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BURLINGTON REPORTS 35 PERCENT IMPROVEMENT IN PRE-TAX PROFITS FOR THIRD QUARTER OF FISCAL 1993

 GREENSBORO, N.C., Aug. 3 /PRNewswire/ -- Burlington Industries Equity Inc. (NYSE: BUR) today reported higher profits and sales for the third quarter of fiscal 1993 (ended July 3, 1993) in comparison with the third quarter of fiscal 1992.
 Income before income taxes was $53.5 million for the third quarter of fiscal 1993, an increase of 35% over the $39.8 million recorded in the comparable period of the 1992 fiscal year. The increase in income before income taxes was principally attributable to reduced interest expense and improved operating performance. Customer interest in Burlington's products remained firm overall during the June 1993 fiscal quarter despite lackluster demand that prevailed for many textile products at the retail level.
 Net income for the third quarter of fiscal 1993 totaled $49.5 million, or $0.73 per share, compared to net income of $39.5 million, or $0.59 per share in the comparable 1992 fiscal year period. Income before extraordinary items (after normal income taxes but before utilization of net operating loss carryforwards) was $31.4 million, or $0.46 per share, and included a net gain on sale of an asset held for investment of $2.0 million, or $0.03 per share. In comparison, income before extraordinary items for the third quarter of fiscal 1992 was $39.7 million, or $0.59 per share, and would have been $0.33 per share if a full charge for income taxes at normal rates were applicable.
 Operating income before interest and taxes was $73.8 million (or 13.3 percent of sales) for the third quarter of fiscal 1993, compared to $68.4 million (or 12.8 percent of sales) reported in the third quarter of fiscal 1992.
 Net sales for the third quarter of fiscal 1993 were $554.0 million, up 3.4 percent when compared with $535.6 million reported in the third quarter of fiscal 1992.
 Net sales for the first nine months of the 1993 fiscal year were $1,546.8 million, an increase of 1.5 percent over $1,523.8 million in net sales in the same period of fiscal 1992. Net income for the 1993 nine-month period was $117.5 million, or $1.72 per share. Income before extraordinary items (utilization of net operating loss carryforwards) for the first nine months of fiscal 1993 was $73.5 million, or $1.08 per share. In comparison, the company recorded a net loss of $211.3 million during the first nine months of fiscal 1992, which was affected by expenses associated with the 1992 Recapitalization Plan, the provision for 1992 Residential Carpet restructuring, and certain other debt repurchases. Per share net income comparison between the periods is not meaningful because the fiscal 1992 per share figures do not reflect the increase in shares resulting from the March 1992 initial public offering and direct placement of common stock.
 Burlington Industries Equity Inc. is the parent to Burlington Industries, Inc., one of the largest and most diversified manufacturers of textile products in the world.
 BURLINGTON INDUSTRIES EQUITY INC. AND SUBSIDIARY COMPANIES
 Consolidated Statements of Operations
 (Amounts in thousands, except for per share amounts)
 Three Three Nine Nine
 months months months months
 ended ended ended ended
 7/3/93 6/27/92 7/3/93 6/27/92
 Net sales $553,979 $ 535,643 $1,546,846 $1,523,780
 Cost of sales 438,385 428,122 1,230,171 1,230,014
 Gross profit 115,594 107,521 316,675 293,766
 Selling, admin. &
 general expenses 37,381 34,708 107,990 101,478
 Amortization of
 goodwill 4,398 4,398 13,194 13,194
 Provision for 1992
 Residential Carpet
 restructuring - - - 29,600
 Operating inc. before
 interest & taxes 73,815 68,415 195,491 149,494
 Interest expense 23,821 25,799 73,797 135,098
 Loss & expenses on
 sale of receivables - 3,707 2,609 16,471
 Other expense
 (income) - net (3,555) (849) (8,708) 1,330
 Special ESOP contribution
 and early vesting of other
 benefit plans - - - 117,937
 Income (loss) before
 income taxes 53,549 39,758 127,793 (121,342)
 Income tax expense (22,165) (85) (54,260) (307)
 Income (loss) before
 extraordinary items 31,384 39,673 73,533 (121,649)
 Extraordinary items:
 Loss on debt ret. (281) (173) (281) (89,657)
 Utilization of NOL
 carryforwards 18,389 - 44,249 -
 18,108 (173) 43,968 (89,657)
 Net income (loss) 49,492 39,500 117,501 (211,306)
 Accrued preferred stock
 dividend - - - (3,738)
 Accretion of preferred
 stock - - - (828)
 Net inc. (loss) applicable
 to common stock $ 49,492 $ 39,500 $ 117,501 $ (215,872)
 Average common shares
 outstanding 68,277 67,490 68,260 28,259
 Net income (loss)
 per common share:
 Inc.(loss) before
 extraordinary items $ 0.46 $ 0.59(A) $ 1.08 $ (4.47)(B)
 Extraordinary items 0.27 - 0.64 (3.17)(B)
 $ 0.73 $ 0.59 $ 1.72 $ (7.64)(B)
