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 LINCOLNSHIRE, Ill., Jan. 27 /PRNewswire/ -- Morgan Products Ltd. (NYSE: MGN) today announced a fourth quarter loss of $9.9 million or $1.17 per share, which includes a previously announced $8.4 million special charge. Results for the quarter without the special charge showed an after-tax loss of $1.5 million or $.18 per share, compared to a loss of $886,000 or $.10 per share in the same quarter last year. Sales for the quarter were $86.0 million, unchanged from the prior year. The quarter was adversely impacted by lower sales volume at the company's manufacturing business unit and higher expense levels at the company's distribution business unit because of self-insured health and workers' compensation programs and increases in reserves for bad debts.
 The special charge, which was announced early in December, includes the writedown of certain idle facilities and equipment, the value of which has been substantially reduced by the ongoing slow economy. In addition, certain expenses associated with rationalization of capacity at the company's three main door manufacturing facilities, provisions relating to the possible sale of a part or all of its Morgan Technologies software development business unit, and a one-time $513,000 charge for recognition of retiree medical expenses under FASB 106 were all provided for in the charge.
 Arthur L. Knight Jr., president and CEO, commented, "The restructuring actions, including personnel reductions, are now completed. We are actively pursuing disposition of all idle facilities and expect to realize a significant portion of the projected $3.3 million in proceeds from the sale of these assets in 1993."
 For the year, sales were $387.4 million, up 9.7 percent from the $353.1 million recorded in 1991. Full year sales for Morgan Distribution increased by 14.4 percent over the prior year reflecting the strength of the regional economies in which it operates and the business unit's expansion to a new Denver Distribution Center. Morgan Manufacturing sales for the year were up only 7.2 percent, reflecting the weakening of the Southern California market and continuing slowness in the New England market, particularly in the third and fourth quarters.
 The company's reported loss for the year of $10.2 million compares to a loss of $8.1 million for 1991. Results in 1992 included the special charge of $8.4 million while 1991 results included a $5.4 million pre-tax charge for the disposition of the company's Heritage Hardwoods operation. Excluding non-recurring charges in both years, Morgan's results showed a net loss of $1.8 million or $.21 per share for 1992, compared to a net loss of $2.7 million or $.32 per share for 1991.
 Commenting on the year, Mr. Knight noted, "While results for 1992 were well below our early expectations, the consolidated numbers mask the important progress made in our two core business units. Morgan Distribution not only experienced a healthy recovery, but surpassed expectations. Despite a chaotic raw materials market, Morgan Manufacturing made serious strides in improving operating results over the prior year. Excluding the ongoing start-up expenses of our Morgan Technologies unit which had a cost of approximately $.16 per share -- a problem we have fully addressed in the special charge taken in the fourth quarter of 1992 -- our core business units showed significant improvement over 1991."
 Mr. Knight commented further, "Consumer confidence is improving and we have a much stronger backlog at Morgan Manufacturing than one year ago. I am optimistic that the last of our tough restructuring actions taken in the fourth quarter, coupled with modest economic improvement, will provide for substantial turnaround in Morgan Products' results in 1993. While concerned about the present rapid escalation of pine lumber prices, we will mitigate material cost increases through aggressive pricing programs and increasing use of engineered materials and offshore lumber sources."
 The company had year-end total debt, net of cash, of $42.0 million compared to $40.0 million as of Dec. 1, 1991. The moderate increase was due to increased inventory levels reflecting the higher price of raw materials and the addition of the Denver Distribution Center.
 Morgan Products Ltd. is a leading manufacturer and distributor of specialty building products through its three business units: Morgan Distribution, Morgan Manufacturing, and Morgan Technologies.
 Morgan Distribution, a regional wholesale distributor, is comprised of 11 distribution/fabrication centers. Major products distributed include Morgan doors, Andersen premium window systems, Morgan mantels, Morgan stairway systems, Pease and Therma-Tru steel and composite doors, flush doors, molded doors, bi-fold doors and louvered doors.
 Morgan Manufacturing is a national manufacturer of premium solid wood interior and exterior doors and entrance systems and other specialty building products such as wood veneer and fireplace mantels. Products manufactured by the company are sold under the trade names "Morgan" and "Nicolai." Manufactured products are sold through the company's captive Morgan Distribution unit, independent distributors, home improvement chain stores and other retail outlets.
 Morgan Technologies is a developer and marketer of electronic and computer software services for the building products industry.
 Periods ended Twelve Months Three Months
 Dec. 31 1992 1991 1992 1991
 Net sales $387,393,000 $353,144,000 $85,980,000 $86,049,000
 Net income
 (loss) $(10,178,000) $ (8,131,000) $(9,923,000) $ (886,000)
 Income (loss)
 per share $(1.20) $(0.96) $(1.17) $(0.10)
 Average shares
 outstanding 8,490,383 8,466,241 8,491,874 8,488,001
 -0- 1/27/93
 /CONTACT: Arthur L. Knight Jr., president and CEO, or Douglas H. MacMillan, vice president and CFO of Morgan Products, 708-317-2400; or Gerard Coffey of G.A. Kraut Company, 212-696-5600, for Morgan Products/

CO: Morgan Products Ltd. ST: Illinois IN: CST SU: ERN

GK-OS -- NY094 -- 9783 01/27/93 15:09 EST
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Date:Jan 27, 1993

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