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MAPLE LEAF FOODS REPORTS INCREASE IN NET EARNINGS FOR THIRD QUARTER ENDED SEPT. 30, 1992

 TORONTO, Nov. 18 ~PRNewswire~ -- Maple Leaf Foods Inc. (TSE: MLF) today reported increases in net earnings from continuing operations and total net earnings for the third quarter ended Sept. 30, 1992.
 Net earnings from continuing operations in the third quarter increased by 27 percent to $19.4 million or 24 cents per share, from $15.2 million or 23 cents per share in 1991. Total net earnings for the quarter increased to $19.4 million, or 24 cents per share from $17.2 million or 27 cents per share in 1991. The 1991 total net earnings include the results of the Edible Oils business, which was sold in the first quarter of 1992. Earnings per share are affected by the higher number of shares outstanding this year as a result of the company's equity issue in October 1991.
 Net earnings from continuing operations for the year to date increased to $51.4 million or 64 cents per share, from $40 million or 61 cents per share in 1991. Total net earnings for the year to date increased to $54.7 million or 68 cents per share, from $44.4 million or 68 cents per share in 1991.
 Charles Bowen, president and chief executive officer stated that "The company reported increased earnings in spite of continuing price declines in the food industry and intense competition at the retail level. While sales declined 6 percent for the quarter, as a result of declines in consumption and the affects of the wet summer, margins benefitted from the positive impact of earlier restructuring and cost improvement initiatives."
 "Our challenge is to continue to address our cost base and competitive position; to further enhance our product ranges with new product development; and to complete strategic acquisitions in core businesses."
 REVIEW OF OPERATIONS
 The unusually wet summer weather and the impact of the recession affected the Consumer Foods Group, resulting in a reduction in operating earnings in the quarter. Volumes were down in Prepared Meats. However, the business was successful in maintaining market share in its key product categories and undertook several initiatives to improve its cost base and competitive position. The Food Service business continues to be affected by the Canadian recession, which has had a serious adverse impact on the total hospitality industry. The Grocery business reported good earnings resulting from improved mix and new product introductions which continue to outperform forecasts.
 Milling and Baking Group earnings from operations improved with positive contributions from the flour business and from the increased ownership interest in McGavin Foods and Barbados Mills Limited. Corporate Foods reported reduced earnings due to continuing volume reductions as a result of increasing competition in the bakery sector; down-trading to lower priced products; and expenses relating to the proposed merger with Maple Leaf Foods which did not proceed. The flour business benefitted from cost reductions and synergies resulting from the alignment of this business with ConAgra. The retail franchise and International businesses also made sound earnings contributions.
 Agribusiness Group earnings from operations improved over the previous quarter. Pork earnings increased as expected, due to the benefits of operating a single plant following integration of the Hoffman operation into Fearmans. The Poultry business continues to report unacceptable results. The Shur-Gain feed business, while profitable, is affected by weakness in the Canadian agricultural sector. The remainder of the group's businesses continue to show good progress.
 Interest income for the third quarter of $1.7 million ($6.2 million year to date) compares to interest expense of $3.3 million ($9.7 million year to date) in 1991. The net borrowings position of $124 million at Sept. 30, 1991 improved to a net cash position of $166 million at Sept. 30, 1992.
 BUSINESS DEVELOPMENTS
 On Oct. 14, 1992, the company announced that it had signed a letter of intent to acquire the assets of Unox Meats Canada from Unilever Canada. Unox Meats is a prepared meats company with annual sales in excess of $90 million and well known brands such as Shopsy's, Hygrade and La Belle Fermire.
 On July 13, 1992, the company purchased the remaining 60 percent of the shares of McGavin Foods Limited from John Labatt Limited to bring its holding to 100 percent. On Nov. 17, 1992, the company and Corporate Foods announced that an agreement had been reached whereby Maple Leaf Foods would sell its 100 per cent interest in McGavin Foods to Corporate Foods in consideration for the issuance to Maple Leaf Foods of Corporate Foods shares in an amount equal to $24 million. As a result of the transaction, Maple Leaf Foods' interest in Corporate Foods will increase to 68 percent.
