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OMC REPORTS SECOND QUARTER EARNINGS, DIVIDENDS

 OMC REPORTS SECOND QUARTER EARNINGS, DIVIDENDS
 WAUKEGAN, Ill., April 23 /PRNewswire/ -- Outboard Marine Corp. (OMC)


(NYSE: OM) today announced its first net earnings in the past 10 quarters. The net earnings were achieved on increased sales for OMC's 1992 second quarter, which ended March 31.
 The marine products manufacturer's performance has been depressed by the three-year industrywide recession in the U.S. marine products market as well recessionary conditions in some international markets.
 "Cost reduction programs that we began to implement in 1990, and that have been improving our operating performance for the past four quarters, played a critical role in putting us into the black in the March quarter," said OMC President and Chief Executive Officer James C. Chapman. "Our dramatic earnings improvement for the quarter testifies to the value of these programs and the commitment of the employees who implemented them," Chapman said.
 OMC reported before-tax earnings of $6.6 million for its second quarter, compared to a before-tax loss of $29.5 million for the same quarter last year. However, the company said its net earnings for the recently completed quarter were depressed by a higher than normal income tax provision resulting primarily from the tax impact of losses incurred by some OMC operations outside the U.S. As a result, OMC posted net earnings of $1.8 million, or 10 cents per share, for its 1992 second quarter compared with a net loss of $22.6 million, or $1.17 per share, for last year's second quarter.
 The company's second-quarter sales increased to $263.7 million from $234.4 million for the second quarter of 1991. Domestic sales increased nearly 20 percent, while international sales were approximately flat.
 The sales improvement for the March quarter, coupled with almost flat production costs and an 8 percent reduction in selling, general and administrative expenses, produced operating earnings of $12 million for the period, compared with an operating loss of $20.4 million for the same quarter last year.
 For the first six months of fiscal 1992, OMC incurred a net loss of $16 million, or 82 cents per share, compared to a net loss of $45.2 million, or $2.33 per share, for he first half of 1991. Sales for the first half of this year increased 4 percent to $456.9 million from $439.5 million for the same period last year. Domestic sales increased 6 percent, while international sales decreased 1 percent.
 The company also announced that, in January 1993, Chapman will succeed Charles D. Strang as chairman of OMC's board of directors. During his outstanding career with OMC, Strang has served as a director on the company's board for 21 years and as chairman of 10 years. In January 1993, Strang will stand for reelection as a member of the board. He will continue in his current position as chairman of the board's corporate policy committee.
 Outboard Marine Corp. is a leading international marketer of marine engines, boats, accessories and services.
 OUTBOARD MARINE CORPORATION
 1992 Second Quarter Financial Highlights
 (In Millions except per share data)
 THREE MONTHS ENDED SIX MONTHS ENDED
 March 31 March 31
 1992 1991 1992 1991
 Net Sales $263.7 $234.4 $456.9 $439.5
 Gross Earnings 64.7 36.7 95.4 64.7
 Earnings (loss) from
 Operations 12.0 (20.4) (2.9) (43.3)
 Earnings (loss) before Income
 Taxes and Extraordinary
 Income 6.6 (29.5) (14.1) (58.5)
 Net Earnings (loss) before
 Extraordinary Income .8 (23.6) (16.0) (46.8)
 Extraordinary Income, Early
 Extinguishment of Debt --- 1.0 --- 1.6
 Net Earnings (loss) $ 1.8 $(22.6) $(16.0) $(45.2)
 Per Share(A):
 Before Extraordinary
 Income $ .10 $(1.22) $(.82) $(2.41)
 Extraordinary Income --- .05 --- .08
 Net Loss $ .10 $(1.17) $(.82) $(2.33)
 Average Number of Shares
 Outstanding 19.4 19.4 19.4 19.4
 (A) -- Computed on average number of shares outstanding in respective periods.
 -0- 4/23/92
 /CONTACT: Wayne E. Jones, vice president, strategic planning and investor relations of OMC, 708-689-5246/
 (OM) CO: Outboard Marine Corp. ST: Illinois IN: HOU SU: ERN


PS -- NY148 -- 2242 04/23/92 20:17 EDT
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Date:Apr 23, 1992
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