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DURACELL POSTS RECORD FIRST QUARTER EARNINGS OF $44 MILLION OR 37 CENTS PER SHARE; ANNOUNCES 5.8 MILLION SHARE SECONDARY OFFERING BY KKR

 BETHEL, Conn., Oct. 21 /PRNewswire/ -- On the strength of double digit volume gains in North America and Other International Markets, Duracell International Inc. (NYSE: DUR) today reported record first quarter earnings of $44 million, or $ .37 per share. Income in the prior-year quarter totaled $40 million, or $ .34 per share, before the accounting change for postretirement benefits.
 MARKET SHARE GAINS, ADDED DISTRIBUTION DRIVE RESULTS
 According to C. Robert Kidder, Duracell's chairman and CEO, strong first quarter results were spearheaded by the company's increased share of a growing U.S. alkaline battery market and by major distribution gains in the U.S. wholesale club trade class. He said Duracell has added distribution in nearly 500 wholesale club stores operated by Sam's, Costco and Pace since the first quarter of fiscal 1993.
 Duracell's pre-tax income surged 25 percent in the first quarter, driven by an 8 percent rise in operating income and reduced interest expense. Despite a sharp increase in the company's effective tax rate, income before the accounting change grew 12 percent. Results were also affected by unfavorable foreign currency translation. Absent the impact of currency, Duracell's global sales rose 9 percent, operating income jumped 16 percent and net income before the accounting change improved 16 percent.
 The company said first quarter sales gains of 8 percent in North America and 15 percent in Other International Markets were partially offset by a 13 percent drop in European revenues due to unfavorable currency translation. Despite strong price competition in the United Kingdom and continued sluggishness in other key European economies, European sales grew a healthy 6 percent on a performance basis when the impact of currency translation is factored out. Total Duracell sales increased 2 percent on a reported basis in the quarter.
 CHAIRMAN LOOKS FOR STRONG RESULTS GOING FORWARD
 "We are encouraged by Duracell's operating achievements in the first quarter of fiscal 1994, particularly in North America and Other International Markets," Mr. Kidder commented. "Strong results from these markets are expected to continue throughout fiscal 1994 and we look for improvements in Europe, particularly in the second half of the fiscal year, as market conditions rebound," the Chairman added.
 KKR TO OFFER ABOUT 10 PERCENT OF ITS DURACELL SHARES
 Duracell also announced that it has filed a registration statement with the Securities and Exchange Commission covering a secondary offering of 5.8 million shares of Duracell common stock held by limited partnerships affiliated with the private investment firm of Kohlberg Kravis Roberts & Co., L.P. (KKR). Neither Duracell International nor any of its employees are selling shares in the offering.
 By selling approximately 10 percent of its Duracell stake, KKR will reduce its total position in the company to approximately 57 million common shares, or about 48 percent of the weighted average shares and share equivalents outstanding. Merrill Lynch & Co., Goldman, Sachs & Co. and Bear, Stearns & Co. Inc. will manage the underwriting.
 Duracell International Inc., headquartered in Bethel, is the world's leading manufacturer and marketer of high-performance alkaline batteries. Duracell's batteries are sold throughout the world, primarily under the DURACELL trademark.
 A registration statement relating to the aforementioned securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any solicitation or sale of these securities in any State in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such State.
 A copy of the prospectus, when available, may be obtained by contacting the Prospectus Department at Merrill Lynch & Co., World Financial Center, North Tower, New York, NY 10281, or by calling 212-449-8415.
 DURACELL INTERNATIONAL INC.
 Statements of Consolidated Operations
 (unaudited)
 (Units/$ in millions except per share amounts)
 Quarter Ended
 Sept. 25, Sept. 26, Pct. Change
 1993 1992 Reported Performance
 Alkaline unit volume 559.5 519.3 8pct 8pct
 Sales $ 437.5 $ 430.5 2 9
 Cost of sales 152.5 159.3 4 (2)
 Gross profit 285.0 271.2 5 13
 Operating expenses:
 Advertising & promotion 96.9 87.8 (10) (18)
 Other 106.3 107.8 1 (6)
 Total operating
