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NOLAND COMPANY REPORTS THIRD-QUARTER RESULTS

 NOLAND COMPANY REPORTS THIRD-QUARTER RESULTS
 NEWPORT NEWS, Va., Oct. 13 /PRNewswire/ -- Noland Company


(NASDAQ-NMS: NOLD) today reported third-quarter net income of $1,188,000, or 32 cents per share -- $1 million more than the year- earlier period and the highest third-quarter earnings total since 1988.
 As previously reported, the wholesale distribution firm's sales for the third quarter (ending September 30) were $109,685,000, 6.4 percent greater than the $103,105,000 recorded in 1991's third quarter.
 For the first nine months of 1992, Noland's sales were $312,019,000, 7.4 percent ahead of the year-earlier period's $290,423,000. Net income for the nine-month period totaled $2,047,000, or 55 cents per share, compared to a loss of $631,300, or 17 cents per share, in the first nine months of 1991.
 Chairman Lloyd U. Noland III said the sharp improvement in third- quarter earnings was due to a combination of higher sales, better profit margins, and aggressive control of operating expenses. "Homebuilding activity continued to benefit from extremely low mortgage rates this summer, but commercial construction is in a tailspin. In light of the overall modest gains in our construction-related markets, we are pleased with our sales performance in the third quarter."
 The company's overall gross margin of profit on sales in the third quarter was somewhat higher than that of a year ago, and operating expenses were held to year-earlier levels. This resulted in an operating profit of $1,231,000, compared to an operating loss of $195,000 in 1991's third quarter.
 "Holding expenses to year-earlier levels wasn't easy," said Noland, "and took extraordinary efforts on the part of all members of the Noland
organization. But it has certainly paid big dividends in this sluggish economic environment."
 Interest expense declined 20.5 percent, due to lower interest rates and a reduction in the company's investment in accounts receivable. "Reducing accounts receivable in a period of rising sales is very satisfying," said Noland, "and reflects a renewed emphasis on effective management of this key trading asset." He added that inventories were somewhat higher than a year ago, in part because the company opened a branch in Greenville, N.C., on August 31. However, the company's inventory turnover rate continued to improve, he said.
 Noland said the strong third-quarter earnings made it clear that the company has recovered from its first unprofitable year since the Great Depression. However, he cautioned that year-to-date earnings are still well below the levels of the late 1980s, "and the economy may have lost in late summer what little momentum it had. Weak consumer confidence is the big stumbling block to recovery at the moment, and it's been declining for the past several months."
 Until consumers lessen their worries about jobs and begin spending again, said Noland, "we are in for more of the same sluggish business conditions we've seen all year, and we intend to continue to manage our business accordingly."
 Noland has 93 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 September 30 1992 (A) 1991
 Merchandise Sales $109,685,140 $103,104,678
 Net Income 1,187,650 181,865
 Earnings Per Share (B) $.32 $.05
 For the Nine Months
 Ended September 30 1992 (A) 1991
 Merchandise Sales $312,019,008 $290,422,551
 Net Income (loss) 2,047,134 (631,280)
 Earnings (loss) per Share (B) .55 (.17)
 (A) 1992 results have not been audited and are subject to year-end
 adjustments.
 (B) Based on 3,700,876 shares outstanding in both 1991 and 1992
 -0- 10/13/92
 /CONTACT: John E. Gullett, Noland Company, 804-928-9000/
 (NOLD) CO: Noland Company ST: Virginia IN: SU: ERN


SB-MM -- CH003 -- 9367 10/13/92 13:30 EDT
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Date:Oct 13, 1992
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