investor Relations,
        810-643-1040


Hexcel Reports Fourth Quarter and
1995 Results;
        Operating Results Reflect Improved Sales and Margins
        


            PLEASANTON, Calif. -- Feb. 8, 1996 -- href="chap11.hexcel.html">Hexcel Corp.
        (NYSE/PSE: HXL) today reported results for the fourth quarter and
        year ended Dec. 31, 1995.
        


            Net sales for the quarter were $92.7 million, a 21% increase
        over net sales for the fourth quarter of 1994 of $76.7 million.
        Gross margin was $18.4 million for the fourth quarter of 1995, or
        19.8% of sales, compared with $11.0 million for the fourth quarter
        1994, or 14.3% of sales.
        


            Net income was $2.1 million or $0.11 per share for the 1995
        quarter, versus a net loss of $2.6 million, or $0.35 per share for
        the same period of 1994.  The net loss for the fourth quarter of
        1994 was reduced by a $15.9 million gain on the sale of the
        Chandler, Ariz., manufacturing facility and related assets and
        technology, but includes $2.9 million of bankruptcy claim
        adjustments and $8.2 million of bankruptcy reorganization expenses.

        
            There were approximately 18.1 million weighted average shares
        outstanding during the fourth quarter of 1995, compared with 7.3
        million in the fourth quarter of 1994, due to the completion of the
        Company's equity offering during the second quarter of the year.
   

     
            Net sales for 1995 totaled $350.2 million, compared with 1994
        net sales of $313.8 million.  Gross margin was $67.1 million for
        1995, or 19.2% of sales, compared with 1994 gross margin of $48.4
        million, or 15.4% of sales.  Net income for 1995 was $2.7 million or
        $0.17 per share, versus a 1994 net loss of $30.0 million or $4.10
        per share.  Results for 1995 include bankruptcy reorganization
        expenses of $3.4 million.  Results for 1994 include $20.2 million of
        bankruptcy reorganization expenses and an $8.0 million provision
        related to the Company's joint venture in Japan, as well as the
        $15.9 million Chandler gain and $2.9 million of bankruptcy claim
        adjustments.  There were approximately 15.7 million weighted average
        shares outstanding during 1995, versus 7.3 million in 1994.

        
            The improvement in 1995 fourth quarter sales over the same
        period of 1994 continued a trend which began in the first quarter of
        the year, and culminated in a 12% revenue increase from 1994 to
        1995.  Sales of advanced composites and reinforcement fabrics were
        higher throughout 1995 than in 1994, in both the U.S. and Europe.
        The Company benefited from increased sales to recreation and general
        industrial markets, and from a significant military contract for
        advanced composites.  Sales of honeycomb were slightly higher in the
        fourth quarter of 1995 than in the comparable quarter of 1994, due
        to increased aerospace sales, but slightly lower for the year,
        primarily as a result of the divestiture of the Company's Chandler
        operations.  Changes in currency exchange rates also contributed to
        the overall sales increase, as more than 40% of the Company's sales
        are to international markets.

        
            The increase in 1995 fourth quarter gross margin reflects the
        impact of both higher sales and certain manufacturing cost
        reductions.  Gross margin improvement was experienced in all three
        of the Company's businesses.  Fourth quarter and full year
        marketing, general and administrative expenses were higher for 1995
        than for the comparable periods of 1994, but were slightly lower as
        a percentage of sales.  The increase in marketing, general and
        administrative expenses was largely attributable to higher sales
        levels, changes in currency exchange rates, and certain costs
        incurred in connection with the proposed acquisition of the
        worldwide Composites Business of Ciba-Geigy Limited (the "Ciba
        Composites Business").
   

     
            John J. Lee, Chief Executive Officer of the Company, stated,
        "1995 was a significant year for Hexcel.  The Company successfully
        emerged from bankruptcy reorganization proceedings, completed a $50
        million equity recapitalization, and improved both sales and
        operating results.  In addition, the Company signed definitive
        agreements to acquire the Ciba Composites Business.  Although much
        work remains to be done, Hexcel has taken some important steps in
        the right direction.  Our challenge is to build on the
        accomplishments of the past year, and to position Hexcel for long-
        term success in the structural materials industry."

        
            As previously reported, the acquisition of the Ciba Composites
        Business is subject to various conditions, including the approval of
        certain matters by Hexcel's stockholders.  The combined company
        would specialize in lightweight, high-performance structural
        materials, composite parts, and structures for aerospace,
        recreation, and general industrial markets.  Hexcel has fixed
        December 27, 1995 as the record date for determining stockholders
        entitled to notice of and to vote at a meeting of stockholders, to
        be held on February 21, 1996, for purposes of approving, among other
        things, certain matters relating to the Company's proposed
        acquisition of the Ciba Composites Business.  Subject to such
        approval and the satisfaction of certain other conditions, the
        acquisition is expected to be completed at the end of February.

        
            Hexcel Corporation is an international developer and
        manufacturer of honeycomb, advanced composites, and reinforcement
        fabrics used in the commercial aerospace, space and defense,
        recreation, and general industrial markets.

        
        Hexcel Corporation and Subsidiaries
        Consolidated Statements of Operations
        
                                              Unaudited
        
                             The Quarter Ended          The Year Ended
                               December 31,               December 31,
                            1995         1994          1995         1994
        (In thousands except
         per share data)
        
        Net sales            $92,694      $76,715       $350,238    $313,795
        Cost of sales        (74,342)     (65,736)      (283,148)
        (265,367)
        Gross margin          18,352       10,979         67,090      48,428
        Marketing, general
        and administrative
         expenses            (13,637)     (11,344)       (49,324)
        (45,785)
        Other income, net        134       13,007            791       4,861
        
        Operating income       4,849       12,642         18,557       7,504
        
        Interest Expenses     (1,980)      (4,760)        (8,682)
        (11,846)
        Bankruptcy reorganization
         expenses             --       (8,207)        (3,361)    (20,152)
        
        Income (loss) from
        continuing operations
          before income taxes  2,869         (325)         6,514
        (24,494)
        Provision for
          income taxes          (810)      (2,217)        (3,313)
        (3,586)
        
        Income (loss) from
         continuing operations 2,059       (2,542)         3,201
        (28,080)
        
        Discontinued operations:
         Income from operations,
         net of provision for
         income taxes of $441 in
         1994                     --           --             --         989
        Losses during phase-out
         period, net of provision
         for income taxes of
         $136 in 1994             --          (43)          (468)
        (2,879)
        
         Net income (loss)   $ 2,059     $ (2,585)       $ 2,733
        $(29,970)
        
        Net income (loss) per
         share and equivalent
         share:
        Primary and fully
         diluted:
        Continuing operations $ 0.11      $ (0.34)        $ 0.20     $
        (3.84)
        Discontinued
         operations               --        (0.01)         (0.03)
        (0.26)
        
         Net income (loss)    $ 0.11      $ (0.35)       $  0.17     $
        (4.10)
        Weighted average
         shares and equivalent
           shares             18,092        7,310         15,742       7,310


        CONTACT: Hexcel Corp.
                 William P. Meehan, 510/847-9500