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FIELDCREST CANNON REPORTS RESULTS

 EDEN, N.C., July 22 /PRNewswire/ -- Fieldcrest Cannon, Inc. (NYSE: FLD) today issued the following:
 Net sales from continuing operations in the second quarter of 1993 were $256.5 million compared to $255.3 million in the second quarter of 1992. Income from continuing operations for the quarter was $4.1 million, or $.34 per share, compared to income from continuing operations before an extraordinary charge for early retirement of debt of $4.2 million, or $.39 per share, in the second quarter of 1992. Continuing operations are the operations of the bed and bath division; the carpet and rug division is being classified as a discontinued operation in view of its impending sale in the third quarter.
 Net income for the second quarter of 1993 was $7.1 million, or $.59 per share, compared to $.2 million or $.02 per share, in the second quarter of 1992. Income before an extraordinary charge for early retirement of debt was $5.4 million, or $.51 per share, in the second quarter of 1992.
 Bed and bath division sales were about even with last year's second quarter sales. This represents an improvement from the first quarter when sales were 4 percent below 1992 levels. Bed and bath division operating income for the second quarter of 1993 was $14.0 million compared to $16.3 million in the second quarter of 1992. Operating income declined due to reduced towel plant activity resulting from efforts to control inventories and continued competitive pressures on selling prices. Bed and bath division inventory levels at June 30, 1993 were $226.5 million compared to $246.4 million at March 31, 1993 and $195.3 million at June 30, 1992.
 For the first six months of 1993, sales from continuing operations were $460.5 million, compared to $467.8 million in the corresponding period a year ago. Income from continuing operations before accounting changes and an extraordinary charge was $6.8 million, or $.56 per share, for the first six months of 1993 compared to $4.1 million, or $.39 per share, for the first six months of 1992.
 The company agreed to sell its carpet and rug operations to Mohawk Industries, Inc. during the quarter. Accordingly, the carpet and rug results have been classified as discontinued operations in the statement of income and balance sheet. The net proceeds of the sale of the carpet and rug operations will be utilized to reduce amounts outstanding under the company's revolving credit facility. Accordingly, the company has reclassified as current the borrowings under the revolving credit facility. The company expects to recognize a gain on the disposition in the third quarter of 1993 when the sale occurs. Income for the discontinued carpet and rug operations in the second quarter of 1993 was $3.0 million, or $.25 per share, compared to $1.2 million, or $.12 per share, in the second quarter of 1992.
 The markets for bed and bath products continue to be sluggish but we do expect the sales trend achieved in the second quarter to be maintained in the second half.
 Fieldcrest Cannon, Inc. manufactures and markets bed and bath products under the Fieldcrest, St. Marys, Cannon Royal Family, Cannon Monticello and private brand labels. Carpet and rug division products include high quality woven and tufted carpets and rugs marketed under the Karastan and Bigelow brands.
 Fieldcrest Cannon, Inc. common stock is traded on the New York Stock Exchange under the symbol "FLD."
 FIELDCREST CANNON, INC.
 Condensed Consolidated Statement of Income
 (Dollars in thousands, except per share data)
 Periods ended Three months Six months
 June 30 1993 1992 1993 1992
 Net sales $256,525 $255,320 $460,465 $467,762
 Cost of sales 217,216 215,355 384,297 393,880
 Selling, general and
 administrative 25,308 23,626 50,267 48,776
 Total operating costs
 and expenses 242,524 238,981 434,564 442,656
 Operating income 14,001 16,339 25,901 25,106
 Interest expense 7,619 9,097 15,167 18,223
 Other deductions (income) (411) 48 (410) 31
 Income from continuing
 operations before income
 taxes, extraordinary charge
 and accounting changes 6,793 7,194 11,144 6,852
 Income tax provision 2,672 3,006 4,341 2,728
 Income from continuing
