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MORGAN PRODUCTS LTD. REPORTS 1991 RESULTS

 MORGAN PARTNERS LTD. REPORTS 1991 RESULTS
 LINCOLNSHIRE, Ill., Jan. 24 /PRNewswire/ -- Morgan Products Ltd.


(NYSE: MGN) today reported a loss of $886,000 or 10 cents per share for the fourth quarter ended Dec. 31, 1991, compared to a loss of $1,953,000 or 23 cents per share in the prior year's comparable quarter.
 The reduced loss occurred in sales of $86 million vs. sales if $90.6 million reported in 1990's fourth quarter. The reported 1991 fourth quarter results do not reflect operations of the company's Heritage Hardwoods subsidiary, since a 1991 second quarter provision was made for all expected future costs of the orderly liquidation of this business unit. During the quarter, all Heritage machinery and equipment was sold and the majority of its working capital liquidated, all of which occurred within the reserve amount. Excluding Heritage operating losses, the company had a fourth quarter 1990 loss of $1,509,000 or 18 cents per share on sales of $88.5 million.
 Commenting in the fourth quarter, Arthur Knight, president and CEO, said, "While disappointed in our overall results, we are pleased that we were able to show improvement in margins and profitability on lower volume proving that our efforts to lower the company's break-even point have been successful."
 For the total year 1991, Morgan reported a loss of $8,131,000 or 96 cents per share compared to a net profit of $135,000 or 2 cents per share in 1990. Sales for the full year 1991 were $353.1 million vs. $413.5 million reported in 1990. Excluding the entire Heritage impact, the company had a 1991 full year loss of $2,677,000 or 32 cents per share on sales of $350.4 million compared to net earnings of $1,671,000 or 20 cents per share on sales of $405.9 million for all of 1990.
 Knight commented further, "The company's core businesses experienced only a 13 percent sales decline in a residential construction environment in which new housing starts declined approximately 15 percent from 1990 to 1991, the lowest new housing starts level since 1945. Furthermore, preliminary reports indicate that the equally important residential repair and replacement market declined in 1991 when measured in constant dollars. However," he added, "we are optimistic that with favorable interest rates and credit conditions, our markets will stage a modest recovery in 1992. We anticipate 1992 new housing starts in the 1.15 million unit range and an increase of between 5 to 6 percent in the repair and replacement market."
 The company ended the year with a total debt to capitalization ratio of 35.7 percent compared to 38 percent at 1990's year end. The improved ratio reflects the drop in total debt from 1990's $50.9 million to $41.8 million as of Dec. 31, 1991.
 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 10 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.
 MORGAN PRODUCTS LTD.
 Periods ended 12 Months Three Months
 Dec. 31 (Unaudited)
 1991 1990 1991 1990
 Net sales $353,144,000 $413,527,000 $86,049,000 $90,560,000
 Net
 income (loss) (8,131,000) 135,000 (886,000) (1,953,000)
 Earnings (loss)
 per share $(0.96) $0.02 $(0.10) $(0.23)
 Average shares
 outstanding 8,466,241 8,437,895 8,488,001 8,449,142
 -0- 1/24/92
 /CONTACT: Arthur L. Knight Jr., president and CEO, or Douglas H. MacMillan, VP and CFO, 708-317-2400, both of Morgan Products; or Gerard Coffey of G.A. Kraut, 212-696-5600, for Morgan Products/
 (MGN) CO: Morgan Products Ltd. ST: Illinois IN: SU: ERN


CK-SM -- NY092 -- 3424 01/24/92 18:16 EST
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Date:Jan 24, 1992
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