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COURIER CORPORATION REPORTS FOURTH QUARTER AND FISCAL YEAR LOSS; COURIER INTERNATIONAL CLOSED

 COURIER CORPORATION REPORTS FOURTH QUARTER AND
 FISCAL YEAR LOSS; COURIER INTERNATIONAL CLOSED
 LOWELL, Nov. 5 /PRNewswire/ -- Courier Corporation (NASDAQ-NMS: CRRC) today reported a loss for its fiscal year ended Sept. 26, 1992 of $6 million or $3.44 per share compared to last year's net income of $1.3 million or 75 cents per share. Sales for the year were $121.9 million compared to $124.2 million in 1991.
 For its fourth quarter, the company posted a loss of $3.7 million or $2.10 per share compared to net income of $0.5 million or 30 cents per share in the same period a year ago. Related sales of $29.8 million were comparable to last year's fourth quarter.
 James F. Conway III, president of Courier, reported that "the large loss in 1992 resulted from the company's international operation. The operation fell victim to a severe recession in the U.K. and to nagging production problems that plagued the plant since it opened in May 1991. These factors combined to produce a succession of quarterly losses in Scotland that led to the previously announced shutdown of this plant in Sept. 1992."
 After-tax losses from international operations totalled $4.3 million or $2.47 per share for 1992, including $1.1 million or 63 cents per share for the fourth quarter. The plant closing resulted in an additional fourth quarter charge of $2.1 million or $1.17 per share. Conway stated that "this charge is expected to cover all closing costs and there should be no further losses related to this operation in 1993."
 Conway added that "as part of the company's efforts to meet the global needs of our customers, we announced today in a separate new release that our subsidiary National Publishing Company has entered into an agreement with Charles Letts & Co. Ltd., of London, involving the manufacture of Bibles and other religious products for distribution to National's customers throughout Europe. We will explore similar international alliances in the future."
 Excluding international operations from Courier's results, net income for 1992 was $0.4 million or 21 cents per share compared to $2.0 million or $1.18 per share in 1991. Related sales were $117.0 million in 1992 compared to $116.7 million in the prior year. For the fourth quarter of 1992, the company's U.S. operations posted a loss of $0.5 million or 30 cents per share compared to net income of $1.4 million or 82 cents per share last year. Related sales were $28.6 million compared to $28.8 million in the fourth quarter of 1991.
 Conway stated that "a weak economy and fierce competition made 1992 a challenging year. In spite of this, we continued to expand our high technology customer base. Strong sales growth to this market offset reductions in sales of religious products where we had seen unusually large growth in 1991. Orders from publishers of educational and trade books were also affected adversely by tight school budgets and a weak U.S. economy."
 He added "net income from our U.S. business was 16 percent ahead of last year through the first nine months of 1992, but results in the fourth quarter suffered from a combination of softening sales and a drop in our productivity levels. This situation was severely aggravated by the problems in Scotland which absorbed enormous amounts of management time and energy. In response, we moved quickly to reduce costs, including an 8 percent reduction in our U.S. workforce which will produce annual savings in excess of $2 million going into 1993. Associated severance pay and other fourth quarter pretax charges totaled approximately $1.0 million or 33 cents per share."
 "While 1992 was clearly a disappointing year, we took the difficult steps necessary to return to profitability in 1993. Scotland is now behind us, our costs are down and we are focused on the opportunities at hand. We have the financial strength, the people and the commitment to compete and succeed," he concluded.
 Courier Corporation, headquartered in Lowell, Mass., is a leading producer or books, Bibles and reference texts, directories, technical manuals and software documentation. The company operates subsidiaries in Westford and Stoughton, Mass., Philadelphia; and Kendallville, Ind.
 COURIER CORPORATION
 Consolidated Statements of Income
 (Dollars in thousands, except per share data)
 Quarter Ended
 (unaudited) Year Ended
 9/26/92 9/28/91 9/26/92 9/28/91
 Net sales $29,786 $29,775 $121,878 $124,207
 Cost of sales 26,435 24,016 106,586 104,014
 Gross profit 3,351 5,759 15,292 20,193
 Selling & administrative
 expenses 5,011 4,249 17,162 16,172
 Interest expense, net 522 634 2,384 2,768
 Other income (expense) net (5,434) 412 (5,195) 1,150
 Income (loss) before tax (7,616) 1,288 (9,449) 2,403
 Provision (benefit) for
 income taxes (3,893) 767 (3,409) 1,114
 Net income (loss) ($3,723) $521 ($6,040) $1,289
 Cash dividends declared
 per share ($2.10) 30 cents ($3.44) 75 cents
 Weighted average shares
 outstanding 1,771,000 1,734,000 1,754,000 1,710,000
 -0- 11/5/92
 /CONTACT: James F. Conway, Jr., chairman, or Robert P. Story, Jr., senior vice president and chief financial officer of Courier Corporation, 508-458-6351/
 (CRRC) CO: Courier Corporation ST: Massachusetts IN: PUB SU: ERN


TM -- NE020 -- 7845 11/05/92 15:25 EST
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Date:Nov 5, 1992
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