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MULTIFOODS ADOPTS ACCOUNTING RULE FOR POST-RETIREMENT BENEFITS

 MULTIFOODS ADOPTS ACCOUNTING RULE FOR POST-RETIREMENT BENEFITS
 Adoption of Rule to Impact Fiscal 1992 Earnings
 MINNEAPOLIS, April 2 /PRNewswire/ -- International Multifoods Corp. (NYSE: IMC) said today that it will adopt a new accounting rule for post-retirement benefits, which will result in a charge to the company's fiscal 1992 earnings.
 All companies are required to adopt the accounting rule, issued by the Financial Accounting Standards Board, by 1994. The rule ("FAS 106") requires companies to recognize the cost of post-retirement benefits, other than pensions, over an employee's active working career. Most companies, including Multifoods, previously recognized these benefit costs only as they were paid out.
 The adoption of the FAS 106 rule will reduce Multifoods' net earnings by $18.3 million, or 94 cents per share, for its fiscal year ended Feb. 29, 1992. This charge includes two parts: a one-time, after- tax, "catch-up" adjustment of $17.1 million, or 88 cents per share, for previous years; and an incremental after-tax charge of $1.2 million, or 6 cents per share, related to post-retirement benefit costs for the fiscal year just ended. The accounting change requires Multifoods to restate its earnings for the first three quarters of fiscal 1992.
 As a result of FAS 106, the company expects its annual after-tax expense for post-retirement benefits to increase by approximately $1.2 million, or 6 cents per share.
 The company expects to report its fiscal 1992 results around the middle of April. Also included in the results will be a gain from the sale of the company's North American Agriculture operations in December. As previously announced, the impact of the gain is expected to be reduced or offset by certain other charges, exclusive of post-retirement health benefits.
 Minneapolis-based International Multifoods Corp. is a diversified food company with major operations in the United States, Canada and Venezuela.
 -0- 4/2/92
 /CONTACT: Linda K. Berg (media), 612-340-3755 or Yolanda M. Scharton (investors), 612-340-3621, both of International Multifoods/
 (IMC) CO: International Multifoods Corp. ST: Minnesota IN: FOD SU:


AL -- MN005 -- 4205 04/02/92 08:51 EST
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Publication:PR Newswire
Date:Apr 2, 1992
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