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MORGAN PRODUCTS LTD. THIRD QUARTER EARNINGS IMPROVE

 LINCOLNSHIRE, Ill., Oct. 21 /PRNewswire/ -- Morgan Products Ltd. (NYSE: MGN) today reported net income of $1,006,000 or $.12 per share for the third quarter ended Oct. 2, 1993 compared to net income of $220,000 or $.03 per share in the prior year's third quarter. Sales for the quarter were $106.5 million, a slight increase over the $106.1 reported in the third quarter of 1992.
 "These results mark our third profitable quarter in a row and represent a significant improvement over the prior year's performance", said Arthur L. Knight, Jr., president and chief executive officer.
 "Our Morgan Distribution business unit experienced a 5 percent revenue increase over the third quarter of 1992, and about 17 percent over the weather-affected second quarter of this year," Knight added. Knight further stated, "Morgan Manufacturing continued to be hampered during the quarter by wide fluctuations in raw material costs which impacted both product pricing and product demand."
 Year-to-date net income was $1,156,000 or $.14 per share, compared to a net loss of $255,000 or $.03 per share for the similar period of 1992. Sales were $297.7 million, down 1.2 percent from the $301.4 million reported for the first three quarters of 1992.
 Knight said that the company was proceeding with its evaluation of strategic alternatives including the possible sale of its Morgan Manufacturing Business Unit. The company announced on October 7 that it had retained Dillon, Reed & Company, Inc. to assist in this evaluation.
 The company also announced that in exchange for future royalties, it had contracted with MKS Compu-Group Inc., a software company specializing in building products retail systems, to sell, maintain and expand the software developed by Morgan Technologies. Operations at the Morgan Technologies unit were phased out during the quarter.
 Total debt was $56.7 million at quarter end compared to $58.4 million for the end of third quarter 1992. inventory levels remained at about the same level as the prior year while receivables were up slightly.
 Morgan Products Ltd. is a leading manufacturer and distributor of specialty building products through its two business units: Morgan Distribution and Morgan Manufacturing.
 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, wood 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, and independent distributors, home improvement chain stores and other retail outlets.
 MORGAN PRODUCTS LTD.
 (Unaudited)
 Nine Months Three Months
 10/2/93 10/3/92 10/2/93 10/3/92
 Net sales $297,692,000 $301,413,000 $106,523,000 $106,115,000
 Not income
 (loss) 1,156,000 (255,000) 1,006,000 220,000
 Earnings (loss)
 per share 0.14 (0.03) 0.12 0.03
 Average shares
 outstanding 8,494,214 8,489,904 8,495,590 8,490,913
 -0- 10/21/93
 /CONTACT: Arthur L. Knight Jr., president & CEO or Douglas H. MacMillan, vice president & CFO of Morgan Products, Ltd., 708-317-2400/
 (MGN)


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

TS-WB -- NY054 -- 5212 10/21/93 12:23 EDT
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Publication:PR Newswire
Date:Oct 21, 1993
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