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BEARINGS, INC. REPORTS ON FOURTH QUARTER EARNINGS & SALES; PROVIDES RESTRUCTURING CHARGE; CONTINUES AUTHORIZATION OF SHARE REPURCHASES

BEARINGS, INC. REPORTS ON FOURTH QUARTER EARNINGS & SALES; PROVIDES

RESTRUCTURING CHARGE; CONTINUES AUTHORIZATION OF SHARE REPURCHASES
 CLEVELAND, Aug. 7 /PRNewswire/ -- Bearings, Inc. (NYSE: BER) today reported a net loss for the fourth quarter and the year ended June 30, 1992.
 Chairman of the board and chief executive officer John C. Dannemiller reported sales of $817,813,000 for the year ended June 30, 1992, and a net loss of $1,666,000, or $.24 per share. The quarter included a restructuring charge of $7.8 million, or $.66 per share after tax. Net income for the prior fiscal year was $4,282,000, or $.61 per share, on sales of $814,000,000.
 The restructuring charge was recorded to provide for costs of closing five of 11 distribution centers, the consolidation of 26 branches and two elastomer product service centers and reorganization of the sales regions and administrative functions to enhance the company's long-term profitability. The restructuring is expected to provide for increased productivity, reduced operating costs, and more efficient and effective market coverage in all geographic areas served by the company.
 Dannemiller reported that the net loss for the fourth quarter ended June 30, 1992, including the restructuring charge, was $3,476,000 or $.49 per share on sales of $208,992,000. Net income for the quarter, before the effect of the restructuring charge was $.17. Net income in the same quarter last year was $2,113,000 or $.30 per share on sales of $203,639,000. Prior year fourth quarter net income included a substantial favorable impact of LIFO inventory liu?idations that increased net income by $.70 per share.
 Dannemiller commented: "Although the financial results for the year and quarter continued to be influenced by the persistent weakness in the U.S. economy, we feel that our business is beginning to show improvement. In spite of the depressed economic conditions, prudent asset management during the past two years has contributed to substantial positive operating cash flow, reductions in short-term borrowing and decreased interest costs."
 Dannemiller added: "We have addressed all areas of our operations through the restructuring analysis and feel confident that the changes effected will contribute substantially to the company's current and future long-term profitability."
 No shares were purchased during the quarter under the company's authorization to acquire additional shares of its common stock. The company has remaining authorization to acquire up to 263,000 shares of its common stock in open market and negotiated transactions, from time- to-time depending on market conditions.
 Bearings, Inc. is the nation's leading independent distributor of bearings and power transmission components with more than 300 branches in 37 states.
 BEARINGS, INC. AND SUBSIDIARIES
 STATEMENTS OF CONSOLIDATED INCOME
 (Thousands, except per share data)
 Three Months Ended
 June 30
 1992 1991
 (Unaudited)
 Net Sales $208,992 $203,639
 Cost and Expenses
 Cost of Sales 154,456 146,468
 Selling, distribution
 and administrative 50,117 51,084
 Restructuring charge 7,832 ---
 Total 212,405 197,552
 Operating Income (Loss) (3,413) 6,087
 Interest expense 1,641 2,327
 Interest income (110) (154)
 Total 1,531 2,173
 Income (Loss) Before Income Taxes (4,944) 3,914
 Income Tax Expense (Benefit)
 Federal (1,234) 1,496
 State and local (234) 305
 Total (1,468) 1,801
 Net Income (Loss) $ (3,476) $ 2,113
 Net Income (Loss) Per Share $ (.49) $ .30
 Average Shares Outstanding 7,100 7,056
 Year Ended
 June 30
 1992 1991
 Net Sales $817,813 $814,000
 Cost and Expenses
 Cost of Sales 607,443 600,300
 Selling, distribution
 and administrative 197,835 196,585
 Restructuring charge 7,832 ---
 Total 813,110 796,885
 Operating Income (Loss) 4,703 17,115
 Interest expense 6,985 10,309
 Interest income (407) (694)
 Total 6,578 9,615
 Income (Loss) Before Income Taxes (1,875) 7,500
 Income Tax Expense (Benefit)
 Federal (178) 2,612
 State and local (31) 606
 Total (209) 3,218
 Net Income (Loss) $ (1,666) $ 4,282
 Net Income (Loss) Per Share $ (.24) $ .61
 Average Shares Outstanding 7,081 7,076
 NOTES:
 (1) As a result of reductions in inventories during the fiscal year ended June 30, 1991, the quarterly results include the effects of liquidations of LIFO inventory quantities carried at lower costs prevailing in prior years. The effect of these liquidations in the fourth quarter and year ended June 30, 1991 increased gross profit by $8,484,000 and $13,603,000; net income by $4,937,000 and $7,932,000; and net income per share by $.70 and $1.12, respectively.,
 (2) For its quarterly statements of consolidated income the company uses estimated gross profit percentages to compute cost of sales. An adjustment to actual cost is made at the end of the fiscal year, based on the annual physical inventory. The physical inventory adjustment in 1992 increased gross profit, net income and net income per share by $1,806,000, $1,084,000 and $.15, respectively. The physical inventory adjustment for 1991 was not material.
 -0- 8/7/92
 /CONTACT: Raymond E. Smiley of Bearings, Inc., 216-881-2838, ext. 253/
 (BER) CO: Bearings, Inc. ST: Ohio IN: MAC SU: ERN


BM -- CL010 -- 8018 08/07/92 12:11 EDT
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Date:Aug 7, 1992
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