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FOOD LION REPORTS RECORD SECOND QUARTER PROFITS

 FOOD LION REPORTS RECORD SECOND QUARTER PROFITS
 SALISBURY, N.C., June 25 /PRNewswire/ -- Food Lion, Inc.


(NASDAQ-NMS: FDLN) reported sales and net income increases of 9.9 percent and 6.0 percent, respectively, for the second quarter of 1992 compared with a strong second quarter last year.
 During the quarter, Food Lion, Inc. opened 27 new stores and closed four older stores, giving the company 915 stores opened as of June 13, 1992. In the second quarter, the company opened three stores in its newest market area -- Oklahoma, expanding Food Lion's operating area to thirteen states, located primarily in the Southeast.
 The company posted a 5.28 percent income before LIFO and income tax margin and 3.20 percent net income margin, as compared to 5.80 percent and 3.31 percent, respectively, in the strong second quarter of 1991. The same store sales growth was 0.1 percent for the quarter.
 Second quarter results were achieved in a very difficult environment. Deflation, coupled with the sluggish economy, had a significant impact on the company's business. Customers continued to trade down from higher margin to lower margin items and from more expensive to less expensive items.
 The company expects that business conditions will eventually improve and, therefore, intends to continue its aggressive growth. The company plans to open as many as 125 new stores in 1992, with continued growth in existing markets and expansion into three new markets -- Oklahoma, Louisiana and Houston, Texas.
 Statements of Income (Unaudited)
 12 Weeks 12 Weeks
 Ended Ended Pct.
 6/13/92 6/15/91 Increase
 Net sales $1,643,910,005 $1,496,366,452 9.9
 Income before LIFO
 and income taxes 86,768,248 86,729,589 0.0
 LIFO (1,000,000) (5,000,000) -80.0
 Income before income
 taxes 85,768,248 81,729,589 4.9
 Income taxes 33,192,292 32,144,246 3.3
 Net income 52,575,956 49,585,343 6.0
 Earnings per share 0.1087 0.1026 6.0
 Weighted average number
 of shares outstanding 483,654,298 483,510,729
 24 Weeks 24 Weeks
 Ended Ended Pct.
 6/13/92 6/15/91 Increase
 Net sales $3,240,401,337 $2,913,554,884 11.2
 Income before LIFO
 and income taxes 169,183,918 164,409,445 2.9
 LIFO (2,000,000) (10,300,000) -80.6
 Income before income
 taxes 167,183,918 154,109,445 8.5
 Income taxes 64,963,932 60,611,244 7.2
 Net income 102,219,986 93,498,201 9.3
 Earnings per share 0.2114 0.1934 9.3
 Weighted average number
 of shares outstanding 483,642,037 483,458,675
 Statistical Information
 Number of Stores at end
 of the period 915 802
 PART I. FINANCIAL INFORMATION
 FOOD LION, INC.
 STATEMENTS OF INCOME
 (Unaudited)
 For the 12 Weeks and 24 Weeks ended June 13, 1992 and June 15, 1991
 (Dollars in thousands except per share data)
 12 Weeks Ended 24 Weeks Ended
 June 13, June 15, June 13, June 15,
 1992 1991 1992 1991
 (A) (B) (C) (D)
 Net sales $1,643,910 $1,496,366 $3,240,401 $2,913,555
 Cost of
 goods sold 1,303,365 1,189,604 2,573,618 2,316,201
 Gross profit 340,545 306,762 666,783 597,354
 Selling and
 administrative
 expenses 214,562 195,471 422,470 384,111
 Interest
 expense 12,152 7,268 22,046 15,344
 Depreciation and
 amortization 28,063 22,294 55,083 43,790
 254,777 225,033 499,599 443,245
 Income before
 income taxes 85,768 81,729 167,184 154,109
 Provision for
 income taxes 33,192 32,144 64,964 60,611
 Net income $ 52,576 $ 49,585 $102,220 $ 93,498
 Earnings per
 share $ .1087 $ .1026 $ .2114 $ .1934
 Dividends
 per share $ .0279 $ .0248 $ .0557 $ .0497
 Weighted average
 number of shares
 outstanding
 Class A 244,082,482 243,938,913 244,070,221 243,886,859
 Class B 239,571,816 239,571,816 239,571,816 239,571,816
 Total 483,654,298 483,510,729 483,642,037 483,458,675
 12 Weeks 24 Weeks
 (A) (B) (C) (D)
 Pct. Pct. Pct. Pct.
 Net sales 100.00 100.00 100.00 100.00
 Cost of
 goods sold 79.28 79.50 79.42 79.50
 Gross profit 20.72 20.50 20.58 20.50
 Selling and
 administrative
 expenses 13.05 13.06 13.04 13.18
 Interest
 expense .74 .49 .68 .53
 Depreciation and
 amortization 1.71 1.49 1.70 1.50
 15.50 15.04 15.42 15.21
 Income before
 income taxes 5.22 5.46 5.16 5.29
 Provision for
 income taxes 2.02 2.15 2.01 2.08
 Net income 3.20 3.31 3.15 3.21
 FOOD LION, INC.
 BALANCE SHEETS
 (Dollars in thousands)
 (Unaudited)
 Assets June 13, 1992 Dec. 28, 1991 June 15, 1991
 Current Assets:
 Cash and cash
 equivalents $ 4,540 $ 4,345 $ 20,364
 Receivables 98,960 97,106 76,648
 Inventories 776,674 844,539 686,011
 Prepaid expenses 14,282 9,401 10,633
 Total current
 assets 894,456 955,391 793,656
 Property, at cost,
 less accumulated
 depreciation and
 amortization 1,148,872 1,036,796 895,561
 Total assets $2,043,328 $1,992,187 $1,689,217
 Liabilities and
 Shareholders' Equity
 Current Liabilities:
 Notes payable $ 35,250 $ 122,500 $ 69,800
 Accounts payable,
 trade 338,649 343,163 318,838
 Accrued expenses 243,518 184,017 211,170
 Long-term debt -
 current 584 1,067 2,861
 Capital lease
 obligations -
 current 4,450 4,061 3,402
 Income taxes payable 16,888 33,329 38,486
 Total current
 liabilities 639,339 688,137 644,557
 Long-term debt 246,454 247,155 97,271
 Capital lease
 obligations 218,369 195,220 170,654
 Deferred income
 taxes 35,369 33,433 36,440
 Deferred compensation 1,700 1,687 1,706
 Total liabilities 1,141,231 1,165,632 950,628
 Shareholders' Equity:
 Class A non-voting
 common stock,
 $.50 par value 122,046 81,346 81,320
 Class B voting
 common stock,
 $.50 par value 119,786 79,857 79,857
 Additional capital 10 1,952 1,666
 Retained earnings 660,255 663,400 575,746
 Total
 shareholders'
 equity 902,097 826,555 738,589
 Total liabilities
 and shareholders'
 equity $2,043,328 $1,992,187 1,689,217
 -0- 6/25/92
 /CONTACT: Mike Mozingo, Corporate Communications Manager, Food Lion, Inc., 704-633-8250 ext. 2575/
 (FDLN) CO: Food Lion, Inc. ST: North Carolina IN: REA SU: ERN


CM-JM -- CH005 -- 3957 06/25/92 16:50 EDT
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