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COLLINS & AIKMAN GROUP INC. REPORTS THIRD QUARTER RESULTS

 SANTA MONICA, Calif., Nov. 23 ~PRNewswire~ -- Collins & Aikman Group Inc., a wholly owned subsidiary of Collins & Aikman Holdings Corp., today reported sales of $545.5 million and operating income of $12.5 million for the third quarter ended Oct. 24, 1992, compared with sales of $572.2 million and operating income of $23.3 million for the third quarter of the prior year.
 During the quarter, increased sales at the company's textiles and hosiery businesses were offset by declines in other segments of its business, particularly those serving the home improvement markets in Southern California, the wallcovering market and the commercial aircraft engine component market. The operating results of the company's businesses tracked their sales performance during the quarter, with strong improvements in the textile businesses being offset by declines in the others. The decline in operating income was most severe in the home improvement and wallcoverings segment.
 After interest expense and income taxes, the company reported a loss from continuing operations in the third quarter of $16.1 million and a net loss of $16.1 million. This compared with a loss from continuing operations of $8.2 million in the third quarter of the prior year. Results for the third quarter of 1991 also included a loss from discontinued operations of $1.4 million and extraordinary gains on the repurchase of debt of $2.1 million, resulting in a net loss for that quarter of $7.6 million.
 For the nine months, sales at $1.6 billion were comparable to last year, but the loss from continuing operations during the period was $49.5 million, compared to $36.4 million in the prior year, before the effect of discontinued operations, extraordinary item and a change in accounting principles. After the effect of these items, the net loss was $49.5 million for the nine months ended Oct. 24, 1992, compared to a net loss of $114.3 million for the same period in 1991.
 The company is continuing to experience improved performance in its textile businesses. The company does not expect near-term improvement in the markets served by its home improvement and wallcoverings businesses and is continuing to take steps to reduce costs in these businesses.
 Collins & Aikman Group Inc. is a broad-based specialty manufacturing and retailing company whose businesses serve the automotive and industrial products, home improvement and wallcoverings and textiles markets.
 COLLINS & AIKMAN GROUP INC.
 Financial Highlights
 (Unaudited)
 13 Weeks Ended 39 Weeks Ended
 Oct. 24, Oct. 26, Oct. 24, Oct. 26,
 1992 1991 1992 1991
 Net sales $545,523 $572,171 $1,656,077 $1,632,921
 Operating income $12,493 $23,304 $41,416 $58,631
 Interest expense,
 net (a) (27,103) (26,362) (81,199) (81,906)
 Income (loss) from
 continuing
 operations before
 income taxes (14,610) (3,058) (39,783) (23,275)
 Income taxes 1,468 5,174 9,681 13,160
 Income (loss)
 from continuing
 operations (16,078) (8,232) (49,464) (36,435)
 Income (loss)
 from discontinued
 operations, net
 of income taxes --- (1,447) --- (1,278)
 Income (loss) before
 extraordinary
 item (16,078) (9,679) (49,464) (37,713)
 Extraordinary item,
 net of income
 taxes (b) --- 2,109 --- 10,949
 Cumulative effect on
 prior years (to
 Jan. 26, 1991)
 of change in
 accounting
 principle (c) --- --- --- (87,563)
 Net income (loss) ($16,078) ($7,570) ($49,464) ($114,327)
 (a) Interest expense for the quarters ended Oct. 24, 1992, and Oct. 26, 1991, is net of interest income of $.8 million and $1.5 million, respectively. Interest expense for the 39 weeks ended Oct. 24, 1992, and Oct. 26, 1991, is net of interest income of $3.3 million and $6.1 million, respectively, and a gain of $.7 million in 1991 related to the retirement of debt to satisfy current sinking fund payments. Interest expense has been allocated to discontinued operations based on the ratio of net assets of discontinued operations to consolidated invested capital. Interest expense allocated to discontinued operations was $.6 million and $2.1 million, respectively, for the quarter and 39 weeks ended Oct. 26, 1991. No amounts were allocated in 1992.
 (b) Extraordinary item represents gains on retirement of indebtedness.
 (c) Represents cumulative adjustment for change to the accrual basis of accounting for postretirement benefits in accordance with Statement of Financial Accounting Standards No. 106, "Employers' Accounting for Postretirement Benefits Other Than Pensions."
 -0- 11~23~92
 ~CONTACT: Michael S. Sitrick of Sitrick and Co., 310-788-2850, for Collins & Aikman; or Michael A. Jamieson of Collins & Aikman, 310-452-0161~


CO: Collins & Aikman Group Inc. ST: California IN: REA TEX SU: ERN

JL-JB -- LA035 -- 0769 11~23~92 17:43 EST
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Date:Nov 23, 1992
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