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BURLINGTON REPORTS HIGHER SALES AND OPERATING INCOME FOR SECOND QUARTER OF FISCAL 1992

 BURLINGTON REPORTS HIGHER SALES AND OPERATING INCOME
 FOR SECOND QUARTER OF FISCAL 1992
 GREENSBORO, N.C., May 6 /PRNewswire/ -- Burlington Industries Equity Inc. (NYSE: BUR) today reported net sales for the second quarter of fiscal 1992 of $517.4 million, an improvement of 12.1 percent over $461.5 million reported in the second quarter of fiscal 1991. Operating income in the second quarter (before interest, taxes and a $29.6 million provision for 1992 Residential Carpet restructuring) was $64.2 million, an improvement of 94.1 percent over $33.1 million reported in the second quarter of fiscal 1991. After the provision for 1992 Residential Carpet restructuring, operating income (before interest and taxes) totalled $34.6 million for the second quarter of fiscal 1992 in comparison with $33.1 million in the second quarter of fiscal 1991.
 The company also recorded in the second quarter of fiscal 1992 $248.5 million for expense associated with its previously announced 1992 recapitalization plan undertaken in the second quarter.
 Chiefly as a result of charges for the 1992 recapitalization plan and the provision for 1992 Residential Carpet restructuring, the company recorded a net loss of $270.0 million for the second quarter of fiscal 1992, compared with net income of $9.7 million for the second quarter of the 1991 fiscal year, which included a gain on debt retirement of $39.0 million.
 The company also announced today its decision to restructure the Residential Carpet division, which will involve consolidating the Residential Carpet business in facilities previously used principally to manufacture commercial carpets and the closing of surplus Residential Carpet plants. The company expects that the restructuring will be completed by the end of 1992 and should result in significant cash flow and profit improvement in the carpet divisions and the interior furnishings products segment overall.
 Burlington Industries Equity Inc. is the parent company of 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)
 Periods Three Months Six Months
 Ended 3/28/92 3/30/91 3/28/92 3/30/91
 Net sales $ 517,487 $ 461,482 $ 988,137 $ 909,771
 Cost of sales 416,222 389,110 801,892 772,265
 Gross profit 101,265 72,372 186,245 137,506
 Selling, admin. &
 general expenses 32,675 34,894 66,770 69,940
 Amortization of goodwill 4,398 4,398 8,796 8,796
 Provision for 1992
 Residential Carpet
 restructuring 29,600 -- 29,600 --
 Operating income before
 interest & taxes 34,592 33,080 81,079 58,770
 Interest expense 52,752 62,223 109,299 125,354
 Loss & expenses on sale
 of receivables 12,764 -- 12,764 --
 Other expense (inc.) - net 3,235 (937) 2,179 (7,757)
 Special ESOP contribution
 & early vesting of other
 benefit plans 117,937 -- 117,937 --
 Loss from cont. opers.
 before income taxes (152,096) (28,206) (161,100) (58,827)
 Income tax (exp.) benefit (117) 1,014 (222) 765
 Loss from cont. opers. (152,213) (27,192) (161,322) (58,062)
 Discontinued operation:
 Loss from opers., net of
 applicable income taxes -- (2,090) -- (6,091)
 Loss bef. extraord. item (152,213) (29,282) (161,322) (64,153)
 Extraord. item: gain (loss)
 on debt retirement (117,808) 39,000 (89,484) 39,000
 Net income (loss) $(270,021) $ 9,718 $(250,806) $ (25,153)
 Net income (loss) $(270,021) $ 9,718 $(250,806) $ (25,153)
 Accrued preferred
 stock dividend (1,827) (1,911) (3,738) (3,334)
 Accretion of
 preferred stock (404) (411) (828) (717)
 Net inc. (loss) applicable
 to common stock $(272,252) $ 7,396 $(255,372) $ (29,204)
 Average common shares
 outstanding 9,326 7,988 8,649 8,380
 Net income (loss)
 per common share:
 Loss from cont. opers $ (16.56) $ (3.69) $ (19.18) $ (7.41)
 Loss from discontinued
 operation -- (0.26) -- (0.72)
 Loss bef. extraord. item (16.56) (3.95) (19.18) (8.13)
 Extraordinary item (12.63) 4.88 (10.35) 4.65
 Total $ (29.19) $ 0.93 $ (29.53) $ (3.48)
 BURLINGTON INDUSTRIES EQUITY INC. AND SUBSIDIARY COMPANIES
 Consolidated Balance Sheets
 (Amounts in thousands)
 3/28/92 9/28/91
 ASSETS
 Current Assets:
 Cash and cash equivalents $ 29,262 $ 95,332
 Short-term investments, at cost,
 which approximates market 14,148 15,952
 Customer accounts receivable after
 deductions of $14,047 and $14,522
 for the respective dates for doubtful
 accounts, discounts, returns and
 allowances 121,139 294,249
 Sundry notes and accounts receivable 6,920 7,722
 Inventories 303,202 291,253
 Prepaid expenses 3,178 3,601
 Total current assets 477,849 708,109
 Fixed assets, at cost:
