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 AMP Estimates 1993 Sales Up 3 Percent To $3.45 Billion
 And Earnings Up 2-4 Percent To $2.80-$2.85 Per Share
 Fourth Quarter Sales About $865-870 Million;
 Earnings Estimated At 65-70 Cents/Share
 Further Growth Seen In 1994 -- Record Sales And Earnings Expected
 Forms New Subsidiary (Connectware, Inc.), Agrees In Principle To
 Acquire Smart American Home Centers, And Makes Minority Equity
 Position Investments In Lanart And Micromodule Systems
 HARRISBURG, Pa., Dec. 10 /PRNewswire/ -- AMP Incorporated (NYSE: AMP) Chairman James E. Marley and President and CEO William J. Hudson commented on current results and outlook at a meeting here today with over 50 financial analysts.
 They indicated that results are in line with current analyst expectations. Fourth quarter sales will be $865-$870 million, up 2-3 percent from $845 million in the year-earlier quarter. Fourth quarter 1993 earnings are estimated at 65-70 cents/share, similar to the 67 cents/share in the year-earlier quarter and down from 74 cents/share in the preceding third quarter, 1993. Fourth quarter sales would be about $20 million higher if exchange rates were constant from the year- earlier period. Exchange rate change effects were not significant from third to fourth quarter 1993.
 This indicates that for the full year 1993, sales will be up about 3 percent to $3.45 billion from $3.34 billion in 1992 and earnings will be up 2-4 percent to $2.80-$2.85/share from $2.75/share in 1992. U.S. sales will be up about 10 percent, while international sales will be up 2-3 percent in local currencies and down about 1 percent in U.S. dollars. If exchange rates had remained constant, 1993 sales would be about $75 million higher and earnings several cents/share higher. European sales will be up about 1 percent in local currencies, but down about 10 percent in U.S. dollars. Asia/Pacific sales are up 2 percent in local currencies and 11 percent in U.S. dollars. Sales in the Western Hemisphere outside the U.S. will be up about 15 percent.
 Marley and Hudson stated that first quarter 1994 should show some improvement over the current quarter. For full year 1994, analyst consensus estimates are $3.10-$3.40/share on 7-10 percent sales growth. This assumes continued expansion of the U.S. economy, some improvement in the European and Japanese economies in the second half, and a constant value for the U.S. dollar.
 The order backlog is expected to be flat or down slightly from $528 million at the beginning of the quarter. Capital expenditures are expected to be about $315 million in 1993 -- up slightly from $312 million in 1992.
 Connectware, Inc. is a new business unit within the Strategic Business Group missioned to develop software for multimedia applications -- particularly for individuals and small businesses; develop software to support other AMP strategic business units addressing markets such as Smart House, networking, and PCMCIA cards; and develop hardware for the ATM technology market.
 Agreement in principle has been reached on acquisition of Smart American Home Centers, the leading sales and service organization in the Smart House home automation market. This will speed the establishment of a full marketing and distribution capability by our recently formed Building Systems strategic business unit that is concentrating on this emerging market.
 A minority equity position has been taken in LANart, Needham, Mass., a leader in the intelligent network "expandable hub" market. LANart is headed by Dr. Yoseph Linde, founder of Chipcom. This is a further step by AMP into the networking market with connector-intensive units. In January 1993, AMP created its ACSYS subsidiary to consolidate its efforts in the networking concentrator, hub, and router market. In 1992 AMP acquired Electro Optics from DuPont and Netronix, which are included in ACSYS.
 A strategic relationship and minority equity position has also been established with MicroModule Systems, Cupertino, Calif. Headed by Chairman and CEO Bill Robinette, Jr. and President Michael Grove, MicroModule Systems has the largest fully merchant multichip module capability in the world. The first joint project is the microchip module and connection system for 486 upgrades.
 AMP expects to announce several more strategic relationships and small acquisitions in the coming months.
 Harrisburg-based AMP Incorporated is the world's leading producer of electrical/electronic connection devices. It has 27,000 employees in 165 facilities in the U.S. and 35 other countries. AMP stock is listed on the New York, Pacific and other regional stock exchanges (Symbol -- "AMP").
 -0- 12/10/93
 /CONTACT: William Oakland of AMP, 717-780-6371/

CO: AMP Incorporated ST: Pennsylvania, Massachusetts IN: CPR SU: ERP TNM

JM -- PH002 -- 2492 12/10/93 08:19 EST
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Publication:PR Newswire
Date:Dec 10, 1993

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