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MULTIFOODS TO REPORT LOWER THIRD-QUARTER EARNINGS

 MINNEAPOLIS, Nov. 30 /PRNewswire/ -- International Multifoods Corp. (NYSE: IMC) today said that it anticipates net earnings for the third quarter, which ends today, to decline about $3 to $4 million from the $15.4 million reported a year ago. The company will report its third- quarter results in late December.
 Tony Luiso, Multifoods chairman, president and chief executive officer, attributed the decline in earnings primarily to weakness in Canadian Foods, which has been adversely affected by lower margins on rising wheat costs, pricing pressure and unfavorable currency comparisons.
 "The earnings decline in Canadian Foods is related to efforts to defend our leading market-share position in grain-based products," Luiso said. "In the near term, higher wheat costs are not being recovered through pricing, due to the continued competitive situation."
 The company also said that third-quarter results will be impacted by the continued sluggish economic environment in the United States and Canada, and the effects of currency differences in Venezuela, which reflect rising inflation and uncertainty regarding the presidential election in December.
 "We are underway with steps announced in the second quarter to reduce costs and enhance competitiveness as well as discussions on the sale of Prepared Foods," Luiso said.
 Earlier in the quarter, the company repurchased about 900,000 shares as part of its 2.5 million share buy-back program.
 Minneapolis-based Multifoods is a diversified food-processing and specialty distribution company with major operations in the United States, Canada and Venezuela.
 -0- 11/30/93
 /CONTACT: Wendy Patrick (media), 612-851-1688 or 612-340-3755; or Yolanda M. Scharton (investors), 612-340-3621, of International Multifoods/
 (IMC)


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

CP-xx -- MN015 -- 8900 11/30/93 16:35 EST
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Publication:PR Newswire
Date:Nov 30, 1993
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