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CARRIAGE TO DIVEST MEDART; REPORTS CARPET MARKETS IMPROVING

 CARRIAGE TO DIVEST MEDART;
 REPORTS CARPET MARKETS IMPROVING
 CALHOUN, Ga., April 16 /PRNewswire/ -- Carriage Industries, Inc. (NYSE: CGE), a leading carpet manufacturer for specialized markets, today reported that management has approved a plan to sell Medart, Inc., its metal fabricating subsidiary, located in Greenwood, Miss., with fiscal 1991 sales of $13 million.
 The divestiture will result in a non-recurring after-tax loss in Carriage's third quarter ending March 29, (to be released next week) of approximately $3.2 million, or $.77 per share. Carriage anticipates that the process of divesting Medart could take up to one year.
 "We regret making this decision, but with the rate at which our carpet markets are improving, we simply feel Carriage's resources could be better utilized by focusing on our carpet operations," said Clarence E. Harris, Carriage's chairman and chief executive officer. "We remain convinced of Medart's possibilities, but believe that others with backgrounds more aligned with Medart's business will be better able to develop its potential."
 Commenting on the recent price activity of the stock, Harris said: "It appears the modest improvement in the economy is having a positive influence on many of our markets. This has most recently been recognized by a repeated buy recommendation made last week by one of the carpet industry's most respected analysts."
 Medart employs 200 people in Mississippi, where it manufactures metal lockers and basketball backstops.
 Carriage, with fiscal 1991 sales of $119 million, is a vertically integrated manufacturer of carpet for specialized markets. The company is a leading supplier to the manufactured housing, recreational vehicle, small boat and exposition/trade show industries. Carriage also produces carpet for the contract/residential, hospitality/commercial and home center/needlebond markets.
 Corporate offices and most of Carriage's 800 employees are in Calhoun, Ga. Sales offices and distribution centers are strategically located across the United States. The company's transportation subsidiary operates one of the largest trucking fleets in the carpet industry.
 -0- 4/16/92
 /CONTACT: Clarence E. Harris, chairman and CEO, or Steven G. Jones, vice president, Finance of Carriage Industries, 404-629-9234/
 (CGE) CO: Carriage Industries, Inc. ST: Georgia IN: SU: TNM


BR-EA -- AT006 -- 9115 04/16/92 09:17 EDT
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Publication:PR Newswire
Date:Apr 16, 1992
Words:360
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