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/FIRST AND FINAL ADD -- CH017 -- LOWES EARNINGS/

 CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
 Lowe's Companies, Inc. and Subsidiary Companies
 Dollars in Thousands
 For the nine months ended October 31
 1993 1992
 Cash Flows From Operating Activities:
 Net Earnings $106,053 $72,397
 Adjustments to Reconcile
 Net Earnings to Net Cash
 Provided By Operating Activities:
 Depreciation 58,394 50,864
 Increase (Decrease)
 in Deferred Income Taxes (3,821) 5,346
 (Gain) Loss on Disposition of Fixed
 and Other Assets 8,397 (993)
 Decrease (Increase) in Operating Assets:
 Accounts Receivable - Net (21,283) 52,226
 Merchandise Inventory (235,056) (57,212)
 Other Operating Assets (1,748) (15,363)
 Increase (Decrease) in Operating Liabilities:
 Accounts Payable 56,944 (33,501)
 Employee Retirement Plans 26,214 (2,495)
 Accrued Store Restructuring (10,138) (7,670)
 Other Operating Liabilities 30,118 21,038
 Net Cash Provided by Operating Activities 14,074 84,637
 Cash Flows from Investing Activities:
 Decrease (Increase) in Investment Assets:
 Short-Term Investments (88,310) (14,289)
 Long-Term Investments (30,353) (7,505)
 Other Long-Term Assets 455 890
 Fixed Assets Acquired (224,474) (176,173)
 Proceeds from the Sale of Fixed and
 Other Long-Term Assets 21,248 7,924
 Net Cash Used in Investing Activities (321,434) (189,153)
 Cash Flows from Financing Activities:
 Sources:
 Long-Term Debt Borrowings 281,915 156,509
 Net Increase (Decrease)
 in Short-Term Borrowings 6,444 (3,318)
 Stock Options Exercised 854 882
 Total Financing Sources 289,213 154,073
 Uses:
 Repayment of Long-term Debt (4,177) (36,693)
 Cash Dividend Payments (17,656) (15,316)
 Total Financing Uses (21,833) (52,009)
 Net Cash Provided by Financing Activities 267,380 102,064
 Net Decrease in Cash and Cash Equivalents (39,980) (2,452)
 Cash and Cash Equivalents, Beginning of
 Period 48,949 26,088
 Cash and Cash Equivalents, End of Period $8,969 $23,636
 See accompanying notes to consolidated condensed financial
 statements.
 Consolidated Condensed Balance Sheets
 Lowe's Companies, Inc. and Subsidiary Companies
 Dollars in Thousands
 October 31,
 1993 1992
 Assets
 Current assets:
 Accounts receivable - net $74,571 $63,513
 Merchandise inventory 829,251 660,007
 Cash and other 152,405 78,981
 Total current assets 1,056,227 802,501
 Net fixed assets 931,479 730,114
 Other assets 103,366 71,273
 Total assets $2,091,072 $1,603,888
 Liabilities & Shareholders' Equity
 Current liabilities:
 Notes payable $58,910 $158,661
 Accounts payable 387,528 274,313
 Other 168,873 139,652
 Total current liabilities 615,311 572,626
 Long-term debt 572,812 242,626
 Deferred income taxes 16,925 11,788
 Accrued store restructuring costs 33,000 50,331
 Total liabilities 1,238,048 877,371
 Shareholders' equity 853,024 726,517
 Total liabilities and shareholders' equity $2,091,072 $1,603,888
 See accompanying notes to consolidated condensed financial
 statements.
 LOWE'S COMPANIES, INC. AND SUBSIDIARY COMPANIES
 1 QUARTERLY EARNINGS STATEMENTS
 Dollars in thousands except per share data
 QUARTER ENDED 10/31/93 07/31/93 04/30/93 01/31/93 10/31/92
 NET SALES $1,158,370 $1,241,691 $992,112 $910,298 $991,192
 FIFO GROSS MARGIN 278,682 296,197 237,676 215,126 231,619
 LIFO CHARGE (3,062) (3,717) (3,509) (5,789) (247)
 LIFO GROSS MARGIN 275,620 292,480 234,167 209,337 231,372
 EXPENSES:
 S,G & A 185,178 183,751 156,662 157,628 168,574
 STORE OPENING COSTS 7,217 6,520 2,929 2,934 3,220
