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DURACELL REPORTS 31 PERCENT INCREASE IN THIRD QUARTER NET INCOME; NORTH AMERICAN SALES RISE 25 PERCENT; PRE-TAX INCOME UP EIGHT-FOLD

 BETHEL, Conn., April 29 /PRNewswire/ -- Spearheaded by a 25 percent improvement in North American sales, Duracell International Inc. (NYSE: DUR) today reported a 31 percent increase in net income for its third quarter ended March 27, 1993. Net income totaled $5.5 million, or $ .05 per share, versus income of $4.2 million, or $.04 per share in the year-earlier quarter. Earnings would have improved even more except for substantially higher taxes stemming from full utilization of U.S. net operating loss carryforwards and increased earnings in European countries with higher tax rates.
 -Pre-Tax Income Rose Nearly Eight-Fold-
 The world's leading manufacturer of high-performance alkaline batteries said pre-tax income rose nearly eight-fold due to a 17 percent improvement in operating income and a 37 percent reduction in interest expense. Absent the negative effects of currency translation, company- wide operating income increased 28 percent on a performance basis. Geographically, operating income improved 19 percent in North America and 148 percent in Other International Markets but declined 12 percent in Europe due almost entirely to currency translation.
 -Sales Grew 14 Percent On 20 Percent Volume Gain-
 Driven by a 20 percent increase in worldwide alkaline unit volume, Duracell's overall sales grew 14 percent in the third quarter despite flat European revenues caused by negative currency translation. Alkaline volume increased 37 percent in North America, 10 percent in Europe and 12 percent in Other International Markets.
 -Nine Month Results Also Strong-
 For the nine months ended March 27, 1993 Duracell reported net income of $146 million, or $1.23 per share, versus net income of $104 million, or $ .90 per share, in the prior-year period. An extraordinary charge in the year-ago period of $39 million from the repurchase of subordinated debt reduced net income by $ .33 per share.
 Pre-tax income in the nine months improved 21 percent due to interest savings and increased operating income, which rose 9 percent on an 8 percent increase in sales and an 11 percent increase in alkaline unit volume. Despite the improvement in pre-tax income, earnings before extraordinary items were flat due to a 13 percentage point jump in the effective tax rate and a 2 percent increase in weighted average shares outstanding.
 In North America, operating income rose 9 percent through three quarters in conjunction with a 9 percent increase in sales and a 12 percent improvement in volume. Duracell's European operations turned in a strong nine-month performance despite soft economic conditions and unfavorable foreign currency translation. Operating income rose 5 percent on a 4 percent increase in sales and unit volume. Other International Markets also turned in a strong operating performance, posting a 45 percent increase in operating income, a 21 percent improvement in sales and 17 percent higher unit volume.
 -Health of Duracell and Branded Batteries Cited-
 "This was the finest third quarter and nine month performance in the history of our company," commented C. Robert Kidder, Duracell chairman and CEO. "It is indicative of Duracell's brand strength and the overall health of the branded alkaline battery business in the United States and around the world. We expect continued growth in the foreseeable future, driven by such factors as increasing alkaline penetration around the world, our continued heavy investment in advertising and promotion and our commitment to delivering unsurpassed quality, performance and value in every Duracell battery we sell."
 Duracell International Inc., headquartered in Bethel, Conn., is the world's leading manufacturer and marketer of high-performance alkaline batteries. Duracell's batteries are sold throughout the world, primarily under the DURACELL(r) trademark.
 DURACELL INTERNATIONAL INC.
 Statements of Consolidated Operations
 (Unaudited, units/$ in millions except per share amounts)
 Quarter Ended Pct. Nine Months Ended Pct.
 3/27/93 3/28/92 Change 3/27/93 3/28/92 Change
 Alkaline
 unit volume 405.7 336.8 20 1,704.2 1,540.1 11
 Sales $ 313.2 $ 273.8 14 $1,366.0 $ 1,261.0 8
 Cost of sales 123.8 111.6 (11) 496.9 461.3 (8)
 Gross profit 189.4 162.2 17 869.1 799.7 9
 Gross margin 60.5 pct. 59.3 pct. 1.2pp 63.6 pct. 63.4 pct. .2pp
 Selling, general
 and administrative expenses:
 Advertising
 and promotion 59.5 46.3 (29) 285.7 259.9 (10)
 Other 107.8 97.0 (11) 324.1 301.2 (8)
