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GOODY PRODUCTS, INC. SECOND QUARTER EARNINGS INCREASED 13.9 PERCENT BEFORE 1992 RESTRUCTURING CHARGES

 KEARNEY, N.J., July 27 /PRNewswire/ -- Goody Products, Inc. (NASDAQ: GOOD) reported that net earnings for the second quarter ended July 2, 1993 were $2,782,000 or $.41 per share. For the comparable period in 1992, Goody reported a net loss of $16,741,000, or $2.55 per share, which included a special restructuring charge of $25,663,000. Net earnings for the six month period were $5,940,000 or $.88 per share. For the comparable six month period in 1992, the company reported a net loss of $16,137,000, or $2.46 per share, which included the above- mentioned special charges, in addition to a net charge of $1,696,000, or $.26 per share, reflecting the adoption of FASB 106 and 109 as a restatement of first quarter 1992 earnings.
 Net sales for the second quarter were $57,793,000, a 6.6 percent decline from prior year of $61,853,000. Six month net sales were $117,348,000, a 4.7 percent decline from prior year of $123,176,000.
 Ronald B. Gordon, Goody's president, said, "while the company has made significant progress in revitalizing its product lines, work processes and its focus on the customer, the continued conservatism of the consumer and slow pace of the nation's economic growth has tempered our expectations. Correspondingly, lower inventory levels are being maintained at retail level by our customers resulting in lower sales for the company versus 1992. However, we remain encouraged by our strong position in the market and our continued ability to respond with higher gross margins, lower operating costs and significantly improved utilization of working capital. Goody remains positioned to deliver even greater value when the general economic environment improves." Goody Products, Inc. is engaged in the design, manufacture and marketing of a wide variety of hair accessories and owns and operates three additional consumer products subsidiaries and divisions: Opti-Ray, a designer and marketer of high quality fashion sunglasses and reading glasses; Ace Comb, a manufacturer of premium quality hard rubber combs; and Pretty Neat Products, a producer of cosmetic organizers and travel accessories.
 GOODY PRODUCTS, INC. AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF OPERATIONS
 (Unaudited)
 Periods ended Second quarter Six months
 7/2/93(A) 6/30/92(B) 7/2/93(A) 6/30/92(B)
 Net sales $57,793 $ 61,853 $117,348 $123,176
 Earnings (loss)
 bef. inc. taxes,
 extraord. item &
 cumulative effect of
 accounting changes 4,649 (21,014)(C) 9,956 (17,180)(C)
 Income taxes 1,867 (7,250) 4,016 (5,716)
 Earnings (loss)
 bef. extraord. item &
 cumulative effect
 of accounting changes 2,782 (13,764) 5,940 (11,464)
 Extraordinary item -- (2,977)(D) -- (2,977)(D)
 Cumulative effect of
 accounting changes:
 Postretirement benefits
 other than pensions,
 net of income taxes
 of $1,400 -- -- -- (2,296)
 Accounting for income
 taxes -- -- -- 600
 Net earnings (loss) $2,782 $(16,741) $5,940 $(16,137)
 Earnings (loss)
 per common share:
 Earnings (loss) per
 common share bef. extraord.
 item & cumulative effect
 of accounting changes $.41 $(2.10) $.88 $(1.75)
 Extraordinary item -- (.45) -- (.45)
 Cumulative effect of
 accounting changes:
 Postretirement benefits
 other than pensions -- -- -- (.35)
 Accounting for income
 taxes -- -- -- .09
 Net earns. (loss) per
 common share $ .41 $ (2.55) $ .88 $ (2.46)
 Avg. no. of common
 shares outstanding 6,857,685 6,575,515 6,761,915 6,572,958
 Earnings (loss) per common
 share (assuming full dilution):
 Earnings (loss) per common
 share bef. extraord. item and
 cumulative effect of
 accounting changes $.40 $(2.10) $.86 $(1.75)
 Extraordinary item -- (.45) -- (.45)
 Cumulative effect of
 accounting changes:
 Postretirement benefits
 other than pensions -- -- -- (.35)
 Accounting for income
 taxes -- -- -- .09
 Net earnings (loss) per
 common share $.40 $(2.55) $.86 $(2.46)
 Avg. no. of common shares
 outstanding 6,879,252 6,575,515 6,868,371 6,572,958
 (A) Beginning in 1993, for interim reporting purposes, the company adopted a 13-week quarterly closing schedule. Accordingly, the second quarter of 1993 ended on July 2. The annual year-end will continue to be Dec. 31. The company does not believe that this will have a material effect on the results of operations for the interim periods.
 (B) Restated to conform to current year's presentation and to reflect cumulative effect of accounting changes.
 (C) Includes special charges of $22,686 related to restructuring expenses.
 (D) From early extinguishment of debt.
 -0- 7/27/93
 /CONTACT: Kevin E. Walsh of Goody Products, Inc., 201-997-3000, or Thomas M. Daly, Jr. or Josh Pekarsky of Kekst and Company, 212-593-2655, for Goody Products/
 (GOOD)


CO: Goody Products, Inc. ST: New Jersey IN: HOU SU: ERN

SH -- NY015 -- 6114 07/27/93 09:51 EDT
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Date:Jul 27, 1993
Words:779
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