 expenses 203.2 195.6 (4) (11)
 Operating income 81.8 75.6 8 16
 Operating margin 18.7pct 17.6pct 1.1pp 1.1pp
 Interest expense 8.0 14.0 43 38
 Other expense (1.3) (3.6) 64 35
 Income before
 accounting change
 and income taxes 72.5 58.0 25 30
 Effective tax rate 38.8pct 31.3pct (7.5pp) (7.5pp)
 Provision for
 income taxes 28.1 18.2 (54) (61)
 Income before
 acctg change 44.4 39.8 12 16
 Cumulative effect of
 accounting change -- (75.4) N/M N/M
 Net income (loss) $ 44.4 $ (35.6) N/M N/M
 Per share amounts:
 Income before
 acctg chng $ .37 $ .34 9 16
 Cumulative effect of
 acctg change -- (.63) N/M N/M
 Net income (loss) $ .37 $ (.29) N/M N/M
 Weighted average shares &
 share equivalents
 outstanding 118.4 118.6 -- --
 Geographic Segments
 Alkaline Unit Volume:
 North America 285.6 259.1 10 10
 Europe 141.2 139.1 2 2
 Other Intl Markets 132.7 121.1 10 10
 559.5 519.3 8 8
 Sales:
 North America $ 248.9 $ 231.5 8 8
 Europe 124.0 142.7 (13) 6
 Other Intl Markets 64.6 56.3 15 15
 $ 437.5 $ 430.5 2 9
 Operating income:
 North America $ 68.3 $ 63.7 7 8
 Europe 24.5 24.4 -- 22
 Other Intl Markets 8.2 6.1 34 41
 101.0 94.2 7 13
 Corp/R & D (19.2) (18.6) (3) (3)
 $ 81.8 $ 75.6 8 16
 NOTE: Performance - adjusted for FX (i.e., foreign currency translation, defined as the impact of translating the income statement from local currency into U.S. dollars)
 DURACELL INTERNATIONAL INC.
 Consolidated Balance Sheets
 (In millions except per share amounts)
 Sept. 25, 1993 June 30, 1993
 (unaudited)
 ASSETS
 Current assets:
 Cash and cash equivalents $ 31.1 $ 25.9
 Accounts receivable, less
 allowance of $22.1 and $18.1 348.0 270.6
 Inventories 207.0 194.9
 Prepaid and other current assets 32.3 34.6
 Total current assets 618.4 526.0
 Property, plant and equipment,
 net of accumulated depreciation
 of $181.2 and $170.1 293.9 294.2
 Intangibles, net of accumulated
 amortization of $244.7 and $233.0 1,158.8 1,165.2
 Other assets 12.9 12.2
 Total assets $ 2,084.0 $ 1,997.6
 LIABILITIES AND EQUITY
 Current liabilities:
 Accounts payable $ 88.5 $ 90.1
 Short-term borrowings and
 current portion of long-term debt 30.6 30.7
 Accrued liabilities 240.8 202.7
 Total current liabilities 359.9 323.5
 Long-term debt 474.0 473.8
 Postretirement benefits
 other than pensions 93.0 91.2
 Deferred income taxes 51.4 62.2
 Other non-current liabilities 65.5 65.1
 Total liabilities 1,043.8 1,015.8
 Equity:
 Common stock and capital surplus 1,046.8 1,016.2
 Retained earnings
 (accumulated deficit) 13.0 (12.9)
 Accumulated translation adjustment (19.6) (21.5)
 Total equity 1,040.2 981.8
 Total liabilities and equity $ 2,084.0 $ 1,997.6
 Book value per share $ 8.97 $ 8.54
 Shares of common stock outstanding 116.0 114.9
 Total debt-to-capital ratio 32.7pct 33.9pct
 DURACELL INTERNATIONAL INC.
 Statements of Consolidated Cash Flows
 (unaudited, in millions)
 For the Three Months Ended
 Sept. 25, 1993 Sept. 26, 1992
 Operating activities:
 Income before accounting change $ 44.4 $ 39.8
 Adjustments to reconcile income
 before accounting change to
 cash provided by operating activities:
 Depreciation 10.1 10.1
 Amortization 10.7 12.3
 Provision for deferred taxes 13.6 8.3
 Other noncash items 1.1 4.6
 (Increase) decrease in:
 Accounts receivable (76.5) (74.9)
 Inventories (11.6) 6.7
 Other working capital 41.0 19.9
 Cash provided by operating activities 32.8 26.8
 Investing activities:
 Purchase of property, plant &
 equipment and other (11.0) (10.7)
 Cash used by investing activities (11.0) (10.7)
 Financing activities:
 Issuance of common stock 5.4 2.8
 Dividends paid (18.5) (9.0)
 Issuance (repayment) of commercial
 paper, net (6.2) 61.4
 Issuance (repayment) of revolving
 credit borrowings, net 5.0 (57.9)
 Net change in other borrowings
 and other (4.7) (7.2)
 Cash used by financing activities (19.0) (9.9)
 Effect of exchange rate changes on cash 2.4 1.5
 Increase in cash and cash equivalents 5.2 7.7
 Cash and cash equivalents,
 beginning of period 25.9 7.9
 Cash and cash equivalents,
 end of period $ 31.1 $ 15.6
 Cash paid during the period for:
 Interest $ 6.9 $ 12.3
 Taxes $ 2.9 $ 3.8
 -0- 10/21/93
 /CONTACT: Walter B. Rogers, investor relations of Duracell International, 203-796-4364/
 (DUR)


CO: Duracell International, Inc. ST: Connecticut IN: SU: ERN

TM -- NY005 -- 4902 10/21/93 06:47 EDT
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Date:Oct 21, 1993
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