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MICHAEL FOODS REPORTS HIGHER NET EARNINGS FOR YEAR; LOWER FOR FOURTH QUARTER

          MICHAEL FOODS REPORTS HIGHER NET EARNINGS FOR YEAR;
                        LOWER FOR FOURTH QUARTER
    MINNEAPOLIS, Feb. 18 /PRNewswire/ -- Michael Foods, Inc. (NASDAQ: MIKL) today reported financial results for the fourth quarter and year ended Dec. 31, 1991.
    Fourth quarter 1991 net earnings were $3,578,000, compared to $4,667,000 in the same period the previous year.  This represents a 23 percent decrease in net earnings.  Earnings per share were $0.18 versus $0.28.  Fourth quarter net sales rose 2 percent to $118,636,000 from $116,275,000 in the fourth quarter of 1990.
    Net earnings for 1991 were $19,667,000, compared to $18,586,000 in 1990.  This represents an increase of 6 percent.  Earnings per share for 1991 were $1.07 versus $1.11 in 1990.  Net sales for the year declined 1 percent to $454,735,000 from $461,229,000 in 1990.
    Earnings per share for both the quarter and year reflect additional shares outstanding as a result of the company's common stock offering of May 1991.  Additionally, all per share results reflect a three-for-two stock split which occurred in May 1991.
    President and CEO Richard G. Olson commented, "The operating environment was difficult for our businesses in 1991 due to the recession.  Against this back-drop we saw weak pricing on commodity- sensitive items, such as french fries and shell eggs, as well as increased price competition in our cheese distribution business. Fortunately, our value-added businesses generally performed well last year.  We were pleased with the results of our Easy Eggs (R) business, as well as the refrigerated side of our Potato Products Division. Additionally, our Dairy Products Division had another excellent year due to an on-going improvement in their sales mix."
    "Our strategic focus is toward growing our value-added businesses. Fortunately, our sales have shifted far enough toward those products that we were able to maintain our net earnings last year, despite the weak economy."
    Michael Foods, Inc. is a diversified food processor and distributor with particular interests in egg products, refrigerated grocery products, frozen and refrigerated potato products, specialty dairy products and refrigerated soups and salads.  Principal subsidiaries include M.G. Waldbaum Company, Crystal Farms Refrigerated Distribution Company, Northern Star Co., Kohler Mix Specialties, Inc. and Sunnyside Vegetable Packing, Inc.
                          MICHAEL FOODS, INC.
                Consolidated Statements of Net Earnings
                               (In 000s)
      Periods ended:          Fourth quarter              Year
      Dec. 31:                1991        1990        1991     1990
    Net sales              $118,636    $116,275    $454,735 $461,229
    Cost of sales           102,200      92,586     380,270  376,170
    Gross profit             16,436      23,689      74,465   85,059
    SG&A                      8,700      14,161      34,217   44,240
    Operating profit          7,736       9,528      40,248   40,819
    Interest expense, net     2,228       2,573       9,511    9,830
    Earnings before income
     taxes and minority
     interest                 5,508       6,955      30,737    30,989
    Income tax expense        1,930       2,288      11,070    11,350
    Earnings before minority
     interest                 3,578       4,667      19,667     19,639
    Minority interest             0           0          0      (1,053)
    Net earnings              3,578       4,667      19,667     18,586
    Earnings per share        $0.18       $0.28       $1.07      $1.11
    Wtd. avg. common
     shares outstanding  19,465,000  16,742,000  18,400,000 16,730,000
    -0-
    /CONTACT:  Mark D. Witmer of Michael Foods, 612-546-1500/
    (MIKL) CO:  Michael Foods Inc. ST:  Minnesota IN:  FOD SU:  ERN KD -- NY010 -- 9747 02/18/92 08:47 EST
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Publication:PR Newswire
Date:Feb 18, 1992
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