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NOLAND COMPANY BOARD OF DIRECTORS CUTS CASH DIVIDEND

 NOLAND COMPANY BOARD OF DIRECTORS CUTS CASH DIVIDEND
 NEWPORT NEWS, Va., Jan. 3 /PRNewswire/ -- Citing weak earnings and


continued sluggish business conditions, Noland Company's (NASDAQ-NMS: NOLD) board of directors has cut the quarterly cash dividend 48 percent, from 11.5 cents per share to six cents. The new lower rate is effective with the January 1992 dividend, payable January 23 to stockholders of record January 13.
 Noland earned $3.7 million in 1990, a 25.9 percent decline from 1989. Earnings results for 1991 will not be available until mid-February, but through the first nine months, the company had a net loss of $631,000.
 Noland has paid regular cash dividends for 58 consecutive years, and has increased its annual dividend payout every year for the past 16 years. The most-recent increase came in July 1990, when the annual rate went from 44 cents per share to its current 46 cents. Under the new rate, the annual payout would be 24 cents.
 "Despite earlier predictions by many economists that the recovery would manifest itself in 1991," said Chairman Lloyd U. Noland III, "we now know that we are not likely to see any improvement in business conditions before the spring of this year. In view of this outlook and our current poor earnings performance, we simply cannot justify the dividend rate that's been in effect since mid-1990."
 Noland said the company remains in excellent financial condition. "We continue to enjoy a positive cash flow, and our balance sheet remains strong. However, stockholders' equity -- which had been increasing each year for nearly six decades -- declined by $1.9 million through the first nine months of 1991, largely due to the $1.2 million paid out in cash dividends during that period."
 Reducing cash dividends now, said Noland, "will allow us to take advantage of growth opportunities that might come along in the future. And, as earnings return to more acceptable levels, the directors will re-evaluate the dividend rate."
 Noland operates 92 branches in 13 southern states. The Newport News-based firm distributes products in the plumbing, heating, electrical, air conditioning, refrigeration, and industrial fields, as well as domestic water systems. The company's stock is traded over the counter, as part of NASDAQ's National Market System. Its trading symbol is NOLD.
 -0- 1/3/92
 /CONTACT: John E. Gullett of Noland Company, 804-928-9000/
 (NOLD) CO: Noland Company ST: Virginia IN: SU: DIV


CM -- CH008 -- 6510 01/03/92 13:09 EST
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Publication:PR Newswire
Date:Jan 3, 1992
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