 Total SG&A 167.3 143.3 (17) 609.8 561.1 (9)
 Operating
 income 22.1 18.9 17 259.3 238.6 9
 Operating
 margin 7.1 pct. 6.9 pct. .2pp 19.0 pct. 18.9 pct. .1pp
 Interest
 expense 10.1 16.0 37 36.6 63.0 42
 Other
 expense .6 1.4 57 10.8 .3 N/M
 Income before
 extraordinary items
 and income tax 11.4 1.5 N/M 211.9 175.3 21
 Effective
 tax rate 51.8 pct. N/M N/M 31.2 pct. 18.2 pct. (13.0)pp
 Provision (benefit)
 for income taxes 5.9 (2.7) N/M 66.0 31.9 N/M
 Income before
 extraordinary
 items 5.5 4.2 31 145.9 143.4 2
 Extraordinary
 items -- -- -- -- (39.0) N/M
 Net income $5.5 $4.2 31 $145.9 $104.4 40
 Per share amounts:
 Income before
 extraordinary
 items $.05 $.04 $1.23 $1.23
 Extraordinary
 items -- -- -- (.33)
 Net income $.05 $.04 $1.23 $.90
 Weighted average
 shares and share
 equivalents
 outstanding 119.0 118.7 -- 118.6 116.4 2
 Geographic
 Segments
 Alkaline Unit
 Volume:
 North America 170.8 124.7 37 816.8 726.3 12
 Europe 122.0 111.0 10 503.6 485.4 4
 Other
 International
 Markets 112.9 101.1 12 383.8 328.4 17
 Total 405.7 336.8 20 1,704.2 1,540.1 11
 Sales:
 North America $151.2 $121.1 25 $707.1 $649.3 9
 Europe 107.7 107.5 -- 477.2 461.0 4
 Other International
 Markets 54.3 45.2 20 181.7 150.7 21
 Total $313.2 $273.8 14 $1,366.0 $1,261.0 8
 Operating income:
 North America $23.8 $20.0 19 $195.1 $179.7 9
 Europe 12.3 14.0 (12) 96.5 91.7 5
 Other International
 Markets 7.7 3.1 N/M 26.3 18.1 45
 Total 43.8 37.1 18 317.9 289.5 10
 Corporate/Research
 & Development (21.7) (18.2) (19) (58.6) (50.9) (15)
 Total $22.1 $18.9 17 $259.3 $238.6 9
 DURACELL INTERNATIONAL INC.
 Consolidated Balance Sheets
 (In millions, except per share amounts)
 3/27/93 6/30/92
 (Unaudited)
 ASSETS
 Current assets:
 Cash and cash equivalents $28.8 $7.9
 Accounts receivable, less
 allowance of $17.2
 and $21.7 258.8 270.5
 Inventories 175.2 222.0
 Prepaid and other
 current assets 33.4 27.7
 Total current assets 496.2 528.1
 Property, plant and equipment,
 net of accumulated depreciation
 of $155.1 and $130.8 314.0 330.9
 Intangibles, net of
 accumulated amortization
 of $210.4 and $195.7 1,178.9 1,288.0
 Other assets 13.2 9.6
 Total assets $2,002.3 $2,156.6
 LIABILITIES AND EQUITY
 Current liabilities:
 Accounts payable $81.4 $92.5
 Short-term borrowings and
 current portion of
 long-term debt 26.7 37.6
 Accrued liabilities 179.1 182.2
 Total current liabilities 287.2 312.3
 Long-term debt 476.6 696.5
 Deferred income taxes 78.4 77.9
 Other non-current liabilities 49.3 61.9
 Total liabilities 891.5 1,148.6
 Equity:
 Common stock and
 capital surplus 1,025.4 992.0
 Retained earnings
 (accumulated deficit) 102.8 (6.5)
 Accumulated translation
 adjustment (17.4) 22.5
 Total equity 1,110.8 1,008.0
 Total liabilities
 and equity $2,002.3 $2,156.6
 Book value per share $9.68 $8.98
 Shares of common stock
 outstanding 114.7 112.3
 Total debt to
 capital ratio (pct.) 31.2 42.1
 DURACELL INTERNATIONAL INC.
 Statements of Consolidated Cash Flows
 (Unaudited,in millions)
 Nine Months Ended
 3/27/93 3/28/92
 Operating activities:
 Income before
 extraordinary items $145.9 $143.4
 Adjustments to reconcile income
 before extraordinary items to cash
 provided by operating activities:
 Depreciation 29.9 26.7
 Amortization 36.0 36.2
 Provision for deferred taxes 31.9 8.7
 Other noncash items 8.7 (0.1)
 (Increase) decrease in:
 Accounts receivable (15.0) (7.2)
 Inventories 36.0 (15.9)
 Other working capital 3.0 (12.4)
 Cash provided by
 operating activities 276.4 179.4
 Investing activities:
 Purchase of property, plant
 and equipment (29.2) (40.5)
 Proceeds from sales of
 assets and other 3.6 3.8
 Cash used by investing
 activities (25.6) (36.7)
 Financing activities:
 Issuance of common stock 12.4 142.9
 Issuance (repayment) of
 revolving credit borrowings, net (199.8) 262.0
 Dividends paid (36.5) --
 Issuance (repayment) of
 commercial paper, net 1.7 (150.9)
 Repurchase of subordinated debt -- (370.2)
 Premium on purchase of
 subordinated debt -- (32.0)
 Net change in other
 borrowings and other (9.2) 7.8
 Cash used by financing
 activities (231.4) (140.4)
 Effect of exchange rate
 changes on cash 1.5 (1.0)
 Increase in cash and
 cash equivalents 20.9 1.3
 Cash and cash equivalents,
 beginning of period 7.9 5.5
 Cash and cash equivalents,
 end of period $ 28.8 $ 6.8
 Cash paid during the period for:
 Interest $ 36.0 $ 66.5
 Taxes $ 21.4 $ 13.1
 -0- 4/29/93
 /CONTACT: Walter B. Rogers, investor relations of Duracell International, Inc., 203-796-4364/
 (DUR)


CO: Duracell International Inc. ST: Connecticut IN: SU: ERN

TM -- NY004 -- 2404 04/29/93 07:32 EDT
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