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NOLAND COMPANY ANNOUNCES EARNINGS

 NOLAND COMPANY ANNOUNCES EARNINGS
 NEWPORT NEWS, Va., July 15 /PRNewswire/ -- Noland Company


(NASDAQ-NMS: NOLD) today reported net income of $654,000, or 17 cents per share, for the second quarter ending June 30 -- up from the year- earlier period's $26,000, or one cent per share.
 As previously reported, the wholesale distribution firm's sales for the second quarter were $107,261,000, 6.6 percent greater than the $100,578,000 recorded in the second quarter of 1991.
 For the first six months, Noland's sales were $202,334,000, eight percent ahead of the year-earlier period's $187,318,000. Net income for the six-month period totaled $859,000, or 23 cents per share, compared to a net loss of $813,000, or 22 cents per share, in the first half of 1991.
 Chairman and President Lloyd U. Noland III said second-quarter sales were aided by a modest recovery in housing construction, "With all of the company's four product departments participating in the gains (on an adjusted basis) to one degree or another. Our air conditioning and refrigeration department, in particular, achieved double-digit sales increases despite unusually co1ol weather in late spring in many parts of the South. Considering the sputtering nature of this recovery, we are pleased with our sales performance in the second quarter."
 The company's overall gross margin of profit on sales in the second quarter was below that of year-earlier levels, reflecting continued competitive pricing conditions. However, operating expenses declined slightly despite the larger sales volume, leading to an operating profit of $466,000 for the quarter. In the year-earlier period, the company had an operating loss of $422,000.
 Further enhancing second-quarter earnings was a ten percent reduction in interest expense, due entirely to lower interest rates. Total borrowings as of June 30 were $2.5 million more than those of the year-earlier date, reflecting the normal spring build-up in inventories for the summer peak-sales period.
 "Even so, our inventories rose at a more modest rate than did sales during the period," said Noland, "which translated into improved inventory turnover rates." Noland said he believed the company's inventories had peaked in May, "and we fully expect to continue to improve our 'turns' as we work off our stocks the remainder of this year."
 He added that the company's level of acounts receivable as of June 30 actually declined from a year ago, "thanks largely to a more- effective overall credit performance, including collections."
 Noland said the company remains guarded over the strength and duration of the economic recovery. "Commercial development is still in the doldrums in much of our trading area, and consumer confidence -- while improved over the beginning of this year -- is still quite weak.
 "Until we see clear and compelling evidence that the economy is going to experience sustained growth, we will continue to manage for tight business conditions."
 Noland has 92 branches in 13 southeastern states. The company distributes products in the plumbing, heating, electrical, air conditioning, refrigeration and industrial fields, as well as domestic water systems. The company's stock is traded over the counter, as part of NASDAQ's National Market System. Its trading symbol is NOLD.
 FINANCIAL HIGHLIGHTS
 For the Three Months
 Ended June 30 1992(A) 1991
 Merchandise Sales $107,261,092 $100,577,731
 Net Income $654,124 $25,527
 Earnings Per Share(B) $.17 $.01
 For the Six Months
 Ended June 30 1992(A) 1991
 Merchandise Sales $202,333,868 $187,317,873
 Net Income (loss) $859,484 ($813,145)
 Earnings (loss) Per Share (B) $.23 ($.22)
 (A) 1992 results have not been audited and are subject to yearend adjustments.
 (B) Based on 3,700,876 shares outstanding in both 1992 and 1991.
 -0- 7/15/92
 /CONTACT: John E. Gullett, Noland Company, 804-928-9000/
 (NOLD) CO: Noland Company ST: Virginia IN: SU: ERN


CM -- CH005 -- 9528 07/15/92 12:03 EDT
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Date:Jul 15, 1992
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