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KNAPE & VOGT MFG. FOURTH-QUARTER NET RISES 38 PERCENT ON 6-PERCENT SALES INCREASE

 KNAPE & VOGT MFG. FOURTH-QUARTER NET RISES 38 PERCENT
 ON 6-PERCENT SALES INCREASE


Year Net Up 21 Percent to Record Level on 9-Percent Sales Gain; Gross and Net Margins Show Improvements as Long-Term Strategic Plan Broadens
 GRAND RAPIDS, Mich., Aug. 10 /PRNewswire/ -- Buoyed by strong results from most operating units and a broadening of the company's long-range plan calling for increased revenues and higher margins, Knape & Vogt Manufacturing Co. (NASDAQ-NMS: KNAP) today reported sharply higher sales and earnings for the fourth quarter and the full year ended June 30.
 Net income in the fourth quarter ended June 30, 1992, rose 37.8 percent to $1,558,286 from $1,130,973 reported a year ago. On a per-share basis, earnings were up 33.3 percent to $0.32 from $0.24 in the 1991 fourth quarter when fewer shares were outstanding. Sales climbed 5.9 percent to $30.6 million from $28.9 million a year earlier.
 For the full year, earnings increased 21.1 percent to $6,634,933 from $5,479,248 in fiscal 1991. Per-share earnings grew 18.8 percent to $1.39 from $1.17 in the year-ago period. Sales were up 9.2 percent for the year ended June 30, 1992, to $124.9 million from $114.4 million in fiscal 1991. Per-share earnings for the year-ago periods have been adjusted to reflect the 10-percent stock dividend paid on Sept. 6, 1991.
 Raymond E. Knape, chairman, president and chief executive officer, said, "We continue to see very positive results and returns to our shareholders with the broadening of the scope of our long-term strategic plan. As we move ahead with our plan, a larger percentage of each sales dollar works its way to the bottom line."
 FOURTH-QUARTER RESULTS
 "Sales for the quarter benefited from continued strong demand for our drawer slide products. Also, we announced a 2-percent average price increase effective July 1, and many customers affected by the price increase ordered truckload quantities in advance, thus boosting sales at the parent company in Grand Rapids. This offset sales declines at our Canadian subsidiaries, Knape & Vogt Canada and Roll-it.
 "The continuing implementation of our long-term plan was evident in our fourth-quarter margins. Our gross margin increased 5.9 percent to 28.14 percent from 26.83 percent, a gain of 131 basis points. The net margin increase was more dramatic, rising 30 percent to 5.10 percent from 3.92 percent a year ago. The increase was achievable because of our commitment to increasing productivity while reducing expenses," Mr. Knape said.
 FISCAL YEAR RESULTS
 Mr. Knape noted that sales for the year ended June 30, 1992, topped the previous record sales level set in fiscal 1990 by almost $508,000, and surpassed fiscal 1991 sales by 9.13 percent or nearly $10.5 million. "Part of this rebound from last year was attributable to a temporary spike earlier in the fiscal year in the sales of our Canadian subsidiaries when the Canadian economy gave a false reading of a recovery," Mr. Knape said. "In addition, there were strong results throughout the fiscal year from our Modar and Feeny Manufacturing Co. subsidiaries.
 "While our gross margin for 1992 was flat in comparison to last year, operating income, pre-tax and net margins improved substantially," Mr. Knape stated. "The nearly 100-basis-point increase in pre-tax margin reflects the significant reduction in our interest expense levels."
 OUTLOOK
 "Based on the continuing implementation of our strategic plan and our enthusiasm regarding new products being introduced this summer, we believe Knape & Vogt can achieve at least a 9-percent increase in both sales and earnings in fiscal 1993. However, in our first quarter ending Sept. 30, earnings may be flat because of poor first-quarter earnings forecasted at two of our subsidiaries -- Roll-it and Modar."
 Knape & Vogt manufactures well-attached and freestanding shelving and a wide variety of home-furnishing items and also derives about one-third of its sales from drawer slides for OEM office furniture, kitchen and utility cabinet manufacturers.
 -0- 8/10/92
 /CONTACT: Richard Simkins, vice president-finance, Knape & Vogt Mfg., 616-459-3311, Ext. 203; or Jack Queeney, 312-266-7800, or Regina Ryan, 212-661-8030, of the Financial Relations Board, for Knape & Vogt/
 (KNAP) CO: Knape & Vogt Manufacturing Co. ST: Michigan IN: HOU SU: ERN


SB -- DE021 -- 8720 08/10/92 17:45 EDT
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Date:Aug 10, 1992
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