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CONTINENTAL MATERIALS' THIRD QUARTER IMPROVES DRAMATICALLY

 CONTINENTAL MATERIALS' THIRD QUARTER IMPROVES DRAMATICALLY
 CHICAGO, Nov. 5 /PRNewswire/ -- Continental Materials Corp. (AMEX: CUO) today reported net income of $764,000, or 65 cents per share, for the third quarter ended Oct. 2, compared with net income of $375,000, or 32 cents per share, a year ago. Net sales improved 21.8 percent to $21,888,000, from $17,972,000 a year ago.
 Net sales for the nine months totalled $59,038,000, compared with sales of $53,271,000 in 1991. The nine-month's net loss was $512,000, or 44 cents per share, compared with net income of $53,000, or 5 cents per share, a year ago.
 Third-quarter sales in the heating, air-conditioning and refrigeration segment increased $1,431,000 (11.9 percent) due primarily to improved volume at Imeco Inc., the company's refrigeration subsidiary, compared with a sluggish 1991 third quarter. Sales of construction materials were $2,475,000 (41.5 percent) as the Colorado Springs area is demonstrating an impressive recovery.
 Operating income significantly improved to $1,630,000 from $1,110,000 due to a combination of factors including increased production and improved plant efficiencies in the heating, air- conditioning and refrigeration segment. The increased operating earnings were offset to some extent by legal costs associated with a suit brought by Imeco against two former employees and their current employer for misappropriation of trade secrets and, to a lesser extent, defense of the product liability suit which was previously disclosed in the second-quarter release. The construction materials segment had improved operating earnings as a result of the higher sales volume.
 For the nine months, all of the increase in sales is attributable to the construction materials segment. The decline in operating earnings was realized in the heating, air-conditioning and refrigeration segment as a result of lower production volume, heightened price competition and the costs of the above-mentioned litigation.
 Interest expense for the nine months was reduced by $431,000 as a result of ongoing debt reduction and lower short-term interest rates.
 The income tax credit for the nine-month period in 1991 includes the reversal of $200,000 of tax contingencies reflecting the settlement, in favor of the company, of state tax audits for the years 1979 through 1981.
 CONTINENTAL MATERIALS CORP.
 SUMMARY OF SALES AND EARNINGS
 Three Months Ended Nine Months Ended
 Oct. 2, Sept. 27, Oct. 2, Sept. 27,
 1992 1991 1992 1991
 Net sales $21,881,000 $17,972,000 $59,038,000 $53,271,000
 Operating income 1,630,000 1,110,000 551,000 1,357,000
 Interest expense,
 net (468,000) (578,000) (1,382,000) (1,813,000)
 Other (loss)
 income (4,000) 37,000 55,000 234,000
 Income (loss) before
 income taxes $ 1,158,000 $ 569,000 $ (776,000) $ (222,000)
 Provision for
 income taxes 394,000 194,000 (264,000) (275,000)
 Net income
 (loss) $ 764,000 $ 375,000 $ (512,000) $ 53,000
 Net income (loss)
 per share $ .65 $ .32 $ (.44) $ .05
 Average shares
 outstanding 1,174,000 1,174,000 1,174,000 1,174,000
 -0- 11/5/92
 /CONTACT: Keith Owens, 312-755-3588, for Lesnik Public Relations/
 (CUO) CO: Continental Materials Corp. ST: Illinois IN: SU: ERN


LD -- NY138 -- 7968 11/05/92 17:27 EST
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Date:Nov 5, 1992
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