 DEPRECIATION 20,223 19,484 18,687 18,956 17,720
 EMPLOYEE RETIREMENT
 PLANS 10,657 10,629 8,806 7,623 9,602
 INTEREST 4,834 3,545 3,825 3,682 4,048
 TOTAL EXPENSES 228,109 223,929 190,909 190,823 203,164
 PRE-TAX EARNINGS 47,511 68,551 43,258 18,514 28,208
 INCOME TAX PROVISION 15,866 23,591 13,810 6,191 9,308
 NET EARNINGS 31,645 44,960 29,448 12,323 18,900
 EARNINGS PER SHARE $0.43 $0.61 $0.40 $0.17 $0.26
 2 QUARTERLY EARNINGS STATEMENT CHANGES
 Changes from same quarter previous year, to nearest tenth percent
 QUARTER ENDED 10/31/93 07/31/93 04/30/93 01/31/93 10/31/92
 NET SALES 16.9 17.0 12.3 28.3 25.4
 FIFO GROSS MARGIN 20.3 19.1 10.7 22.5 23.3
 LIFO CHARGE 1139.7 92.0 127.6 14.3 140.9
 LIFO GROSS MARGIN 19.1 18.5 9.8 22.8 22.8
 EXPENSES:
 S,G & A 9.8 8.9 5.9 16.1 18.7
 STORE OPENING COSTS 124.1 155.0 28.9 51.9 233.3
 DEPRECIATION 14.1 15.2 15.1 21.5 22.5
 EMPLOYEE RETIREMENT
 PLANS 11.0 7.8 3.8 -0.6 23.1
 INTEREST 19.4 -16.0 4.9 -29.9 0.7
 TOTAL EXPENSES 12.3 10.7 7.0 -19.6 20.0
 PRE-TAX EARNINGS 68.4 54.2 24.6 127.7 47.2
 INCOME TAX PROVISION 70.5 60.1 26.3 126.2 50.7
 NET EARNINGS 67.4 51.3 23.8 128.5 45.5
 3 QUARTERLY EARNINGS STATEMENT PERCENTAGES
 Percent of sales to nearest hundredth; income tax is percent
 of pre-tax earnings
 QUARTER ENDED 10/31/93 07/31/93 04/30/93 01/31/93 10/31/92
 NET SALES 100.00 100.00 100.00 100.00 100.00
 FIFO GROSS MARGIN 24.05 23.85 23.95 23.64 23.36
 LIFO CHARGE -0.26 -0.30 -0.35 -0.64 -0.02
 LIFO GROSS MARGIN 23.79 23.55 23.60 23.00 23.34
 EXPENSES:
 S,G & A 15.98 14.78 15.78 17.33 17.00
 STORE OPENING COSTS 0.62 0.53 0.30 0.32 0.32
 DEPRECIATION 1.75 1.57 1.88 2.08 1.79
 EMPLOYEE RETIREMENT
 PLANS 0.92 0.86 0.89 0.84 0.97
 INTEREST 0.42 0.29 0.39 0.40 0.41
 TOTAL EXPENSES 19.69 18.03 19.24 20.97 20.49
 PRE-TAX EARNINGS 4.10 5.52 4.36 2.03 2.85
 INCOME TAX PROVISION 33.39 34.41 31.92 33.44 33.00
 NET EARNINGS 2.73 3.62 2.97 1.35 1.91
 LOWE'S COMPANIES, INC. AND SUBSIDIARY COMPANIES
 4 CONDENSED QUARTERLY BALANCE SHEETS
 Dollars in millions
 QUARTER ENDED 10/31/93 07/31/93 04/30/93 01/31/93 10/31/92
 ASSETS:
 INVENTORY $829.3 $741.7 $691.4 $594.2 $660.0
 RECEIVABLES 74.6 76.4 66.9 53.3 63.5
 FIXED ASSETS 931.5 870.2 818.2 787.2 730.1
 ALL OTHER 255.7 322.8 185.3 174.2 150.3
 TOTAL $2,091.1 $2,011.1 $1,761.8 $1,608.9 $1,603.9
 EQUITY AND LIABILITIES:
 EQUITY $853.0 $814.7 $764.4 $733.2 $726.5
 PAYABLES 387.5 345.0 353.6 330.6 274.3
 DEBT 631.7 622.1 436.8 338.5 401.3
 ALL OTHER 218.9 229.3 207.0 206.6 201.8
 TOTAL $2,091.1 $2,011.1 $1,761.8 $1,608.9 $1,603.9
 5 QUARTERLY BALANCE SHEET CHANGES
 Changes from same quarter previous year, to nearest whole percent
 QUARTER ENDED 10/31/93 07/31/93 04/30/93 01/31/93 10/31/92
 ASSETS:
 INVENTORY 26 12 -1 -1 20
 RECEIVABLES 17 -10 -9 -54 -52
 FIXED ASSETS 28 28 24 28 25
 ALL OTHER 70 109 47 59 50
 TOTAL 30 27 13 12 17
 EQUITY AND LIABILITIES:
 EQUITY 17 14 11 10 1
 PAYABLES 41 30 14 7 17
 DEBT 57 56 28 23 44
 ALL OTHER 8 13 -3 9 44
 TOTAL 30 27 13 12 17
 6 QUARTERLY BALANCE SHEET COMPONENT PERCENTAGES
 To nearest whole percent
 QUARTER ENDED 10/31/93 07/31/93 04/30/93 01/31/93 10/31/92
 ASSETS:
 INVENTORY 40 37 39 37 41
 RECEIVABLES 4 4 4 3 4
 FIXED ASSETS 45 43 46 49 46
 ALL OTHER 11 16 11 11 9
 TOTAL 100 100 100 100 100
 EQUITY AND LIABILITIES:
 EQUITY 41 41 43 46 45
 PAYABLES 19 17 20 21 17
 DEBT 30 31 25 21 25
 ALL OTHER 10 11 12 12 13
 TOTAL 100 100 100 100 100
 Lowe's Companies, Inc. and Subsidiary Companies
 Notes to Consolidated Condensed Financial Statements


