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HERSHEY FOODS SECOND QUARTER AND FIRST HALF FINANCIAL RESULTS

 HERSHEY, Pa., July 21 /PRNewswire/ -- Hershey Foods Corporation (NYSE: HSY) today announced its financial results for the second quarter ended July 4, 1993.
 Net sales were $618,430,000 compared with $621,840,000 for the second quarter of 1992. Net income for the second quarter of 1993 was $26,025,000, or $.29 per share, compared with $34,475,000, or $.39 per share, for the same quarter of 1992. Last year's second quarter earnings were aided by a $.05 per share gain primarily attributable to the tax consequences associated with the sale of a business in Brazil.
 Record net sales for the first six months of 1993 were $1,516,218,000 compared with $1,422,807,000 for the first half of 1992. Income for the first six months of 1993, excluding first quarter accounting changes for post-retirement benefits and income taxes (FAS 106 and 109) and the gain on the sale of the Corporation's interest in Freia Marabou a.s, was $90,496,000, or $1 per share, compared with $93,399,000, or $1.04 per share in the first half of 1992. Net income for the first half of 1993, after accounting changes and the Freia Marabou gain, was $27,172,000 or $.30 per share. Weighted average shares outstanding were 90,186,336 for all periods.
 "Our second quarter sales and earnings results were disappointing but in line with our previously announced expectations," said Richard A. Zimmerman, chairman and chief executive officer. "Sales generally were sluggish in the second quarter, and additionally the Corporation faced difficult operating conditions in its international markets.
 "For the six months, our sales results were good, with Hershey Chocolate U.S.A. and Hershey Pasta Group showing solid volume gains resulting in increased market share in these businesses. Excluding the effects of the accounting changes, the Freia Marabou gain and a first quarter charge associated with early retirement of long-term debt, the increase in earnings from operations for the first half of 1993 met our expectations.
 "The business outlook remains positive for the balance of the year, and we are anticipating 1993 will be another record year for the Corporation.
 "As announced on June 25, 1993, a share repurchase program to acquire from time to time in the open market or through privately negotiated transactions up to $200 million worth of our Common Stock will commence shortly," Zimmerman concluded.
 HERSHEY FOODS CORPORATION
 Summary of Consolidated Statements of Income
 for the periods ended July 4, 1993, and June 28, 1992
 (In thousands of dollars except per-share amounts)
 Second Quarter Six Months
 1993 1992 1993 1992
 Net Sales $618,430 $621,840 $1,516,218 $1,422,807
 Costs and Expenses:
 Costs of sales 363,596 355,049 874,365 818,487
 Selling, marketing
 and administrative 205,768 210,118 479,013 443,394
 Total costs and
 expenses 569,364 565,167 1,353,378 1,261,881
 Gain on Sale of
 Investment Interest --- --- 80,642 ---
 Income before Interest,
 Income Taxes and
 Accounting Changes 49,066 56,673 243,482 160,926
 Interest Expense, net 6,192 5,731 13,753 10,952
 Income before Income
 Taxes and Accounting
 Changes 42,874 50,942 229,729 149,974
 Provision for Income
 Taxes 16,849 16,467 98,649 56,575
 Income Before
 Cumulative Effect of
 Accounting Changes 26,025 34,475 131,080 93,399
 Net Cumulative Effect
 of Accounting Changes --- --- (103,908) ---
 Net Income $ 26,025 $ 34,475 $ 27,172 $ 93,399
 Income Per Share:
 Before Accounting
 Changes .29 .39 1.45 1.04
 Net Cumulative Effect
 of Accounting Changes --- --- (1.15) ---
 Net Income $ .29 $ .39 $ .30 $ 1.04
 (A) The six months of 1993 include an after-tax gain in the amount of $40.6 million, or $.45 per share, on the sale of the Corporation's investment interest in Freia Marabou a.s.
 (B) Provision for Income Taxes for the second quarter and six months of 1992 was favorably impacted by the sale of the Corporation's equity interest in its Brazilian joint venture, Petybon S.A., during the second quarter of 1992.
 (C) Income per share has been computed based on the weighted average number of shares of Common Stock and Class B Common Stock outstanding during the period. Average shares outstanding were 90,186,336 for all periods.
 /delval/
 -0- 7/21/93
 /CONTACT: Natalie Bailey, 717-534-7631, or James A. Edris (financial), 717-534-7552, both of Hershey Foods/
 (HSY)


CO: Hershey Foods Corporation ST: Pennsylvania IN: FOD SU: ERN

LJ-MJ -- PH019A -- 3962 07/21/93 13:00 EDT
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Date:Jul 21, 1993
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