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COLLINS & AIKMAN GROUP, INC. REPORTS IMPROVEMENT IN FIRST QUARTER RESULTS

 CHARLOTTE, N.C., June 3 /PRNewswire/ -- Collins & Aikman Group, Inc. reported a 39 percent increase in operating income on a 4.5 percent sales increase for the first quarter ended May 1, 1993, as compared to the first quarter of the prior year. Sales were $419.0 million and operating income was $21.2 million compared with sales of $400.8 million and operating income of $15.3 million in the first quarter last year.
 This strong operating performance improvement for the company as a whole was principally driven by the operating results of the specialty textiles segment. Sales in this segment increased 8.7 percent to $186.0 million in response to the significant increase in North American passenger car and truck production during the quarter. Due to the increased absorption of fixed costs and good manufacturing performance in this period of strong demand, the operating income from this segment increased 54 percent, from $8.4 million in last year's first quarter to $12.9 million this year.
 Operating income for the home furnishings segment increased from $6.9 million to $8.2 million in the quarter, a gain of 19 percent, while sales increased 3.1 percent to $143.3 million. This improvement principally resulted from continued strong demand for the company's furniture fabrics as compared to a relatively strong first quarter last year. The good performance experienced by furniture fabrics in the quarter has been partially offset by a decline in sales of wallcovering products. The weakness in demand for the company's wallcovering materials experienced during the last half of fiscal 1992 has continued during the first quarter. In light of this situation, the company aggressively pursued during the quarter the restructuring and cost reduction programs announced earlier this year. These programs are now almost complete and the company expects to start realizing their benefits over the balance of the year.
 The consumer legwear segment experienced very competitive conditions during the quarter. In addition, overall demand for women's hosiery fell sharply about halfway through the quarter. Management believes that this reduced demand is temporary and relates primarily to abnormally high levels of product in the hands of consumers as a result of aggressive promotional activity late in 1992. These factors caused a 1 percent drop in sales to $89.7 million compared to the first quarter last year although operating income at $2.0 million was unchanged.
 After interest expense and income taxes, the company reported a loss from continuing operations in the first quarter of $8.5 million as compared with a loss from continuing operations of $13.8 million in the first quarter of the prior year, an improvement of 38 percent. Net loss for the first quarter was $8.5 million as compared to a net loss of $17.0 million in the first quarter of the prior year. Results for the first quarter of 1992 included a loss from discontinued operations of $3.2 million.
 Collins & Aikman Group also reported that its Kayser-Roth subsidiary completed a $75 million credit facility with a group of banks that expires on May 31, 1998. This new facility replaces the $40 million credit agreement which was completed by Kayser-Roth on March 12, 1993. The company anticipates using approximately $41 million of the proceeds to call for early redemption all of its outstanding 12 percent Sinking Fund Debentures Due January 31, 1994.
 Collins & Aikman Group, Inc., a wholly owned subsidiary of Collins & Aikman Holdings Corporation, owns Collins & Aikman Corporation, which manufactures and markets automotive textiles, decorative upholstery fabrics, commercial floorcoverings and wallcoverings, and Kayser-Roth Corporation, which manufactures and markets brand name and private label women's and men's hosiery and socks, including the No nonsense(R) and Burlington(R) brands. Collins & Aikman Holdings Corporation is jointly owned by Blackstone Capital Partners L.P. and Wasserstein Perella Partners, L.P. and their respective affiliates.
 COLLINS & AIKMAN GROUP, INC.
 Financial Highlights
 (Unaudited)
 Thirteen Weeks Ended
 May 1, 1993 April 25, 1992
 Net Sales $418,978,000 $400,846,000
 Operating income $ 21,228,000 $ 15,257,000
 Interest expense, net(A) 23,976,000 24,775,000
 Income (loss) from continuing
 operations before income taxes (2,748,000) (9,518,000)
 Income taxes 5,756,000 4,288,000
 Income (loss) from continuing
 operations (8,504,000) (13,806,000)
 Discontinued operations
 (operations held for sale)
 Income (loss) from discontinued
 operations, net of income taxes -- (3,174,000)
 Net income (loss) $(8,504,000) $(16,980,000)
 (A) Excludes interest expense related to discontinued operations of $2.6 million for each of the quarters ended April 25, 1992, and May 1, 1993.
 -0- 6/3/93
 /CONTACT: Paul Meeks of Collins & Aikman Group, 704-548-2350/


CO: Collins & Aikman Group, Inc. ST: North Carolina IN: TEX SU: ERN

CM -- CH008 -- 5041 06/03/93 13:47 EDT
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Date:Jun 3, 1993
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