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KNAPE & VOGT MFG. FIRST-QUARTER NET GAINS LESS THAN 1 PERCENT ON 2.5-PERCENT SALES DECREASE

 KNAPE & VOGT MFG. FIRST-QUARTER NET GAINS LESS THAN 1 PERCENT
 ON 2.5-PERCENT SALES DECREASE
 Canadian Subsidiaries' Weak Performance Mirrors Country's Economy
 GRAND RAPIDS, Mich., Oct. 15 /PRNewswire/ -- Weak results from its Canadian subsidiaries kept earnings flat and sales slightly lower for the first quarter ended Sept. 30, 1992, Knape & Vogt Manufacturing Co. (NASDAQ-NMS: KNAP) reported today.
 Net income of $1,680,815 was essentially flat compared with the $1,667,989 reported a year ago. Earnings on a per-share basis were identical, at $0.32, to the 1991 first quarter. However, fewer shares were outstanding in the first quarter last year. Per-share earnings for the year-ago period have been adjusted to reflect the 10-percent stock dividend paid on Sept. 11, 1992. First-quarter sales dipped 2.5 percent to $29.8 million from $30.6 million a year earlier.
 Raymond E. Knape, chairman, president and chief executive officer, said, "First-quarter results were adversely affected by our Canadian operations being down approximately $1,700,000 in sales and $170,000 in net income. This was principally caused by sales to Roll-it's largest customer being down compared to the same quarter last year. Roll-it hopes to reverse this sales decline with a new gondola system scheduled to be introduced in January 1993. In addition, the depressed Canadian economy and lower Canadian dollar adversely affected first- quarter results."
 Mr. Knape said, "On a more positive note, our operations in the United States -- Knape & Vogt, Modar and Feeny -- had increased sales and earnings, with Modar's results coming in better than expected. However, these increases were not strong enough to overcome the poor showing by our Canadian operations."
 He said, "While results in the first quarter were relatively flat (as we previously forecasted), we remain confident that we will achieve sales and earnings growth of approximately 9 percent for the fiscal year ending June 30, 1993.
 "The reception for our new 8400 precision drawer slide series has been gratifying, and we expect to ship around $500,000 per month of these slides in calendar 1993. The initial shipments are expected to begin around Dec. 1.
 "Our new plater will also begin operations in December and the savings from this line should show up in the last half of the fiscal year. This capital improvement is part of our overall corporate strategy to reduce costs while maintaining the high quality Knape & Vogt is known for," Mr. Knape concluded.
 Knape & Vogt manufactures wall-attached and free-standing shelving and a wide variety of home furnishing items. The company 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 Co., simply dial 800-PRO-INFO and enter the company number 099.
 -0- 10/15/92
 /CONTACT: Richard Simkins, VP-Finance, Knape & Vogt Mfg., 616-459-3311, Ext. 203; or Jack Queeney or Mike Arneth, 312-266-7800, Regina Ryan, 212-661-8030, all of The Financial Relations Board, for Knape & Vogt/
 (KNAP) CO: Knape & Vogt Manufacturing Co. ST: Michigan IN: HOU SU: ERN


ML -- DE014 -- 0429 10/15/92 12:30 EDT
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Date:Oct 15, 1992
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