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AMP FOURTH QUARTER SALES AND EARNINGS TO BE LOWER THAN EXPECTED; AMP CONTINUES TO EXPECT GROWTH IN SALES AND EARNINGS IN 1993

 AMP FOURTH QUARTER SALES AND EARNINGS TO BE LOWER THAN EXPECTED;
 AMP CONTINUES TO EXPECT GROWTH IN SALES AND EARNINGS IN 1993
 HARRISBURG, Pa., Nov. 13 /PRNewswire/ -- AMP (NYSE: AMP) officials said that further slowing of the European and Japanese economies, the recent sharp downturn in the European automotive market, and the recent strengthening in the value of the U.S. dollar, requires lowering previous fourth quarter sales and earnings estimates.
 The company has seen a sudden drop in European orders in November, particularly in the automotive market, and expects this trend will continue in December.
 When reporting nine months results in late October, the company indicated that fourth quarter sales were expected to be in a $860-$880 million range -- up from $791 million in the year-earlier quarter and record $847 million in the third quarter this year. Assuming a constant U.S. dollar value, sales are now expected to be similar to the third quarter and earnings several cents lower than the prior quarter. Earnings were 74 cents/share in the third quarter, up 28 percent from 58 cents/share in the year-earlier quarter, and were expected
to be a few cents higher in the fourth quarter. The new estimate indicates fourth quarter earnings should still be up from the 60 cents/share in the fourth quarter of 1991. For the full year, it now looks like earnings will be several cents less than the consensus analysts estimates of approximately $2.85/share for this year.
 Economic conditions in Europe and Japan remain sluggish and are not expected to show much vitality for several more quarters. The U.S. business continues to show improvement over 1991, although at a slower rate than during the first nine months of 1992. A strengthening U.S. dollar exacerbates the decline in sales and earnings, as 60 percent of AMP's revenues are from outside the United States. Current analyst consensus estimates for 1993 are $3.20-$3.40/share on sales growth of 5-10 percent. However, considering this change in the immediate European outlook, the company is placing increased emphasis on cautioning that attaining this growth in sales and earnings is based on the assumptions of modest economic growth in the U.S., Europe and Japan, and a constant value for the U.S. dollar.
 Harrisburg, Pa.-based AMP Incorporated is the world's leading producer of electrical/electronic connection devices. It has 25,200 employees in 165 facilities in the U.S. and 30 other countries. AMP stock is listed on the New York, Pacific and other regional stock exchanges (Symbol -- AMP).
 /delval/
 -0- 11/13/92
 /CONTACT: William Oakland of AMP, 717-780-6371/
 (AMP) CO: AMP Incorporated ST: Pennsylvania IN: CPR SU: ERP


JS -- PH042 -- 0899 11/13/92 17:05 EST
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Publication:PR Newswire
Date:Nov 13, 1992
Words:460
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