 operations before
 extraordinary charge and
 accounting changes 4,121 4,188 6,803 4,124
 Income from discontinued
 operations 2,971 1,234 4,021 1,925
 Extraordinary charge -
 early retirement of debt -- (5,179) -- (5,179)
 Income before accounting
 changes 7,092 243 10,824 870
 Cumulative effect of
 accounting changes -- -- (70,305) --
 Net income (loss) 7,092 243 (59,481) 870
 Average primary shares
 outstanding 12,108 10,588 12,054 10,525
 Income from continuing operations
 before extraordinary charge
 and accounting changes .34 .39 .56 .39
 Income from discontinued
 operations .25 .12 .34 .18
 Extraordinary charge - early
 retirement of debt -- (.49) -- (.49)
 Cumulative effect of accounting
 changes -- -- (5.83) --
 Primary earnings (loss)
 per share .59 .02 (4.93) .08
 Fully diluted earnings (loss)
 per share .55 (A) (A) (A)
 On June 2, 1993, the company agreed to sell its carpet and rug operations to Mohawk Industries, Inc. Accordingly, the carpet and rug results have been classified as discontinued operations in the statement of income. Results of operations for the carpet and rug division include an allocation of corporate interest based on net assets. The company expects to recognize a gain on the disposition in the third quarter of 1993 when the sale occurs. Net sales of carpet and rugs were $65.1 million and $124.6 million for the three and six months ended June 30, 1993, respectively, compared to $59.7 million and $118.6 million for the comparable 1992 periods.
 The adoption of FAS 106, "Employers' Accounting for Postretirement Benefits other then Pensions" resulted in a pre-tax charge of $35.1 million ($21.8 million after tax). The adoption of FAS 109, "Accounting for Income taxes," reduced net income by $48.5 million. The new accounting standards were adopted effective Jan. 1, 1993, and the cumulative effect on prior years of the changes were charged to income in 1993.
 (A) -- Not presented as effects are anti-dilutive.
 FIELDCREST CANNON INC.
 Consolidated Statement of Financial Position
 June 30 1993 1992
 Current assets:
 Cash $ 5,013 $ 122,236
 Accounts receivable 159,642 196,328
 Inventories 226,451 246,891
 Deferred tax assets -- 22,416
 Net assets of discontinued operations 132,760 --
 Other prepaid expenses and current assets 5,858 7,437
 Total current assets 529,724 595,308
 Plant and equipment, net 298,074 375,357
 Deferred charges and other assets 30,401 31,877
 Total assets 858,199 1,002,542
 Current liabilities:
 Short-term borrowings $174,550 $52,359
 Accounts and drafts payable 42,050 46,367
 Deferred income taxes 20,048 --
 Accrued liabilities 63,841 77,435
 Current portion of long-term debt 9,876 112,945
 Total current liabilities 310,365 289,106
 Long-term debt 225,728 387,167
 Deferred income taxes 42,473 37,451
 Other non-current liabilities 52,301 19,065
 Shareholders' equity 227,332 269,753
 Total liabilities and shareowners'
 equity $858,199 $1,002,542
 Six months ended June 30 1993 1992
 Consolidated statement of cash flows
 Cash flows from operating activities:
 Net income (loss) $ (59,481) $ 870
 Cumulative effect of accounting
 changes 70,305 --
 Extraordinary charge of early retirement
 of debt -- 5,179
 Depreciation and amortization 16,279 15,795
 Deferred income taxes 1,768 793
 Income from discontinued operations (4,021) (1,925)
 Working capital and other (52,452) (24,526)
 Net cash (used in) operating activities(27,602) (3,814)
 Cash flows from investing activities:
 Additions to plant and equipment (3,390) (8,215)
 Proceeds from disposal of plant
 and equipment 9,042 3,299
 Total cash provided by (used in)
 investing activities 5,652 (4,916)
 Net cash provided by financing
 activities 32,475 118,726
 Cash provided by continuing
 operations 10,525 109,996
 Cash provided by (used in)
 discontinued operations (10,028) 2,902
 Increase in cash 497 112,898
 -0- 7/2/93
 /CONTACT: K.W. Fraser, Jr., chief financial officer, 919-627-3253, or T.R. Staab, vice president-finance, 919-627-3117, both of Fieldcrest Cannon, Inc./
 (FLD)


CO: Fieldcrest Cannon, Inc. ST: North Carolina IN: TEX SU: ERN

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Date:Jul 22, 1993
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