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OMC REPORTS FIRST QUARTER LOSS

 WAUKEGAN, Ill., Jan. 21 /PRNewswire/ -- Outboard Marine Corp. (OMC) (NYSE: OM) said today that cautious buying among its U.S. dealers, coupled with price competition and recessionary conditions in key international markets, contributed to reduced sales and a greater net loss in the company's 1993 first quarter. OMC usually incurs a loss in its first quarter, which ends Dec. 31, due to the seasonal nature of the marine products company's business.
 OMC reported a net loss of $18.9 million, or 96 cents per fully diluted share, on sales of $178.3 million for its 1993 first quarter. By comparison, the company reported a net loss of $17.8 million, or 92 cents per share, on sales of $193.2 million for the same quarter last year. OMC had an average of 19.8 million shares of common stock and common stock equivalents outstanding in its 1993 first quarter, compared with an average of 19.4 million shares of common stock outstanding in the same quarter last year.
 The company said its U.S. sales declined nearly five percent in this year's first quarter compared to last year's, due primarily to dealer reluctance to build inventories and new model-year sales incentive programs that moved some sales into the prior quarter.
 OMC's sales outside the U.S. declined nearly 15 percent in the 1993 first quarter compared to the same quarter last year. The company attributes its non-U.S. sales reduction primarily to intense price competition in its international outboard markets and recessionary conditions in some of its most important European markets.
 "In spite of our first quarter results, we fully expect to have improved financial performance for fiscal 1993 compared to fiscal 1992," said OMC Chairman, President and Chief Executive Officer James C. Chapman. "We believe that economic growth in the U.S. will help increase our domestic sales for our full 1993 fiscal year, although we do expect to have to continue to deal with difficult conditions in our international markets."
 At its Jan. 21 meeting, OMC's board of directors declared a cash dividend of 10 cents per share for the 1993 first quarter, payable Feb. 26, 1993, to shareholders of record Feb. 12, 1993.
 Outboard Marine Corp. is a leading international marketer of marine engines, boats, accessories and services.
 OUTBOARD MARINE CORP.
 1993 FIRST QUARTER FINANCIAL HIGHLIGHTS
 (In millions except per share data)
 Three months ended Dec. 31, 1992 1991
 Net sales $178.3 $193.2
 Gross earnings 19.8 30.7
 Loss from operations (28.3) (14.9)
 Loss before income taxes (32.6) (20.7)
 Net loss $(18.9) $(17.8)
 PER SHARE (A):
 Primary $ (.96) $ (.92)
 Fully diluted $ (.96) $ (.92)
 Average shares of common
 stock and common stock
 equivalents outstanding 19.8 19.4
 (A) Computed on average number of shares and common stock equivalents outstanding in respective periods.
 -0- 1/21/93
 /CONTACT: Wayne E. Jones, vice president, strategic planning & investor relations of OMC, 708-689-5246/
 (OM)


CO: Outboard Marine Corp. ST: Illinois IN: LEI SU: ERN

SM -- NY040 -- 7377 01/21/93 11:44 EST
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Publication:PR Newswire
Date:Jan 21, 1993
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