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BELL INDUSTRIES COMPLETES ORGANIZATIONAL RESTRUCTURING, ANNOUNCES NEW PROGRAMS TO ACHIEVE GROWTH

 LOS ANGELES, Dec. 2 ~PRNewswire~ -- Having completed its organizational restructuring, Bell Industries Inc. (NYSE: BI) today announced programs to achieve the economies that had been contemplated from implementing the plan.
 The company said it has instituted a 7 percent reduction in payroll expense, effective Dec. 1. This is expected to result in annualized pre-tax savings of approximately $3.5 million. Costs related to the layoffs involving approximately 120 employees, will be absorbed in the current quarter which ends on Dec. 31.
 In addition, the company expects to achieve reductions in operating cost of approximately $300,000 a month from a corporate- wide flexible work program, according to Theodore Williams, chairman and chief executive officer.
 "We recognized that major organizational and operational changes were essential to maintain our position as a viable competitor in a rapidly changing business environment," Williams stated. "The programs we instituted -- from installing a computer system -- to introducing new concepts in sales and marketing -- had two fundamental goals: delivering a consistently high quality of service to our customers and reducing our cost of doing business."
 The final segments of the restructuring program -- completed this past summer -- involved the establishment of regional service centers by the Electronics Distribution Group to enhance customer service and improve the cost-effectiveness of the sales organization. Williams noted that sales for the second fiscal quarter for EDG are running even with the same period last year, despite the loss of the Motorola franchise which accounted for 12 percent of the group's sales last fiscal year.
 "While we regret that these programs involves the layoff of some employees, it is imperative that Bell reduce its operating costs in order to improve profitability," Williams stated.
 Bell Industries Inc. distributes and manufactures products for the electronics, computer, building and other markets.
 -0- 12~2~92
 ~CONTACT: Bruce M. Jaffe, executive VP, or Tracy A. Edwards, VP and CFO, of Bell Industries, 310-826-2355; or Melvyn S. Rifkind for Bell Industries, 818-783-8323~
 (BI)


CO: Bell Industries ST: California IN: CPR SU: RCN

MS-JB -- LA004 -- 2850 12~02~92 11:30 EST
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Publication:PR Newswire
Date:Nov 30, 1992
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