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MULTIFOODS REPORTS FIRST-QUARTER RESULTS; COMPANY POSTS EPS OF 33 CENTS FOR QUARTER, 6 PERCENT INCREASE OVER SAME PERIOD LAST YEAR

 MINNEAPOLIS, June 24 /PRNewswire/ -- International Multifoods Corp. (NYSE: IMC) today reported first-quarter net earnings of $6.4 million, or 33 cents per share, compared with net earnings of $6 million, or 31 cents per share, in the same period last year. The company's net earnings benefited from lower interest expense and an effective tax rate of 37 percent, compared with a 41 percent rate a year ago.
 Sales in the quarter ended May 31 improved nearly 2 percent to $555.8 million, up from $547.6 million a year earlier. Segment earnings were $13.4 million, compared with $14.6 million a year ago.
 "In the first quarter, we experienced increased sales in each of our three segments and achieved quarter-to-quarter earnings improvement in our U.S. Foodservice business," said Tony Luiso, chairman, president and chief executive officer. "At the same time, the Canadian Foods segment continues operating under pressure because of increased competition and an economy that is showing few signs of improvement.
 "We believe that slow economic growth will make the balance of the year challenging. However, as our attention remains focused on cost control and on meeting the needs of specific customer segments across each of our businesses, we will be better positioned to concentrate on the potential of our businesses," Luiso said.
 First-Quarter Fiscal 1994 Segment Results
 U.S. Foodservice. Sales for U.S. Foodservice were $425 million, up from $420.2 million in fiscal 1993. Earnings for the segment of $8.1 million represented an increase of 3 percent from first-quarter results last year.
 The quarter was characterized by improved margins in prepared foods, which benefited from lower ingredient costs and higher volume in some product lines.
 Canadian Foods. First-quarter sales in fiscal 1994 were $65.5 million, compared with $62.5 million a year earlier. Earnings for the segment were $0.5 million, compared with $1.4 million in the first quarter last year.
 Canadian Foods results reflect the impact of recessionary conditions in Canada, pricing pressures in the Canadian food industry, continued bakery flour competition and unfavorable currency comparisons.
 "We are actively reviewing our cost structure and are evaluating a number of steps to improve performance in this environment," Luiso said.
 He also noted that the performance of Gourmet Baker, a leading Canadian frozen baked goods company acquired last year, continues to exceed expectations.
 Venezuelan Foods. Sales in the first quarter were $65.3 million, a slight increase from $64.9 million a year earlier. Earnings for the company's Venezuelan Foods segment were $4.8 million, compared with $5.3 million in the first quarter of fiscal 1993.
 Earnings in Venezuelan Foods were impacted by lower margins in the animal feed business, partially offset by improved results in the consumer business.
 Minneapolis-based Multifoods, with annual sales of $2.2 billion, is a diversified food company with major operations in the United States, Canada and Venezuela.
 INTERNATIONAL MULTIFOODS CORPORATION
 CONSOLIDATED STATEMENTS OF EARNINGS
 (Unaudited)
 (in millions, except EPS)
 First Quarter Ended
 May 31
 FY 1994 FY 1993
 Net Sales $555.8 $547.6
 Cost of Sales (489.9) (483.0)
 Selling, General and Administrative (52.5) (50.0)
 Interest, net (2.9) (3.9)
 Corporate (0.6) (0.6)
 Earnings from Unconsolidated Affiliates 0.3 0.1
 Earnings Before Income Taxes 10.2 10.2
 Income Taxes (3.8) (4.2)
 Net Earnings $6.4 $6.0
 Net Earnings Per Share of Common Stock $0.33 $0.31
 Average Shares of Common Stock Outstanding 19.3 19.3
 INTERNATIONAL MULTIFOODS CORPORATION
 EARNINGS DIGEST
 (Unaudited)
 (in millions)
 FY 1994 - First Quarter Ended May 31
 Net Operating
 Sales Costs Total
 U.S. Foodservice $425.0 $(416.9) $8.1
 Canadian Foods 65.5 (65.0) 0.5
 Venezuelan Foods 65.3 (60.5) 4.8
 Total $555.8 $(542.4) $13.4
 Segment Earnings $ 13.4
 Interest, net (2.9)
 Corporate Unallocated (0.6)
 Earnings from Unconsolidated Affiliates 0.3
 Earnings Before Income Taxes $10.2
 FY 1993 - First Quarter Ended May 31
 Net Operating
 Sales Costs Total
 U.S. Foodservice $420.2 $(412.3) $7.9
 Canadian Foods 62.5 (61.1) 1.4
 Venezuelan Foods 64.9 (59.6) 5.3
 Total $547.6 $(533.0) $14.6
 Segment Earnings $14.6
 Interest, net (3.9)
 Corporate Unallocated (0.6)
 Earnings from Unconsolidated Affiliates 0.1
 Earnings Before Income Taxes $10.2
 -0- 6/24/93
 /CONTACT: Jill Schmidt (media) of Tunheim Santrizos, 612-851-1625 or 612-340-3755, for Multifoods; or Yolanda M. Scharton (investors) of Multifoods, 612-340-3621/
 (IMC)


CO: International Multifoods Corp. ST: Minnesota IN: FOD SU: ERN

AL -- MN003 -- 5153 06/24/93 08:20 EDT
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Date:Jun 24, 1993
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