COMBUSTION ENGINEERING&lt;CSP> SEES 1ST QTR NET OFF

  Combustion Engineering Inc said
  it expects first quarter earnings to be 20 to 25 pct below the
  year-ago 13.6 mln dlrs, mainly due to financing costs resulting
  from the January 1987 acquisition of AccuRay Corp.
      The company said it has filed for an offering of four mln
  common shares and 150 mln dlrs of subordinated debentures due
  2017, with proceeds to be used to refinance the short-term bank
  debt incurred for the AccuRay acquisition, to finance other
  costs of the transaction and for general corporate purposes.
      Combustion said 3,500,000 shares will be sold in the U.S.
  and the remainder overseas.
      Combustion paid about 218 mln dlrs for AccuRay, a maker of
  computer-based measurement and control systems used in pulp and
  paper mills.
      The company said it expects to release first quarter
  results in the third week in April.
      Combustion said it expects further restructuring of core
  businesses -- particularly Lummus Crest -- this year through
  staff reductions downsizings and the consolidation of
  facilities.
      Combustion said the restructuring at Lummus Crest is
  expected to substantially reduce but not eliminate this year
  losses in the Engineering and Construction segment.
      But it said improvement at Lummus Crest is expected to be
  approximately offset by a number of factors, including a
  somewhat lower level of earnings in the Power Generation
  segment than in 1986, financing costs of the AccuRay
  acquisition, costs associated with integrating AccuRay
  technology and operations and delays in waste to energy
  projects.
  

