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FLEMING RELEASES THIRD QUARTER RESULTS

 FLEMING RELEASES THIRD QUARTER RESULTS
 OKLAHOMA CITY, Oct. 21 /PRNewswire/ -- Fleming Companies Inc.


(NYSE: FLM) reported today lower sales and earnings for the third quarter ended Oct. 3. Sales for the 12-week period were $2.93 billion, down .9 percent compared with $2.96 billion for the like period in 1991.
 Net earnings were $21.8 million, down 18.1 percent from $26.6 million for 1991. Fully diluted earnings per share were 60 cents versus 71 cents, a decline of 15.5 percent from the corresponding 1991 period. Year-to-year comparisons are affected by a lower tax rate for the third quarter of 1991, which resulted from a one-time benefit related primarily to the disposition of an insurance subsidiary, and by the effects of Hurricane Andrew.
 For the year to date, sales of $9.82 billion and earnings of $84.6 million were about even with 1991. Last year's earnings are before the effects of the change in accounting for postretirement health care benefits. Fully diluted earnings per share were $2.30, down 3.4 percent from $2.38 in 1991.
 Fleming previously announced that it expects 1992 fully diluted earnings per share to be approximately $3.10 compared to $3.15 in 1991, before the effects of certain one-time charges in each year. The 1992 extraordinary fourth quarter charge will be approximately 15 cents per share, due to early redemption of all of its $172.5 million of 6-1/2 percent convertible notes and certain other debt.
 "Achieving the $3.10 earnings per share depends on our ability to return in the fourth quarter to margin levels experienced earlier this year," said Dean Werries, chairman and chief executive officer. "Adverse industry conditions are putting pressure on margins. In addition, we are making incremental marketing investments in corporate Sentry stores to stimulate sales."
 The disappointing third quarter performance resulted from the generally poor business climate and Hurricane Andrew's impact on the Lafayette, La., and Miami division, Werries said. "We incurred additional costs as a results of our efforts to maintain service to our customers."
 The economy continues its slow recovery, according to Werries, and consumer confidence has not returned. On a positive note, however, the previously experienced dire rate of deflation has dissipated.
 Fleming completed the acquisition of Baker's Supermarkets at the end of the quarter. Baker's operates 10 large, high-volume superstores in Omaha, Neb. The stores have annual sales of approximately $230 million and average more than 50,000 square feet. The purchase price was $50 million, consisting of 1.074 million shares of Fleming common stock cash and notes.
 "Looking to 1993, we have taken substantial actions, including facilities consolidation and staff reductions, to return to healthy levels of growth in sales and earnings in the difficult operating environment," Werries said.
 Fleming is a nationwide wholesale food distributor, serving more than 4,800 retail food stores in 36 states.
 FLEMING COMPANIES INC.
 Consolidated Condensed Statements of Earnings
 For the 12 weeks ended Oct. 3, 1992 and Oct. 5, 1991
 (In thousands, except per share amounts)
 Percent
 Third Interim Period 1992 1991 Change
 Net sales $2,934,761 $2,961,311 (.9)
 Costs and expenses:
 Cost of sales 2,773,220 2,777,818 (.2)
 Selling and
 administrative 107,154 121,704 (12.0)
 Interest 18,626 20,746 (10.2)
 Total costs and
 expenses 2,899,000 2,920,268 (.7)
 Earnings before taxes 35,761 41,043 (12.9)
 Taxes on income 13,984 14,444 (3.2)
 Net earnings $21,777 $26,599 (18.1)
 Net earnings available to
 common shareholders $21,777 $25,932 (16.0)
 Net earnings per common
 share:
 Primary $.61 $.73 (16.4)
 Fully diluted $.60 $.71 (15.5)
 Dividends paid per common
 share $.30 $.28 7.1
 Weighted average common
 shares outstanding 35,541 35,326 .6
 NOTE: Cost of sales includes income of $.3 million and $4.5 million in 1992 and 1991, respectively, resulting from the LIFO method of inventory valuation.
 Consolidated Condensed Statements of Earnings
 For the 40 weeks ended Oct. 3, 1992 and Oct. 5, 1991
 (In thousands, except per share amounts)
 Percent
 Year to Date 1992 1991 Change
 Net sales $9,816,926 $9,826,385 (.1)
 Costs and expenses:
 Cost of sales 9,248,694 9,213,669 .4
 Selling and
 administrative 365,820 403,441 (9.3)
 Interest 63,535 72,262 (12.1)
 Total costs and
 expenses 9,678,049 9,689,372 (.1)
 Earnings before taxes 138,877 137,013 1.4
 Taxes on income 54,302 52,339 3.8
 Earnings before cumulative
 effect of accounting change 84,575 84,674 (.1)
 Cumulative effect of change
 in accounting for
 postretirement health
 care benefits --- 9,270 ---
 Net earnings $84,575 $75,404 ---
 Net earnings available to
 common shareholders $84,575 $72,886 ---
 Net earnings per common
 share:
 Primary before accounting
 change $2.38 $2.48 (4.0)
 Accounting change --- .28 ---
 Primary $2.38 $2.20 ---
 Fully diluted before
 accounting change $2.30 $2.38 (3.4)
 Accounting change --- .26 ---
 Fully diluted $2.30 $2.12 ---
 Dividends paid per common
 share $.90 $.84 7.1
 Weighted average common
 shares outstanding 35,490 33,131 7.1
 NOTE: Cost of sales includes income of $10.3 million and $9.2 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- 10/21/92
 /CONTACT: Ron Frost of Fleming Companies, 405-841-8125/
 (FLM) CO: Fleming Companies Inc. ST: Oklahoma IN: FOD SU: ERN


MC -- DV005 -- 2650 10/21/92 08:02 EDT
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Date:Oct 21, 1992
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