 Land and land improvements 29,514 29,348
 Buildings 293,258 289,979
 Machinery, fixtures and equipment 391,975 389,429
 Total 714,747 708,756
 Less accumulated depreciation and
 amortization 257,673 237,628
 Fixed assets - net 457,074 471,128
 Other assets:
 Investments and receivables 28,124 25,579
 Intangibles and deferred charges 84,518 67,021
 Net assets held for sale 11,405 12,750
 Excess of purchase cost over net
 assets acquired from Burlington
 Industries, Inc. - net 623,891 632,687
 Total other assets 747,938 738,037
 Total $ 1,682,861 $ 1,917,274
 LIABILITIES AND SHAREHOLDERS'
 EQUITY (CAPITAL DEFICIENCY)
 Current liabilities:
 Short-term borrowings $ 923 $ 906
 Long-term debt due currently 95,200 59,773
 Accounts payable and accrued expenses 212,060 233,036
 Income taxes payable 9,851 10,024
 Total current liabilities 318,034 303,739
 Long-term liabilities:
 Long-term debt, net of unamortized
 discount of $3,256 and $222,987
 for the respective dates 900,866 1,771,293
 Other 57,603 52,922
 Total long-term liabilities 958,469 1,824,215
 Redeemable preferred stock -- 60,040
 Common stock subject to put rights -- 42,798
 Shareholders' equity (capital
 deficiency):
 Common stock issued 675 80
 Capital in excess of par value 872,359 30,615
 Accumulated deficit (473,673) (222,867)
 Currency translation adjustments 7,266 7,306
 Total 406,627 (184,866)
 Less note receivable from ESOP Trust -- (99,500)
 Less notes receivable - sale of stock -- (12,640)
 Less unearned compensation -- (16,243)
 Less cost of common stock held in
 treasury (269) (269)
 Total shareholders' equity
 (capital deficiency) 406,358 (313,518)
 Total $ 1,682,861 $ 1,917,274
 BURLINGTON INDUSTRIES EQUITY INC. AND SUBSIDIARY COMPANIES
 Consolidated Statements of Cash Flows
 Increase (Decrease) in Cash and Cash Equivalents
 (Amounts in thousands)
 Six months ended 3/28/92 3/30/91
 Cash flows from operating activities:
 Net loss $ (250,806) $ (25,153)
 Adjustments to reconcile net loss
 to net cash provided (used)
 by operating activities:
 Depreciation and amortization of
 fixed assets 26,702 34,269
 Amortization of intangibles 8,796 12,353
 Amortization of deferred debt expense 3,653 3,545
 Deferred income taxes -- 42
 Non cash interest and compensation 30,452 42,069
 Undistributed equity losses of affiliates -- 1,006
 Gain on disposal of assets -- (5,552)
 (Gain) loss on debt retirement 89,484 (39,000)
 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 --
 Changes in assets and liabilities:
 Customer accounts receivable - net (26,890) 23,221
 Sundry notes and accounts receivable 802 2,591
 Inventories 16,004 16,234
 Prepaid expenses 423 659
 Accounts payable and accrued expenses (6,951) (11,860)
 Payment of financing fees 52,192 (99)
 Change in interest payable (38,824) 2,662
 Change in income taxes payable (173) (150)
 Other 2,929 1,616
 Total adjustments 182,404 83,606
 Net cash provided (used) by operating
 activities (68,402) 58,453
 Cash flows from investing activities:
 Capital expenditures (23,459) (30,023)
 Proceeds from sales of assets 3,019 6,227
 Other (881) (2,351)
 Net cash used by investing activities (21,321) (26,147)
 Cash flows from financing activities:
 Net change in short-term borrowings 17 (329)
 Repayments of long-term debt (1,795,639) (38,622)
 Proceeds from issuance of long-term
 debt 874,250 --
 Proceeds from issuance of common stock 754,475 2,172
 Proceeds from sale of accounts
 receivable 190,550 --
 Purchase of treasury stock -- (137)
 Net cash provided (used) by financing
 activities 23,653 (36,916)
 Net change in cash and cash equivalents (66,070) (4,610)
 Cash and cash equivalents at beginning
 of period 95,332 22,668
 Cash and cash equivalents at end of
 period $ 29,262 $ 18,058
 Supplemental disclosures of cash flow
 information:
 Interest paid - net $ 113,406 $ 80,320
 Income taxes refunded - net $ 540 $ 2,372
 Supplemental disclosures of noncash
 investing and financing activities:
 Sale of common stock for notes
 receivable $ 1,157 $ 12,315
 Cancellation of notes receivable
 and restricted shares $ 13,797 $ --
 Exchange of preferred stock for
 common stock $ 64,606 $ --
 -0- 5/6/92
 /CONTACT: Dick Windham (media), 212-621-1003 or 919-379-2303, or Park Davidson (analysts), 212-621-3475 or 919-379-2515, both of Burlington; or Thomas M. Daly Jr. of Kekst and Company, 212-593-2655, for Burlington/
 (BUR) CO: Burlington Industries Equity Inc. ST: North Carolina IN: TEX SU: ERN


GK -- NY012 -- 6963 05/06/92 09:53 EDT
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Date:May 6, 1992
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