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GENESEE CORPORATION ANNOUNCES FIRST QUARTER SALES AND EARNINGS

 GENESEE CORPORATION ANNOUNCES FIRST QUARTER SALES AND EARNINGS
 ROCHESTER, N.Y., Sept. 10 /PRNewswire/ -- Genesee Corporation (NASDAQ: GENBB) today announced consolidated sales and earnings for its first fiscal quarter ended July 31, 1992.
 Consolidated gross sales for the first quarter were $50,815,000, compared to sales of $55,685,000 for the same period the previous year. Net earnings for the quarter were $1,847,000 or $1.15 per share, compared to last year's first quarter of $2,478,000 or $1.55 per share.
 Genesee Corporation officials reported that first quarter performance was primarily affected by unseasonably cool temperatures and heavy rainfall throughout the northeastern United States in the spring and summer which depressed sales and earnings of the corporation's brewing and foods businesses. "The beer business is highly seasonal and weather dependent," said John L. Wehle, Jr., president and chief executive officer. "Without the hot, sunny conditions that favor malt beverage consumption, demand for Genesee Brewing Company products failed to reach projected levels during the prime late spring and summer selling season," explained Wehle.
 Sales and earnings from the corporation's brewing business were also adversely affected by intense price competition throughout the industry as a result of sluggish consumer demand for malt beverage products. Although overall sales were down, there were encouraging signs in some markets. Sales of the new Michael Shea's Irish Amber lager have exceeded projections and this super premium product was introduced in the popular 12 oz. longneck bottle in August. Genesee NA non-alcohol malt beverage and the Koch's Golden Anniversary brands also showed improved sales.
 Sales by the Corporation's Foods Division increased slightly in the first quarter but were below expectations. Poor weather conditions also affected the Foods Division as sales of iced tea and beverage mixes failed to reach projected levels. Revenues from contract manufacturing were also below projections because production on a large manufacturing contract that was originally scheduled to commence in the first quarter was rescheduled by the customer until later in the year. Sales of the Foods Division's noodles and rice dishes continued to grow as these products gain increasing consumer acceptance. In addition, the Foods Division recently installed air drying equipment to augment its existing freeze and drum drying operations.
 Officials also reported that first quarter earnings in the prior year benefited from a $311,000 pre-tax gain from the sale of real estate no longer needed by Genesee Brewing Company.
 Wehle stated, "Our first quarter performance does not indicate any fundamental flaws in our long term strategies. We will work in the months ahead to regain our momentum."
 GENESEE CORPORATION
 COMPARATIVE STATEMENT OF EARNINGS
 July 31, 1992 July 31, 1991
 GROSS SALES $50,815,000 $55,685,000
 Less: Excise Taxes
 and Allowances $12,894,000 $14,603,000
 NET SALES $37,921,000 $41,082,000
 Earnings Before Taxes $ 2,960,000 $ 3,988,000
 NET EARNINGS $ 1,847,000 $ 2,478,000
 Net Earnings Per Share $1.15 $1.55
 NOTE: Both interim reports are unaudited and subject to year-end adjustments and, due to the seasonal nature of the business and the varying schedule of special sales efforts, are not necessarily indicative of the results to be expected for the year.
 -0- 9/10/92
 /CONTACT: Mark Leunig of Genesee Corporation, 716-546-1030, ext. 440/
 (GNBB) CO: Genesee Corporation ST: New York IN: FOD SU: ERN


BM -- CL004 -- 7923 09/10/92 10:34 EDT
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Publication:PR Newswire
Date:Sep 10, 1992
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