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KNAPE & VOGT MANUFACTURING POSTS RECORD SALES AND EARNINGS FOR THIRD QUARTER AND NINE MONTHS ENDED MARCH 31

 KNAPE & VOGT MANUFACTURING POSTS RECORD SALES AND EARNINGS
 FOR THIRD QUARTER AND NINE MONTHS ENDED MARCH 31
 GRAND RAPIDS, Mich., April 21 /PRNewswire/ -- Stronger performances by the parent company and its U.S. and Canadian subsidiaries resulted in record sales and earnings for the third quarter ended March 31, 1992, Knape & Vogt Manufacturing Company reported today. The third quarter performance also propelled nine month figures to historic high levels.
 Net income in the third quarter rose 25.4 percent to $2,041,410 from $1,627,862 reported a year ago. On a per share basis, earnings were up 22.9 percent to $0.43 from $0.35 in the 1991 third quarter when fewer shares were outstanding. Sales climbed 14.3 percent to $34.4 million from $30.1 million a year earlier.
 For the nine months, earnings increased 16.7 percent to $5,076,647 from $4,348,275 a year earlier. Per share earnings grew 15.1 percent to $1.07 from $0.93 in the year ago period. Sales were up 10.3 percent in the nine months to $94.3 million from $85.5 million. Per share earnings for the year ago periods have been adjusted to reflect the 10 percent stock dividend paid on Sept. 6, 1991.
 Raymond E. Knape, chairman, president and chief executive officer, said "Not only were the sales and earnings results records for the third quarter, they were also the all-time records for the company.
 "All areas of our business contributed to the record results with each subsidiary showing increases in sales and operating earnings during the
quarter," he said. "Knape & Vogt, the parent company, had a particularly strong quarter with increases of 4.1 percent in sales and 6.7 percent in earnings after flat sales and earnings in the first two quarter of this fiscal year. The gains came from an increase in market share in the drawer slide field and most areas of shelving products. We believe the implementation of our strategic plan to reduce costs, improve manufacturing efficiencies and increase margins at the Grand Rapids facility is showing tangible results as a greater percent of the sales dollars are now flowing to the bottom line," Knape said.
 "Knape & Vogt Canada, although posting an increase of less than one percent in sales from a year ago, compiled an 18.2 percent rise in operating earnings," Knape said. Last year's sales were at an extraordinarily high level in comparison to the previous quarters of fiscal 1991, Knape noted. "Our other Canadian unit, Roll-it, continued to have a very successful year as one of its major customers extended its store renovation program into the third quarter," Knape said. "However, with that project completed, we do not anticipate Roll-it continuing the 60 percent-plus sales gains in the fourth quarter.
 "In the United States, new innovative products and increased cross selling helped Feeny Manufacturing Company achieve a 42 percent rise in sales and 334 percent increase in operating earnings during the third quarter," Knape stated. "Feeny's customers, kitchen cabinet companies, are improving from where they were and are doing better than a year ago. Feeny has been very aggressive in developing new products and convincing customers to expand the use of its current product line, resulting in more sales and higher operating income.
 "Our Modar Inc. subsidiary benefited in the third quarter from the renewal of a major contract from a division of a large furniture company and the addition of new customers. Sales were up 33.9 percent an operating income soared 322.6 percent in the quarter," Knape stated. "We believe many manufacturers are beginning to outsource a significant amount of business once handled in-house as part of their effort to reduce overhead costs and expenses. As more companies follow that trend Modar is positioned to gain additional contracts."
 Knape said, "Our financial position is possibly the strongest it has ever been in the company's history. Our debt at the end of the third quarter is only $6.0 million and our debt-to-equity ratio stands at less than 10 percent. We have over $5.4 million in cash and cash equivalents, an amount sufficient to cover all currently approved capital programs. As a result, we see no need to borrow money this fiscal year, unless an acquisition that meets our criteria becomes available.
 "However," Knape cautioned, "while we achieved outstanding sales and operating performances from all units, based on the outlook for the Canadian economy and advance orders, we do not expect the results for the fourth quarter to be as good as the third quarter but certainly better than last year's fourth quarter. Our internal projections anticipate sales for the full year to exceed last year by eight to 10 percent and earnings to be 15 to 17 percent above fiscal 1991's $5.5 million.
 Knape & Vogt manufactures wall-attached and freestanding shelving and a wide variety of home furnishing items and also derives about one-third of its sales from drawer slides for OEM office furniture, kitchen and utility cabinet manufacturers.
 For more information on Knape & Vogt Manufacturing Company, simply dial 1-800-PRO-INFO and enter the company number 099.
 -0- 4/21/92
 /CONTACT: Robert Bowman, vice chairman of Knape & Vogt Manufacturing, 616-459-3311; Jack Queeney or Mike Arneth, 312-266-7800, or Regina Ryan, 212-661-8030, all of Financial Relations Board/ CO: Knape & Vogt Manufacturing Company ST: Michigan IN: HOU SU: ERN


SM -- NY117 -- 0965 04/21/92 18:50 EDT
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Date:Apr 21, 1992
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