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CROWN CRAFTS ANNOUNCES ANTICIPATED FOURTH QUARTER FINANCIAL RESULTS

 CALHOUN, Ga., March 8 /PRNewswire/ -- Crown Crafts, Inc. (AMEX: CRW) today announced that it expects net earnings for the fourth quarter of its current fiscal year ending March 28 to be approximately equal to last year's fourth quarter net earnings of $1.4 million.
 Because the number of average shares outstanding will be about 15 percent higher in the current year's fourth quarter, the company expects earnings per share of approximately $0.16-$0.17, down from $0.20 in the fourth quarter a year ago.
 For the first nine months of the current fiscal year, Crown Crafts reported net earnings of $6.6 million, or $0.79 per share. On the basis of the company's expectations for the fourth quarter, net earnings for fiscal 1993 would be approximately $8.0 million, or $0.95-$0.96 per share. Net earnings for fiscal 1992 were $6.3 million, or $0.91 per share.
 "We continue to experience strong demand for the company's products, and both fourth quarter and full year net sales are expected to increase by more than 20 percent over last year's levels," stated Michael H. Bernstein, president and chief executive officer. "Fourth quarter earnings will not benefit from this sales increase, however, because manufacturing costs have been higher than expected during the phase-in of our new comforter manufacturing and automated warehousing facility in Roxboro, North Carolina.
 "We transferred a few operations into the new facility late in the company's third fiscal quarter, but most of the moves have taken place in the current quarter. While each individual move has been relatively problem-free, and the moves have disrupted our shipping schedules only to a minor degree, the cumulative effect has been quite costly. We have, for example, been operating out of the new facility as well as all of our older facilities during this entire quarter, resulting in inefficient operations.
 "When fully operational, the 328,000-square-foot facility will contribute significantly to Crown's profitability as well as our ability to respond quickly to customer orders. These benefits will not begin to accrue until some time after the software for our automated warehouse system is operational, which is expected to be by the end of June. The original schedule was for completion this past January. While we believe the effect of the move will be most strongly felt during the current quarter, we also expect the delay in software installation to impact earnings for fiscal 1994's first quarter," Bernstein stated.
 "Fourth quarter results are also being negatively affected by delivery and quality problems with a major raw material supplier," Bernstein added.
 Crown Crafts, Inc. designs, manufactures and markets bed covering products and related accessories. The company's two principal product categories are comforters and accessories and jacquard-woven cotton products.
 -0- 3/8/93
 /CONTACT: Paul A. Criscillis Jr., vice president, chief financial officer of Crown Crafts, 706-629-7941/
 (CRW)


CO: Crown Crafts, Inc. ST: Georgia IN: TEX SU: ERP

BN -- AT001 -- 3799 03/08/93 08:05 EST
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Date:Mar 8, 1993
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