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AMP ESTIMATES THIRD QUARTER RESULTS; COMMENTS ON OUTLOOK; WILL ACQUIRE ELECTRO OPTICS PRODUCTS UNIT FROM DU PONT

 AMP ESTIMATES THIRD QUARTER RESULTS; COMMENTS ON OUTLOOK;
 WILL ACQUIRE ELECTRO OPTICS PRODUCTS UNIT FROM DU PONT
 HARRISBURG, Pa., Sept. 17 /PRNewswire/ -- AMP Incorporated (NYSE: AMP) Chairman and Chief Executive Officer Harold A. McInnes commented on current results and outlook in a presentation at 4 p.m. today at the Merrill Lynch Connector Industry Conference in New York.
 He indicated results are in line with analyst expectations. Third quarter sales should be about $835-840 million -- up about 13-14 percent from $736 million in the year earlier period -- and up from the record $827 million sales in the second quarter this year. Usually third quarter sales show a modest seasonal decline from the second quarter level. The increase in sales and earnings from the second quarter is attributable primarily to the lower value of the U.S. dollar during the third quarter. Changes in exchange rates during the quarter added $25-30 million to sales and a couple of cents in earnings over the second quarter. Third quarter earnings will probably be about 71-73 cents per share -- up about 22-26 percent from 58 cents per share in the year earlier period -- and up from 68 cents in the second quarter this year. Sales in the United States are slightly better than had been expected earlier in the year, and it is now estimated they will be up 10-12 percent for the entire year -- including nearly 3 percent from inclusion of Precision Interconnect acquired December 1991. The order backlog is expected to be up about $15 million during the third quarter from a record $531 million at June 30, 1992.
 McInnes stated that fourth quarter sales and earnings should be higher, probably $860-890 million and 75-80 cents per share (probably the high end) -- and therefore analyst estimates of about $2.82-$2.87 earnings per share for the entire year seem reasonable if the dollar remains fairly constant. McInnes also indicated that analyst consensus estimates for 1993 of about $3.20-$3.50 earnings per share on 5-10 percent sales growth also appear to be reasonable, assuming continued economic recovery and a stable U.S. dollar. With nearly 60 percent of AMP sales now outside the United States, changes in the value of the U.S. dollar can have a significant effect on reported results.
 1992 capital expenditures are expected to be about $300-325 million -- down from the record $338 million in 1990 and similar to the $313 million in 1991.
 McInnes, along with AMP executives James E. Marley, president and COO, and William J. Hudson, executive vice president-International, commented that the immediate outlook is for continued modest sales growth and margin improvement throughout the world, and were optimistic that AMP could return closer to its historic long-term growth and profitability performance during the 1990s.
 McInnes also announced that AMP is buying Electro Optics Products, a small unit within the Du Pont (NYSE: DD) Electronics Group. "Based in Raleigh, N.C., it makes networking intelligent hubs and other networking hardware that complement the networking concentrator units and other networking products we've introduced in the past year. Its sales are only a few million dollars, but this gives us expertise and market access to a higher technology level in a fast growing market. AMP now can offer a full range of sophisticated, highly reliable Token Ring and Ethernet solutions for integrated data communications systems. We intend to be a major factor in networking and this is one of many steps in that direction."
 Harrisburg-based AMP Incorporated is the world's leading producer of electrical/electronic connection devices. It has more than 25,000 employees in 165 facilities in the United States and 30 other countries. AMP stock is listed on the New York, Pacific and other regional stock exchanges (Symbol -- "AMP").
 AMP's next quarterly conference call will be held Oct. 28 or 29, 1992. Its next open semi-annual financial analyst meeting will be Friday, Dec. 11, 1992, in Harrisburg.
 /delval/
 -0- 9/17/92
 /CONTACT: William Oakland of AMP, 717-780-6371/
 (AMP DD) CO: AMP Incorporated; Du Pont ST: Pennsylvania, North Carolina IN: CPR SU: ERP


LJ -- PH034 -- 0795 09/17/92 15:58 EDT
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Date:Sep 17, 1992
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