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HANNAFORD REPORTS INCREASED SALES AND EARNINGS FOR THE THIRD QUARTER AND NINE MONTHS

 HANNAFORD REPORTS INCREASED SALES AND EARNINGS
 FOR THE THIRD QUARTER AND NINE MONTHS
 SCARBOROUGH, Maine, Oct. 15 /PRNewswire/ -- Hannaford Bros. Co., (NYSE: HRD), Northern New England's largest food retailer today announced increased sales and earnings for the third quarter and nine month period, which ended Sept. 26, 1992. For the third quarter, Hannaford achieved net sales and other revenues of $526,438,055, an increase of 0.5 percent over the $523,873,740 reported for the same period last year. During the first nine months of 1992, net sales and other revenues increased by 1.6 percent from $1,502,085,276 last year, to $1,525,682,299 this year. It should be noted that 1991 results include the sales from 34 Wellby Super Drug Stores which were sold to Rite Aid Corporation on May 27, 1992. Had the sales from these stores been excluded from 1991 results in the periods indicated, sales and other revenues would have increase 4.8 percent for the third quarter, and 3.4 percent for the nine-month period.
 Consolidated net earnings for the quarter amounted to $14,432,272, as compared to $12,573,770 for the same quarter in 1991, an increase of 14.8 percent. Consolidated net earnings per common share for the third quarter this year were 35 cents , as compared to 31 cents last year. Consolidated net earnings for the first three quarters were $35,822,536. This represents and increase of 9.8 percent over last year's nine month earnings of $32,637,022. Consolidated net earnings per common share were 88 cents for the nine month period this year as compared to 81 cents for the same period a year ago. Included in the nine-month period was a gain of $3,848,993 form the sale of 34 Wellby Super Drug Stores and estimated restructuring costs of $2.4 million, the net if which amounted to an addition to earnings before income taxes of $1,448,993.
 Hugh G. Farrington, president and chief executive officer, said, "Given the severity of the economic recession in most of our marketing area, we are pleased with our third quarter results. Our sales were up modestly over last year. Same store supermarket sales showed a decrease of 2.0 percent in the third quarter and were down 1.4 percent for the nine-month period. Soft supermarket sales are being experienced not only in the Northeast, but in most of the United States. The general weakness in the economy continues to suppress the confidence of consumers who are watching very closely their spending for consumable items. Another factor adversely affecting sales is continuing deflation in the prices of certain food product categories."
 Farrington added, "Earnings in the third quarter were quite good primarily as a result of a recovery to earlier gross margin levels. Expense control and a slightly lower income tax rate also were contributors. In the second quarter, we announced a restructuring program to better position the company for future growth and success. We are pleased that our goal of eliminating a number of positions was quite successful. We expect that the restructuring program, along with other expense reducing actions, will show positive results in the fourth quarter this year and in the future, and any economic recovery will be an added bonus.
 HANNAFORD BROTHERS COMPANY
 Consolidated Operating Results (Unaudited)
 Amounts in Thousands (except per share data)
 Three Months Ended
 Percent
 9/26/92 9/28/91 Increase/Decrease
 Sales & other revenues $526,438 $523,874 0.5
 Cost of sales 394,832 396,058 (0.3)
 Gross Margin 131,606 127,816 3.0
 Selling, general &
 administrative expenses 102,640 101,898 0.7
 Operating profit 28,966 25,918 11.8
 Interest expense, net 5,105 4,955 3.0
 Earnings before income taxes 23,861 20,963 13.8
 Income taxes 9,428 8,389 12.4
 Net earnings 14,433 12,574 14.8
 Per share of common stock:
 Net earnings $ .35 $ .31 12.9
 Cash dividends $ .075 $ .065 15.4
 Weighted average number of
 com. shares outstanding 40,602,324 40,018,748 ---
 Nine Months Ended
 Percent
 9/26/92 9/28/91 Increase/Decrease
 Sales & other revenues $1,525,682 $1,502,085 1.6
 Cost of sales 1,145,982 1,133,022 1.1
 Gross Margin 379,700 369,063 2.9
 Selling, general &
 administrative expenses 306,722 299,330 2.5
 Gain on divestiture, net of
 restructuring charges 1,449 --- ---
 Operating profit 74,427 69,733 6.7
 Interest expense, net 15,318 15,344 (0.2)
 Earnings before income taxes 59,109 54,389 8.7
 Income taxes 23,286 21,752 7.1
 Net earnings $35,823 $32,637 9.8
 Per share of common stock:
 Net earnings $ .88 $ .81 8.6
 Cash dividends $ .225 $ .195 15.4
 Weighted average number of
 com. shares outstanding 40,449,901 39,884,110 ---
 -0- 10/15/92
 /CONTACT: Charles Crockett of Hannaford Bros., 207-883-2911
 (HRD) CO: Hannaford Bros. ST: Maine IN: FOD SU: ERN


TM -- NE004 -- 0330 10/15/92 10:31 EDT
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Date:Oct 15, 1992
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