Note 1: In the opinion of management, the accompanying consolidated condensed financial statements (unaudited) contain all adjustments necessary to present fairly the financial position as of October 31, 1993, and the results of operations for the three-month and nine-month periods ended October 31, 1993 and 1992, and cash flows for the nine-month periods ended October 31, 1993 and 1992.

Note 2: The results of operations for the nine-month periods ended October 31, 1993 and 1992 are not necessarily indicative of the results to be expected for the full year.

Note 3: Interest and loan expense is net of interest income of $1,857,000 and $631,000 for the three-month periods ended October 31, 1993 and 1992, respectively, and $3,606,000 and $1,741,000 for the nine month periods ended October 31, 1993 and 1992, respectively. In addition, interest on construction in progress capitalized in the amount of $1,018,000 and $567,000 for the three-month periods ended October 31, 1993 and 1992, respectively, and $2,719,000 and $1,208,000 for the nine-month periods ended October 31, 1993 and 1992, respectively.

Note 4: If the FIFO method of inventory accounting had been used, inventories would have been $59,305,000 higher at October 31, 1993 and $43,228,000 higher at October 31, 1992.

Note 5: Stock options exercised consisted of 21,900 and 9,000 shares resulting in proceeds of $268,000 and $82,000 for the three-month periods ended October 31, 1993 and 1992, respectively, and 75,710 and 79,600 shares resulting in proceeds of $854,000 and $882,000 for the nine-month periods ended October 31, 1993 and 1992, respectively.

Note 6: Property is shown net of accumulated depreciation of $311,747,000 at October 31, 1993 and $280,169,000 at October 31, 1992.

Note 7: Supplemental disclosures of cash flow information:
 Nine months ended October 31 1993 1992
 Cash paid for interest
 (net of capitalized) $19,395,000 $15,848,000
 Cash paid for income taxes 47,247,000 27,847,000
 Non-cash investing and financing activities:
 Common stock issued to ESOP 30,558,000
 Fixed assets acquired under
 capital lease 9,064,000 9,606,000


Note 8: In April, 1992, the Company filed a shelf-registration with the Securities and Exchange Commission registering up to $250 million of Medium-Term Notes to be issued in the future. The Company issued $218 million of Notes in Fiscal 1992 and the remaining $32 million in the first quarter of Fiscal 1993. The notes bear interest at rates that range from 6.50 percent to 8.20 percent and are scheduled to mature from 1997 to 2022.

Note 9: On January 29, 1993, the Board of Directors authorized the partial funding of the Fiscal 1992 ESOP contribution with the issuance of new shares of the Company's common stock. During the first three quarters of the year, the Company issued 848,017 shares with a cost of $30.6 million, or a weighted average cost per share of $36.03.

Note 10: On July 22, 1993, the Company sold $287.5 million aggregate principal of its 3 percent Convertible Subordinated Notes due July 22, 2003. The Notes are convertible into Lowe's Common Stock at the conversion rate of 19.16 shares of common stock per each $1,000 principal amount. The Notes were issued at an original price of $880.27 per $1,000 principal amount, which represented an Original Issue Discount of 11.973 percent payable at maturity. Annual interest on the Notes at 3 percent and accrual of Original Issue Discount represents an annual yield to maturity of 4.5 percent. The Notes are potentially dilutive securities for purposes of calculating earnings per share; however, the effect of the Notes is not material for the three-month and nine-month periods ended October 31, 1993, and therefore is not included in the calculation.

Note 11: Costs associated with the relocation and closing of stores during the three months ended October 31, 1993, which were recognized through the restructuring charge in Fiscal 1991, totaled $5,757,000. Comparable costs incurred during the three months ended October 31, 1992 were $1,618,000.
 -0- 11/15/93 AA CH017
 /END -- FIRST AND FINAL ADD/
 (LOW)


CO: Lowe's Companies, Inc. ST: North Carolina IN: REA SU: ERN

CM -- CH017A -- 4483 11/15/93 13:37 EST
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