 DIVIDENDS
 The Directors declared a quarterly dividend of 9.5 cents per share, payable Dec. 31, 1992 to shareholders of record on Dec. 11, 1992.
 Maple Leaf Foods is Canada's largest food processing company with operations across Canada, in the United States and Europe. The company's products include fresh and prepared meats, poultry, flours, bakery mixes, fresh and frozen bakery products, seafood and animal feeds. Its products are sold to retail, food service, wholesale, agricultural and industrial customers worldwide.
 MAPLE LEAF FOODS INC.
 Consolidated Statements of Earnings
 For the Nine Months Ended Sept. 30, 1992 and 1991
 (in thousands of Canadian dollars, except per share amounts)
 (Unaudited)
 Periods ended Quarter Nine months
 Sept. 30, 1992 1991 1992 1991
 Sales $694,992 $741,675 $2,010,968 $2,296,929
 Earnings from
 continuing
 operations 29,761 29,036 76,135 79,717
 Other income 1,012 2,406 6,835 6,208
 Interest income
 (expense) 1,715 (3,344) 6,193 (9,735)
 Income before income
 taxes 32,488 28,098 89,163 76,190
 Income taxes 11,570 11,228 33,623 31,727
 Income before minority
 interest 20,918 16,870 55,540 44,463
 Minority interest 1,528 1,626 4,142 4,471
 Net earnings from
 continuing
 operations 19,390 15,244 51,398 39,992
 Discontinued
 operations - 1,954 3,311 4,358
 Net Earnings $19,390 $17,198 $54,709 $44,350
 Earnings per share
 Net earnings from
 continuing
 operations $0.24 $0.23 $0.64 $0.61
 Net earnings $0.24 $0.27 $0.68 $0.68
 Dividends per share
 declared $0.095 $0.095 $0.285 $0.285
 Weighted average
 number of shares
 (thousands) -- -- 80,824 65,656
 MAPLE LEAF FOODS INC.
 Consolidated Balance Sheets
 as at Sept. 30, 1992 and 1991
 (in thousands of Canadian dollars)
 (Unaudited)
 As at Sept. 30,
 1992 1991
 Assets
 Current assets
 Cash and cash equivalents $254,236 $0
 Accounts receivable 256,305 266,852
 Inventories 187,382 206,571
 Prepaid expenses 12,628 16,879
 Total 710,551 490,302
 Investments in associated companies 54,548 45,445
 Property and equipment 511,702 581,031
 Goodwill 128,103 112,445
 Other assets 32,239 22,579
 Total $1,437,143 $1,251,802
 Liabilities and Shareholders' Equity
 Current liabilities
 Bank indebtedness $0 $57,250
 Accounts payable and accrued charges 292,803 386,584
 Income and other taxes payable 54,807 36,127
 Current portion of long-term debt 51,366 2,296
 Total 398,976 482,257
 Long-term debt 37,143 64,319
 Deferred income taxes 27,870 8,271
 Minority interest 40,639 35,544
 Shareholders' equity
 Share capital 840,065 617,323
 Retained earnings 91,169 44,291
 Unrealized foreign currency adjustment 1,281 (203)
 932,515 661,411
 $1,437,143 $1,251,802
 MAPLE LEAF FOODS INC.
 Consolidated Statements of Changes
 in Financial Position
 For the nine months ended Sept. 30, 1992 and 1991
 (in thousands of Canadian Dollars)
 (Unaudited)
 Nine months ended Sept. 30
 1992 1991
 Cash provided by (used in)
 Operating activities
 Net earnings from continuing operations $51,398 $39,992
 Depreciation and amortization 35,904 39,872
 Minority interest 4,142 4,471
 Deferred income taxes (762) (1,016)
 Undistributed earnings of
 associated companies (2,583) (2,232)
 Changes in non-cash working capital (81,799) (71,234)
 Other (2,845) 670
 Total 3,455 10,523
 Financing activities
 Increase in share capital 466 167
 Dividends paid (23,034) (18,713)
 Dividends paid to minority interest (1,952) (1,223)
 Repayment on long-term debt (net) (11,770) (32,702)
 Borrowings assumed on investment in
 joint ventures 15,234 -
 Shares issued by partly owned
 subsidiaries 499 809
 Other (1,553) -
 Total (22,110) (51,662)
 Investing activities
 Additions to property and equipment (37,182) (24,362)
 Disposals of property and equipment 4,818 3,178
 Purchase of net assets of businesses (26,301) (10,697)
 Proceeds on sale of businesses - 64,065
 Investments in associated and other
 companies - (419)
 Total (58,665) 31,765
 Cash provided by (used in)
 continuing operations (77,320) (9,374)
 Cash provided by
 discontinued operations 102,583 11,008
 Cash, net of bank indebtedness
 beginning of period 228,973 (58,884)
 Cash, net of bank indebtedness
 end of period $254,236 ($57,250)
 As at Sept. 30,
 1992 1991
 Net cash (borrowings) $165,727 $(123,865)
 -0- 11~18~92
 ~CONTACT: L.N. Rose, chief financial officer, 416-926-2023; or Art Devlin, senior vice president-corporate affairs, 416-926-2047, both of Maple Leaf Foods~
 (MLF.)


CO: Maple Leaf Foods Inc. ST: Ontario IN: FOD SU: ERN

SH -- NY012 -- 2225 11~18~92 10:05 EST
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