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DEVCON PLANS TO DISPOSE OF MARINA OPERATION AND ANNOUNCES FOURTH-QUARTER CHARGES

 DEVCON PLANS TO DISPOSE OF MARINA OPERATION
 AND ANNOUNCES FOURTH-QUARTER CHARGES
 DEERFIELD BEACH, Fla., Feb. 27 /PRNewswire/ -- Devcon International Corp. (NASDAQ: DEVC) today announced that it will take as much as $7.5 million in one-time charges against 1991 fourth- quarter results. The company said that approximately half of the charges relate to its intended disposal of its Crown Bay Marina, which has been a substantial drain on earnings and will now be accounted for as a discontinued operation. In addition, the company is establishing reserves primarily related to accounts receivable in both the materials and construction businesses.
 Donald L. Smith Jr., Devcon president and chairman, said the company expects to report a loss for the year ended Dec. 31, 1991, after absorbing the charges related to today's actions and after suffering a reversal on an otherwise profitable golf-course project. At Walt Disney World, difficulties encountered by two experienced subcontractors resulted in Devcon's having to complete their work on two golf courses.
 Notwithstanding the fourth-quarter charges, the company expects to have a net worth at year-end in excess of $76 million or more than $17 per share.
 Smith called the planned disposal of the marina "a step that will allow the company to more fully devote its resources to its core businesses" as a major supplier of cement, aggregates and concrete products in the Caribbean and as a heavy construction contractor in the Caribbean and Florida.
 He said, "We are now 95 percent complete with our capital improvement projects in the Caribbean. These improvements, totaling more than $14 million, should materially increase the efficiency of our island operations. Our construction workload is satisfactory and we are progressing with the expansion of our concrete and related activities in the islands."
 Smith went on to say, "Now that we have the marina and other adjustments behind us, we are confident that Devcon will return to an acceptable level of profitability in 1992."
 Devcon operates ready-mix concrete, aggregate, concrete block and bulk cement facilities; dredges harbors; builds golf courses and performs other heavy construction work in the Caribbean. Principal operations are on St. Thomas and St. Croix in the U.S. Virgin Islands, on the independent island nations of Antigua and Dominica, on St. Maarten, Netherlands Antilles, and on Tortola, British Virgin Islands. In Florida, where the company is headquartered, Devcon constructs golf courses and prepares sites for shopping malls, residential developments and industrial parks.
 -0- 2/27/92
 /CONTACT: Richard L. Hornsby, executive vice president of Devcon International Corp., 305-429-1500; or Investor Relations Consultants, 813-796-1452, for Devcon International Corp./
 (DEVC) CO: Devcon International Corp. ST: Florida IN: CST SU:


AW -- FL003 -- 3109 02/27/92 09:10 EST
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Publication:PR Newswire
Date:Feb 27, 1992
Words:446
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