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FLEMING ANNOUNCES SECOND QUARTER RESULTS

 FLEMING ANNOUNCES SECOND QUARTER RESULTS
 OKLAHOMA CITY, July 22 /PRNewswire/ -- Fleming Companies Inc.


(NYSE: FLM) reported today second quarter net earnings of $25.5 million, compared with $25.4 million for the like period of 1991. Fully diluted earnings per share for the 12-week quarter ended July 11, remained unchanged at 69 cents per share.
 Sales were $2.96 billion, compared with $3.01 billion for the like period in 1991, a 1.5 percent decrease.
 Net earnings for the first 28 weeks of 1992 rose 8.1 percent to $62.8 million, compared with $58.1 million for the like period in 1991. Fully diluted earnings per share were $1.70, a 1.8 percent increase over $1.67 for 1991. Sales were $6.88 billion, a slight increase over $6.87 billion for last year.
 Dean Werries, chairman and chief executive officer, said the company's second quarter results reflected continuing effects of the country's sluggish economy and an increase in internally measured product price deflation.
 "We anticipated and planned for a weak economy and low inflation, but deflation was much worse than could have been expected," Werries said. "While we're disappointed at the lack of growth in earnings per share during the second quarter, we are satisfied on balance with the company's operating performance, excluding the effects of deflation.
 "In fact, we achieved a 3 percent productivity improvement while increasing tonnage more than 3 percent over the comparable 1991 quarter," he said. "Perishables, which offer higher profit margins for Fleming and the retailers we serve, reached 41.4 percent of our product mix, an all-time high. Interest expense was reduced by 9.5 percent, and selling and administrative expenses remained firmly under control."
 However, that performance was offset as consumers continued to trade down and closely budget food at home expenditures, Werries said. Any significant moderation in the rate of deflation is not anticipated until after the third quarter.
 "This will make it difficult for Fleming to realize the rate of earnings growth in 1992 that we had expected. The amount of growth we can achieve largely depends on the degree of deflationary trends for the balance of the year," Werries continued.
 In a separate release, the company announced the retirement of John E. Moll, president and chief operating officer.
 Fleming is a nationwide wholesale food company, serving more than 4,800 stores in 36 states.
 FLEMING COMPANIES INC.
 Consolidated Condensed Statements of Earnings
 For the 12 weeks ended July 11, 1992 and July 13, 1991
 (In thousands, except per share amounts)
 Percent
 Second Interim Period 1992 1991 Change
 Net sales $2,964,912 $3,009,720 (1.5)
 Costs and expenses:
 Cost of sales 2,796,876 2,827,033 (1.1)
 Selling and
 administrative 107,633 121,049 (11.1)
 Interest 18,577 20,528 (9.5)
 Total costs and
 expenses 2,923,086 2,968,610 (1.5)
 Earnings before taxes 41,826 41,110 1.7
 Taxes on income 16,354 15,671 4.4
 Net earnings $25,472 $25,439 .1
 Net earnings available to
 common shareholders $25,472 $24,729 3.0
 Net earnings per common
 share:
 Primary $.72 $.72 ---
 Fully diluted $.69 $.69 ---
 Dividends paid per common
 share $.30 $.28 7.1
 Weighted average common
 shares outstanding 35,493 34,324 3.4
 NOTE: Cost of sales includes charges of $.9 million and $1 million in 1992 and 1991, respectively, resulting from the LIFO method of inventory valuation.
 Consolidated Condensed Statements of Earnings
 For the 28 weeks ended July 11, 1992 and July 13, 1991
 (In thousands, except per share amounts)
 Percent
 Year to Date 1992 1991 Change
 Net sales $6,882,165 $6,865,074 .2
 Costs and expenses:
 Cost of sales 6,475,474 6,435,851 .6
 Selling and
 administrative 258,666 281,737 (8.2)
 Interest 44,909 51,516 (12.8)
 Total costs and
 expenses 6,779,049 6,769,104 .1
 Earnings before taxes 103,116 95,970 7.4
 Taxes on income 40,318 37,895 6.4
 Earnings before cumulative
 effect of accounting change 62,798 58,075 8.1
 Cumulative effect of change
 in accounting for
 postretirement health
 care benefits --- 9,270 ---
 Net earnings $62,798 $48,805 ---
 Net earnings available to
 common shareholders $62,798 $46,954 ---
 Net earnings per common
 share:
 Primary before accounting
 change $1.77 $1.75 1.1
 Accounting change --- .29 ---
 Primary $1.77 $1.46 ---
 Fully diluted before
 accounting change $1.70 $1.67 1.8
 Accounting change --- .26 ---
 Fully diluted $1.70 $1.41 ---
 Dividends paid per common
 share $.60 $.56 7.1
 Weighted average common
 shares outstanding 35,468 32,187 10.2
 NOTE: Cost of sales includes income of $10.1 million and $4.7 million in 1992 and 1991, respectively, resulting from the LIFO method of inventory valuation.
 1991 has been restated to reflect the cumulative effect of change in accounting for postretirement health care benefits.
 -0- 7/22/92
 /CONTACT: Ron Frost of Fleming Companies, 405-841-8125/
 (FLM) CO: Fleming Companies Inc. ST: Oklahoma IN: FOD SU: ERN


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