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J. M. SMUCKER ANNOUNCES EARNINGS

 ORRVILLE, Ohio, Aug. 23 /PRNewswire/ -- The J. M. Smucker Company (NYSE: SJMA/SJMB), announced today that sales for the first quarter ending July 31, 1993, were $118,255,000, down approximately 5 percent from the $124,781,000 for the same period last year, and that net income for the quarter was $8,907,000, or $.31 per share. Earnings for the first quarter last year were $.17 per share after the retroactive adoption of FAS 106 and $.33 per share as originally reported.
 Approximately one-half of the shortfall in sales related to two items. First, the currencies in Australia, Canada, and the U.K. were significantly weaker in relation to the U.S. dollar than they were last year. Also, frozen fruit sales were off substantially as a result of the company's decision to eliminate certain unprofitable lines.
 Most of the remainder of the sales deficit was the result of a decline in fruit spread volume. According to the company, its fruit spread market share continued to grow during the quarter and consumer fruit spread purchases appeared to be up slightly as well. Based on those factors, the company indicated that it believed that the decline in fruit spread sales was attributable largely to the efforts of retailers to reduce inventories.
 In the International area, sales were up despite the adverse impact of currency fluctuations. Approximately $1.2 million in sales from the company's recently completed Canadian acquisition were included in the first quarter results.
 Marketing and administrative expenses were higher during the quarter than in the prior period, due primarily to marketing expenditures in support of two new product introductions, "Super Spreaders" and "Sundae Syrups."
 THE J. M. SMUCKER COMPANY
 STATEMENTS OF CONSOLIDATED INCOME
 (Unaudited)
 Three Months Ended
 July 31,
 1993 1992
 (Dollars in Thousands,
 Except Per Share Data)
 Net sales $118,255 $124,781
 Cost of products sold 74,379 81,354
 Gross profit 43,876 43,427
 Selling, distribution, and
 administrative expenses 29,566 28,150
 Operating income 14,310 15,277
 Other income - net 303 403
 Income before income taxes
 and cumulative effect 14,613 15,680
 Income taxes 5,706 6,167
 Income before cumulative effect 8,907 9,513(A)
 Cumulative effect of change in
 accounting method --- 4,454
 Net income $ 8,907 $ 5,059
 Net income per Common Share
 before cumulative effect of
 change in accounting method(B) $ .31 $ .32(A)
 Cumulative effect of change in
 accounting method(B) --- (.15)
 Net income per Common Share(B) $ .31 $ .17
 (A) -- Includes a reduction in income of $103,000 ($.01 per share), net of $67,000 in income taxes, for the additional expense of accruing postretirement benefits other than pensions.
 (B) -- Computed on weighted
 average number of
 Class A and Class B
 shares outstanding,
 namely 29,204,731 29,568,902
 THE J. M. SMUCKER COMPANY AND SUBSIDIARIES
 CONDENSED CONSOLIDATED BALANCE SHEETS
 (Unaudited)
 July 31,
 1993 1992
 (Dollars in Thousands)
 ASSETS
 Current Assets:
 Cash and cash equivalents $ 13,542 $ 19,848
 Trade receivables 41,549 42,037
 Inventories 111,873 101,105
 Other current assets 4,818 4,098
 Total Current Assets 171,782 167,088
 Property, Plant, and Equipment, Net 101,521 90,221
 Other Noncurrent Assets 37,719 29,700
 Total $311,022 $287,009
 LIABILITIES AND SHAREHOLDERS' EQUITY
 Current Liabilities:
 Accounts payable $ 33,668 $ 29,777
 Other current liabilities 33,908 26,068
 Total Current Liabilities 67,576 55,845
 Noncurrent Liabilities 17,814 16,449
 Shareholders' Equity, Net 225,632 214,715
 Total $311,022 $287,009
 -0- 8/23/93
 /CONTACT: Steven J. Ellcessor, secretary, or Richard K. Smucker, president, 216-682-3000, both of The J. M. Smucker Company/
 (SJMA SJMB)


CO: The J.M. Smucker Company ST: Ohio IN: FOD SU: ERN

BM -- CL007 -- 5004 08/23/93 11:09 EDT
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Publication:PR Newswire
Date:Aug 23, 1993
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