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HAMPTON INDUSTRIES ANNOUNCES EARNINGS

 KINSTON, N.C., May 10 /PRNewswire/ -- Hampton Industries, Inc. (AMEX: HAI) reported net sales for the quarter ended March 27, 1993, totaled $45,341,000 as compared to $43,627,000 in 1992. The company incurred a loss of $881,000, or ($.21 per share) during the current period as compared to net earnings of $489,000, or $.12 per share for the first quarter of 1992.
 The company is in the process of restructuring certain areas within its sales and marketing organization. In connection therewith, several divisions have been consolidated and marginally profitable product lines have been discontinued. The consolidation should result in certain economies during the balance of the year. Disposition of inventory carried by those divisions has resulted in approximately $1,100,000 in markdowns during the period. During the comparable period in the preceding year, markdowns were approximately $300,000.
 In addition, management is evaluating the efficiency of its domestic manufacturing operations. Cutbacks of 23 percent in one domestic plant and 11 percent in another were made to improve their cost structure and eliminate a portion of the company's excess capacity. The increased capacity of the Caribbean Basin manufacturers, generally, gives the company additional opportunities to source products under 807 and import status, with short lead times and, therefore, less risk.
 Other programs to improve performance include a stringent cost reduction program and a reduction in the number of customers having limited long-term potential. Management expects the results of these programs to lower distribution costs, contain administrative costs and improve operating performance.
 The company is presently in the process of renegotiating its Bank Credit Agreement with the existing parties. In the interim, the present agreement has been modified to provide an increase in the line of credit to $53,000,000 from $35,000,000. In connection a Security Agreement was executed, which provides that all borrowing under the agreement is secured by the import inventory of Hampco Apparel, Inc. (a wholly-owned subsidiary), and the accounts receivable of Hampco Apparel, Inc., and Hampton Industries, Inc. Management believes that the negotiation of a new Bank Credit Agreement will be successfully completed shortly.
 During the seven weeks since the company last reported its advanced booking status, the company has booked approximately $35,500,000 in business as compared to $26,600,000 in business during the comparable period in 1992. As of May 7, 1993, advance booking of orders totaled $114,000,000 as compared to $126,460,000 at the same time last year. The company is optimistic that this gap in bookings will continue to narrow.
 Thirteen Weeks Ended
 March 27, 1993 March 28, 1992
 Net sales $45,341,000 $43,627,000
 Net (loss) earnings $ (881,000) $ 489,000
 (Loss) Earnings per share $ (.21) $ .12
 -0- 5/10/93
 /CONTACT: David Fuchs, Chairman and Chief Executive Officer, Hampton Industries, 212-563-1010/
 (HAI)


CO: Hampton Industries, Inc. ST: North Carolina IN: TEX SU: ERN

MM-CM -- CH007 -- 6580 05/10/93 14:53 EDT
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Publication:PR Newswire
Date:May 10, 1993
Words:496
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/C O R R E C T I O N -- Hampton Industries/(Correction Notice)
Hampton Industries Reports Earnings

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