 (A) Per share income would have been $0.33 if a full charge for income tax at normal rates were applicable.
 (B) Per share net income comparison with nine-month period of the prior year is not meaningful because the fiscal 1992 per share figures do not reflect the increase in shares from the March 1992 initial public offering and direct placement of common stock.
 BURLINGTON INDUSTRIES EQUITY INC. AND SUBSIDIARY COMPANIES
 Consolidated Balance Sheets
 (Amounts in thousands)
 July 3, October 3,
 1993 1992
 ASSETS
 Current assets:
 Cash and cash equivalents $ 27,943 $ 24,632
 Short-term investments, at cost,
 which approximates market 3,673 5,162
 Customer accounts receivable
 after deductions of $16,746
 and $16,184 for the respective
 dates for doubtful accounts,
 discounts, returns and allowances 332,865 127,018
 Sundry notes and accounts receivable 6,413 6,403
 Inventories 315,371 303,776
 Prepaid expenses 3,399 4,594
 Total current assets 689,664 471,585
 Fixed assets, at cost:
 Land and land improvements 28,653 29,538
 Buildings 292,805 301,932
 Machinery, fixtures and equipment 460,630 424,809
 782,088 756,279
 Less accumulated depr. and
 amortization 309,631 285,430
 Fixed assets - net 472,457 470,849
 Other assets:
 Investments and receivables 26,433 25,274
 Intangibles and deferred charges 69,394 84,497
 Net assets held for sale 8,262 8,713
 Excess of purchase cost over net
 assets acquired 601,901 615,095
 Total other assets 705,990 733,579
 $1,868,111 $1,676,013
 LIABILITIES and SHAREHOLDERS' EQUITY
 Current liabilities:
 Short-term borrowings $ 5,995 $ 2,120
 Long-term debt due currently 94,970 95,200
 Accounts payable & accrued expenses 160,890 176,624
 Income taxes payable 16,405 9,870
 Total current liabilities 278,260 283,814
 Long-term liabilities:
 Long-term debt 947,252 861,868
 Other 49,426 55,636
 Total long-term liabilities 996,678 917,504
 Shareholders' equity:
 Common stock issued 682 682
 Capital in excess of par value 880,864 880,572
 Accumulated deficit (287,871) (405,372)
 Currency translation adjustments 6,481 7,049
 600,156 482,931
 Less unearned compensation (6,732) (7,891)
 Less cost of common stock
 held in treasury (251) (345)
 Total shareholders'
 equity 593,173 474,695
 $1,868,111 $1,676,013
 BURLINGTON INDUSTRIES EQUITY INC. AND SUBSIDIARY COMPANIES
 Consolidated Statements of Cash Flows
 Increase (Decrease) in Cash and Cash Equivalents
 (Amounts in thousands)
 Nine Nine
 months months
 ended ended
 July 3, June 27,
 1993 1992
 Cash flows from operating activities:
 Net income (loss) $ 117,501 $(211,306)
 Adjustments to reconcile net income
 (loss) to net cash provided (used)
 by operating activities:
 Depreciation and amortization of
 fixed assets 40,457 40,284
 Amortization of intangibles 13,194 13,194
 Amortization of deferred debt
 expense 9,161 7,156
 Non cash interest and compensation 2,722 30,870
 Loss on debt retirement 457 89,657
 Loss and expenses on sale of receivables - 12,764
 Special ESOP contribution and early
 vesting of other benefit plans - 117,833
 Provision for 1992 Residential
 Carpet restructuring - 29,600
 Gain on sale of investments (7,387) -
 Changes in assets and liabilities:
 Customer accounts receivable - net (3,501) (38,315)
 Sundry notes and accounts
 receivable 261 1,457
 Inventories (9,108) (19,741)
 Prepaid expenses 1,222 586
 Accounts payable and accrued
 expenses (18,422) (2,755)
 Payment of financing fees (1,151) (56,139)
 Change in interest payable (4,849) (41,532)
 Change in income taxes payable 6,535 (26)
 Other (1,029) (5,754)
 Total adjustments 28,562 179,139
 Net cash provided (used) by operating
 activities 146,063 (32,167)
 Cash flows from investing activities:
 Capital expenditures (50,755) (42,200)
 Proceeds from sales of assets 26,328 3,589
 Other (1,595) 8,011
 Net cash used by
 investing activities (26,022) (30,600)
 Cash flows from financing activities:
 Net change in short-term borrowings 3,875 618
 Repayments of long-term debt (130,042) (1,906,453)
 Proceeds from issuance of long-term
 debt 209,417 952,250
 Purchase of participation interests
 in accounts receivable (200,000) -
 Proceeds from sale of accounts
 receivable - 190,550
 Net proceeds from issuance of
 common stock 20 752,989
 Purchase of treasury stock - (76)
 Net cash used by financing
 activities (116,730) (10,122)
 Net change in cash and
 cash equivalents 3,311 (72,889)
 Cash and cash equivalents at
 beginning of period 24,632 95,332
 Cash & cash equiv.
 at end of period $ 27,943 $ 22,443
 -0- 8/3/93
 /CONTACT: (Press) Tom Daly of Kekst & Co., 212-593-2655, or Bryant Haskins of Burlington, 919-379-2512; (Analysts) Park Davidson of Burlington, 919-379-2515/
 (BUR)


CO: Burlington Industries Equity Inc. ST: North Carolina IN: TEX SU: ERN

CM -- CH001 -- 8719 08/03/93 08:37 EDT
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